WTC Records Folder 0123 Clippings label, Sept 2001

NYC 9/11 Public Portal Document

OCT-12-2001 12'1B NYC LEG OFFICE 212 566 0925 P.02/07 '01 FINANCE #15

DRAFT

MEMORANDUM IN SUPPORT

REFERENCE

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

SUMMARY OF Section one of the bill adds new Section 11-130 to Title PROVISIONS eleven of the Administrative Code of the City of New York, which, in the event of a Presidentially declared disaster or a disaster emergency declared by the Goverrior, will give the Commissioner of Finance authority to postpone for a period of up to ninety days certain tax - _ deadlines for taxpayers affected by the disaster who are unable to meet, applicable- filing or payment deadlines as result of the disaster. The provision would apply to ,all taxes administered by the Commissioner of cFinance, other than the tax on real estate. The bill would allow the Commissioner of Finance to grant relief comparable to that allowed to the New York State Commissioner of Taxation and Finance by Tax Law Section 17, paragraph twenty-eight.

Under the new provision, the deadlines that may be extended are: (1) filing returns, (2) paying tax or any installment of tax, (3) filing a request for a conciliation conference, or a petition with the New York City Tax Appeals Tribunal, for a credit or refund or for a redetermination of a deficiency, or filing an exception to review a decision of the Tribunal, (4) allowing a credit or refund, (5) filing a claim for credit or refund, (6) assessing an underpayment of tax, (7) giving or making a notice of demand for payment of tax, (a) collecting a tax by levy or otherwise, (9) bringing a suit by the City in respect of a tax, and (10) any other act required or permitted by applicable law or by a regulation promulgated by the Commissioner thereunder. The provision also would allow the Commissioner of Finance to waive interest on any tax payment deferred under the authority of the provision.

The provision contains a special rule for determining interest on overpayments of tax that is designed to ensure that taxpayers do not lose interest on an overpayment as a result of filing a refund under an extension granted under this provision. However, the special interest on overpayment provision also preserves the Department of Finance's existing authority with respect to paying overpayments without interest within three months of a refund claim. The effect of this special rule is to hold both the taxpayer and the Department harmless with respect to interest on any overpayment of tax claimed under an extension granted pursuant to the new provision.

If a taxpayer is not-entitled to the benefits of any extension authorized by the Commissioner under the new provision but files a return. or makes a payment, within the extension period but after the 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, in addition to the otherwise applicable late filing or late payment penalties, the Commissioner may assert a penalty equal to two hundred percent of the otherwise applicable penalties, in effect tripling the otherwise applicable penalties. The provision also authorizes the Commissioner to impose a penalty of up to $10,000 on any paid tax preparer who makes a material misrepresentation of fact in connection with claiming the benefits of any relief under the new provision.

The bill would be effective immediately.

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NYC-WTC 000137084