SUBJECT:

PURPOSE:

Assembly Parlor, Room 306
State Capitol Building
Albany, New York

Wednesday, January 11, 2006
10:00 a.m.

Part N of Chapter 61 of the Laws of 2005 amended the Tax Law to provide new reporting requirements with respect to the disclosure of information relating to transactions that present the potential for tax avoidance (a tax shelter). Separate reporting requirements are imposed on those who utilize tax shelters and those who promote the use of tax shelters. The amendments also impose penalties for nondisclosure and the underpayment of taxes due to participation in these transactions, extend the statue of limitations for assessments relating to these transactions, and create a voluntary compliance initiative (VCI) to allow taxpayers to report and pay underreported tax liabilities and interest attributable to these transactions with a waiver of penalties. The New York Tax Shelter Voluntary Compliance Initiative is in effect from October 1, 2005 through March 1, 2006.

This hearing will examine the steps taken by the Tax Department to implement this legislation and the progress of the Voluntary Compliance Initiative to date.

Persons wishing to present pertinent testimony to the Committee at the above hearing should complete and return the reply form as soon as possible. It is important that the reply form be fully completed and returned so that persons may be notified in the event of emergency postponement or cancellation.

Oral testimony will be limited to 15 minutes' duration. In preparing the order of witnesses, the Committee will attempt to accommodate individual requests to speak at particular times in view of special circumstances. These requests should be made on the reply form or communicated to Committee staff as early as possible. In the absence of a request, witnesses will be scheduled in the order in which reply forms are postmarked.

Ten copies of any prepared testimony should be submitted at the hearing registration desk. The Committee would appreciate advance receipt of prepared statements.

In order to further publicize these hearings, please inform interested parties and organizations of the Committee's interest in hearing testimony from all sources.

In order to meet the needs of those who may have a disability, the Assembly, in accordance with its policy of non-discrimination on the basis of disability, as well as the 1990 Americans with Disabilities Act (ADA), has made its facilities and services available to all individuals with disabilities. For individuals with disabilities, accommodations will be provided, upon reasonable request, to afford such individuals access and admission to Assembly facilities and activities.

PUBLIC HEARING REPLY FORM

Persons wishing to present testimony at the public hearing on The New York State Tax Shelter Program are requested to complete this reply form as soon as possible and mail it to:

Clinton Freeman, Jr.
Executive Assistant
Assembly Committee on Ways and Means
Room 923, LOB
Albany, New York 12248
Email: Freemac@assembly.state.ny.us
Phone: (518) 455-5491
Fax: (518) 455-5776

I will address my remarks to the following subjects:

I will require assistance and/or handicapped accessibility information. Please specify the type of assistance required: