Acceptance.
19 RCNY § 34-06
in effect§ 34-06 Acceptance.
(a) Notification. The Commissioner of Finance shall notify the taxpayer in writing of the decision to accept the offer-in-compromise. No acceptance of the offer-in-compromise shall be effective until:
(1) the taxpayer has received written notification of acceptance, and
(2) if required, the acceptance of the offer-in-compromise has been approved by a justice of the Supreme Court as provided in paragraph (2) of subdivision (f) of 19 RCNY § 34-04.
(b) Compromise Agreement.
(1) The accepted offer-in-compromise shall constitute the compromise agreement between the taxpayer and the Department.
(2) The compromise agreement shall include the conditions for acceptance set forth in subdivision (d) of 19 RCNY § 34-04, the compromise amount (i.e. the amount paid or required to be paid under the terms of the compromise agreement), and the terms of payment of the compromise amount.
(3) No liability will be considered compromised, nor any warrant satisfied, until all obligations of the taxpayer under the compromise agreement are performed.
(4) The compromise agreement relates to the entire liability of the taxpayer, including taxes, interest, additions to the tax and penalties, with respect to which the offer-in-compromise is filed.
(5) Neither the taxpayer nor the Department shall be permitted to reopen a matter that is the subject of a compromise agreement for any reason, except as specifically provided in the compromise agreement or upon a showing of the taxpayer's default, fraud, malfeasance or misrepresentation of a material fact.
(c) Payment.
(1) Generally, within 60 days of notification of acceptance, the taxpayer must make full payment of the compromise amount.
(2) If a taxpayer can demonstrate the need for periodic payments over a period of time, the Department may grant a reasonable period of time for payment of the compromise amount not to exceed two years. Where special circumstances are demonstrated, the two-year period may be extended in the discretion of the Commissioner of Finance. In the case of periodic payments, interest will be due at the established underpayment rate compounded daily on any deferred portion of the compromise amount from the date of notification of acceptance until the compromise amount is fully paid.
(d) Record.
(1) Where the offer-in-compromise is accepted, a record of the offer-in-compromise will be placed on file in the office of the Commissioner of Finance. The record will include the written recommendations of the Collection Division, and/or the Office of Legal Affairs with respect to the offer-in-compromise.
(2) Where the aggregate amount of the liability subject to the offer-in-compromise is $25,000 or more (including interest, additions to tax and penalties), the record also shall contain a written statement indicating the basis for the decision of the Commissioner of Finance.
(3) The record also shall include a written statement of:
(i) the amount of taxes or charges that are the subject of the offer-in-compromise;
(ii) the amount of interest, additions to tax or penalties imposed on the taxpayer; and
(iii) the compromise amount.
(e) Default. Where a taxpayer does not comply with the conditions of the compromise agreement (including any requirements with respect to collateral agreements) or where there is evidence of the taxpayer's fraud, malfeasance or misrepresentation of a material fact subsequent to the acceptance of the offer-in-compromise, the taxpayer shall be in default, and the Department may proceed as follows:
(1) In fixed and final matters, the Department may proceed to collect the full amount of the original liability that was the subject of the offer-in-compromise (including all applicable interest and penalties), less all amounts previously paid to the Department, including any payments of the compromise amount;
(2) In non-final matters, the Department may proceed to docket a warrant for the full amount of the original liability that was the subject of the offer-in-compromise (including all applicable interest and penalties), less all amounts previously paid to the Department, including any payments of the compromise amount, and may proceed to collect that amount as if the matter were a fixed and final matter. The Department shall give the taxpayer written notice of any action taken under this subdivision.
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/0-0-0-40605Fetched: 10/24/2026