2012 New York Consolidated Laws
TAX - Tax
Article 27 - (1080 - 1097) CORPORATE TAX PROCEDURE AND ADMINISTRATION
1096 - General powers of tax commission.

 
    §  1096.  General  powers  of tax commission.---(a) General.---The tax
  commission shall administer and enforce the tax imposed by article nine,
  nine-a, nine-b and nine-c, and it is authorized to make such  rules  and
  regulations,  and  to require such facts and information to be reported,
  as it may deem necessary to enforce the provisions of such articles  and
  of this article.
    (b)  Examination  of books and witnesses.---(1) The tax commission for
  the purpose of ascertaining the correctness of any return,  or  for  the
  purpose of making an estimate of tax liability of any corporation, shall
  have  power  to  examine  or  to cause to have examined, by any agent or
  representative designated by it for that  purpose,  any  books,  papers,
  records or memoranda bearing upon the matters required to be included in
  the  return, and may require the attendance of the corporation rendering
  the return through any officer or employee of such corporation,  or  the
  attendance of any other person having knowledge in the premises, and may
  take  testimony  and  require  proof  material for its information, with
  power to administer oaths to such person or persons.
    (2) The tax commission may take any action under paragraph one of this
  subdivision to inquire into the commission of an offense connected  with
  the  administration  or  enforcement  of  this  article or article nine,
  nine-a,  thirteen,  thirteen-a,  thirty-two,  or  thirty-three  of  this
  chapter,  provided,  however,  that  notwithstanding  the  provisions of
  section one hundred seventy-four of this chapter no such action shall be
  taken when a referral by the department or the  tax  commission  to  the
  attorney  general, a district attorney or any other prosecutorial agency
  is in effect. Provided, however, the tax commission  shall  have  power,
  during  the  period  when  such  referral is in effect, to examine or to
  cause to have examined, by any agent or representative designated by  it
  for  that  purpose, any books, papers, records or memoranda bearing upon
  the matters required to be included in the  return,  where  such  books,
  papers, records or memoranda are in its possession, or where such books,
  papers,  records  or  memoranda  are  in  the possession of the attorney
  general, district attorney or other prosecutorial agency to  which  such
  referral is made.
    (c)  Abatement authority.---The tax commission, of its own motion, may
  abate any small unpaid balance of an assessment of tax, or any liability
  in respect thereof, if the tax commission determines under uniform rules
  prescribed by it that the administration and collection  costs  involved
  would  not  warrant  collection of the amount due. It may also abate, of
  its own motion, the unpaid portion of the assessment of any tax  or  any
  liability  in  respect  thereof,  which  is  excessive  in amount, or is
  assessed after the expiration  of  the  period  of  limitation  properly
  applicable  thereto,  or  is erroneously or illegally assessed. No claim
  for abatement under this subsection shall be filed by a taxpayer.
    (d) Special refund authority.---Where no questions of fact or law  are
  involved  and it appears from the records of the tax commission that any
  moneys have been erroneously or illegally collected from any taxpayer or
  other person, or paid by such taxpayer or other person under  a  mistake
  of facts, pursuant to the provisions of this article or of article nine,
  nine-a, nine-b or nine-c, the tax commission at any time, without regard
  to any period of limitations, shall have the power, upon making a record
  of  its  reasons  therefor  in writing, to cause such moneys so paid and
  being erroneously and  illegally  held  to  be  refunded  and  to  issue
  therefor its certificate to the comptroller.
    (e)  (1) Authority to set interest rates.---The commissioner shall set
  the overpayment and underpayment rates of interest to be  paid  pursuant
  to  sections  two  hundred thirteen, two hundred thirteen-b, two hundred
  fifty-eight, two  hundred  sixty-three,  two  hundred  ninety-four,  one

  thousand   eighty-four,   one   thousand   eighty-five,   one   thousand
  eighty-eight,  fourteen   hundred   sixty-one   and   fourteen   hundred
  sixty-three  of  this  chapter, but if no such rate or rates of interest
  are  set, such overpayment rate shall be deemed to be set at six percent
  per annum and such underpayment rate shall be deemed to be set at  seven
  and  one-half percent per annum. Such overpayment and underpayment rates
  shall be the rates prescribed in paragraph two of this  subsection,  but
  the  underpayment rate shall not be less than seven and one-half percent
  per annum. Any such rates set by the commissioner shall apply to  taxes,
  or  any  portion  thereof,  which remain or become due or overpaid on or
  after the date on which such rates become effective and shall apply only
  with respect to interest computed or computable for periods or  portions
  of  periods  occurring  in  the  period  during  which such rates are in
  effect.
    (2) General rule. (A) Overpayment rate. The overpayment rate set under
  this subsection shall be the sum of (i) the federal short-term  rate  as
  provided  under  paragraph  three  of  this  subsection,  plus  (ii) two
  percentage points.
    (B) Underpayment rate. The underpayment rate set under this subsection
  shall be the sum of (i) the federal short-term rate  as  provided  under
  paragraph three of this subsection, plus (ii) seven percentage points.
    (3) Federal short-term rate. For purposes of this subsection:
    (A)  The  federal  short-term  rate for any month shall be the federal
  short-term rate  determined  by  the  United  States  secretary  of  the
  treasury  during such month in accordance with subsection (d) of section
  twelve hundred seventy-four of the internal  revenue  code  for  use  in
  connection  with  section  six  thousand  six  hundred twenty-one of the
  internal revenue code. Any such rate shall be  rounded  to  the  nearest
  full  percent  (or,  if a multiple of one-half of one percent, such rate
  shall be increased to the next highest full percent).
    (B) Period during which rate applies.
    (i)  In  general.  Except  as  provided  in  clause   (ii)   of   this
  subparagraph,  the  federal  short-term rate for the first month in each
  calendar quarter shall apply during the first calendar quarter beginning
  after such month.
    (ii) Special  rule  for  the  month  of  September,  nineteen  hundred
  eighty-nine.  The  federal  short-term  rate  for  the  month  of April,
  nineteen hundred eighty-nine shall apply with  respect  to  setting  the
  overpayment  and underpayment rates for the month of September, nineteen
  hundred eighty-nine.
    (4) In computing the amount of any interest required to be paid  under
  this  article  by  the  commissioner  of  taxation and finance or by the
  taxpayer, or any other amount determined by reference to such amount  of
  interest,  such  interest and such amount shall be compounded daily. The
  preceding sentence shall not apply for purposes of computing the  amount
  of any addition to tax for failure to pay estimated tax under subsection
  (c) of section one thousand eighty-five of this article.
    (5)  Publication  of  interest rates. The commissioner of taxation and
  finance shall cause to be published in  the  section  for  miscellaneous
  notices in the state register, and give other appropriate general notice
  of,  the  interest  rates  to be set under this subsection no later than
  twenty days preceding the first day of the calendar quarter during which
  such interest rates apply. The setting and publication of such  interest
  rates  shall  not be included within paragraph (a) of subdivision two of
  section one hundred  two  of  the  state  administrative  procedure  act
  relating to the definition of a rule.

    (6)  Cross-reference.  For  provisions  relating  to  the power of the
  commissioner of taxation and finance to abate small amounts of interest,
  see subsection (c) of this section.