173-a. Hearing rights upon notice and demand. 1. Applicability and construction. (a) Applicability. Except as otherwise provided in this section, this section shall apply with respect to any tax which is administered by the commissioner and which is imposed by or authorized to be imposed pursuant to this chapter or any other law. Unless a different meaning is clearly required, any reference to "tax" or "taxes" in this section shall be deemed also to refer to special assessments, fees, interest, additions to tax, penalties or other impositions which are administered by the commissioner.
(b) Exceptions to applicability. This section shall not apply to any tax which is administered by the commissioner and which is imposed by or authorized to be imposed pursuant to:
(i) Article ten of this chapter (taxable transfers - residents).
(ii) Article eleven of this chapter (tax on mortgages).
(iii) Article twelve of this chapter (tax on transfers of stock and other corporate certificates).
(c) Construction. The provisions of this section shall supplement or be in addition to the procedures relating to collection or administration provided with respect to any tax covered by this section. Where a provision of this section is inconsistent with any such provision with respect to such tax, the provisions of this section shall apply.
2. Corporate and personal income taxes. With respect to any tax which incorporates or otherwise utilizes the procedures set forth in part VI of article twenty-two or article twenty-seven of this chapter, provisions of law which authorize the issuance of a notice and demand for an amount without the issuance of a notice of deficiency for such amount, including any interest, additions to tax or penalties related thereto, in cases of mathematical or clerical errors or failure to pay tax shown on a return, or authorize the issuance of a notice of additional tax due, including any interest, additions to tax or penalties related thereto, shall be construed as specifically denying and modifying the right to a hearing with respect to any such notice and demand or notice of additional tax due for purposes of subdivision four of section two thousand six of this chapter. Any such notice and demand or notice of additional tax due shall not be construed as a notice which gives a person the right to a hearing under article forty of this chapter.
3. Sales and compensating use and miscellaneous taxes. With respect to any tax to which this section applies and which is not covered by subdivision two of this section:
(a) Final determination. The amount of tax which a return or report shows to be due, the amount of tax which a return or report would have shown to be due but for a mathematical or clerical error (including, with respect to a tax payable by the purchase of stamps, the amount of stamps purchased) or the amount of penalty and any interest due for failing to file a return or report or to pay or pay over any tax (or to pay for any stamps purchased) to the commissioner within the time required by or pursuant to any such tax (but not including any such penalty or interest attributable to any amount of tax with respect to which a notice of determination is required to be issued) shall be deemed to be finally determined to be due not later than on the date of the filing of such return or report (including any amended return or report showing an increase of tax or in the case of the purchase of stamps, such date of purchase). Such amount of tax, penalty or interest shall be paid upon notice and demand and shall be assessed, collected and paid in the manner provided for in each of the several taxes covered under this subdivision and such notice and demand shall not be considered as a notice of determination for purposes of the taxes covered under this subdivision. If a notice of determination has been mailed with respect to a tax covered under this subdivision, the amount of the determination shall be deemed to be finally and irrevocably fixed on the date specified in any such tax if no petition to the division of tax appeals is filed, or, if a petition is filed, then upon the date when a determination or decision rendered in the division of tax appeals establishing the amount of the notice of determination becomes final pursuant to article forty of this chapter.
(b) Notice and demand. (1) The commissioner shall, as soon as practicable, give notice to each person liable for any amount of tax, addition to tax, penalty or interest, which has been finally determined to be due or which has been finally and irrevocably fixed, as the case may be, but remains unpaid, stating the amount and demanding payment thereof. Such notice shall be left at the dwelling or usual place of business of such person or shall be sent by mail to such person's last known address. Except where the commissioner determines that collection would be jeopardized by delay and the applicable tax contains provisions authorizing a jeopardy procedure, if any tax is finally determined to be due or is finally and irrevocably fixed prior to the last date (including any date fixed by extension) prescribed for payment of such tax, payment of such tax shall not be demanded until after such date. If the commissioner finds that the determination, assessment or collection of tax, addition to tax, penalty or interest is in jeopardy and the applicable tax contains provisions authorizing procedures regarding early determination, the commissioner may immediately determine the amount of such tax, addition to tax, penalty or interest (whether before or after the due date of any return or report required to show such tax, addition to tax, penalty or interest) and assess the same and give notice and demand for the payment thereof.
(2) If notice and demand is made for payment of any amount under subparagraph one of this paragraph, and if such amount is paid within twenty-one calendar days (ten business days if the amount for which such notice and demand is made equals or exceeds one hundred thousand dollars) after the date of such notice and demand, interest under the applicable tax on the amount so paid shall not be imposed for the period after the date of such notice and demand.
(c) Hearing rights upon notice and demand. Provisions of law which authorize the issuance of a notice and demand for an amount without the issuance of a notice of determination for such amount, including any interest or penalties related thereto, shall be construed as specifically denying and modifying the right to a hearing with respect to any such notice and demand for purposes of subdivision four of section two thousand six of this chapter in cases of mathematical or clerical errors or failure to pay the tax due shown on the return or for any stamps purchased, and any interest or penalties related thereto. Any such notice and demand shall not be construed as a notice which gives a person the right to a hearing under article forty of this chapter.
Last modified: February 3, 2019