N.Y. Tax Law § 697: General powers of tax commission

§ 697. General powers of tax commission.--(a) General.--The tax

commission shall administer and enforce the tax imposed by this article

and it is authorized to make such rules and regulations, and to require

such facts and information to be reported, as it may deem necessary to

enforce the provisions of this article. The tax commission may divide

the state into districts in each of which a branch office may be

maintained by it, but in no case shall a county be divided in forming a

district.

(b) Examination of books and witnesses.--(1) The tax commission for

the purpose of ascertaining the correctness of any return, or for the

purpose of making an estimate of taxable income of any person, shall

have power to examine or to cause to have examined, by any agent or

representative designated by it for that purpose, any books, papers,

records or memoranda bearing upon the matters required to be included in

the return, and may require the attendance of the person rendering the

return or any officer or employee of such person, or the attendance of

any other person having knowledge in the premises, and may take

testimony and require proof material for its information, with power to

administer oaths to such person or persons.

(2) The tax commission may take any action under paragraph one of this

subdivision to inquire into the commission of an offense connected with

the administration or enforcement of this article, provided, however,

that notwithstanding the provisions of section one hundred seventy-four

of this chapter no such action shall be taken when a referral by the

department or the tax commission to the attorney general, a district

attorney or any other prosecutorial agency is in effect. Provided,

however, the tax commission shall have power, during the period when

such referral is in effect, to examine or to cause to have examined, by

any agent or representative designated by it for that purpose, any

books, papers, records or memoranda bearing upon the matters required to

be included in the return, where such books, papers, records or

memoranda are in its possession, or where such books, papers, records or

memoranda are in the possession of the attorney general, district

attorney or other prosecutorial agency to which such referral is made.

(c) Abatement authority.--The tax commission, of its own motion, may

abate any small unpaid balance of an assessment of income tax, or any

liability in respect thereof, if the tax commission determines under

uniform rules prescribed by it that the administration and collection

costs involved would not warrant collection of the amount due. It may

also abate, of its own motion, the unpaid portion of the assessment of

any tax or any liability in respect thereof, which is excessive in

amount, or is assessed after the expiration of the period of limitation

properly applicable thereto, or is erroneously or illegally assessed. No

claim for abatement under this subsection shall be filed by a taxpayer.

(d) Special refund authority.--Where no questions of fact or law are

involved and it appears from the records of the tax commission that any

moneys have been erroneously or illegally collected from any taxpayer or

other person, or paid by such taxpayer or other person under a mistake

of facts, pursuant to the provisions of this article, the tax commission

at any time, without regard to any period of limitations, shall have the

power, upon making a record of its reasons therefor in writing, to cause

such moneys so paid and being erroneously and illegally held to be

refunded and to issue therefor its certificate to the comptroller.

(e) Secrecy requirement and penalties for violation.--(1) Except in

accordance with proper judicial order or as otherwise provided by law,

it shall be unlawful for the commissioner, any officer or employee of

the department, any person engaged or retained by such department on an

independent contract basis, any depositary to which any return may be

delivered as provided in subsection (h) or (i) of this section, any

officer or employee of such depositary, or any person who, pursuant to

this section, is permitted to inspect any report or return or to whom a

copy, an abstract or a portion of any report or return is furnished, or

to whom any information contained in any report or return is furnished,

to divulge or make known in any manner the amount of income or any

particulars set forth or disclosed in any report or return required

under this article, under section one hundred seventy-one-a or section

one hundred seventy-one-h of this chapter, or under this article and

article eighteen of the labor law.

(2) The officers charged with the custody of such reports and returns

shall not be required to produce any of them or evidence of anything

contained in them in any action or proceeding in any court, except on

behalf of the commissioner in an action or proceeding under the

provisions of this chapter or in any other action or proceeding

involving the collection of a tax due under this chapter to which the

state or the commissioner is a party or a claimant, or on behalf of any

party to any action or proceeding under the provisions of this article,

or under the provisions of this article and article eighteen of the

labor law, when the reports, returns or facts shown thereby are directly

involved in such action or proceeding, in any of which events the court

may require the production of, and may admit in evidence, so much of

said reports, returns or of the facts shown thereby, as are pertinent to

the action or proceeding and no more. The commissioner may,

nevertheless, publish a copy or a summary of any decision rendered after

the hearing required under section six hundred eighty-nine of this

article.

(3) Nothing herein shall be construed to prohibit the department, its

officers or employees from furnishing information to the office of

temporary and disability assistance relating to the payment of the

credit for certain household and dependent care services necessary for

gainful employment under subsection (c) of section six hundred six of

this article, the New York state child and dependent care credit under

subsection (c-2) of section six hundred six of this article, and the

earned income credit under subsection (d) of section six hundred six of

this article and the enhanced earned income credit under subsection

(d-1) of section six hundred six of this article, or pursuant to a local

law enacted by a city having a population of one million or more

pursuant to subsection (f) of section thirteen hundred ten of this

chapter, only to the extent necessary to calculate qualified state

expenditures under paragraph seven of subdivision (a) of section four

hundred nine of the federal social security act or to document the

proper expenditure of federal temporary assistance for needy families

funds under section four hundred three of such act. The office of

temporary and disability assistance may redisclose such information to

the United States department of health and human services only to the

extent necessary to calculate such qualified state expenditures or to

document the proper expenditure of such federal temporary assistance for

needy families funds. Nothing herein shall be construed to prohibit the

delivery by the commissioner to a commissioner of jurors, appointed

pursuant to section five hundred four of the judiciary law, or, in

counties within cities having a population of one million or more, to

the county clerk of such county, or to the clerk of the court or jury

administrator of a United States district court appointed pursuant to

title twenty-eight of the United States Code, section 1836(b)(2), of a

mailing list of individuals to whom income tax forms are mailed by the

commissioner for the sole purpose of compiling a list of prospective

jurors as provided in article sixteen of the judiciary law or title

twenty-eight of the United States Code. Provided, however, such delivery

shall only be made pursuant to an order of the chief administrator of

the courts, appointed pursuant to section two hundred ten of the

judiciary law or an order of a chief judge of any United States district

court in New York State. No such order may be issued unless such chief

administrator or chief judge of such United States district court is

satisfied that such mailing list is needed to compile a proper list of

prospective jurors for the county or such United States district court

for which such order is sought and that, in view of the responsibilities

imposed by the various laws of the state on the department, it is

reasonable to require the commissioner to furnish such list. Such order

shall provide that such list shall be used for the sole purpose of

compiling a list of prospective jurors and that such commissioner of

jurors, or such county clerk, or clerk of the court or jury

administrator of such United States district court shall take all

necessary steps to insure that the list is kept confidential and that

there is no unauthorized use or disclosure of such list. Furthermore,

nothing herein shall be construed to prohibit the delivery to a taxpayer

or their duly authorized representative of a certified copy of any

return or report filed in connection with their tax or to prohibit the

publication of statistics so classified as to prevent the identification

of particular reports or returns and the items thereof, or the

inspection by the attorney general or other legal representatives of the

state of the report or return of any taxpayer or of any employer filed

under section one hundred seventy-one-h of this chapter, where such

taxpayer or employer shall bring action to set aside or review the tax

based thereon, or against whom an action or proceeding under this

chapter or under this chapter and article eighteen of the labor law has

been recommended by the commissioner, the commissioner of labor with

respect to unemployment insurance matters, or the attorney general or

has been instituted, or the inspection of the reports or returns

required under this article by the comptroller or duly designated

officer or employee of the state department of audit and control, for

purposes of the audit of a refund of any tax paid by a taxpayer under

this article, or the furnishing to the state department of labor of

unemployment insurance information obtained or derived from quarterly

combined withholding, wage reporting and unemployment insurance returns

required to be filed by employers pursuant to paragraph four of

subsection (a) of section six hundred seventy-four of this article, for

purposes of administration of such department's unemployment insurance

program, employment services program, federal and state employment and

training programs, employment statistics and labor market information

programs, worker protection programs, federal programs for which the

department has administrative responsibility or for other purposes

deemed appropriate by the commissioner of labor consistent with the

provisions of the labor law, and redisclosure of such information in

accordance with the provisions of sections five hundred thirty-six and

five hundred thirty-seven of the labor law or any other applicable law,

or the furnishing to the state office of temporary and disability

assistance of information obtained or derived from New York state

personal income tax returns as described in paragraph (b) of subdivision

two of section one hundred seventy-one-g of this chapter for the purpose

of reviewing support orders enforced pursuant to title six-A of article

three of the social services law to aid in the determination of whether

such orders should be adjusted, or the furnishing of information

obtained from the reports required to be submitted by employers

regarding newly hired or re-hired employees pursuant to section one

hundred seventy-one-h of this chapter to the state office of temporary

and disability assistance, the state department of health, the state

department of labor and the workers' compensation board for purposes of

administration of the child support enforcement program, verification of

individuals' eligibility for one or more of the programs specified in

subsection (b) of section eleven hundred thirty-seven of the federal

social security act and for other public assistance programs authorized

by state law, and administration of the state's employment security and

workers' compensation programs, and to the national directory of new

hires established pursuant to section four hundred fifty-three-A of the

federal social security act for the purposes specified in such section,

or the furnishing to the state office of temporary and disability

assistance of the amount of an overpayment of income tax and interest

thereon certified to the comptroller to be credited against past-due

support pursuant to section one hundred seventy-one-c of this chapter

and of the name and social security number of the taxpayer who made such

overpayment, or the disclosing to the commissioner of finance of the

city of New York, pursuant to section one hundred seventy-one-l of this

chapter, of the amount of an overpayment and interest thereon certified

to the comptroller to be credited against a city of New York tax warrant

judgment debt and of the name and social security number of the taxpayer

who made such overpayment, or the furnishing to the New York state

higher education services corporation of the amount of an overpayment of

income tax and interest thereon certified to the comptroller to be

credited against the amount of a default in repayment of any education

loan debt, including judgments, owed to the federal or New York state

government that is being collected by the New York state higher

education services corporation, and of the name and social security

number of the taxpayer who made such overpayment, or the furnishing to

the state department of health of the information required by paragraph

(f) of subdivision two and subdivision two-a of section two thousand

five hundred eleven of the public health law and by subdivision eight of

section three hundred sixty-six-a of the social services law, or the

furnishing to the state university of New York or the city university of

New York respectively or the attorney general on behalf of such state or

city university the amount of an overpayment of income tax and interest

thereon certified to the comptroller to be credited against the amount

of a default in repayment of a state university loan pursuant to section

one hundred seventy-one-e of this chapter and of the name and social

security number of the taxpayer who made such overpayment, or the

disclosing to a state agency, pursuant to section one hundred

seventy-one-f of this chapter, of the amount of an overpayment and

interest thereon certified to the comptroller to be credited against a

past-due legally enforceable debt owed to such agency and of the name

and social security number of the taxpayer who made such overpayment, or

the furnishing of employee and employer information obtained through the

wage reporting system, pursuant to section one hundred seventy-one-a of

this chapter, as added by chapter five hundred forty-five of the laws of

nineteen hundred seventy-eight, to the state office of temporary and

disability assistance, the department of health or to the state office

of the medicaid inspector general for the purpose of verifying

eligibility for and entitlement to amounts of benefits under the social

services law or similar law of another jurisdiction, locating absent

parents or other persons legally responsible for the support of

applicants for or recipients of public assistance and care under the

social services law and persons legally responsible for the support of a

recipient of services under section one hundred eleven-g of the social

services law and, in appropriate cases, establishing support obligations

pursuant to the social services law and the family court act or similar

provision of law of another jurisdiction for the purpose of evaluating

the effect on earnings of participation in employment, training or other

programs designed to promote self-sufficiency authorized pursuant to the

social services law by current recipients of public assistance and care

and by former applicants and recipients of public assistance and care,

(except that with regard to former recipients, information which relates

to a particular former recipient shall be provided with client

identifying data deleted), to the state office of temporary and

disability assistance for the purpose of determining the eligibility of

any child in the custody, care and custody or custody and guardianship

of a local social services district or of the office of children and

family services for federal payments for foster care and adoption

assistance pursuant to the provisions of title IV-E of the federal

social security act by providing information with respect to the

parents, the stepparents, the child and the siblings of the child who

were living in the same household as such child during the month that

the court proceedings leading to the child's removal from the household

were initiated, or the written instrument transferring care and custody

of the child pursuant to the provisions of section three hundred

fifty-eight-a or three hundred eighty-four-a of the social services law

was signed, provided however that the office of temporary and disability

assistance shall only use the information obtained pursuant to this

subdivision for the purpose of determining the eligibility of such child

for federal payments for foster care and adoption assistance pursuant to

the provisions of title IV-E of the federal social security act, and to

the state department of labor, or other individuals designated by the

commissioner of labor, for the purpose of the administration of such

department's unemployment insurance program, employment services

program, federal and state employment and training programs, employment

statistics and labor market information programs, worker protection

programs, federal programs for which the department has administrative

responsibility or for other purposes deemed appropriate by the

commissioner of labor consistent with the provisions of the labor law,

and redisclosure of such information in accordance with the provisions

of sections five hundred thirty-six and five hundred thirty-seven of the

labor law, or the furnishing of information, which is obtained from the

wage reporting system operated pursuant to section one hundred

seventy-one-a of this chapter, as added by chapter five hundred

forty-five of the laws of nineteen hundred seventy-eight, to the state

office of temporary and disability assistance so that it may furnish

such information to public agencies of other jurisdictions with which

the state office of temporary and disability assistance has an agreement

pursuant to paragraph (h) or (i) of subdivision three of section twenty

of the social services law, and to the state office of temporary and

disability assistance for the purpose of fulfilling obligations and

responsibilities otherwise incumbent upon the state department of labor,

under section one hundred twenty-four of the federal family support act

of nineteen hundred eighty-eight, by giving the federal parent locator

service, maintained by the federal department of health and human

services, prompt access to such information as required by such act, or

to the state department of health to verify eligibility under the child

health insurance plan pursuant to subdivisions two and two-a of section

two thousand five hundred eleven of the public health law, to verify

eligibility under the medical assistance and family health plus programs

pursuant to subdivision eight of section three hundred sixty-six-a of

the social services law, and to verify eligibility for the program for

elderly pharmaceutical insurance coverage under title three of article

two of the elder law, or to the office of vocational and educational

services for individuals with disabilities of the education department,

the commission for the blind and any other state vocational

rehabilitation agency, for purposes of obtaining reimbursement from the

federal social security administration for expenditures made by such

office, commission or agency on behalf of disabled individuals who have

achieved economic self-sufficiency or to the higher education services

corporation for the purpose of assisting the corporation in default

prevention and default collection of education loan debt, including

judgments, owed to the federal or New York state government; provided,

however, that such information shall be limited to the names, social

security numbers, home and/or business addresses, and employer names of

defaulted or delinquent student loan borrowers, or to the office of the

state comptroller for purposes of verifying the income of a retired

member of a retirement system or pension plan administered by the state

or any of its political subdivisions who returns to public employment.

Provided, however, that with respect to employee information the

office of temporary and disability assistance shall only be furnished

with the names, social security account numbers and gross wages of those

employees who are (A) applicants for or recipients of benefits under the

social services law, or similar provision of law of another jurisdiction

(pursuant to an agreement under subdivision three of section twenty of

the social services law) or, (B) absent parents or other persons legally

responsible for the support of applicants for or recipients of public

assistance and care under the social services law or similar provision

of law of another jurisdiction (pursuant to an agreement under

subdivision three of section twenty of the social services law), or (C)

persons legally responsible for the support of a recipient of services

under section one hundred eleven-g of the social services law or similar

provision of law of another jurisdiction (pursuant to an agreement under

subdivision three of section twenty of the social services law), or (D)

employees about whom wage reporting system information is being

furnished to public agencies of other jurisdictions, with which the

state office of temporary and disability assistance has an agreement

pursuant to paragraph (h) or (i) of subdivision three of section twenty

of the social services law, or (E) employees about whom wage reporting

system information is being furnished to the federal parent locator

service, maintained by the federal department of health and human

services, for the purpose of enabling the state office of temporary and

disability assistance to fulfill obligations and responsibilities

otherwise incumbent upon the state department of labor, under section

one hundred twenty-four of the federal family support act of nineteen

hundred eighty-eight, and, only if, the office of temporary and

disability assistance certifies to the commissioner that such persons

are such applicants, recipients, absent parents or persons legally

responsible for support or persons about whom information has been

requested by a public agency of another jurisdiction or by the federal

parent locator service and further certifies that in the case of

information requested under agreements with other jurisdictions entered

into pursuant to subdivision three of section twenty of the social

services law, that such request is in compliance with any applicable

federal law. Provided, further, that where the office of temporary and

disability assistance requests employee information for the purpose of

evaluating the effects on earnings of participation in employment,

training or other programs designed to promote self-sufficiency

authorized pursuant to the social services law, the office of temporary

and disability assistance shall only be furnished with the quarterly

gross wages (excluding any reference to the name, social security number

or any other information which could be used to identify any employee or

the name or identification number of any employer) paid to employees who

are former applicants for or recipients of public assistance and care

and who are so certified to the commissioner by the commissioner of the

office of temporary and disability assistance. Provided, further, that

with respect to employee information, the department of health shall

only be furnished with the information required pursuant to the

provisions of paragraph (f) of subdivision two and subdivision two-a of

section two thousand five hundred eleven of the public health law and

subdivision eight of section three hundred sixty-six-a of the social

services law, with respect to those individuals whose eligibility under

the child health insurance plan, medical assistance program, and family

health plus program is to be determined pursuant to such provisions and

with respect to those members of any such individual's household whose

income affects such individual's eligibility and who are so certified to

the commissioner or by the department of health. Provided, further, that

wage reporting information shall be furnished to the office of

vocational and educational services for individuals with disabilities of

the education department, the commission for the blind and any other

state vocational rehabilitation agency only if such office, commission

or agency, as applicable, certifies to the commissioner that such

information is necessary to obtain reimbursement from the federal social

security administration for expenditures made on behalf of disabled

individuals who have achieved self-sufficiency. Reports and returns

shall be preserved for three years and thereafter until the commissioner

orders them to be destroyed.

(3-a) Notwithstanding the provisions of paragraph one of this

subsection, the commissioner may disclose to a taxpayer or a taxpayer's

related member, as defined in subsection (r) of section six hundred

twelve of this article, information relating to any royalty paid,

incurred or received by such taxpayer or related member to or from the

other, including the treatment of such payments by the taxpayer or the

related member in any report or return transmitted to the commissioner

under this chapter.

(4) (A) Any officer or employee of the state who willfully violates

the provisions of this subsection shall be dismissed from office and be

incapable of holding any public office in this state for a period of

five years thereafter.

(B) Cross-reference: For criminal penalties, see article thirty-seven

of this chapter.

(f) Cooperation with the United States and other states.--

Notwithstanding the provisions of subsection (e), the tax commission may

permit the secretary of the treasury of the United States or his

delegates, or the proper tax officer of any state imposing an income tax

upon the incomes of individuals, or the authorized representative of

either such officer, to inspect any return filed under this article, or

may furnish to such officer or his authorized representative an abstract

of any such return or supply him with information concerning an item

contained in any such return, or disclosed by any investigation of tax

liability under this article, but such permission shall be granted or

such information furnished to such officer or his representative only if

the laws of the United States or of such other state, as the case may

be, grant substantially similar privileges to the commission or officer

of this state charged with the administration of the tax imposed by this

article and such information is to be used for tax purposes only; and

provided further the commissioner of taxation and finance may furnish to

the commissioner of internal revenue or his authorized representative

such returns filed under this article and other tax information, as he

may consider proper, for use in court actions or proceedings under the

internal revenue code, whether civil or criminal, where a written

request therefor has been made to the commissioner of taxation and

finance by the secretary of the treasury of the United States or his

delegates, provided the laws of the United States grant substantially

similar powers to the secretary of the treasury of the United States or

his delegates. Where the commissioner of taxation and finance has so

authorized use of returns and other information in such actions or

proceedings, officers and employees of the department of taxation and

finance may testify in such actions or proceedings in respect to such

returns or other information.

(f-1) Cooperation with investigations by certain committees of the

United States Congress.--(1) Notwithstanding the provisions of

subsection (e) of this section, upon written request from the

chairperson of the committee on ways and means of the United States

House of Representatives, the chairperson of the committee on finance of

the United States Senate, or the chairperson of the joint committee on

taxation of the United States Congress, the commissioner shall furnish

such committee with any current or prior year reports or returns

specified in such request that were filed under this article by the

president of the United States, vice-president of the United States,

member of the United States Congress representing New York state, or any

person who served in or was employed by the executive branch of the

government of the United States on the executive staff of the president,

in the executive office of the president, or in an acting or confirmed

capacity in a position subject to confirmation by the United States

senate; or, in New York state: a statewide elected official, as defined

in paragraph (a) of subdivision one of section seventy-three-a of the

public officers law; a state officer or employee, as defined in

subparagraph (i) of paragraph (c) of subdivision one of such section

seventy-three-a; a political party chairperson, as defined in paragraph

(h) of subdivision one of such section seventy-three-a; a local elected

official, as defined in subdivisions one and two of section eight

hundred ten of the general municipal law; a person appointed, pursuant

to law, to serve due to vacancy or otherwise in the position of a local

elected official, as defined in subdivisions one and two of section

eight hundred ten of the general municipal law; a member of the state

legislature; or a judge or justice of the unified court system; provided

however that, prior to furnishing any report or return, the commissioner

shall redact any copy of a federal return (or portion thereof) attached

to, or any information on a federal return that is reflected on, such

report or return, and any social security numbers, account numbers and

residential address information.

(2) No reports or returns shall be furnished pursuant to this

subsection unless the chairperson of the requesting committee certifies

in writing that such reports or returns have been requested related to,

and in furtherance of, a legitimate task of the Congress, that the

requesting committee has made a written request to the United States

secretary of the treasury for related federal returns or return

information, pursuant to 26 U.S.C. Section 6103(f), and that if such

requested reports or returns are inspected by and/or submitted to

another committee, to the United States House of Representatives, or to

the United States Senate, then such inspection and/or submission shall

occur in a manner consistent with federal law as informed by the

requirements and procedures established in 26 U.S.C. Section 6103(f).

(g) Cooperation with the cities of the state of New York.

Notwithstanding the provisions of subsection (e), the tax commission may

permit the proper city officer of any city of the state of New York

imposing a personal income tax upon the incomes of residents, or an

unincorporated business income tax, or an earnings tax on nonresidents,

or the authorized representative of any such officer, to inspect any

return filed under this article, or article twenty-three (as such

article was in effect on or before December thirtieth, nineteen hundred

eighty-two), or may furnish to such officer or his authorized

representative an abstract of any such return or supply him with

information concerning an item contained in any such return, or

disclosed by any investigation of tax liability under this article or

article twenty-three (as such article was in effect on or before

December thirtieth, nineteen hundred eighty-two), but such permission

shall be granted or such information furnished to such officer or his

representative only if the local laws of such city grant substantially

similar privileges to the commission or officer of this state charged

with the administration of the tax imposed by this article and such

information is to be used for tax purposes only; and provided further

the commissioner of taxation and finance may furnish to such city

officer or the legal representative of such city such returns filed

under this article or article twenty-three (as such article was in

effect on or before December thirtieth, nineteen hundred eighty-two) and

other tax information, as he may consider proper, for use in court

actions or proceedings under such local law, whether civil or criminal,

where a written request therefor has been made to the commissioner of

taxation and finance by such city officer or his delegate, provided the

local law of such city grants substantially similar powers to such city

officer or his delegate. Where the commissioner of taxation and finance

has so authorized use of returns and other information in such actions

or proceedings, officers and employees of the department of taxation and

finance may testify in such actions or proceedings in respect to such

returns or other information.

(h) Withholding returns.--Notwithstanding the provisions of subsection

(e) of this section the tax commission in its discretion, when making

deposits, pursuant to section six hundred ninety-eight, of taxes

withheld by employers, may deliver to the depositary the withholding

returns filed by such employers as provided in section six hundred

seventy-four, for the purpose of insuring that all money so deposited

shall be correctly credited to taxpayers' accounts.

(i) Filing returns and making payments to depository banks.--

Notwithstanding the provisions of subsection (e) of this section, the

tax commission, in its discretion, may require or permit any or all

individuals, estates or trusts liable for any tax imposed by this

article, to make payments on account of estimated tax and payment of any

tax, penalty or interest imposed by this article to banks, banking

houses or trust companies designated by the tax commission and to file

reports and returns which such banks, banking houses or trust companies

as agents of the tax commission, in lieu of making any such payment to

the tax commission. However, the tax commission shall designate only

such banks, banking houses or trust companies as are or shall be

designated by the comptroller as depositories pursuant to section six

hundred ninety-eight.

(j) Authority to set interest rates.--(1) The commissioner shall set

the overpayment and underpayment rates of interest to be paid pursuant

to sections six hundred eighty-four, six hundred eighty-five and six

hundred eighty-eight of this part, but if no such rates of interest are

set, such overpayment rate shall be deemed to be set at six percent per

annum and such underpayment rate shall be deemed to be set at seven and

one-half percent per annum. Such rates shall be the rates prescribed in

paragraphs two and four of this subsection, but the underpayment rate

shall not be less than seven and one-half percent per annum. Any such

rates set by the commissioner shall apply to taxes, or any portion

thereof, which remain or become due or overpaid on or after the date on

which such rates become effective and shall apply only with respect to

interest computed or computable for periods or portions of periods

occurring in the period during which such rates are in effect.

(2) Rates of interest. (A) Overpayment rate. The overpayment rate of

interest set under this subsection shall be the sum of (i) the federal

short-term rate as provided under paragraph three of this subsection,

plus (ii) two percentage points.

(B) Underpayment rate. The underpayment rate of interest set under

this subsection shall be the sum of (i) the federal short-term rate as

provided under paragraph three of this subsection, plus (ii) five and

one-half percentage points.

(3) Federal short-term rate. For purposes of this subsection:

(A) The federal short-term rate for any month shall be the federal

short-term rate determined by the United States secretary of the

treasury during such month in accordance with subsection (d) of section

twelve hundred seventy-four of the internal revenue code for use in

connection with section six thousand six hundred twenty-one of the

internal revenue code. Any such rate shall be rounded to the nearest

full percent (or, if a multiple of one-half of one percent, such rate

shall be increased to the next highest full percent).

(B) Period during which rate applies.

(i) In general. Except as provided in clauses (ii) and (iii) of this

subparagraph, the federal short-term rate for the first month in each

calendar quarter shall apply during the first calendar quarter beginning

after such month.

(ii) Special rule for individual estimated tax. In determining the

addition to tax under subsection (c) of section six hundred eighty-five

for failure to pay estimated tax for any taxable year, the federal

short-term rate which applies during the third month following the

taxable year shall also apply during the first fifteen days of the

fourth month following such taxable year.

(iii) Special rule for the month of September, nineteen hundred

eighty-nine. The federal short-term rate for the month of April,

nineteen hundred eighty-nine shall apply with respect to setting the

rate of interest for the month of September, nineteen hundred

eighty-nine.

(4) Notwithstanding the provisions of paragraph two of this subsection

to the contrary, in the case of interest payable by an employer with

respect to income taxes required to be withheld and paid over by him

pursuant to the provisions of part five of this article and with respect

to interest payable to an employer pursuant to subsection (c) of section

six hundred eighty-six, the rates of interest prescribed by this section

shall be the overpayment and underpayment rates of interest prescribed

in paragraph two of subsection (e) of section one thousand ninety-six of

this chapter.

(5) In computing the amount of any interest required to be paid under

this article by the commissioner of taxation and finance or by the

taxpayer, or any other amount determined by reference to such amount of

interest, such interest and such amount shall be compounded daily. The

preceding sentence shall not apply for purposes of computing the amount

of any addition to tax for failure to pay estimated tax under subsection

(c) of section six hundred eighty-five.

(6) Publication of interest rates. The commissioner of taxation and

finance shall publish the interest rates set under this subsection on

the website of the department of taxation and finance. Immediately

following such publication, the commissioner shall cause such interest

rates to be published in the section for miscellaneous notices in the

state register and give other appropriate general notice of such

interest rates. The setting and publication of such interest rates shall

not be included within paragraph (a) of subdivision two of section one

hundred two of the state administrative procedure act relating to the

definition of a rule.

(7) Cross-reference. For provisions relating to the power of the

commissioner of taxation and finance to abate small amounts of interest,

see subsection (c) of this section.

(k) (1) For school aid payable in the school years nineteen hundred

eighty-five--eighty-six through nineteen hundred

ninety-three--ninety-four, notwithstanding the provisions of subsection

(e) of this section, the department or authorized vendor contracted by

the department shall furnish, as required pursuant to subdivision

twenty-fifth of section one hundred seventy-one of this chapter, to the

commissioner of education and school district superintendents of

identified school districts and district superintendents appointed

pursuant to section nineteen hundred fifty of the education law, having

an identified school district within their supervisory district, an

ordered listing, for such identified school districts participating in

the temporary school district address review validation and correction

process, of the permanent resident address of each taxpayer who has

filed a personal income tax return with the department with a school

district code which indicates that the taxpayer is a resident of such

school district at the close of the taxable year for which the return

was filed.

(2) For school aid payable in school years nineteen hundred

eighty-eight--eighty-nine through nineteen hundred

ninety-three--ninety-four, notwithstanding the provisions of subsection

(e) of this section, a receiver school district may review the ordered

listing wherein an identified school district that participated in the

temporary school district address review validation and correction

process identified personal income tax returns as belonging to such

receiver district. The information provided to a receiving district

pursuant to this subdivision and subdivision twenty-fifth of section one

hundred seventy-one of this chapter shall be used solely for the purpose

of verifying the legal residence and school district of a taxpayer whose

return was identified as belonging to a receiver school district by an

identified school district.

(4) Notwithstanding the provisions of subsection (e) of this section,

the department or an authorized vendor contracted by the department

shall furnish, as required pursuant to subdivision twenty-fifth of

section one hundred seventy-one of this chapter, to the superintendents

of schools of identified school districts and district superintendents

of schools appointed pursuant to section nineteen hundred fifty of the

education law, having an identified school district within their

supervisory district, an ordered listing, for such identified school

districts electing to participate in the appeals process for a limited

school district address review validation and correction process.

(5) The information provided pursuant to this section and subdivision

twenty-fifth of section one hundred seventy-one of this chapter shall be

used solely for the purpose of verifying the legal residence and school

district of a taxpayer in determining the distribution of state aid for

education and such information may only be disclosed by such

commissioner, superintendents and authorized vendor contracted by the

department for such purposes to employees of the state education

department, and to employees under the control of such superintendents.

In addition, notwithstanding the provisions of subsection (e) of this

section, the department may furnish to an authorized vendor contracted

by the department the permanent resident address and school code data

necessary for the implementation of the temporary school district

address review validation and correction process, the pilot computerized

address match and income verification project, or the permanent

computerized statewide school district address match and income

verification system pursuant to subdivision twenty-fifth of section one

hundred seventy-one of this chapter. Any violation of the provisions of

this section shall be punishable in the manner provided for in

subsection (e) of this section. Any information obtained by any agency

or person pursuant to the provisions of this section shall not be deemed

a "record", as defined in subdivision four of section eighty-six of the

public officers law.

(l) Exchange of information within the state department of labor. (1)

Notwithstanding any provision of law to the contrary, the state

department of labor shall furnish to the department information required

from employers pursuant to article eighteen of the labor law, and the

department shall furnish to the state department of labor, or other

individuals designated by the commissioner of labor who are engaged in

purposes deemed appropriate by the commissioner of labor consistent with

the provisions of the labor law, withholding tax information obtained or

derived pursuant to part V of this article, or pursuant to equivalent

provisions enacted under the authority of article thirty, thirty-A or

thirty-B of this chapter, and taxpayer identification information

acquired under any of the provisions of this chapter, for tax

administration and employment security program purposes.

(2)(A) For purposes of this subsection, the term "tax administration

purposes" means and includes:

(i) the administration, management, conduct, direction, and

supervision of the execution and application of any tax, special

assessment, fee or other imposition administered by the commissioner,

(ii) the development and formulation of state policy relating to

existing or proposed tax laws and related statutes, and

(iii) the assessment, collection, enforcement, litigation, publication

and statistical gathering functions under such laws or statutes.

(B) For purposes of this subsection, the term "employment security and

public assistance work program purposes" means the unemployment

insurance programs administered by the commissioner of labor pursuant to

the labor law and those employment and training programs with respect to

which the department of labor has administrative, reporting, monitoring,

or evaluating responsibilities.

(3) Information obtained by the department from the state department

of labor pursuant to the provisions of this subsection shall be

confidential, and shall not be disclosed or redisclosed except for tax

administration and employment security and public assistance program

purposes.

(4) The commissioner shall enter into an agreement with the

commissioner of the state department of labor in order to ensure the

confidentiality of tax and unemployment insurance information and that

such information is disclosed only for authorized purposes in connection

with the implementation of the provisions of this subsection and those

provisions of subsection (e) of this section relating to unemployment

insurance information obtained or derived by the department from

quarterly combined withholding, wage reporting and unemployment

insurance returns required to be filed pursuant to paragraph four of

subsection (a) of section six hundred seventy-four of this article.

(m) Disclosure of collection activities with respect to joint

return.--Notwithstanding the provisions of subsection (e) of this

section, if any deficiency of tax with respect to a joint return is

assessed and the individuals filing such return are no longer married or

no longer reside in the same household, upon request in writing by

either of such individuals, the commissioner shall disclose in writing

to the individual making the request whether the commissioner has

attempted to collect such deficiency from such other individual, the

general nature of such collection activities, and the amount collected.

The preceding sentence shall not apply to any deficiency which may not

be collected by reason of the expiration of time within which to issue a

warrant under subsection (c) of section six hundred ninety-two of this

article or within which to collect such tax by execution and levy or by

court proceeding.

(n) Disclosure of certain information where more than one person is

subject to penalty.--If the commissioner determines that a person is

liable for a penalty under subsection (g) of section six hundred

eighty-five of this article with respect to any failure, upon request in

writing of such person, the commissioner shall disclose in writing to

such person (1) the name of any other person whom the commissioner has

determined to be liable for such penalty with respect to such failure,

and (2) whether the commissioner has attempted to collect such penalty

from such other person, the general nature of such collection

activities, and the amount collected.

(o) Exchange of information with the office of temporary and

disability assistance.--Notwithstanding any provision of law to the

contrary, the department shall furnish to the office of temporary and

disability assistance, or as designated by the commissioner of the

office of children and family services, to employees of a local social

services district who are engaged in the process of determining the

eligibility of children in the custody, care and custody or custody and

guardianship of a local social services district for federal payments

for foster care and adoption assistance pursuant to the provisions of

title IV-E of the federal social security act, the name, social security

number and wages of the parents, the stepparents, the child and the

siblings of the child who were living in the same household as a child

who is in the custody, care and custody or custody and guardianship of a

local social services district or of the office of children and family

services during the month that the court proceedings leading to the

child's removal from the household were initiated, or the written

instrument transferring care and custody of the child pursuant to the

provisions of section three hundred fifty-eight-a or three hundred

eighty-four-a of the social services law was signed; provided however,

that the office of temporary and disability assistance or such social

services district shall only use the information obtained pursuant to

this subsection for the purpose of determining the eligibility of such

child for federal payments for foster care and adoption assistance

pursuant to the provisions of title IV-E of the federal social security

act.