N.Y. Tax Law § 25 — Disclosure of certain transactions and related information

* § 25. Disclosure of certain transactions and related information.\n(a) (1) Every taxpayer, or person as defined in section seven thousand\nseven hundred one of the internal revenue code, required to file a\ndisclosure statement with the internal revenue service pursuant to\nsection six thousand eleven of the internal revenue code, or the\nregulations promulgated thereunder, related to a reportable transaction\nor a listed transaction, as those terms are defined in such section or\nregulations, must attach a duplicate of such disclosure statement to the\nreturn or report required to be filed by such taxpayer or person for the\ntaxable year under article nine, nine-A, twenty-two or thirty-three of\nthis chapter, and provide such other information related to such\ndisclosure as prescribed by the commissioner. Such disclosure shall be\nmade notwithstanding that one member of an affiliated group, as defined\nby section fifteen hundred four of the internal revenue code, may file\nsuch disclosure statement with the internal revenue service on behalf of\nits affiliates including such taxpayer or person.\n (2) Every taxpayer or such person who participates in a New York\nreportable transaction for a taxable year must disclose such\nparticipation with its return or report required to be filed under\narticle nine, nine-A, twenty-two or thirty-three of this chapter for the\ntaxable year in a form prescribed by the commissioner, and provide such\nother information related to such transaction as prescribed by the\ncommissioner. A New York reportable transaction is a transaction that\nhas the potential to be a tax avoidance transaction as determined by the\ncommissioner.\n (3) The commissioner may in his discretion prescribe, by regulation,\nNew York reportable transactions.\n (4) Provided the commissioner has prescribed regulations pursuant to\nparagraph three of this subdivision the commissioner is authorized to\ndesignate specific transactions that are the same as, or substantially\nsimilar to, transactions that the commissioner has determined to be tax\navoidance transactions. The provisions of article two of the state\nadministrative procedure act shall not apply to the designation of a\nspecific transaction as a tax avoidance transaction; provided, however,\nthat the commissioner shall designate any such transaction by notice or\nother form of published guidance.\n (b)(1) Every person required to make and file a statement or return\npursuant to section six thousand one hundred eleven of the internal\nrevenue code must file a duplicate of such statement or return,\nincluding all documentation submitted to the internal revenue service in\nconnection with such statement or return, with the commissioner if any\nof the following conditions apply:\n (A) the person is organized in this state,\n (B) the person is doing business in this state,\n (C) the person is deriving income in this state, or\n (D) (i) the list required to be maintained by such person pursuant to\nsection six thousand one hundred twelve of the internal revenue code\nidentifies or is required to identify a taxpayer subject to tax under\narticle nine, nine-A, twenty-two or thirty-three of this chapter, and\n (ii) such person is a material advisor, as defined in section six\nthousand one hundred eleven of the internal revenue code, who provides\nany material aid, assistance, or advice with respect to organizing,\nmanaging, promoting, selling, implementing, or carrying out any\nreportable transaction.\n (2) Such duplicate statement or return must be filed within sixty days\nof the later of:\n (A) the date required for filing the statement or return with the\ninternal revenue service,\n (B) the date that any of the conditions described in paragraph (1) of\nthis subdivision first applies, or\n (C) ninety days after the enactment of this section.\n (c) Every person who is required to maintain a list of persons\npursuant to section six thousand one hundred twelve of the internal\nrevenue code, or the regulations promulgated thereunder, must maintain a\nduplicate of such list if any of the conditions described in paragraph\none of subdivision (b) of this section applies to such person and must\nfurnish a copy thereof to the commissioner within twenty days after\nwritten request is made for such list by the commissioner.\n (d) Every person required by this section to disclose any transaction,\nfile any duplicate return, or maintain any list shall retain all\nrelevant correspondence, memoranda, notes, valuation studies, meeting\nminutes, spreadsheets, models, opinions, records required to be retained\npursuant to section six thousand eleven of the internal revenue code, or\nthe regulations promulgated thereunder, and all other records or\ndocuments related to the disclosure, filing and list maintenance\nrequirements of this section for six years and must make such\ninformation available for inspection by the commissioner in connection\nwith any examination.\n (e) The filing, disclosure and retention requirements of this section\nshall be in addition to any other filing, disclosure or retention\nrequirements, general or specific, provided by law. The commissioner may\nrequire electronic filing or disclosure of any or all submissions\nrequired under this section, shall have the authority to prescribe\nwhether a signature, including an electronic signature, is required on\nany or all filings or disclosures under this section. If an electronic\nsignature is so required, it shall be in a form consistent with the\nprovisions of the electronic signatures and records act of the state\ntechnology law.\n (f)(1) The penalties imposed for a violation of subdivision (a) of\nthis section are contained in subsection (x) of section six hundred\neighty-five and subsection (p) of section one thousand eighty-five of\nthis chapter.\n (2) The penalties imposed for a violation of subdivision (b) of this\nsection are contained in subsection (y) of section six hundred\neighty-five and subsection (q) of section one thousand eighty-five of\nthis chapter.\n (3) The penalties imposed for a violation of subdivision (c) of this\nsection are contained in subsection (z) of section six hundred\neighty-five and subsection (r) of section one thousand eighty-five of\nthis chapter.\n * NB Repealed July 1, 2029\n