N.Y. Comp. Codes R. & Regs. tit. 20 § 535.2

Current through Register Vol. 46, No. 50, December 11, 2024

Section 535.2 - Assessment of tax

Tax Law, §§ 1138(a), (c), (d), 1147(a)(1)

(a)Determination of tax liability.

If a return required by article 28 or by a tax enacted pursuant to the authority of article 29 of the Tax Law and administered by the Department of Taxation and Finance is not filed, or if a return when filed is incorrect or insufficient, the amount of tax due will be determined by the Division of Taxation from such information as may be available. If necessary, the tax may be estimated on the basis of external indices, such as stock on hand, purchases, rental paid, number of rooms, location, scale of rents or charges, comparable rents or charges, type of accommodations and service, number of employees or other factors.

Cross-reference:

For records required to be kept, see section 533.2 of this Title.

(b)Notice of determination.

(1) A notice of determination of the tax due will be mailed, as described in section 535.1 of this Part by registered or certified mail, to the person liable for the collection or payment of the tax. The notice will contain information advising the recipient of the right to have a conciliation conference with the Bureau of Conciliation and Mediation Services of the Division of Taxation or a hearing with the Division of Tax Appeals.

(2) Whenever the tax due is estimated on the basis of external indices, the notice of determination will contain a statement in bold face type, conspicuously placed on such notice, advising the taxpayer: that the amount of the tax was estimated; that the tax may be challenged through a hearing process; and that the petition for such challenge must be filed with the Division of Tax Appeals within 90 days.

(c)Effect of determination.

(1) Determination by the Division of Taxation of the amount of tax due will finally and irrevocably fix the tax unless the person against whom it is assessed, within 90 days of the date of mailing of the notice of such determination, applies to the Bureau of Conciliation and Mediation Services for a conciliation conference or to the Division of Tax Appeals for a hearing, or unless the Division of Taxation of its own motion redetermines the same.

(2) A person liable for collection or payment of tax (whether or not a determination assessing a tax has been issued) is entitled, pursuant to section 1138 (c) of the Tax Law, to have a tax due finally and irrevocably fixed prior to the 90-day period referred to in paragraph (1) of this subdivision, by filing with the Division of Taxation a signed statement in writing. Forms issued by the Department of Taxation and Finance for such purpose should be used in making this signed statement. This paragraph does not apply to the liability of a purchaser, transferree or assignee arising under section 1141 (c) of the Tax Law.

(d) If a taxpayer, upon being audited, reaches agreement with the Division of Taxation as to the amount of taxes due, together with penalties and interest thereon, if any, the Division of Taxation will mail, in the manner described in section 535.1(a) of this Part, a notice and demand for payment of the amount due.

Cross-references:

For the assessment procedure against a bulk purchaser, see Part 537 of this Title.

For the effect of a determination of tax liability on a taxpayer's right to a refund or credit, see Part 534 of this Title.

N.Y. Comp. Codes R. & Regs. Tit. 20 § 535.2