a

mission is a party or a claimant, or on behalf of any party to any action, proceeding or hearing under the provisions of this article when the returns, reports or facts shown thereby are directly involved in such action, proceeding or hearing, in any of which events the court, or in the case of a hearing, the tax commission may require the production of, and may admit into evidence, so much of said returns, reports or of the facts shown thereby, as are pertinent to the action, proceeding or hearing and no more. The tax commission may, nevertheless, publish a copy or a summary of any decision rendered after a hearing required by this article. Nothing herein shall be construed to prohibit the delivery to a person who has filed a return or report or his duly authorized representative of a certified copy of any return or report filed in connection with his tax. Nor shall anything herein be construed to prohibit the delivery to a person required to collect the tax under this article or a purchaser, transferee or assignee personally liable under the provisions of subdivision (c) of section eleven hundred forty-one of this chapter for the tax due from the seller, transferor or assignor, of any return or report filed under this article in connection with such tax provided, however, that there may be delivered only so much of said return, report or of the facts shown thereby as are pertinent to determination of the taxes due or liability owed by such person or purchaser, transferee or assignee and no more or to prohibit the publication of statistics So classified as to prevent the identification of particular returns or reports and the items thereof, or the inspection by the attorney general or other legal representatives of the state of the return or report of any person required to collect or pay the tax who shall bring action to review the tax based thereon, or against whom an action or proceeding under this chapter has been recommended by the commissioner of taxation and finance or the attorney general or has been instituted, or the inspection of the returns or reports required under this article by the comptroller or duly designated officer or employee of the state department of audit and control, for purposes of the audit of a refund of any tax paid by a person required to collect or pay the tax under this article. Provided, further, nothing herein shall be construed to prohibit the disclosure, in such manner as the tax commission deems appropriate, of the names and other appropriate identifying information of those persons holding certificates of authority pursuant to section eleven hundred thirty-four of this article, those persons whose certificates of authority have been suspended or revoked, those persons whose certificates of authority have expired, those persons who have filed a certificate of registration for a certificate of authority where the tax commission has refused to issue a certificate of authority, those persons holding direct payment permits pursuant to section eleven hundred thirty-two or those persons whose direct payment permits have been suspended or revoked by the tax commission.

§ 88. Subdivision (b) of section eleven hundred forty-seven of such law, as amended by chapter two hundred two of the laws of nineteen hundred sixty-eight, is amended to read as follows:

more

or

(b) The provisions of the civil practice law and rules or any other law relative to limitations of time for the enforcement of a civil remedy shall not apply to any proceeding or action taken by the state or the tax commission to levy, appraise, assess, determine or enforce the collection of any tax or penalty provided by this article. [However, except in the case of a wilfully false or fraudulent return with intent to evade the tax] Except as otherwise provided in this subdivision, no assessment of additional tax shall be made after the expiration of than three years from the date of the filing of a return[; provided, however, that]. Where a vender willfully omits from the amount of gross sales or taxable sales properly includible in any filed return in an amount which is in excess of twenty-five percent of such gross sales such taxable sales with an intent to evade the tax, an assessment of tax may be made at any time within four years after the date such return was filed. For purposes of this subdivision, the term "gross sales" shall mean all sales of tangible personal property or services, every rent and every amusement charge, whether subject to tax or not and the term "taxable sales" shall mean all receipts, rents and amusement charges subject to the sales taxes imposed by this article or pursuant to the authority of article twenty-nine of this chapter. In the case of a false or fraudulent return with intent to evade the tax or where no return has EXPLANATION-Matter in italics is new; matter in brackets [ ] is old law

been filed as provided by law, the tax may be assessed at any time. Where a purchaser furnishes a vendor with a false or fraudulent certificate of resale or other exemption certificate or other document with intent to evade the tax, the tax may be assessed against such purchaser at any time. For purposes of this subdivision, a return filed before the last day prescribed by law or regulation for the filing thereof or before the last day of any extension of time for the filing thereof shall be deemed to be filed on such last day. Notwithstanding any other provision of this article, if the time to assess additional tax would otherwise have expired on or before December nineteenth, nineteen hundred sixty-nine, the time to assess such additional tax is hereby extended to and including December twentieth, nineteen hundred sixty-nine, except that it may be further extended by a taxpayer's consent in writing as provided in subdivision (c) hereof.

ing 89. Section fourteen hundred forty-six of such law, as added by

chapter fifteen of the laws of nineteen hundred eighty-three and subdivision two as amended by chapter nine hundred of the laws of nineteen hundred eighty-four, is amended to read as follows:

§ 1446. Interest and penalties.-1. If the tax commission determines that there has been an overpayment of tax, interest shall be paid by the comptroller to the transferor, on any refund paid pursuant to the provisions of section fourteen hundred forty-five of this article. If it determines that there has been an underpayment of tax, the transferor shall pay interest to the commission on the amount of any tax not paid. The commission, by regulation, shall set the rate of interest to be paid on underpayment and overpayment of the taxes imposed by this article at the rate of interest prescribed in subsection (e) of section one thousand ninety-six of this chapter. Interest under this subdivision shall be compounded daily.

2. (a) Any transferor failing to file a return or to pay any tax within the time required by this article shall be subject to a penalty of ten per centum of the amount of tax due plus an interest penalty of two per centum of such amount for each month of delay or fraction thereof after the expiration of the first month after such return was required to be filed or such tax became due, such interest penalty shall not exceed twenty-five per centum in the aggregate. If the tax commission determines that such failure or delay was due to reasonable cause and not due to willful neglect, it shall remit, abate or waive all of such penalty and such interest penalty. [Any such penalty]

(b) If the failure to pay any tax within the time required by or pursuant to this article is due to fraud, in lieu of the penalties provided for in paragraph (a) of this subdivision, there shall be added to the tax (i) a penalty of fifty per centum of the amount of tax due, plus (ii) for the period beginning on the last day prescribed by this article for the payment of such tax and ending on the day the amount of tax due is finally determined or, if earlier, on the day on which such tax is paid, an interest penalty equal to fifty per centum of the interest payable under subdivision one of this section on that portion of the unpaid tax which is attributable to fraud. The interest penalty under this paragraph shall be compounded daily.

The penalties and interest provided for in this section shall be paid by the transferor to the tax commission and shall be determined, assessed, collected and distributed in the same manner as the tax imposed by this article and any reference to tax in this article shall be deemed to refer to the penalties and interest imposed in this subdivision.

3. [Any transferor not exempt from tax as provided in section fourteen hundred forty-three of this article who willfully violates any provision of this article shall be guilty of a misdemeanor. and upon conviction thereof shall be fined not more than five thousand dollars or imprisoned for not more than one year, or both] Cross-reference: For criminal penalties, see article thirty-seven of this chapter.

§ 90. Subdivision two of section fourteen hundred forty-nine of such law, as added by chapter fifteen of the laws of nineteen hundred eightythree, is amended to read as follows:

2. As an additional or alternate remedy, the tax commission may issue a warrant, directed to the sheriff of any county commanding him to levy upon and sell the real and personal property of any transferor liable for the tax, which may be found within his county, for the payment of the amount thereof, with any penalties and interest, and the cost of executing the warrant, and to return such warrant to the tax commission and to pay it the money collected by virtue thereof within sixty days

after the receipt of such warrant. The sheriff shall within five days after the receipt of the warrant file with the county clerk a copy thereof, and thereupon such clerk shall enter in the judgment docket the name of the person mentioned in the warrant and the amount of the tax, penalties and interest for which the warrant is issued and the date when such copy is filed. Thereupon the amount of such warrant so docketed shall become a lien upon the title to and the interest in real and personal property of the person against whom the warrant is issued. Such lien shall not apply to personal property unless such warrant is filed in the department of state. The sheriff shall then proceed upon the warrant, in the same manner, and with like effect, as that provided by law in respect to executions issued against property upon judgments of a court of record and for services in executing the warrant he shall be entitled to the same fees, which he may collect in the same manner. In the discretion of the tax commission a warrant of like terms force and effect may be issued and directed to any officer or employee of the department of taxation and finance, and in the execution thereof such officer or employee shall have all the powers conferred by law upon sheriffs, but shall be entitled to no fee or compensation in excess of the actual expenses paid in the performance of such duty. [If] Upon such filing of a copy of a warrant [is returned not satisfied in full], the tax commission [may from time to time issue new warrants and shall [also] have the same remedies to enforce the amount due thereunder as if the state had recovered [the] judgment there for [and execution thereon had been returned unsatisfied].

§ 91. Paragraphs one and four of subdivision (a) of section T46-185.0 of the administrative code of the city of New York, as added by local law number thirty-six of the city of New York for the year nineteen hundred seventy-six, are amended to read as follows:

(1) Failure to file tax return.-(A) In case of failure to file a tax return under this part on or before the prescribed date (determined with regard to any extension of time for filing), unless it is shown that such failure is due to reasonable cause and not due to willful neglect, there shall be added to the amount required to be shown as tax on such return five per cent of the amount of such tax if the failure is for not more than one month, with an additional five percent for each additional month or fraction thereof during which such failure continues, not exceeding twenty-five per cent in the aggregate. [For this purpose, the amount of tax required to be shown on the return shall be reduced by the amount of any part of the tax which is paid on or before the date prescribed for payment of the tax and by the amount of any credit against the tax which may be claimed upon the return. ]

(B) In the case of a failure to file a return of tax within sixty days of the date prescribed for filing of such return (determined with regard to any extension of time for filing), unless it is shown that such failure is due to reasonable cause and not due to willful neglect, the addition to tax hereunder shall not be less than the lesser of one hundred dollars or one hundred percent of the amount required to be shown as tax on such return.

(C) For purposes of this paragraph, the amount of tax required to be shown on the return shall be reduced by the amount of any part of the tax which is paid on or before the date prescribed for payment of the tax and by the amount of any credit against the tax which may be claimed upon the return.

(4) Limitations on additions. -(A) With respect to any return, the amount of the addition under paragraph one of this subdivision shall be reduced by the amount of the addition under paragraph two of this subdivision for any month to which an addition applies under both paragraphs one and two. In any case described in subparagraph (B) of such paragraph one, the amount of the addition under such paragraph one shall not be reduced below the amount provided in such subparagraph.

(B) With respect to any return, the maximum amount of the addition permitted under paragraph three of this subdivision shall be reduced by the amount of the addition under paragraph one of this subdivision (determined without regard to subparagraph (B) of such paragraph) which is attributable to the tax for which the notice and demand is made and which is not paid within ten days of such notice and demand.

EXPLANATION-Matter in italics is new; matter in brackets [ ] is old law

§ 92. Subdivision (b) of section T46-185.0 of such code, as added by local law number thirty-six of the city of New York for the year nineteen hundred seventy-six, is amended to read as follows:

(b) Deficiency due to negligence. -(1) If any part of a deficiency is due to negligence or intentional disregard of this part or rules or regulations hereunder (but without intent to defraud), there shall be added to the tax an amount equal to five per cent of the deficiency.

(2) There shall be added to the tax (in addition to the amount determined under paragraph one of this subdivision) an amount equal to fifty percent of the interest payable under section T46-184.0 of this title with respect to the portion of the underpayment described in such paragraph one which is attributable to the negligence or intentional disregard referred to in such paragraph, for the period beginning on the last date prescribed by law for payment of such underpayment (determined without regard to any extension) and ending on the date of the assessment of the tax (or, if earlier, the date of the payment of the tax).

(3) If any payment is shown on a return made by a payor with respect to dividends, patronage dividends and interest under subsection (a) of section six thousand forty-two, subsection (a) of section six thousand forty-four or subsection (a) of section six thousand forty-nine of the internal revenue code of nineteen hundred fifty-four, respectively, and the payee fails to include any portion of such payment in city adjusted gross income, any portion of an underpayment attributable to such failure shall be treated, for purposes of this subdivision, as due to negligence in the absence of clear and convincing evidence to the contrary. If any penalty is imposed under this subdivision by reason of the preceding sentence, the amount of the penalty imposed by paragraph one of this subdivision shall be five percent of the portion of the derpayment which is attributable to the failure described in the preceding sentence.

ing

un

93. Subdivision (e) of section T46-185.0 of such code, as added by local law number thirty-six of the city of New York for the year nineteen hundred seventy-six, is amended to read as follows:

(e) Deficiency due to fraud. -(1) If any part of a deficiency is due to fraud, there shall be added to the tax an amount equal to fifty per cent of the deficiency. [This amount]

(2) There shall be added to the tax (in addition to the amount determined under paragraph one of this subdivision) an amount equal to fifty percent of the interest payable under section T46-184.0 of this title with respect to the portion of the underpayment described in such paragraph one which is attributable to fraud, for the period beginning on the last day prescribed by law for payment of such underpayment (determined without regard to any extension) and ending on the date of the assessment of the tax (or, if earlier, the date of the payment of the tax).

(3) The addition to tax under this subdivision shall be in lieu of any other addition to tax imposed by subdivision (a) or (b).

(4) In the case of a joint return under section T46-151.0, this subdivision shall not apply with respect to the tax of a spouse unless some part of the underpayment is due to the fraud of such spouse.

§ 94. Subdivision (h) of section T46-185.0 of such code, as amended by chapter six hundred six of the laws of nineteen hundred eighty-four, is amended to read as follows:

(h) Failure to file certain information returns. -(1) [In] Except as otherwise provided in this paragraph, in case of each failure to file a statement of a payment to another person, required under authority of subdivision (d) of section T46-158.0 (relating to information at source, including the duplicate statement of tax withheld on wages) on the date prescribed therefor (determined with regard to any extension of time for filing), unless it is shown that such failure is due to reasonable cause and not to willful neglect, there shall, upon notice and demand by the tax commission and in the same manner as tax, be paid by the person so failing to file the statement, a penalty of [one dollar] fifty dollars for each statement not so filed, but the total amount imposed on the delinquent person for all such failures during any calendar not exceed [one] ten thousand dollars.

year shall

(2) If any partnership or S corporation required to file a return under subdivision (c) of section T46-158.0 for any taxable year fails to file such return at the time prescribed therefor (determined with regard to any extension of time for filing), or files a return which fails to show the information required under such subdivision (c), unless it is shown that such failure is due to reasonable cause and not due to will

ful neglect, there shall, upon notice and demand by the tax_commission and in the same manner as tax, be paid by the partnership or S corporation a penalty for each month (or fraction thereof) during which such failure continues (but not to exceed five months). The amount of such penalty for any month is the product of [twenty] fifty dollars, multiplied by the number of partners in the partnership or shareholders in the S corporation during any part of the taxable year who were subject to tax under this title during any part of such taxable year. (3) If any professional corporation required to file a return of information under the authority of subdivision (f) of section T46-158.0 of this title fails to file such return at the time prescribed therefor (determined with regard to any extension of time for filing). or files a return which fails to show the information required under the authority of such subdivision (f), unless it is shown that such failure is due to reasonable cause and not due to willful neglect, there shall, upon notice and demand by the tax commission and in the same manner as tax, be paid by the professional corporation a penalty for each month (or fraction thereof) during which such failure continues (but not to exceed five months). The amount of such penalty for any month is the product of one hundred dollars, multiplied by the number of such returns of information not so filed.

§ 95. Subdivision (k) of section T46-185.0 of such code, as added by local law number thirty-six of the city of New York for the year nineteen hundred seventy-six, is amended to read as follows:

(k) Failure to to supply identifying numbers. -If any person who is required by regulations prescribed under subdivision (b) of section T46158.0 of this title (1) to include his identifying number in any return, statement, or other document;

is

(2) to furnish his identifying number to another person; or (3) to include in any return, statement or other document made with respect to another person the identifying number of such other person, fails to comply with such requirement at the time prescribed by such regulations, such person shall, unless it is shown that such failure due to reasonable cause and not due to willful neglect, pay a penalty of five dollars for each such failure[, unless it is shown that such failure is due to reasonable cause] described in paragraph one of this subdivision and fifty dollars for each such failure described in paragraphs two and three of this subdivision, except that the total amount imposed on such person for all such failures during any calendar year shall not exceed ten thousand dollars; except that for failure to include his own identification number in any return, statement or other document such penalty shall not be imposed unless such person shall have failed to supply his identification number to the tax commission within thirty days after demand therefor.

§ 96. Subdivision (1) of section T46-185.0 of such code, as amended by chapter six hundred six of the laws of nineteen hundred eighty-four, is amended to read as follows:

(1) Additions treated as tax. -The additions to tax and penalties provided by this section shall be paid upon notice and demand and shall be assessed, collected and paid in the same manner as taxes, and any reference in this part to income tax or tax imposed by this part, shall be deemed also to refer to the additions to tax and penalties provided by this section. For purposes of section T46-181.0, this subdivision

shall not apply to:

(1) any addition to tax under subdivision (a) except as to that portion attributable to a deficiency;

(2) any addition to tax under subdivision (c);

(3) any penalty under subdivision (h) and any additional penalty under subdivision (i); and any penalties under subdivisions (j) [and], (k), (q), (r) and

(4)

(5)་91,

Subdivision (n) of section T46-185.0 of such code, as added by local law number thirty-six of the city of New York for the year nineteen hundred seventy-six, is amended to read as follows:

n) Person defined. -For purposes of subdivisions (g), (i) [and], (o), and (r), the term person includes an individual, corporation or partnership or an officer or employee of any corporation (including a dissolved corporation), or a member or employee of any partnership, who EXPLANATION-Matter in italics is new; matter in brackets [ ] is old law