N.Y. Comp. Codes R. & Regs. tit. 6 § 481.11

Current through Register Vol. 46, No. 45, November 2, 2024

Section 481.11 - Reasonable cause

(a) The following exemplify grounds for reasonable cause, where clearly established by the person requesting a redetermination of a penalty, consideration of a late challenge, or reconsideration of a determination made in the challenge process when a timely response was not made:

(1) The death or serious illness of the person owing the regulatory fee or a responsible officer, employee or other representative of such person which precluded timely payment of the fees owed or timely challenge to the fees owed provided that the fee is paid within a justifiable period of time after the death, illness or absence. A justifiable period of time is that period which is substantiated by the person or the person's representative as a reasonable period of time for paying the fee owed.

Example:It was established that illness incapacitated the owner and sole stockholder of a small business concern during the period when a regulatory fee was owed and penalty was accruing. The owner further established that no other person had access to sufficient information which would have resulted in fee payment. The fee was paid with interest due within a justifiable time after the owner returned to work. This constitutes reasonable cause for failure to pay the fee.

(2) The destruction of the person's or the person's representative's place of business or business records by a fire or other documented casualty, which precluded timely payment of a regulatory fee owed or timely challenge to a fee owed provided that the fee is paid within a justifiable period which is substantiated by the person or the person's representative as a reasonable period of time for paying the fee owed based on the facts and circumstances of each case.

Example:The place of business, together with the business records and the regulatory fee bill were destroyed by a documented casualty at the period of time when the fee was due and penalty was accruing. The fee was paid within a justifiable period of time after the casualty took place. This constitutes reasonable cause for failure to pay the fee due.

(3) The fee bill was sent to an incorrect address, delaying the time when the bill was received by the person who owes the fee which precluded timely payment of the fee owed or timely challenge to the fee owed. The fee was paid within a justifiable period of time from when the bill was received and the person can prove that the incorrect address was not a result of the person's failure to notify the department of a change of address.

Example:A fee bill was normally sent to a subsidiary of a company. The subsidiary was closed and it took one month for the post office to forward the bill to the parent company. The parent company paid the bill within a justifiable period of time from when the bill was received. This constitutes reasonable cause for failure to pay the fee due provided that the parent company can prove that it notified the department of the address change.

(4) Any other cause for delinquency which would appear to a person of ordinary prudence and intelligence as a reasonable cause for delay and which clearly indicates an absence of willful neglect may be determined to be reasonable cause. Ignorance of law, however, will not be considered as a basis for reasonable cause. Reasonable cause may be determined to exist only where the person owing the fee acted in good faith. A criminal conviction or commissioner's order, in which a person has been found to violate the ECL, its regulations or permits, is evidence of the lack of good faith.

N.Y. Comp. Codes R. & Regs. Tit. 6 § 481.11