N.Y. Tax Law § 992: Addition to tax in the case of valuation understatement

§ 992. Addition to tax in the case of valuation understatement. In the

case of any underpayment of a tax imposed by this article which is

attributable to a valuation understatement, there shall be added to the

tax an amount equal to the applicable percentage of the underpayment so

attributed.

(a) For purposes of this section, the applicable percentage shall be

determined under the following table:

If the valuation claimed is

the following percent of the The applicable

correct valuation: percentage is:

fifty percent or more but

not more than sixty-six

and two-thirds percent .................... ten

forty percent or more but

less than fifty percent ................... twenty

less than forty percent ................... thirty

(b) For purposes of this section, there is a valuation understatement

if the claimed value of any property is sixty-six and two-thirds percent

or less of the amount determined to be the correct amount of such

valuation.

(c) This section shall not apply if the underpayment is less than one

thousand dollars with respect to the estate of the decedent.

(d) The commissioner may waive all or any part of the addition to tax

provided by this section on showing by the executor that there was a

reasonable basis for the claimed valuation and that such claim was made

in good faith.