WTC Records Folder 0123 Clippings label, Sept 2001

NYC 9/11 Public Portal Document

MPR-17-2000 04:24 P.02107 01 Finance #15

D R A F T

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MEMORANDUM IN SUPPORT

LEGISLATIVE REFERENCE

city of New TITLE AN ACT to amend the administrative code of the relation t authorizing the postponement of York, in tax deadlines

SUMMARY OF Section 1. PROVISIONS Title Section one of the bill adds new Section 11-130 to which, in the eleven of the Administrative Code of the City of New York, disaster emergency event of a Presidentially declared disaster or a authority declared by the Governor, will give the Commissioner of Finance period of up to ninety days certain tax deadlines for to postpone for a applicable taxpayers affected by the disaster who are unable to meet filing or payment deadlines as result of the disaster. The provision the Commissioner of Finance would apply to all taxes administered by on real estate. The bill would allow the commissioner other than the tax allowed to the of Finance to grant relief comparable to that New York State Commissioner of Taxation and Finance by Tax Law Section 171, paragraph twenty-eight. are: (1) Under the new provision, the deadlines that may be extended installment of tax, (3) filing a filing returns, (2) paying tax or any conciliation conference, or a petition with the New York request for a City Tax Appeals Tribunal, for a credit or refund or for a review a redetermination of a deficiency, or filing an exception to credit or refund, (5) filing a decision of -he Tribunal, (4) allowing a tax, (7) claim for credit or refund, (6) assessing an underpayment of collecting a giving or making a notice of demand for payment of tax, (8) by levy or otherwise, (9) bringing a suit by the City in respect of a tax required or permitted by applicable law or by tax, and (10) any other act a regulation promulgated by the Commissioner thereunder. The provision interest on any also would allow the Commission of the Finance to waive tax payment deferred under the authority of the provision. interest on The provision contains a special rule for determining overpayments of tax that is designed to ensure that taxpayers do not lose filing a refund under an interest on an overpayment as a result of extension granted under this provision. However, the special interest on existing overpayment provision also preserves the Department of Finance's within authority with respect to paying overpayments without interest claim. The effect of this special rules is to three months of a refund respect to hold both the taxpayer and the Department harmless with extension granted interest on any overpayment of tax claimed under an pursuant to the new provision. extension If a taxpayer is not entitled to the benefits of any Commissioner under the new provision but files a authorized by the period but after the return, or makes a payment, within the extension original due date, existing late filing and late payment penalties will

apply. Under the new provision, if such a taxpayer makes a material misrepresentation of fact in claiming the benefits of any such extension, payment in addition to the otherwise applicable late filing or late penalty equal to two hundred penalties, the Commissioner may assert a of the otherwise applicable penalties, in effect tripling the percent otherwise applicable penalties. The provision also authorizes the Commissioner to impose a penalty of up to $10,000 on any paid tax connection preparer who makes a material misrepresentation of fact in with claiming the benefits of any relief under the new provision. cy_

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NYC-WTC 000137058