N.Y. Comp. Codes R. & Regs. tit. 20 § 539.4

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

Section 539.4 - Revocation or suspension of a certificate of authority

(a) The Department of Taxation and Finance, in circumstances described herein, may revoke or suspend all certificates of authority issued to a business. A determination as to whether a certificate of authority should be revoked or suspended and the duration of any suspension will be made by the department on the basis of the circumstances in each case.

(b) A certificate of authority may be revoked or suspended where it is determined that the holder of such certificate:

(1) willfully fails to file a report or return required by article 28 of the Tax Law; or

(2) willfully files, causes to be filed, gives or causes to be given a report, return, certificate or affidavit required by article 28 of the Tax Law which is false; or

(3) willfully fails to collect, truthfully account for or pay over any tax imposed by article 28 or 29 of the Tax Law; or

(4) has been convicted of a crime pursuant to the Tax Law provided such conviction has occurred not more than one year prior to the date of such revocation or suspension; or

(5) willfully fails to file a bond or establish a trust account and make payments as provided in subdivisions (a) and (b) of section 539.5 of this Part.

(c) Notification of proposed suspension or proposed revocation of a certificate of authority.

(1) A notice of proposed suspension or revocation of a certificate of authority will be sent by certified or registered mail to the registrant at the address on its certificate of registration (as amended) or the address on its sales tax return last filed with the Department of Taxation and Finance. Such notification must:

(i) state the basis for the suspension or revocation of the certificate of authority;

(ii) clearly notify the holder of such certificate of authority that the impending suspension or revocation may be protested; and

(iii) notify the applicant that such notice shall be final unless a petition for a hearing or request for a conciliation conference of such proposed action is filed within 90 days of the date of such notice.

(2) Unless acts involving falsity or fraud are at issue, a notice of proposed suspension or revocation of a certificate of authority must be issued within 3 years from the date of the act or omission which formed the basis for such suspension or revocation. Where acts involving falsity or fraud are at issue, such notices may be issued at any time.

(d) Protest procedure.

(1) Where a person who holds a certificate of authority has been issued a notice of proposed suspension or revocation by the department, such notice shall be final unless a petition for a hearing or a request for a conciliation conference is filed within 90 days of the date of such notice.

(i) Upon timely application, a hearing or conference will be scheduled in accordance with the procedures described in the Tax Appeals Tribunal's Rules of Practice and Procedure (Part 3000 of this Title) or the Division of Taxation's Bureau of Conciliation and Mediation Services Rules of Practice and Procedure (Part 4000 of this Title).

(ii) Where such person timely files a request for conference or a petition for a hearing, the certificate of authority shall not be revoked or suspended pending final adjudication through the appeals process.

(2) A notice of proposed revocation or suspension shall be final when:

(i) no protest (petition for hearing or request for conference) is filed within 90 days of the date of the notice; or

(ii) a conciliation order from a conciliation conferee upholding the department's notice of proposed revocation or suspension has become final; or

(iii) a determination from an Administrative Law Judge upholding the department's notice of proposed revocation or suspension has become final; or

(iv) a decision of the Tax Appeals Tribunal upholding the department's notice of proposed suspension or revocation, and such decision has become final (including any judicial proceedings applicable thereto).

(e)

(1) Surrender of a certificate of authority. Every person whose certificate of authority has been revoked or suspended is required to immediately return such certificate of authority to the department. Any person who fails to surrender a certificate of authority when a notice of proposed revocation or suspension has become final shall be subject to a penalty in an amount not exceeding $500 for the first day of such failure, together with a penalty in an amount not exceeding $200 for such subsequent day not to exceed $10,000 in the aggregate. In addition, such person may also be subject to the criminal penalties provided for by section 1817 of article 37 of the Tax Law.

(2) Where a revoked or suspended certificate of authority has been lost, stolen, destroyed or is otherwise unreturnable to the department, the owner, partner or responsible officer of a vendor which was issued such certificate is required to notify the Sales Tax Registration Unit that such certificate cannot be returned, setting forth the specific reasons for such failure. The notification must be in written form, signed by the owner, partner or responsible officer and received within a reasonable time after a notification of revocation or suspension has become final.

N.Y. Comp. Codes R. & Regs. Tit. 20 § 539.4