Bill Text: NY S04942 | 2011-2012 | General Assembly | Introduced
Bill Title: Establishes a retail merchants voluntary compliance program relating to past due sales tax liability.
Spectrum: Partisan Bill (Republican 1-0)
Status: (Introduced - Dead) 2012-01-04 - REFERRED TO INVESTIGATIONS AND GOVERNMENT OPERATIONS [S04942 Detail]
Download: New_York-2011-S04942-Introduced.html
S T A T E O F N E W Y O R K
________________________________________________________________________
4942
2011-2012 Regular Sessions
I N S E N A T E
May 2, 2011
___________
Introduced by Sen. YOUNG -- read twice and ordered printed, and when
printed to be committed to the Committee on Investigations and Govern-
ment Operations
AN ACT to amend the tax law, in relation to establishing a retail
merchants voluntary compliance program for purposes of sales tax
liability
THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
BLY, DO ENACT AS FOLLOWS:
1 Section 1. The tax law is amended by adding a new section 1700-a to
2 read as follows:
3 S 1700-A. RETAIL MERCHANTS VOLUNTARY COMPLIANCE PROGRAM. 1. NOTWITH-
4 STANDING ANY OTHER PROVISION OF LAW TO THE CONTRARY, THERE SHALL BE
5 ESTABLISHED A RETAIL MERCHANTS VOLUNTARY COMPLIANCE PROGRAM TO BE ADMIN-
6 ISTERED BY THE COMMISSIONER, FOR ALL ELIGIBLE TAXPAYERS.
7 2. FOR PURPOSES OF THIS SECTION, AN "ELIGIBLE TAXPAYER" IS AN INDIVID-
8 UAL, PARTNERSHIP, ESTATE, TRUST, CORPORATION, LIMITED LIABILITY COMPANY,
9 JOINT STOCK COMPANY, OR ANY OTHER COMPANY, TRUSTEE, RECEIVER, ASSIGNEE,
10 REFEREE, SOCIETY, ASSOCIATION, BUSINESS OR ANY OTHER PERSON SUBJECT TO
11 SALES TAX IMPOSED BY OR PURSUANT TO THE AUTHORITY OF THIS CHAPTER, THAT
12 IS SUBJECT TO AN ASSESSMENT FOR OUTSTANDING SALES TAX AND HAS NOT HAD AN
13 ASSESSMENT FOR SALES TAX WITHIN THE PREVIOUS FIVE YEARS.
14 3. UNDER THE RETAIL MERCHANTS VOLUNTARY COMPLIANCE PROGRAM, UPON
15 EXECUTION OF A VOLUNTARY COMPLIANCE AGREEMENT BY THE ELIGIBLE TAXPAYER
16 AND THE COMMISSIONER, THE COMMISSIONER SHALL WAIVE ANY APPLICABLE INTER-
17 EST AND PENALTIES. IN ADDITION, NO CRIMINAL ACTION OR PROCEEDING SHALL
18 BE BROUGHT AGAINST AN ELIGIBLE TAXPAYER RELATING TO THE TAX LIABILITY
19 COVERED BY THE AGREEMENT.
20 4. IF A TAXPAYER AND ITS TAX LIABILITY ARE ELIGIBLE UNDER THE RETAIL
21 MERCHANTS VOLUNTARY COMPLIANCE PROGRAM, THE COMMISSIONER IS AUTHORIZED
22 TO ENTER INTO A VOLUNTARY COMPLIANCE AGREEMENT WITH THE TAXPAYER. A
23 VOLUNTARY COMPLIANCE AGREEMENT SHALL BE IN A FORM TO BE ESTABLISHED BY
EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD11112-01-1
S. 4942 2
1 THE COMMISSIONER AND INCLUDE SUCH TERMS AS THE COMMISSIONER MAY REASON-
2 ABLY REQUIRE TO REQUIRE THE ELIGIBLE TAXPAYER TO COMPLY WITH THIS CHAP-
3 TER IN THE FUTURE INCLUDING, BUT NOT LIMITED TO THE ESTABLISHMENT OF A
4 SEGREGATED BANK ACCOUNT FOR SALES TAX COLLECTIONS, MORE FREQUENT TAX
5 DEPOSIT REQUIREMENTS OR USE OF CERTIFIED POINT OF SALES SYSTEMS. THE
6 ELIGIBLE TAXPAYER SHALL PAY THE TAX THAT IS THE SUBJECT OF THE VOLUNTARY
7 COMPLIANCE AGREEMENT WHEN THE AGREEMENT IS EXECUTED OR WITHIN THE TIME
8 STATED ON A BILL ISSUED TO THE ELIGIBLE TAXPAYER BY THE COMMISSIONER. IN
9 THE EVENT THE COMMISSIONER IS SATISFIED THAT THE ELIGIBLE TAXPAYER IS
10 UNABLE TO MAKE IMMEDIATE FULL PAYMENT OF THE DISCLOSED TAX LIABILITY,
11 THE COMMISSIONER MAY ENTER INTO AN INSTALLMENT PAYMENT PROGRAM WITH THE
12 ELIGIBLE TAXPAYER FOR THE PAYMENT OF THE TAX DUE. THE COMMISSIONER MAY
13 REQUIRE A FINANCIAL DISCLOSURE STATEMENT SETTING FORTH INFORMATION
14 CONCERNING THE ELIGIBLE TAXPAYER'S CURRENT ASSETS, LIABILITIES, EARN-
15 INGS, AND OTHER FINANCIAL INFORMATION BEFORE ENTERING INTO AN INSTALL-
16 MENT PAYMENT PLAN WITH THE ELIGIBLE TAXPAYER. IN ADDITION TO ANY OTHER
17 INFORMATION AND TERMS THAT THE COMMISSIONER DETERMINES ARE APPROPRIATE,
18 THE VOLUNTARY COMPLIANCE AGREEMENT SHALL PROVIDE THAT, IF THE ELIGIBLE
19 TAXPAYER COMPLIES WITH THE TERMS OF THE COMPLIANCE AGREEMENT, THE ELIGI-
20 BLE TAXPAYER WILL NOT BE SUBJECT TO ANY CRIMINAL TAX PROSECUTION IN THIS
21 STATE FOR THE CONDUCT DISCLOSED BY THE ELIGIBLE TAXPAYER.
22 5. IF THE ELIGIBLE TAXPAYER INTENTIONALLY PROVIDES FALSE MATERIAL
23 INFORMATION OR OMITS MATERIAL INFORMATION IN HIS OR HER SUBMISSIONS TO
24 THE COMMISSIONER, OR ATTEMPTS TO INTENTIONALLY DEFEAT OR EVADE A TAX DUE
25 PURSUANT TO THE AGREEMENT EXECUTED PURSUANT TO THIS SECTION, OR INTEN-
26 TIONALLY FAILS TO COMPLY WITH THE TERMS OF THE COMPLIANCE AGREEMENT,
27 SUCH AGREEMENT SHALL BE DEEMED RESCINDED.
28 6. UNLESS THE COMMISSIONER ON HIS OR HER OWN MOTION REDETERMINES THE
29 AMOUNT OF TAX DUE, NO REFUND SHALL BE GRANTED OR CREDIT ALLOWED WITH
30 RESPECT TO ANY TAXES, INCLUDING APPLICABLE INTEREST, PAID UNDER THIS
31 PROGRAM.
32 7. THE COMMISSIONER MAY PROMULGATE REGULATIONS, ISSUE FORMS AND
33 INSTRUCTIONS, AND TAKE ANY AND ALL OTHER ACTIONS NECESSARY TO IMPLEMENT
34 THE PROVISIONS OF THE PROGRAM ESTABLISHED PURSUANT TO THIS SECTION. THE
35 COMMISSIONER SHALL PUBLICIZE THE PROGRAM PROVIDED FOR IN THIS SECTION SO
36 AS TO MAXIMIZE PUBLIC AWARENESS OF AND PARTICIPATION IN SUCH PROGRAM.
37 8. THE VOLUNTARY COMPLIANCE AGREEMENT, AND OTHER DOCUMENTS FILED BY AN
38 ELIGIBLE TAXPAYER PURSUANT TO THE PROGRAM ESTABLISHED BY THIS SECTION
39 SHALL BE DEEMED TO BE REPORTS AND RETURNS:
40 (A) SUBJECT TO THE SECRECY PROVISIONS OF THIS CHAPTER IN THE SAME
41 MANNER AND TO THE SAME EXTENT AS IF SUCH DOCUMENTS WERE REFERRED TO IN
42 ANY OF THE SECRECY PROVISIONS OF THIS CHAPTER; AND
43 (B) FOR PURPOSES OF THE CRIMINAL PROVISIONS OF ARTICLE THIRTY-SEVEN OF
44 THIS CHAPTER.
45 S 2. This act shall take effect immediately.
