Important Amnesty Update

Dec. 20, 2002

Mark Levin, Chair of the Society’s State. Local and Municipal Tax Committee received the following information from the New York State Department of Taxation and Finance regarding “old” corporate tax assessment notices sent out as part of the New York State Amnesty Program:

The State’s Amnesty team was directed to reach out to all potential beneficiaries of Amnesty so that everyone with a chance to benefit was aware of the opportunity. To accomplish this goal, the NYS Department of Taxation and Finance used many data sources, some of which proved less reliable than expected.

To help correct the problem where a notice has been issued in error, NYST&F has developed the following procedures:

If the delinquency is more than 20 years old, (i.e., for periods ending on or before 12/31/82) we acknowledge that the notice was issued in error. You or your client should call the Business Tax Protest Resolution Unit at (518) 485-6191 between the hours of 8:30AM and 4:30PM and they will remove this delinquency from the record. They will also mail a letter to your client confirming that the delinquency has been removed from our records. A lien under section 1092(j)(3) of the Tax Law expires 20 years after the due date of the franchise tax return.

If the delinquency is for a single period more than 10 years old and less than 20 years old (i.e., periods ending after 12/31/82 and on or before 12/31/92), and you believe that return has been filed, then either you or your client should return the Amnesty invitation (AM-10-CT) along with a signed and dated affirmation that the return was filed. NYST&F will cancel the delinquency and send your client a notice to that effect.

If the delinquency is for one or more periods less than 10 years old (i.e., periods ending after 12/31/92), or for multiple periods less than 20 years old (as described above) you or your client must submit documentation to substantiate having filed the delinquent returns.

Of course, if the corporation failed to file a required return for any period, it should file the return. We will provide assistance to your client or to you (with a Power of Attorney) by providing information such as estimated tax payments if any, and the amount of tax paid the preceding or following year.

Correspondence should be directed to:

New York State Department of Taxation and Finance
Corporation Tax Section
Room 531 Building 8
Harriman Campus
Albany, New York 12227
Attention: Dolores Aprilliano

Please note that the above procedure is consistent with section 1092(j)(3) of the Tax Law, which provides for implied liens of 10 years on real property and 20 years on personalty. If you have any questions, please contact Terry O'Neil of NYST&F at (518) 457-8640.

Click here to read State Tax Commissioner Announces Amnesty Program