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                                                                               Publication 131(9/22)

                                      Your Rights and Obligations 
                                            Under the Tax Law

A major function of the Department of Taxation and Finance is      •  minimize disruption of your business or personal life during the 
to help taxpayers understand their rights and responsibilities.    audit, and 
Taxpayer awareness of these rights is essential to maintaining     •  protect you from arbitrary actions.
the efficiency and fairness of the state and local tax systems.
New York State established a Taxpayers’ Bill of Rights in Tax      Statute of limitations
Law Article 41. The Tax Department assists taxpayers by            New York State Tax Law generally places a three-year statute 
providing:                                                         of limitations on our right to assert additional tax due (generally, 
•  nontechnical statements that explain taxpayers’ rights and the  three years after your return was filed). However, a six-year 
department’s obligations regarding audits;                         statute of limitations applies to assert additional tax due when 
                                                                   there is an abusive tax avoidance transaction, or, when a 
•  the procedures for taxpayers to challenge department            taxpayer omits 25% or more of their income from the return. A 
decisions, to claim refunds, and to file complaints; and           taxpayer and the department may agree in writing to extend the 
•  the procedures the department may use to enforce tax            statute of limitations before it expires.
liabilities (called the collection process).
                                                                   The statute of limitations to assert additional tax does not apply, 
You can get more information about your rights as a taxpayer on    however, for any period during which a taxpayer failed to file 
our website, including all publications referenced below, or by    a return, failed to report the changes made by the Internal 
calling us (see Need help? at the end of this publication).        Revenue Service (IRS) to a federal tax return (federal changes), 
This publication provides a summary of taxpayers’ rights at        or filed a false or fraudulent return with intent to evade tax. 
various stages of the tax administration process.                  For income, estate, and corporation tax purposes, a taxpayer 
                                                                   is generally required to report a federal change to New York 
                                                                   State within 90 days after the final determination of the change, 
The New York State tax audit                                       correction, renegotiation, or disallowance.
We conduct audits to verify that taxpayers paid the correct        For amended returns filed on or after April 12, 2018, the statute 
amount of tax. According to New York State Tax Law, during the     of limitations on our right to assert additional tax due, attributable 
audit you must provide whatever records are necessary to verify    to a change or correction made on such amended return, is 
the information you reported on your return. Depending on the      generally one year from the date such amended return is filed 
type of return being audited, this may include a review of your    (unless a longer period of time applies or unless the amended 
income, receipts, expenses, credits, and other business records.   return is due to federal changes).

Professional audit standards                                       Privacy and confidentiality
Audits are conducted in accordance with professional auditing      You have the right to know why we are requesting certain 
standards, by a Tax Department auditor familiar with generally     information, how we will use the information, and the 
accepted accounting principles and auditing techniques.            consequences if you fail to submit the information. The Tax 
To avoid any conflict of interest, the auditor cannot have         Law prohibits us from disclosing information obtained from a 
any relationship with the taxpayer, the taxpayer’s family, or      tax return or during an audit, to any unauthorized person. The 
the taxpayer’s employees (in the case of a business audit).        Tax Law, however, does permit us to share your tax information 
Additionally, the auditor must not have any personal or financial  with the IRS and other government agencies, within defined 
interest in a business being audited.                              standards of secrecy and reciprocity.

Throughout the course of an audit, you are entitled to receive     Representation during an audit
fair, courteous, and professional treatment. If at any time during 
the audit you feel these standards or any of your rights are       You may represent yourself, have someone accompany you, 
being violated, you should immediately contact the auditor’s       or have someone represent you during an audit. Any person 
supervisor.                                                        representing you must have the proper written authorization 
                                                                   (Form POA-1, Power of Attorney) from you to act on your 
To report allegations of employee misconduct, contact our Office   behalf. For information on how to file a power of attorney, 
of Internal Affairs by calling 518-451-1566, or by mail to:        visit our website or call us (see Need help?). You may retain 
NYS TAX DEPARTMENT                                                 representation at any time during an audit, or suspend a meeting 
OFFICE OF INTERNAL AFFAIRS                                         or interview for a reasonable period to obtain representation. 
W A HARRIMAN CAMPUS                                                Former employees of the Department of Taxation and Finance 
ALBANY NY 12227-0811
                                                                   are restricted from representing taxpayers before the department 
If not using U.S. Mail, see Publication 55, Designated Private     for two years after they leave the department. Subject to some 
Delivery Services.                                                 restrictions, former employees may represent taxpayers before 
                                                                   the independent Division of Tax Appeals during this two-year 
Your rights during an audit                                        period. Former employees are permanently prohibited from 
                                                                   representing taxpayers in matters in which they were directly 
While you must cooperate with the auditor, you should also be      involved during their employment.
aware of your rights. These rights are designed to: 
•  protect you from unreasonable demands,

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Page 2 of 8 Publication 131 (9/22)
Audio recording If there are changes, the auditor will present copies of audit
You may make an audio recording of any in-person interview work papers and explain the audit findings, as well as the audit
by providing advance written notice to us. You must make the methods and procedures used during the audit, in simple,
recording at your own expense and with your own equipment. nontechnical terms. Findings may include:
We also have the right to record any in-person interview with • recommended changes in recordkeeping practices to correct
advance written notice to you. If you request it, we will provide accounting errors found during the audit,
a transcript or copy of the recording to you, but only if you • an explanation of the proper interpretation of the Tax Law in
reimburse us for the cost. areas where there were errors made,
• a notice of additional taxes due, or
The field audit • a notice that a refund is due.
Field audits are usually scheduled at least 15 days in advance
to give you time to assemble the required records. When you We will give you a reasonable amount of time to review the audit
are selected for a field audit, an auditor will contact you to set findings. The auditor will then analyze any additional information
up the initial appointment. You will receive a letter confirming the you submit and, if appropriate, revise and resubmit the work
appointment and describing the books and records you must papers.
provide. For a business audit, most appointments will be made
at your place of business, to minimize your time away from your If the audit results in a refund, the auditor will provide any
business activities. If you need longer than 15 days to gather the assistance you may require.
necessary records, you can usually request an extension of up
to 30 days. For delays longer than 30 days, you must make a If you agree
written request that substantiates the need for extra time. If you agree with the audit findings, we will ask you to sign the
Statement of Proposed Audit Changes, or similar document, and
Opening conference to return it to the auditor with full payment.
At your initial meeting (the opening conference), the auditor will: If you owe money but cannot pay in full immediately, you may
• explain the audit approach and procedures, be eligible for an installment payment agreement, which allows
• explain the audit process, and you to spread out your payments over time (see Installment
payment agreement). You should be aware, though, that interest
• outline your protest rights and appeal procedures in case you (and possibly penalties) will continue to accrue on the unpaid
disagree with an audit adjustment. balance.
Use this meeting to ask any questions you might have regarding
your rights and responsibilities. If you disagree
If you do not agree with the audit findings, indicate your
Audit methods disagreement on the Statement of Proposed Audit Changes and
We use several different audit methods to conduct audits. We return it to the auditor. You may request additional conferences
may conduct: with the auditor’s supervisor, if necessary.
• a detailed audit, If you still do not agree with the audit findings, we will send you
• an audit involving a test period method, or a Notice of Deficiency or Notice of Determination for the taxes
due. At this point, you may appeal the audit findings through
• an audit involving a statistical sampling method. either the Bureau of Conciliation and Mediation Services,
The method an auditor chooses will depend on several or through the Division of Tax Appeals. Generally, you must
variables, such as the type of tax, the accuracy and availability file your appeal within 90 days of the date the notice was
of the records, and the size and complexity of a business. issued (see Your right to protest an action taken by the Tax
Department). Refer to the notice you received for the applicable
In addition, the scope of an audit may be expanded and time limit. You must submit a written appeal even if you have
completed as a multi-tax audit. previously written to the department and objected to the position
If preliminary findings result in a material effect on the reporting taken in the proposal.
of another tax, those findings may be referred to another tax Although payment is not required while appealing a Notice
specialty at any time during the audit process. We may use audit of Deficiency or Notice of Determination, you may pay the
adjustments of one tax specialty as a basis to recalculate tax in proposed amount due, to stop the accrual of additional interest
another, depending on the facts and circumstances of the case. and any penalties due, if you are eventually found liable.
For sales and compensating use taxes, we may estimate any You may also pay any tax due and then file a claim for refund
additional tax due only if, in response to our request for records, within the time period applicable to the tax involved. If we deny
you have no records, or the records that you provide are your claim completely or partially, you may then choose to
inadequate for us to determine the tax due. appeal through either the Bureau of Conciliation and Mediation
Services or the Division of Tax Appeals, within the applicable
Audit period and duration statutory period.
An audit generally covers a three-year period, and can take as
little as several days or up to a year or more to complete. The The desk audit
duration depends on the complexity of the returns being audited, A desk audit is a review of tax returns, refund requests, or other
and on the timely availability, completeness, and accuracy of documents that you have submitted. Sometimes, a desk audit
your records. includes or is based on information obtained from other sources,
such as the IRS. It may also involve a return we believe you
Field audit findings should have filed. We will notify you if a desk audit is taking
If we determine no changes are necessary, we will send you a place only if we need to request more information, or if we
letter stating that no changes will be made to your return, refund determine that you either owe additional tax or are due a refund.
request, or documents.

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Publication 131 (9/22) Page 3 of 8

If we need more information, we will send a letter to notify you Claims for refund
of the desk audit and request the required information. We will Refunds may arise from any tax type. Most often, income tax
give you a reasonable amount of time to respond to the request. refunds result from a taxpayer’s overpayment of withholding
If you respond, we will review your response and inform you of or estimated tax, or a refundable tax credit, and the taxpayer
our findings. usually claims the refund when filing an annual income
tax return. We generate these refunds as part of the initial
Desk audit findings processing of the filed return.
If we determine no changes are necessary, we will send you a
letter stating that no changes will be made to your return, refund After filing an original return, you may discover that you
request, or documents. overlooked a credit, deduction, or exemption. For some tax
types, you must file an amended return to claim the refund. For
If there are any additional taxes due, you will receive a other tax types, you must submit a refund claim together with
Statement of Proposed Audit Changes or similar document, documentation substantiating the erroneous tax payment or
explaining the reason. We will give you a reasonable amount of overpayment. Refer to our website for more information.
time to respond. The technician will then analyze your response
and, if appropriate, make any adjustments to the amount If during the course of an audit, assessment, collection, or
owed. If, however, the audit results in a refund, you will receive enforcement proceeding, we discover you overpaid tax, we must
notification of your refund with a letter of explanation, unless you disclose that to you. However, we are not required to disclose
owe other taxes or a debt referred to the Tax Department (see an overpayment, pay a refund, or grant a credit if, at the time of
Offsets). discovery, the period was closed due to the statute of limitations.
If preliminary findings result in a material effect on the reporting Generally, if we do not issue your refund within a specified
of another tax, those findings may be referred to another tax period of time, we must pay you interest. For example, we must
specialty at any time during the audit process. We may use audit add interest to the amount of your personal income tax refund, if
adjustments of one tax specialty as a basis to recalculate tax in we don’t issue the refund within 45 days of the due date of your
another, depending on the facts and circumstances of the case. return or the date you filed, whichever is later.
We may approve a claim for refund for the amount requested, or
If you agree adjust or deny it. If approved, you will receive a refund, plus any
If you agree with the audit findings, we may ask you to sign the applicable interest. If adjusted, you will receive an amount lower
Statement of Proposed Audit Changes or similar document, and than you requested, and an explanation of the adjustments. If
pay the amount due. we deny your claim fully or partially, we will send you a written
notice to explain any protest rights you may have.
If you owe money but cannot pay in full immediately, you may be
eligible for an installment payment agreement, which will allow Note: If you owe other taxes or a debt to us, another state
you to spread out your payments over time (see Installment agency, the federal government, New York City, or another state,
payment agreement). However, interest (and possibly penalties) we may pay all or part of your refund to them. We will notify you
will continue to accrue on the unpaid balance. of this refund offset. If you have any questions about a debt not
owed to us, contact the other agency, the federal government,
If you disagree New York City, or the other state directly (see Offsets).
If you do not agree with the audit findings, you should submit If you disagree with the adjustment or disallowance of a refund,
more information to substantiate your disagreement, and return you may submit more information to substantiate your position.
a copy of the Statement of Proposed Audit Changes to us. The If you received a Notice of Disallowance adjusting or disallowing
technician will review any additional information you submit and, the refund you claimed, you may request a conciliation
if appropriate, notify you of their determination in writing. conference with the Bureau of Conciliation and Mediation
If you still do not agree with the audit findings, we will send you Services, or file a petition for a hearing with the Division of
a Notice of Deficiency or Notice of Determination for the taxes Tax Appeals, within the time indicated on the notice (see Your
due. At this point, you may appeal the audit findings through right to protest an action taken by the Tax Department). Your
either the Bureau of Conciliation and Mediation Services, or the time to request a conciliation conference or file a petition is not
Division of Tax Appeals. Generally, you must file your appeal extended by any further correspondence or contact with us.
within 90 days of the date the notice was issued (see Your right While you may also request a conciliation conference or file a
to protest an action taken by the Tax Department). Refer to petition for a hearing if six months have passed since you filed a
the notice you received for the applicable time limit. You must timely refund claim and you did not previously file a petition for
submit a written appeal even if you have previously written to the an income or corporation tax deficiency for the same tax year,
department and objected to the position taken in the Statement you may wish to see that we have had a chance to review all
of Proposed Audit Changes, or similar document. the relevant information. For income and corporation taxes, you
Although payment is not required while appealing a Notice must file the request or petition within two years from the date
of Deficiency or Notice of Determination, you may pay the we mailed the Notice of Disallowance. Other taxes have different
proposed amount due, to stop the accrual of additional interest time frames to request a conciliation conference or petition for
and any penalties due if you are eventually found liable. a hearing. For example, if we deny a claim for refund of sales
taxes, you must file a request or petition within 90 days of the
You may also pay any tax due, and then file a claim for refund date we denied the claim.
within the time period applicable to the tax involved. If we deny
your claim completely or partially, you may then choose to There is a statute of limitations to claim refunds. For most taxes,
appeal to the Bureau of Conciliation and Mediation Services, you must file amended returns, or other claims for refund, within
or to the Division of Tax Appeals, within the applicable statutory three years of the date the original return was due or filed, or
period. within two years of the date you paid the tax, whichever is later.
If you did not file a return, then you must file the claim for refund
within two years of the date you paid the tax.

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Page 4 of 8 Publication 131 (9/22)
If you file an amended return or claim for refund on an income, You may appear on your own behalf, or you may have an
corporation, or sales tax return within the three-year period, authorized representative present your case for review. An
the allowable refund may not exceed the portion of tax paid authorized representative must have a power of attorney from
within the three-year period immediately preceding the filing of you to appear on your behalf. For information on how to file a
the refund claim, plus the period of any extension of time for power of attorney, visit our website (see Need help?).
filing the return. If you file the amended return or claim within
the two-year period, the allowable refund may not exceed the If the disputed amount is within certain monetary limits, you
portion of the tax paid within the two-year period immediately may elect to have your Division of Tax Appeals hearing held in
preceding the claim for refund. the Small Claims Unit (see Small claims option). Note: Estate
tax filers are not eligible for hearings before the Division of Tax
You may file an amended return for income, estate, or Appeals, see Estate tax appeal rights.
corporation tax, or file a claim for refund, beyond the periods
mentioned above if the refund is attributable to a reported You have no prepayment hearing rights at the Bureau of
federal change or correction that you must report to New York Conciliation and Mediation Services or the Division of Tax
State. You must file an amended return or a claim for refund Appeals if you owe tax, interest, or penalty due to:
within two years of the date that notification of the change or • mathematical or clerical errors on your return,
correction was due. • changes made to your federal return by the IRS, or
The refund claim form, return, or other method that you must • your failure to pay all or part of the amount due as shown on
use depends on the tax for which you are seeking a refund. For your return.
information on the applicable time limits within which you must
make your claim for refund, and to obtain the appropriate forms, Conciliation conference
see Need help?. A conciliation conference is an efficient and inexpensive way to
try to resolve protests. The conference is conducted informally
Penalties and interest by a conciliation conferee who will review all the evidence
The three most common reasons for penalties are: presented to determine a fair result. After the conference, the
conferee will send you a proposed resolution in the form of a
• late filing, consent. If you do not sign the consent, a conciliation order will
• overdue taxes, and then be issued. This conciliation order is binding unless you file
• underpayment of estimated tax. a petition, Form TA-100, with the Division of Tax Appeals. Refer
to the information you receive with the order for the applicable
In the simplest terms, avoiding penalties and interest is a matter time limit to file.
of filing your tax returns and paying the correct amount of taxes
on time. If you are unclear about any of your tax responsibilities, Conciliation conferences are not available to distributors,
use the resources described in this publication to learn more importing transporters, terminal operators, or petroleum
about your filing requirements. businesses where the issue is an increase in the amount of a
bond or other security. Only the Division of Tax Appeals may
The amount of penalties for late filing and delinquent taxes is handle these issues.
generally based on the amount of tax that is overdue. However,
there are various penalties for late filing even if you owe no tax. You may be able to request a conciliation conference through
an Online Services account with the department (refer to the
Interest and any penalties continue to be added to the amount notice you received for instructions, and if able, visit our website
due until we receive full payment. All interest is compounded daily. and search: OLS to set up an account if you do not have one) or
For applicable interest rates, visit our website (see Need help?). by sending Form CMS-1-MN to the Bureau of Conciliation and
Mediation Services by fax to 518-435-8554, or by mail to:
Your right to protest an action taken by the NYS TAX DEPARTMENT
Tax Department CONCILIATION & MEDIATION SERVICES
If you disagree with a final action taken by us, you may protest W A HARRIMAN CAMPUS
by filing Form CMS-1-MN, Request for Conciliation Conference, ALBANY NY 12227-0918
with the Bureau of Conciliation and Mediation Services, or by If not using U.S. Mail, see Publication 55, Designated Private
filing Form TA-100, Petition, for a tax appeals hearing with the Delivery Services.
Division of Tax Appeals. Those actions may include:
• the issuance of a tax deficiency or determination; Tax appeals hearing
• the denial of a refund claim; or To request a tax appeals hearing, you must file Form TA-100
• the denial or revocation of a license, registration, or exemption with the Division of Tax Appeals. The petition must be in writing
certificate. and must specifically indicate what actions you are protesting.
You must file the request or petition within a certain period from The hearing is an adversarial proceeding before an impartial
the date the Tax Department mailed you notice of our action. administrative law judge. The hearing will be recorded
Refer to the notice you received for the applicable time limit. stenographically. After the hearing, the administrative law
These time limits are established by the Tax Law and cannot judge will issue a determination that will decide the matters in
be extended. If you are mailing your request or petition, we dispute unless you or the Tax Department request a review of
recommend that you use certified or registered mail. For the decision by the Tax Appeals Tribunal. If that happens, the
purposes of this rule, the filing date is the date the envelope Tribunal will:
containing the request or petition is postmarked by the U.S. • review the record of hearing and any additional oral or written
Postal Service, or the date recorded or marked as described in arguments, and
Internal Revenue Code section 7502 by a designated private • issue a decision affirming, reversing, or modifying the
delivery service. Publication 55, Designated Private Delivery administrative law judge’s determination, or
Services, lists the private delivery services approved for this
purpose. • refer the matter back to the administrative law judge for further
hearing.

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                                                                                              Publication 131 (9/22)          Page 5 of 8
Form TA-100 and the Rules of Practice and Procedure are               Deficiency, Notice of Disallowance, or the Conciliation Order that 
available on the Division of Tax Appeals and Tax Appeals              you received.
Tribunal’s website at www.dta.ny.gov. You may also request 
them by calling 518-266-3000, or by writing to:                       To obtain a petition form, contact the clerk of the local 
                                                                      Surrogate’s Court having jurisdiction over the estate. A request 
DIVISION OF TAX APPEALS                                               for petition forms and rules is not considered the filing of a 
AGENCY BUILDING 1                                                     petition, and does not extend the time limits for filing a petition.
EMPIRE STATE PLAZA 
ALBANY NY 12223                                                       If you file a Notice of Petition and a Verified Petition with the 
A request for petition forms and the rules is not considered the      Surrogate’s Court, you must file a copy at the same time with the 
filing of a petition for a hearing for purposes of the time limits,   Commissioner of Taxation and Finance. Mail to:
and it does not extend the time limits for filing a petition.           NYS TAX DEPARTMENT 
                                                                        OFFICE OF COUNSEL
Court review                                                            W A HARRIMAN CAMPUS 
                                                                        ALBANY NY 12227-0911
If you do not agree with the Tax Appeals Tribunal’s decision, 
you may seek court review. There are time limits within which         If not using U.S. Mail, see Publication 55, Designated Private 
you may appeal for court review (generally, within four months        Delivery Services.
from when the Tax Appeals Tribunal serves you notice of the 
decision, by certified mail or personal service). For some taxes, 
you must pay the tax, interest, and penalty; or post a bond for       The collection process
these amounts, plus court costs, when you file an appeal for          When your appeal rights have expired or have been exhausted, 
court review.                                                         our Civil Enforcement Division begins collection proceedings. 
                                                                      Before this begins, you will have the opportunity to pay your tax 
                                                                      debt. In certain circumstances, you may request an installment 
Small claims option                                                   payment agreement, which will allow you to spread out your 
If the amount in dispute is within the dollar limits set by the Rules payments.
of Practice and Procedure, you may elect to have your hearing 
held in the Small Claims Unit of the Division of Tax Appeals. An      If you are severely financially distressed, you may also decide to 
impartial presiding officer conducts the small claims hearing. The    submit an offer in compromise. However, we will not necessarily 
presiding officer’s determination is conclusive and is not subject    accept the offer. We consider offers from taxpayers: 
to review by any other unit in the Division of Tax Appeals, the       • recently discharged from bankruptcy, 
Tax Appeals Tribunal, or by any court in the state.                   •  who are insolvent (their liabilities exceed their assets), and 
Relief from liability as an innocent spouse                           •  for whom collection in full would cause undue economic 
If you file a joint income tax return, both you and your spouse         hardship such that the individual would not be able to pay 
                                                                        reasonable living expenses. 
are generally responsible for the tax and any interest or 
penalties due on the return. This means that if one spouse does       Generally, the amount offered in compromise must reasonably 
not pay the tax due, the other may have to pay it. You may            reflect collection potential. For more information on offers 
qualify for relief from liability for tax on a joint return if:       in compromise, see Publication 220, Offer in Compromise 
•  there is an understatement of tax because your spouse              Program.
omitted income or claimed false deductions or credits;
•  you are divorced, separated, or no longer living with your         Installment payment agreement
spouse; and                                                           If you are financially unable to pay the full amount of your 
•  given all the facts and circumstances, it would be unfair to       liability all at once, you may qualify for an installment payment 
hold you liable for the tax.                                          agreement. To apply, visit our website (see Need help?). Under 
                                                                      the agreement, you may pay off your total tax liability in monthly 
For more information, see:                                            installments. We will establish a direct payment arrangement 
•  Publication 89, Innocent Spouse Relief (and Separation of          with your financial institution, under which monthly installment 
Liability and Equitable Relief), and                                  payments are automatically withdrawn and remitted to our 
                                                                      processing bank.
•  Form IT-285, Request for Innocent Spouse Relief (and 
Separation of Liability and Equitable Relief), and its                However, this does not put a cap on the total amount you owe. 
instructions.                                                         Until your tax liability is satisfied, interest and any penalties will 
                                                                      continue to accrue on any unpaid balance.
Estate tax appeal rights                                              To qualify for an installment payment agreement, you may need 
You may protest a Notice of Deficiency or the denial of an estate     to complete Form DTF-5, Statement of Financial Condition, and 
tax refund claim by filing Form CMS-1-MN with the Bureau of           supply other information to substantiate your present financial 
Conciliation and Mediation Services (see Your right to protest        condition and your inability to make full payment. You must also 
an action taken by the Tax Department), or by filing a petition       file your returns and pay all future taxes as they become due. 
to commence a special proceeding in the Surrogate’s Court.            If you do not pay your new tax liabilities or file returns on time, 
If you wish to pursue a court action, but you elect not to file       you will be in default under the agreement. After we give you 
Form CMS-1-MN, or if you disagree with a Conciliation Order,          notice of your default, we may then resume collection action on 
you must file a Notice of Petition and a Verified Petition with       the liability under the payment agreement, or we may modify or 
the Surrogate’s Court of the county having jurisdiction over the      terminate the agreement.
estate. The petition must be in writing, and must specifically 
indicate what actions you are protesting.                             We will apply any payments, refunds, or other monies owed 
                                                                      to you against the tax liability you are paying in installments. 
You must complete and file the petition in accordance with            Any monies so applied will reduce the repayment term of your 
the applicable statute, by the date indicated on the Notice of        installment payment agreement, but you are still required to pay

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Page 6 of 8 Publication 131 (9/22)
the monthly amount agreed upon until your debt is paid in full agents may remove all of the merchandise at your business, or
(see Offsets). seize your business assets and store them elsewhere until the
assets are sold at auction.
We may terminate an installment payment agreement at any
time without notice if we believe collection of the tax is in If we seize your property, we will notify you of the date, time,
jeopardy. Otherwise, we may terminate or modify an installment and place of the auction. At any time before the auction begins,
payment agreement only upon at least 30 days prior notice, we will release the property and return it to you if you pay in
explaining the reason, in any of the following situations: full; or make satisfactory arrangements to pay the tax, penalty,
• We find that the information you supplied before entering into and interest owed, along with the expenses we incurred in the
the agreement is inaccurate or incomplete. seizure and the preparation for the auction.
• Your financial condition changes significantly. You have the right to request that any seized property be sold
• You fail to pay an installment payment or any other tax liability within 60 days of the request, or within some longer specified
when due. period. We will honor your request, unless it is in the state’s best
interest to retain the property for a longer period, in which case
• You fail to file future returns on time. we will notify you.
• You fail to supply updated information on your financial
condition when requested. We will sell your property in accordance with the New York Civil
Practice Law and Rules.
If we terminate the agreement, we may then resume collection
action on the liability. Once your assets are sold, we will send you an accounting
of the disbursement of the auction proceeds. If the proceeds
Whether or not you enter into a payment agreement, we may exceed your debt and our expenses, we will return the surplus
also file a tax warrant with the appropriate county clerk and the to you.
New York State Department of State, to ensure our priority over
your subsequent creditors (see Tax warrant). Release of levy
If you do not satisfy your full tax liability or comply with the terms We will release a levy on all or part of your property, and send
of an installment payment agreement, or if we rescind or reject notice of the release, if:
an offer in compromise, we may use any or all of the following • you file a bankruptcy petition;
activities to collect your tax liability. • you pay the underlying liability, or it becomes unenforceable
by lapse of time;
Tax warrant
• releasing the levy will facilitate collection of the liability;
We can file a tax warrant against you. A tax warrant is equivalent
to a civil judgment against you. It is a public record on file with • you enter into an installment payment agreement that
the appropriate New York State county clerk’s office and with specifically provides for release of the levy;
the New York State Department of State. Warrant information is • the fair market value of the seized property exceeds your
posted on the Department of State’s website. tax liability, and release of part of the property can be made
without hindering collection of your liability; or
A filed tax warrant creates a lien against your real and personal
property, which may affect your ability to obtain credit or buy • if you are an individual, we determine that the levy is creating
or sell property, and allows us to seize and sell your real and an economic hardship due to your financial condition.
personal property, or garnish your wages or other income. If we seize property essential to your trade or business, we will
determine whether the property can be released on the grounds
Levy stated above. If we release the levy on your property, we are not
A levy is a legal seizure of your property. In most cases, before prohibited from future levy of the property if needed to collect
a levy is served, we will send you a Form DTF-978, Notice to your tax liability.
Judgment Debtor or Obligor, that provides a list of property that
may be exempt from collection actions. Most frequently, a levy is If property is wrongfully levied on, we may return the property
made on bank accounts, and requires a bank to remove money seized, money equal to its fair market value, or the amount of
from your account and send it to us. A levy can also be made money seized, with interest, if applicable.
on money that any third party owes you, such as a loan or rent
owed to you. If you are a business taxpayer, a levy can attach to Offsets
any cash on hand, or to business assets, such as machines and Any payment the state may owe you for goods or services you
equipment. sold or provided to any state agency or instrumentality may be
withheld and applied against any tax liability you owe to the
Income executions state. If any payment due to you is the subject of this kind of
An income execution is a type of levy that may be issued against offset, we will send you prior written notice.
your wages. We will ask you to voluntarily pay up to 10% of your In addition, under certain circumstances, any New York State tax
gross wages each time you are paid. If you don’t make voluntary refund or other payment due to you may be offset to pay your
payments, we will have your employer automatically deduct up New York State tax liabilities, or it may be sent to another state
to 10% of your gross wages out of your paycheck and send it to agency, the federal government, New York City, or another state
us. The income execution remains in effect until the outstanding to which you owe money or taxes. The other state agency, the
tax liability is satisfied. federal government, New York City, or the other state will send
you prior written notice and then apply your refund to your debt.
Seizures and sales
If you have a past due legally enforceable New York State, New
We may seize and sell your non-exempt real or personal York City, or Yonkers income tax debt, it will be referred to the
property at auction. federal government or any state participating in the Multi-State
During a business seizure, collection agents may have the Offset Program. Your federal income tax refund or other state
locks changed at your place of business, denying you access to refund may be applied to your New York State tax debt, up to the
your place of business and your business assets. Alternatively, amount you owe.

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                                                                                                  Publication 131 (9/22)  Page 7 of 8
Refund of nonobligated spouse                                       •  are involved in deciding which financial obligations are paid;
If you file a joint income tax return and expect to receive a       •  are involved in personnel activity (such as hiring or firing 
refund, we may use the refund to pay your spouse’s tax debts or     employees);
other debts owed to a New York State agency. If you do not wish     •  have check signing authority;
your portion of the refund to be used to pay your spouse’s debts, 
complete Form IT-280, Nonobligated Spouse Allocation, and do        •  prepare tax returns;
one of the following:                                               •  have authority over business decisions;
•  Include the form with your income tax return.                    •  are a tax manager or general manager; or
•  File the form within ten days of the notice from us that the     •  are a corporate officer.
refund will be used to offset other debts.
                                                                    Under certain circumstances, you may be issued a responsible 
Form IT-280 does not allow you to disclaim your spouse’s debts      person assessment even if you are not under a duty to act for 
to the federal government, or tax debts owed to another state.      the business. For example, for sales and use taxes, we may 
                                                                    issue a responsible person assessment against you if you are a 
Driver’s license suspension for nonpayment of taxes                 member of a partnership or limited liability company, whether or 
Your New York State driver’s license is eligible for suspension by  not you have a duty to act on behalf of the partnership or limited 
the Department of Motor Vehicles (DMV) if you have a past-due       liability company. 
fixed and final New York State tax liability of at least $10,000.   If we issue a responsible person assessment against you and 
Before your driver’s license is suspended, we will send you a       you do not agree with it, you generally have 90 days to appeal, 
notice stating you have 60 days to pay the debt in full, make       by either requesting a conciliation conference, or petitioning for 
satisfactory payment arrangements, or protest the proposed          a Division of Tax Appeals hearing. The appeal entitles you to a 
suspension only on any of the following grounds:                    hearing to present any information you may have to refute the 
                                                                    assessment and your liability as a responsible person. We will 
•  You are not the taxpayer named in the notice.                    include a full explanation of your rights to protest an assessment 
•  Your past-due tax liability has been paid in full.               with your original assessment document. For sales and use 
•  Your wages are being garnished for payment of the past-due       taxes only, you will be considered to have appealed if your 
tax liabilities at issue, or for past-due child support or          business requests a conciliation conference, or petitions for a 
combined child and spousal support arrears.                         tax appeals hearing for the same tax liability. However, if you 
                                                                    are not certain that the business has appealed on time, and you 
•  Your driver’s license is a commercial driver’s license.          wish to appeal the assessment, you should request your own 
•  You receive public assistance or supplemental security           conciliation conference or petition for a tax appeals hearing.
income.
                                                                    Once a responsible person assessment is final, we can use 
•  You demonstrate the suspension of your driver’s license will     all collection methods available against your assets. We may 
cause undue economic hardship.                                      collect from you the full amount of the liability the business owes, 
•  We incorrectly found that you failed to comply with the terms    even if there are other entities or persons involved who may 
of a payment arrangement more than once within a 12-month           be similarly assessed. Responsible person tax debts are not 
period.                                                             dischargeable in bankruptcy.
You may also try to establish that you are eligible for innocent 
spouse relief (see Publication 89, Innocent Spouse Relief (and      Estate tax liability of executors and transferees
Separation of Liability and Equitable Relief)), or that enforcement If you are the executor or administrator of an estate and you 
of the underlying liabilities have been stayed by the filing of a   distribute assets to a beneficiary of the estate, or pay any debt 
bankruptcy petition (call the department’s Bankruptcy Unit at       owed by the estate before paying the New York estate tax, you 
518-457-3160).                                                      may be held personally liable for the unpaid estate tax. You will 
                                                                    continue to be liable until either the estate tax is paid in full or the 
If you fail to respond to the notice, we will refer your case to    department authorizes a release of estate tax lien. In addition, if 
DMV for the suspension of your driver’s license. Before the         you received property from the estate as a beneficiary, you may 
actual suspension occurs, DMV will issue a final letter stating     be held personally liable for the unpaid estate tax up to the value 
you have 15 calendar days to resolve your tax liabilities with the  of the property you received. However, this does not include 
Tax Department. For information on obtaining a restricted use       property jointly held by the decedent and surviving spouse.
driver’s license, visit the DMV website at www.dmv.ny.gov. 
                                                                    Trust accounts
Responsible person assessments                                      If you are a business owing sales and use taxes or withholding 
For taxes such as sales and use taxes, withholding tax, and         taxes, you may need to establish a trust or segregated account 
motor fuel excise tax, responsible persons of a business may be     with a financial institution, for depositing taxes as you collect 
held personally liable for the business’s unpaid New York State     them from customers, or withhold them from employees’ wages. 
tax liabilities. You may be considered a responsible person if you  The trust account ensures that the taxes owed are available 
are an officer, director, or employee of a corporation or dissolved when the tax returns are due.
corporation, or employee of a partnership or sole proprietorship 
who was under a duty to act for the business to comply with the     We will require you to set up a trust account when your past 
relevant provisions of the Tax Law. To be liable for withholding    performance indicates chronic tax delinquencies.
tax, a responsible person must also have acted willfully in failing 
to collect or pay over the tax.                                     Revocation or suspension of Certificate of Authority 
Factors we consider in determining whether you are a                or refusal to issue a Certificate of Authority
responsible person include whether you:                             We may revoke or suspend your Certificate of Authority to collect 
                                                                    sales and use taxes for willful failure to comply with certain 
•  are actively involved in operating the business on a regular     requirements of the Tax Law, such as willfully failing to file a 
basis;                                                              return or to pay tax. If your Certificate of Authority is revoked or 
                                                                    suspended, you will be prohibited from engaging in any business

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Page 8 of 8   Publication 131 (9/22)
in New York State for which a Certificate of Authority is required. 
If you try to remain in business with a revoked or a suspended 
certificate, or start a new business without a required certificate, 
we may impose civil and criminal penalties. We may also refuse 
to issue a Certificate of Authority for prior noncompliance with 
the Tax Law.
If we begin a Certificate of Authority revocation or suspension 
proceeding, or refuse to issue a Certificate of Authority, we 
will notify you of your rights during each step of the process, 
including your right to protest. We may stop the process at 
any time if circumstances warrant it, such as if you satisfy your 
liability.

Representation during a collection activity
You may represent yourself, or designate another person to 
represent you. Any person representing you must have the 
proper written authorization (a power of attorney) from you to act 
on your behalf. For more information on how to file a power of 
attorney, visit our website or call us (see Need help?). 

Licenses and collateral
If you do not pay your taxes, we or another government agency 
may cancel or suspend your license or other certificate to 
engage in business. Any bond or other collateral you may have 
posted for a license may be liquidated and applied to your tax 
debt. If a bond is canceled, you must obtain a new bond before 
you can resume the business activities for which a bond is 
required.

Resolving a problem or filing a 
complaint
If you have a problem with the Tax Department that you have 
not been able to resolve through normal channels, or if for any 
reason you have a complaint about the department, visit our 
website or call us (see Need help?). 
Depending upon the nature of your complaint, our 
representatives will either assist you in resolving the matter or 
refer your complaint for further review.

Need help?
            Visit our website at www.tax.ny.gov
            •  get information and manage your taxes online
            •  check for new online services and features

Telephone assistance
Personal Income Tax Information Center:     518-457-5181
Corporation Tax Information Center:         518-485-6027
Sales Tax Information Center:               518-485-2889
Withholding Tax Information Center:         518-485-6654
Miscellaneous Tax Information Center:       518-457-5735
To order forms and publications:            518-457-5431
Text Telephone (TTY) or TDD                 Dial 7-1-1 for the  
  equipment users                       New York Relay Service

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