N.Y. Tax Law § 1700 — Voluntary disclosure and compliance program

§ 1700. Voluntary disclosure and compliance program. 1.\nNotwithstanding the provisions of any other law to the contrary, there\nis hereby established a voluntary disclosure and compliance program, as\ndescribed in this section, to be administered by the commissioner, for\nall eligible taxpayers as described in this section, owing any tax\nimposed or previously imposed under this chapter or administered by the\ncommissioner.\n 2. For purposes of the voluntary disclosure and compliance program\nestablished under this section, an eligible taxpayer is an individual,\npartnership, estate, trust, corporation, limited liability company,\njoint stock company, or any other company, trustee, receiver, assignee,\nreferee, society, association, business or any other person subject to a\ntax imposed by or pursuant to the authority of this chapter or any other\nlaw imposing administrative tax responsibilities on the commissioner and\nwho meets the following criteria: (1) the taxpayer is not currently\nunder audit by the department; (2) the taxpayer is one who is\nvoluntarily disclosing a New York tax liability that the department has\nnot determined, calculated, researched or identified at the time of the\ndisclosure; (3) the taxpayer is not currently a party to any criminal\ninvestigation being conducted by an agency of the state or any political\nsubdivision thereof; and (4) the taxpayer is not seeking to disclose\nparticipation in a tax avoidance transaction that is a federal or New\nYork state reportable or listed transaction.\n 3. Under the voluntary disclosure and compliance program, upon\nexecution of a voluntary disclosure and compliance agreement by the\neligible taxpayer and the commissioner, the commissioner shall waive any\napplicable penalties (including the additional rate of interest\nprescribed under section eleven hundred forty-five of this chapter) for\nthe following: (1) failure to pay any such tax liability; (2) failure to\nfile a return or report with respect to any such tax liability; and (3)\nfailure to pay estimated tax. In addition, no criminal action or\nproceeding shall be brought against an eligible taxpayer relating to the\ntax liability covered by the agreement. This agreement shall not\npreclude the auditing of the returns filed to determine if those returns\nwere completed in accordance with existing law and regulation.\nIntentional failure to pay all the taxes, plus related interest,\npursuant to the voluntary disclosure and compliance agreement entered\ninto between the taxpayer and the commissioner, shall invalidate any\nwaiver of penalty, invalidate the forbearance of any administrative or\ncriminal action or proceeding.\n 4. To participate in the voluntary disclosure and compliance program,\nan eligible taxpayer must apply by submitting a disclosure statement in\nthe form and manner prescribed by the commissioner. The disclosure\nstatement shall contain all the information the commissioner reasonably\ndeems necessary to effectively administer the program. As long as all\nthe requirements of the voluntary disclosure and compliance program are\nmet, no application shall be denied solely because the taxpayer has\nadmitted that the delinquency was the result of willful or fraudulent\nconduct. Except in instances where the taxpayer has failed to comply\nwith the terms of a voluntary disclosure and compliance agreement, the\ncommissioner shall not use the taxpayer's disclosure as evidence in any\nproceeding brought against the taxpayer or reveal the contents of the\ndisclosure to any law enforcement or other agency. However, the\ndisclosure of any returns or reports filed under this program with the\nsecretary of the treasury of the United States, his or her delegates, or\nthe proper tax officer of any state or city is permitted as otherwise\nprovided for in this chapter.\n 5. (a) If the taxpayer and the tax liability are eligible under the\nvoluntary disclosure and compliance program, the commissioner is\nauthorized to enter into a voluntary disclosure and compliance agreement\nwith the taxpayer. A voluntary disclosure and compliance agreement will\nbe in a form to be established by the commissioner and include such\nterms as the commissioner may reasonably require to satisfy the\ntaxpayer's disclosed tax obligations and enable and require the taxpayer\nto comply with the tax law in the future. The taxpayer must pay the tax\nand the related interest that are the subject of the voluntary\ndisclosure and compliance agreement when the agreement is executed or\nwithin the time stated on a bill issued to the taxpayer by the\ncommissioner. In the event the commissioner is satisfied that the\ntaxpayer cannot make immediate full payment of the disclosed tax\nliability, the commissioner may enter into an installment payment\nprogram with the taxpayer for the payment of the tax and interest due.\nThe commissioner may require a financial disclosure statement setting\nforth information concerning the taxpayer's current assets, liabilities,\nearnings, and other financial information before entering into an\ninstallment payment plan with the taxpayer. In addition to any other\ninformation and terms that the commissioner determines are appropriate,\nthe voluntary disclosure and compliance agreement shall provide that, if\nthe taxpayer complies with the terms of the compliance agreement, the\ntaxpayer will not be subject to any criminal tax prosecution in New York\nstate for the conduct disclosed by the taxpayer.\n (b) If the taxpayer intentionally provides false material information\nor omits material information in his or her submissions to the\ncommissioner, or attempts to intentionally defeat or evade a tax due\npursuant to the agreement executed under this article, or intentionally\nfails to comply with the terms of the compliance agreement, such\nagreement shall be deemed rescinded.\n 6. Unless the commissioner on his or her own motion redetermines the\namount of tax due, including applicable interest, no refund shall be\ngranted or credit allowed with respect to any taxes, including\napplicable interest, paid under this program.\n 7. The commissioner may promulgate regulations, issue forms and\ninstructions, and take any and all other actions necessary to implement\nthe provisions of the program established under this section. The\ncommissioner shall publicize the program provided for in this section so\nas to maximize public awareness of and participation in such program.\n 8. For purposes of this section, the term "taxpayer" includes any\nperson required to collect any of the taxes specified in subdivision one\nof this section.\n 9. The voluntary disclosure and compliance application, the disclosure\nstatement, the voluntary disclosure and compliance agreement, and other\ndocuments filed by an eligible taxpayer pursuant to the program\nestablished by this section are deemed to be reports and returns:\n (a) subject to the secrecy provisions of this chapter in the same\nmanner and to the same extent as if such documents were referred to in\nany of the secrecy provisions of this chapter; and\n (b) for purposes of the criminal provisions of article thirty-seven of\nthis chapter.\n