N.Y. Tax Law § 1613-C — Crediting of lottery prizes against liabilities for taxes administered by the commissioner

§ 1613-c. Crediting of lottery prizes against liabilities for taxes\nadministered by the commissioner. (1) The director, on behalf of the\ndivision, shall enter into a written agreement with the commissioner, on\nbehalf of the department, within sixty days of the effective date of\nthis section, which will set forth procedures for crediting lottery\nprizes of more than six hundred dollars awarded to holders of winning\nlottery tickets, whether individuals, corporations, associations,\ncompanies, partnerships, limited liability partnerships or companies,\npartners, members, managers, estates, trust fiduciaries or entities,\nagainst past due tax liabilities owed by such holders for any tax\nadministered by the commissioner, about which the director has been\nnotified by the commissioner pursuant to the provisions of such\nagreement.\n (2) Such agreement shall apply to any past due tax liability which\narises from (i) an enforceable warrant or judgment, (ii) an enforceable\ndetermination of an administrative body which is no longer subject to\nadministrative or judicial review, or (iii) an assessment or\ndetermination (including self-assessment or self-assessed determination)\nwhich has become final or finally and irrevocably fixed and no longer\nsubject to administrative or judicial review.\n (3) Such agreement shall include:\n (a) the procedure under which the department will notify the division\nof tax liabilities, including when the division will be notified and the\ncontent of that notification;\n (b) the procedure for reimbursement of the division by the department\nfor the cost of carrying out the procedures authorized by this section;\nand\n (c) any other matters the parties to the agreement deem necessary to\ncarry out the provisions of this section.\n (4) Prior to awarding lottery prizes of more than six hundred dollars,\nthe division shall review the most recent notice of tax liabilities\nprovided by the commissioner. For holders of winning lottery tickets\nidentified on that notice, the division shall credit to the department\nthe amount of each holder's prize necessary to satisfy that holder's tax\nliability, and the remainder of the prize shall be awarded to the holder\nof the winning ticket.\n (5) If the division has also received a notice of liability of a prize\nwinner for past-due support or public assistance benefits pursuant to\nsection sixteen hundred thirteen-a or sixteen hundred thirteen-b of this\narticle, then the amount of any prize shall be first credited or applied\nto the income tax required to be withheld by law, then as required by\nsection sixteen hundred thirteen-a or sixteen hundred thirteen-b of this\narticle, then to the past due tax liability as required by this section.\nThe balance will then be paid to the holder of the winning lottery\nticket.\n (6) The division shall certify to the comptroller the total amount of\nthe lottery prize to be credited against past due tax liabilities and\nthe remainder of the prize to be awarded to the holder of the winning\nlottery ticket.\n (7) The division shall notify the holder of the winning lottery\nticket, in writing, of the total amount of the lottery prize credited\nagainst past due tax liabilities and the remainder of the prize to be\nawarded to the holder. That notice must also advise the holder that the\ndepartment will provide separate notice, in writing, of the procedure\nfor and time frame by which the holder may contest such crediting.\n (8) The department shall notify the holder of the winning lottery\nticket, in writing, of the amount of a prize to be credited against past\ndue tax liabilities and the procedure for and time frame by which the\nholder may contest the crediting of the prize.\n (9) From the time the division is notified by the department of a past\ndue tax liability of a holder of a winning lottery ticket, the division\nshall be relieved from all liability to the holder, and the holder's\nheirs, representatives, estate, successors or assigns for the amount of\na prize certified to the comptroller to be credited against past due tax\nliabilities and the holder and the holder's heirs, representatives,\nestate, successor or assigns shall have no right to commence a court\naction or proceeding or to any other legal recourse against the division\nto recover any amount certified to the comptroller to be credited\nagainst past due tax liabilities. Provided however, nothing herein shall\nbe construed to prohibit a holder of a winning lottery ticket and the\nholder's heirs, representatives, estate, successors or assigns from\nproceeding against the department to recover the part of the prize\ncertified to the comptroller and credited to past due tax liabilities\nwhich is greater than the amount of past due tax liabilities owed by\nthat holder on the date of certification.\n (10) Notwithstanding any law to the contrary, the department and its\nofficers and employees may furnish to the division any abstract of any\ntax return or report, or any information concerning an item contained in\nany such return or report or disclosed by any investigation of tax\nliability under this chapter, but only for the purpose of crediting\nlottery prizes against past due tax liabilities described in subdivision\ntwo of this section.\n