NYS

Tax Amnesty

Eligibility Rules

The Tax Amnesty eligibility rules are listed below. These rules define the following:

•    Eligible taxpayers
•    Eligible taxes
•    Eligible tax periods, uses or transactions
•    Application and payment due dates
•    Eligibility restrictions

Eligible taxpayers include those who, for an eligible tax and tax period, use, or transaction:
•    Did not file a required return or report.
•    Understated the tax liability on a previously filed return.
•    Have an outstanding assessment.

Eligible taxes include:     
Personal income and earnings taxes:
•   Personal income tax (Articles 16 & 22)
•   New York City personal income tax (Article 30)
•   City of Yonkers income tax surcharge (Article 30-A)
•   City of Yonkers earnings tax on nonresidents (Article 30-B)
•   New York City earnings tax on nonresidents (Article 2-E General City Law)
Withholding taxes:
•   Personal income tax (Articles 16 & 22)
  Sales and use taxes:
•  Sales and compensating use taxes (Article 28)
•  Special tax on passenger car rentals (Article 28-A)
•    Taxes authorized for cities, counties and school districts (Article 29)
    Excise taxes:
•  Gasoline and similar motor fuel tax (Article 12-A)
•  Petroleum business tax (Article 13-A)
•   Beverage container tax (Article 18-A)
• Tax on lubricating oils (Article 24)
    Miscellaneous taxes:
•  Highway use tax (Article 21)
•  Estate tax (Article 26)
•  Gift tax (Article 26-A)
•  Generation-skipping transfer tax (Article 26-B)
•  Real property transfer gains tax (Article 31-B)
    Corporation taxes:
•   Additional franchise tax on certain oil companies (Article 9, Section 182)
•   Franchise tax on certain oil companies (Article 9, Section 182-a)
•   Additional franchise tax on certain oil companies (Article 9, Section 182-b)
•  Franchise tax on transportation and transmission corporations and associations (Article 9, Section 183)

       • Temporary metropolitan transportation business tax surcharge on transportation and transmission corporations and association services (Article 9, Section 183-a)
•  Additional franchise tax on transportation and transmission corporations and associations (Article 9, Section 184)
•  Additional temporary metropolitan transportation business tax surcharge on transportation and transmission corporations and association services (Article 9, Section 184-a)
•  Franchise tax on waterworks companies, gas companies, electric or steam heating, lighting and power companies (Article 9, Section 186)
•  Temporary metropolitan transportation business tax surcharge on utilities (Article 9, Section 186-b)
•  Excise tax on telecommunication services (Article 9, Section 186e)
• Privilege tax on importation of gas services for consumption (Article 9, Section 189)
• Temporary metropolitan transportation tax surcharge on gas importers (Article 9, Section 189-a)
•  Tax surcharge (Article 9, Section 189-b)
• Franchise tax on business corporations, temporary metropolitan transportation business tax surcharge (Article 9-A, Section 209-B)
•  Franchise tax on business corporations (Article 9-A)
• Tax on unrelated business income (Article 13)
•   Unincorporated business tax (Article 16-A & 23)
•   Tax on independently procured insurance (Article 33-A)

Eligible tax periods, uses, or transactions:  
Except as noted below, tax liabilities for all tax periods ending, or uses or transactions occurring, prior to January 1, 2001, are included under Tax Amnesty. For example, tax year 2000 is the last personal income tax period that qualifies for Tax Amnesty.

In the case of taxes that require the filing of quarterly returns, or an annual return due on the last day of February (e.g., sales tax), the Tax Amnesty program will apply to tax assessments for tax periods ending or transactions or uses occurring on or before February 28, 2001.

Tax Amnesty also applies to estate tax liabilities of decedents with a date of death on or before February 1, 2000.
Application and payment due dates:   
Mailed applications must be postmarked by January 31, 2003.  Online applications must be submitted by midnight eastern time January 31, 2003.  Tax Amnesty payments must be made in full by the later of March 15, 2003, or the date specified on the Tax Amnesty bill or amnesty will be denied.  You should consider filing and paying as soon as the Tax Amnesty period begins on November 18, 2002, to stop the accrual of interest charges.

Eligibility restrictions:     
Prior Tax Amnesty
A taxpayer who was granted Tax Amnesty under either of the 1994 or 1996-97 New York State Tax Amnesty programs is not eligible for those taxes for which Tax Amnesty was previously granted. For example, if Tax Amnesty had been obtained under either of the 1994 or 1996-97 Tax Amnesty programs for a corporation tax liability, the taxpayer is not eligible under the current program for another corporation tax liability. However, the taxpayer would retain eligibility for other taxes. For example, that taxpayer could apply for Tax Amnesty for withholding tax or sales tax.

Restriction regarding business taxpayers with more than 500 employees
Business taxpayers are not eligible for Tax Amnesty for the following taxes if they have more than 500 employees, or their combined filing group had more than 500 employees, in the United States on the date of the application for Tax Amnesty:
•     Designated taxes under Article 9 (corporation tax)
•     Franchise tax on business corporations – Article 9-A
•     Tax on petroleum businesses – Article 13-A
•     Tax on net income of unincorporated businesses – Article 16-A
•     Tax on beverage containers – Article 18-A
•     Personal income tax – Article 22
•     Unincorporated business tax – Article 23
•     Sales and compensating use taxes – Article 28
•     Taxes authorized for cities, counties, and school districts – Article 29
•     New York City personal income tax – Article 30
•     City of Yonkers income tax surcharge – Article 30-A
•     City of Yonkers earnings tax on nonresidents – Article 30-B
•     New York City earnings tax on nonresidents – Article 2-E General City Law

Civil and criminal actions
A taxpayer is not eligible for Tax Amnesty for a tax and period in which the taxpayer is a party to a criminal investigation or pending criminal or civil litigation related to such tax and period. However, the taxpayer may apply for all other eligible taxes and periods which are not subject to pending civil or criminal litigation or an ongoing criminal investigation. A taxpayer who has been convicted of a crime related to a tax for which Tax Amnesty is sought is not eligible for any period or assessment for that tax.

The taxpayer may withdraw from civil litigation to obtain Tax Amnesty for a disputed assessment.  Also, protest cases before the Bureau of Conciliation and Mediation Services or the Division of Tax Appeals must be withdrawn prior to the granting of Tax Amnesty.

If an application is denied due to an ongoing criminal investigation or pending criminal prosecution, the taxpayer may resubmit the application if these criminal actions do not result in conviction. This resubmission must be within 30 days of official notice that the investigation has been terminated or the conclusion of the prosecution. If the taxpayer has not been officially notified of the termination of a criminal investigation, the resubmission must be within five years and thirty days of the mailing of the Tax Amnesty denial notification.