General Amnesty Program

RCNY tit. 19, ch. 1, subch. A

in effect

19 RCNY § 1-01 General.

§ 1-01 General. (a) A three-month tax amnesty program shall commence on November 1, 1985, and end on January 31, 1986, which shall coincide with the three-month amnesty program established by the State Tax Commission pursuant to Chapter 66 of the Laws of 1985. (Chapter 765 of the Laws of 1985, § 84(a)) (b) The amnesty program shall apply to eligible taxpayers owing certain taxes administered by the Commissioner of Finance which are imposed or authorized by Subchapter 2 of Chapter 6 of Title 11, Chapter 5 of Title 11, former Parts I-VI of Title T, and Chapter 19 of Title 11 of the Administrative Code of the City of New York (see: 19 RCNY § 1-02 – Taxes Covered). Amnesty shall apply to those tax liabilities prior to January 1, 1985, as defined in 19 RCNY § 1-03. (Chapter 765 of the Laws of 1985, § 84(a)) The taxpayer must specify the tax period of each tax ("designated tax") hereinafter for which amnesty is requested. (Chapter 765 of the Laws of 1985, § 84(a)) (c) The amnesty program provides that civil and criminal penalties will be waived upon timely written application by an eligible taxpayer, payment of tax and interest due and the filing of any required returns. (See: 19 RCNY § 1-04 – Taxpayer Eligibility and 19 RCNY § 1-05 – Requirements for Amnesty.) (Chapter 765 of the Laws of 1985, § 84(b)) (1) Civil penalties which may be waived under amnesty include any amount imposed for the failure to comply with a provision of the Administrative Code. This includes, but is not limited to, the following: (i) General Corporation Taxes and Unincorporated Business Taxes. All civil penalties and additions to tax defined in Chapters 5 and 6 of Title 11 of the Administrative Code of New York City. (ii) Resident Personal Income Tax and Non-Resident Earnings Tax. All civil penalties and additions to tax defined in former Parts I-VI of Title T and Chapter 19 of Title 11 of the Administrative Code of New York City (excluding penalties imposed under §§ 11-1785(g) and 11-1927(g) of such titles, relating to willful failure to collect and pay over taxes). (2) Criminal penalties directly relating to violations of the Administrative Code or Penal Law with respect to a designated tax will be barred once amnesty is granted. (See also 19 RCNY § 1-06 – Effect of Amnesty.) (d) A taxpayer is not eligible for amnesty if: (1) the taxpayer is the subject of a criminal investigation or the party to a criminal litigation, or (2) the taxpayer is a party to civil litigation, in relation to the designated tax. (See: 19 RCNY § 1-04 – Taxpayer Eligibility.) (See also 19 RCNY § 1-02(b) – Taxes Covered – for taxpayer eligibility for amnesty for certain taxes.) (Chapter 765 of the Laws of 1985, § 84(c))

19 RCNY § 1-02 Taxes Covered.

§ 1-02 Taxes Covered. Under the New York City Amnesty Program, penalties relating to the following taxes may be waived: (a) General corporation tax. Subchapter 2 of Chapter 6 of Title 11 of the Administrative Code of New York City. (b) Unincorporated business tax. Chapter 5 of Title 11 of the Administrative Code of New York City. (c) Resident personal income taxes and non-resident earnings taxes. Former Parts I-VI of Title T and Chapter 19 of Title 11 of the Administrative Code of New York City. Note: All amnesty applications, returns and payments pertaining to these taxes, for taxable years ending prior to January 1, 1985, must be filed with the New York State Department of Taxation and Finance since these taxes are administered by the New York State Tax Commission and are included in the State's amnesty program. However, the penalties imposed under §§ 11-1785(g) and 11-1927(g) of the Administrative Code (relating to willful failure to collect and pay over tax) are not covered under amnesty.

19 RCNY § 1-03 Tax Periods Covered.

§ 1-03 Tax Periods Covered. The amnesty program shall apply to tax liabilities for taxable periods ending prior to January 1, 1985. (Chapter 765 of the Laws of 1985, § 84(a))

19 RCNY § 1-04 Taxpayer Eligibility.

§ 1-04 Taxpayer Eligibility. (a) General. (1) Amnesty shall not be granted to any taxpayer who is the subject of any criminal investigation being conducted by any agency of the City of New York or of the State or any political subdivision thereof, who is a party to any civil or criminal litigation which is pending on the date of the taxpayer's application in any court of this State or the United States for nonpayment, delinquency or fraud in relation to the taxes (plus interest thereon) with respect to which amnesty is sought, or employs more than 500 employees in the United States on the date of taxpayer application. A civil litigation shall not be deemed to be pending if the taxpayer withdraws from such litigation prior to the granting of amnesty. (Chapter 765 of the Laws of 1985, § 84(c)) (2) A taxpayer's eligibility is determined separately in relation to each designated tax. Thus, a taxpayer may be ineligible for amnesty for one designated tax, but may be eligible for amnesty for another designated tax. Example: A taxpayer is under criminal investigation relating only to his 1982 unincorporated business tax liability. Although he is not eligible for that designated tax (1982 Unincorporated Business Tax), he may be eligible for amnesty for his 1983 Unincorporated Business Tax liability. (3) A taxpayer's eligibility is determined as of the date of application. (b) Eligibility for amnesty for penalties relating to taxes imposed under Chapters 5 and 6 of Title 11 of the Administrative Code (hereinafter "restricted tax types") is restricted to taxpayers that have 500 or fewer employees in the United States on the date of their application. (Chapter 765 of the Laws of 1985, § 84(g)) (1) A taxpayer applying for amnesty from penalties imposed under Chapters 5 and 6 of Title 11 of the Administrative Code must certify on its application that it has in its employ 500 or fewer persons in the United States on the date of its application. (2) If it is determined that a taxpayer had more than 500 employees in the United States on the date of its application, amnesty will be denied or revoked. (3) For purposes of determining the number of employees: (i) the term employee shall have the same meaning as for Federal withholding tax purposes (Treas. Reg. § 31.3401(c)-1), and (ii) in the case of a taxpayer filing for amnesty for a designated tax which involves a tax reported on a combined basis, the number of employees includes all employees of all of the corporations included in the combined group on the date of the taxpayer's application. (c) Criminal investigation. (1) The Commissioner of Finance in cooperation with investigating agencies, shall prepare a confidential list of those taxpayers who are ineligible because they are the subject of an active criminal investigation relating directly to any covered taxes. (2) Every application for amnesty shall be compared with the list and any application for a designated tax subject to an active criminal investigation shall be denied. (3) (i) Upon the denial of an application under paragraph (2) of this subdivision, all material submitted (application, returns and payment) must be returned to the applicant, and no identifiable information submitted in connection with the application shall be kept by the Commissioner. (ii) The Commissioner shall indicate on the denial letter sent to the applicant (see: subdivision (c) of 19 RCNY § 1-09) that such application was timely received, but is denied due to an ongoing criminal investigation. The denial letter is the only evidence that a timely application was made for the designated tax, and must be produced by the taxpayer to substantiate any subsequent claims for amnesty for such designated tax. (4) (i) An applicant denied amnesty under paragraph (2) of this subdivision shall have 30 days in which to protest the denial (see subdivision (c) of 19 RCNY § 1-09). (ii) The Commissioner of Finance shall not be required to disclose the particulars of a pending criminal investigation upon which an amnesty denial was based. He shall, however, upon a protest under subparagraph (i) of this paragraph, confirm that the taxpayer is on the confidential list described in paragraph (1) of this subdivision and that amnesty was properly denied, and so certify to the taxpayer. (iii) Upon a subsequent finding of no criminal liability, whether through a prosecution not resulting in a conviction or by the investigating agency otherwise terminating the investigation, the applicant has 30 days to apply for amnesty for the amount, tax and tax period previously denied. The applicant must re-submit its application, returns and payment along with the denial letter. (5) The return under paragraph (3) of this subdivision of any application, payment or returns submitted under the amnesty program shall not be considered a rejection or refusal of payment or returns for any other purpose. (d) Criminal litigation. (1) A taxpayer is ineligible for amnesty for any designated tax which directly relates to any crime for which the taxpayer is being prosecuted or has been convicted. (2) A prosecution (i) begins once an indictment, complaint or information has been filed against the taxpayer and the defendant has been arrested or served a summons, or an arrest warrant has been issued and the defendant has been notified of such fact, whichever is earlier in regard to such accusatory instrument and (ii) continues until the time to appeal has expired or the appellate process has been exhausted. (3) A taxpayer who is ineligible pursuant to paragraph (1) of this subdivision shall not make an application for amnesty for the tax and tax periods involved. If such ineligible taxpayer nevertheless makes an ineligible application, the application, returns and payment will not be returned. They will be treated as if they were received apart from an amnesty application. Penalties will not be waived and there will not be a bar to any civil, administrative or criminal action proceeding relating thereto. (e) Civil litigation. (1) A taxpayer is ineligible for amnesty for any designated tax which directly relates to a pending civil litigation. (2) Civil litigation includes only those court proceedings instituted by the taxpayer. Generally, this includes a proceeding under Article 78 of the Civil Practice Laws and Rules, an order to show cause or a declaratory judgment action. (3) Civil litigation does not include: (i) a proceeding that the Commissioner instituted or joined as a plaintiff, or (ii) an administrative proceeding filed by the taxpayer with the Commissioner of Finance. (4) A civil litigation shall not be deemed to be pending if the taxpayer withdraws from such litigation. (Chapter 765 of the Laws of 1985, § 84(c).) (i) The taxpayer must submit proof of withdrawal from the litigation along with the amnesty application, returns and payment. (ii) "Proof of withdrawal" includes a stipulation to discontinue the lawsuit. (5) Any application, returns or payment received will not be returned to a taxpayer who is denied amnesty based on paragraph (1) of this subdivision. (f) If because of an applicant's failure to supply complete and accurate information, amnesty is erroneously granted to an ineligible applicant, as defined in subdivisions (b), (c), (d) and (e) of this section, amnesty will be revoked and materials submitted will be kept by the Commissioner of Finance. All materials will be treated as if they were received apart from an amnesty application. Penalties will not be waived and there will not be a bar to any civil, administrative or criminal action or proceeding relating thereto.

19 RCNY § 1-05 Requirements for Amnesty.

§ 1-05 Requirements for Amnesty. (a) General. Prior to January 31, 1986, a taxpayer must: (1) file an application specifying both the tax and tax period(s) for which amnesty is sought, (2) file previously unfiled or amended returns or assessment documents, whichever is applicable, and (3) pay the tax and interest due. (Chapter 765 of the Laws of 1985, § 84(b).) (b) Applications. (1) An amnesty application form should be used, or the taxpayer may apply in a letter. Any application must include: (i) the taxpayer's name and address. (ii) the tax and tax periods for which amnesty is requested. (iii) the taxpayer's tax identification number. The application must also include a certification that the taxpayer employs 500 or fewer persons in the United States on the date of its application. (2) (i) A taxpayer that is withdrawing from a civil litigation must submit proof of withdrawal from such litigation. (ii) A taxpayer involved in an administrative proceeding must file a full or partial withdrawal for the periods/issues for which amnesty is requested. The application, if granted, shall serve as an automatic dismissal with prejudice of the periods/issues for which amnesty is requested. The taxpayer's protest rights for the remaining periods/issues will remain intact. (3) An amnesty application must be postmarked or received by the last day of the amnesty period. (c) Returns. The taxpayer must submit the following documents: (1) previously unfiled returns (2) amended returns, or (3) an assessment document, or whichever is appropriate. (d) Payment. (1) The taxpayer must pay the tax and interest due prior to the end of the amnesty period, or as determined in subparagraph (i) of paragraph (3) of this subdivision. (i) "Tax due" means the amount of tax previously finally determined to be due or assessed or, in the case of no final determination, the amount the taxpayer determines to be due. The amount of tax which any return filed under amnesty shows to be due, or the amount of tax which a return would have shown to be due but for a mathematical error, shall be deemed to be assessed on the date of filing the return. (ii) "Interest due" means the amount of interest computed from the due date of the tax to the date of payment. Interest is computed on the amount of tax due only, it does not include interest on penalty. (A) Example: A taxpayer was issued a notice of deficiency for $2,000 tax, plus interest and penalty in June 1984. (a) If the taxpayer did not timely protest (petition for hearing), the amount of tax due became final. In order to make proper payment under amnesty, the taxpayer must pay the full $2,000 plus interest due. (b) If the taxpayer timely petitioned for hearing and is awaiting a hearing, the amount of tax due is not yet finally determined. A proper payment under amnesty is the amount of tax the taxpayer determines to be due, plus interest. (B) Example: A taxpayer is currently being audited. Although the audit will not be completed until after the amnesty period ends, the auditor has determined that at least $2,500 additional tax is due. Since the amount of tax is not yet finally determined, a proper payment under amnesty is the amount of tax the taxpayer determines to be due, plus interest due. (2) If the taxpayer paid the tax or interest due prior to the amnesty period, only the remaining unpaid amount, if any, must be paid. (3) If the taxpayer does not calculate interest, or otherwise underpays the amount of tax and interest due, the Commissioner will bill the taxpayer for the amount due under amnesty. ("Amnesty Statement") (i) Payment of the "Amnesty Statement" is required by the date stated thereon, or by the end of the amnesty period, whichever is later. (ii) Failure to pay the amount determined to be due by the Commissioner by the date determined in subparagraph (i) of this paragraph shall result in a denial of amnesty. (4) Notwithstanding paragraphs (1), (2), and (3) of this subdivision, where full payment during amnesty is certified by the taxpayer to create a severe financial hardship, an installment payment plan may be authorized. (See: 19 RCNY § 1-07 – Installment Payments.) (e) Places to apply. Amnesty applications, returns and payments pertaining to the General Corporation Tax and Unincorporated Business Tax must be filed with New York City Amnesty 31 Chambers Street Room 209 New York, N.Y. 10007 Amnesty applications, returns and payments pertaining to the Resident Personal Income Tax and Non-Resident Earnings Tax must be filed with the New York State Department of Taxation and Finance Amnesty Program.

19 RCNY § 1-06 Effect of Amnesty.

§ 1-06 Effect of Amnesty. (a) General. (1) Once amnesty is granted, all penalties (as described in 19 RCNY § 1-01) are waived and any civil, administrative or criminal proceeding is barred relating to the designated tax. (Chapter 765 of the Laws of 1985, § 84(b)) (2) The waiver of penalties and prohibition against prosecution applies only to those amounts of tax and interest for which amnesty was granted. Penalties will be imposed and proceedings will not be barred relating to any amounts of tax in excess of the amnesty payments which are later determined to be due. Example: A taxpayer applied for and received amnesty for a 1982 unincorporated business tax liability in the amount of $2,000 tax plus interest. After the end of the amnesty period, it is finally determined that the taxpayer actually owed $3,000 tax plus interest. Since the amount due was not finally determined prior to amnesty, the amount paid under amnesty was valid and amnesty is not revoked on the $2,000 plus interest. However, penalties may be imposed and civil, administrative or criminal proceedings may be brought against the taxpayer as to the $1,000 tax plus interest. (b) Criminal proceeding. Any criminal prosecution directly relating to the designated tax is barred once amnesty is granted. This includes applicable criminal offenses defined in either the Administrative Code or the Penal Law. Example: In 1983 a taxpayer, subject to the General Corporation Tax, failed to file any return or pay over the tax to the Commissioner of Finance. The eligible taxpayer applies for amnesty, files the required returns and makes full payment of tax and interest due. Amnesty is granted. Criminal prosecution for the failure to file a return or pay over tax for 1983 under § 11-686 of the Administrative Code is now barred.

19 RCNY § 1-07 Installment Payments.

§ 1-07 Installment Payments. (a) General. An amnesty installment payment plan is available if payment of tax and interest in full pursuant to 19 RCNY § 1-05 would create a severe financial hardship. (b) Application for installment payments. The taxpayer must: (1) submit a statement certifying the fact that full payment would create a severe financial hardship, and (2) pay at least 50 percent of the computed liability upon application. "Computed liability" means the tax due plus interest, if known. (c) Payment terms. (1) Fifty percent of the computed liability is due upon application, and the balance is to be paid in two equal installments, in 30 day intervals from the date of initial payment. (2) The Commissioner of Finance will issue an Amnesty Statement at the end of the payment period (or at the end of the amnesty period, whichever is later) for any amount still due. (3) The taxpayer must pay the amount due within the time stated on the statement or by the end of the amnesty period, whichever is later, or amnesty will be denied.

19 RCNY § 1-08 Refunds or Credits.

§ 1-08 Refunds or Credits. (a) No refund or credit shall be granted of any penalty paid prior to the time a taxpayer makes a timely request for amnesty. (Chapter 765 of the Laws of 1985, § 84(d).) Whether a payment has been applied to penalty shall be determined under the Commissioner of Finance's current procedures. (b) No refund or credit shall be granted of any designated tax plus interest paid under amnesty, unless the Commissioner of Finance redetermines the amount due on its own motion. (Chapter 765 of the Laws of 1985, § 84(c).)

19 RCNY § 1-09 Denial or Revocation of Amnesty.

§ 1-09 Denial or Revocation of Amnesty. (a) Amnesty will be denied or revoked if a taxpayer: (1) is ineligible, or (2) fails to pay all tax and interest due. (Chapter 765 of the Laws of 1985, § 84(b).) (b) (1) All payments made in connection with an amnesty application are final and will not be returned upon a denial or revocation of amnesty. However, in the case of an application that is denied because of a pending criminal investigation, the application, payment and returns will be returned to the applicant. (See: 19 RCNY § 1-04(c)(3).) (2) Payments made in connection with a denied or revoked amnesty application will be credited to the taxpayer's open account. (c) If a taxpayer disagrees with a denial or revocation of amnesty, he must submit a statement of disagreement setting forth all relevant facts within thirty days after the date of the mailing of the letter of denial or revocation. The letter should be sent to: New York City Tax Amnesty, 31 Chambers Street, Room 209, New York, N.Y. 10007. (d) The Commissioner of Finance shall not be required to disclose the particulars of a pending criminal investigation upon which an amnesty denial was based. He shall however, upon request by the taxpayer in subdivision (c) of this section, confer with the investigating agency to ensure an investigation was pending and amnesty was properly denied, and so certify to the taxpayer.

19 RCNY § 1-10 Secrecy.

§ 1-10 Secrecy. (a) All returns, applications and any other documents filed under amnesty shall not be disclosed except as provided in §§ 11-688, 11-538, 11-1797(e) or 11-1942 of the Administrative Code. (Chapter 765 of the Laws of 1985, § 84(h).) (b) Notwithstanding subdivision (a) of this section, to the extent the information received under amnesty is subject to an exchange agreement with the Internal Revenue Service, New York State Department of Taxation and Finance, or another state's tax administrator, the information will be disclosed.

Source: City of New York, Charter, Administrative Code and Rules (American Legal Publishing XML export, codelibrary.amlegal.com)URL: https://codelibrary.amlegal.com/codes/newyorkcity/latest/NYCrules/0-0-0-34212Fetched: 10/24/2026