WTC Records Folder 0123 Clippings label, Sept 2001

NYC 9/11 Public Portal Document

OCT-12-2031 12:19 NYC LEG OFFICE 212 566 0925 P.03/e7

REASONS FOR Under current law, the Commissioner of Finance has only SUPPORT limited authority to extend certain due dates for tax returns and certain tax payment dates; the Commissioner also cannot extend other periods of taking administrative or legal action such as the limitation period for protecting an assessment or disallowance of a refund. Moreover, the Commissioner's existing authority differs from on tax to another. Although the Commissioner has authority under existing law to waive late filing and late payment penalties where reasonable cause for the delay is shown, the Commissioner cannot waive the accrual of interest.

This bill is necessary to authorize the Commissioner to postpone for a brief, reasonable period of time certain tax deadlines for taxpayers who are unable to meet those deadlines due to a disaster declared by the President or Governor. The scope of relief provided by the bill generally mirrors the relief that may be granted by the State and by the IRS under current law. The bill would allow the Commissioner to provide consistent relief from tax deadlines across all taxes administered by the Commissioner other than the tax on real estate. The Commissioner needs the flexibility to provide immediate and appropriate relief from tax deadlines for taxpayers adversely affected by a disaster, but the penalty provisions in the bill will discourage abuse of any relief so granted.

Accordingly, the Mayor urges the earliest possible favorable consideration of this proposal by the Legislature.

Respectfully submitted,

ANTHONY P. PISCITELLI Legislative Representative

ISC/dgb S:Financel5-01 10/12/01

NYC-WTC 000137085