Creates the office of the taxpayer advocate; directs such office be in the control of the department of taxation and finance; outlines functions and duties of such office; creates mandatory reporting to the governor and legislative leaders.
STATE OF NEW YORK
________________________________________________________________________
2927
2011-2012 Regular Sessions
IN ASSEMBLY
January 21, 2011
___________
Introduced by M. of A. WRIGHT -- Multi-Sponsored by -- M. of A. BOYLAND,
BRENNAN, COLTON, WEISENBERG -- read once and referred to the Committee
on Housing
AN ACT to amend the tax law, in relation to creating the office of the
taxpayer advocate
The People of the State of New York, represented in Senate and Assem-bly, do enact as follows:
1 Section 1. The tax law is amended by adding two new sections 3013 and
2 3014 to read as follows:
3 § 3013. Office of the taxpayer advocate. (a) There shall be in the
4 department an office to be known as the "office of the taxpayer advo-
5 cate". Such office shall be under the supervision and direction of an
6 official known as the "commissioner of the office of the taxpayer advo-
7 cate". The commissioner of the office of the taxpayer advocate shall be
8 appointed by the governor and shall report directly to the commissioner.
9 The commissioner of the office of the taxpayer advocate shall devote his
10 or her entire time to the duties of such office.
11 (b) No person shall be appointed as the commissioner of the office of
12 the taxpayer advocate unless at the time of such person's appointment
13 such person is a resident of the state and is knowledgeable on the
14 subject of taxation and is skillful in matters pertaining thereto. Once
15 appointed, the commissioner of the office of the taxpayer advocate shall
16 continue in office until the governor's term expires and until such
17 governor's successor has been appointed and has qualified. The term of
18 office shall be at the pleasure of the governor.
19 (c) In the event of a vacancy caused by the death, resignation,
20 removal or disability of the commissioner of the office of the taxpayer
21 advocate, the vacancy shall be filled by the governor.
22 (d) (1) The office of the taxpayer advocate shall have the following
23 functions, powers, and duties:
24 (i) To assist taxpayers in resolving problems with the department;
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[] is old law to be omitted.
LBD03107-01-1
A. 2927 2
1 (ii) To identify areas in which taxpayers have problems in dealings
2 with the department;
3 (iii) To propose solutions, including administrative changes to prac-
4 tices and procedures of the department;
5 (iv) To recommend legislative action as may be appropriate to resolve
6 problems encountered by taxpayers;
7 (v) To preserve and promote the rights of the taxpayer;
8 (vi) To promote open and direct communications; and
9 (vii) To appoint such officers and employees as it may require for the
10 performance of its duties.
11 (2) The commissioner of the office of the taxpayer advocate shall
12 prepare an annual report as to his or her activities. Such report shall
13 be submitted to the governor, the temporary president of the senate, the
14 speaker of the assembly, and the commissioner no later than the thirty-
15 first of December next succeeding the effective date of this section and
16 every December thirty-first thereafter. Any such report shall contain
17 full and substantive analysis, in addition to statistical information,
18 and shall
19 (i) identify the initiatives the commissioner of the office of the
20 taxpayer advocate has taken on improving taxpayer services and the
21 department's responsiveness;
22 (ii) contain a summary of at least fifteen of the most serious prob-
23 lems encountered by taxpayers, including a description of the nature of
24 such problems;
25 (iii) contain an inventory of the items described in subparagraphs (i)
26 and (ii) of this paragraph for which action has been taken and the
27 result of such action; an inventory for which action remains to be
28 completed; and an inventory for which no action has been taken, and the
29 reasons for the inaction;
30 (iv) identify any taxpayer assistance order which was not honored by
31 the department in a timely manner as specified under subdivision (a) of
32 section three thousand fourteen of this article;
33 (v) contain recommendations for such administrative and legislative
34 action as may be appropriate to resolve problems encountered by taxpay-
35 ers; and
36 (vi) include such other information as the commissioner of the office
37 of the taxpayer advocate may deem advisable.
38 § 3014. Taxpayer assistance orders. (a) The commissioner of the office
39 of the taxpayer advocate may, with or without a formal request from a
40 taxpayer, issue a taxpayer assistance order that suspends or stays an
41 action or proposed action by the department if, in the determination of
42 such commissioner, the taxpayer is suffering or is about to suffer a
43 significant hardship as a result of the manner in which the department
44 administers the tax laws. A determination by such commissioner under
45 this section to issue or to not issue a taxpayer assistance order is
46 final and cannot be appealed to any court.
47 (b) A taxpayer assistance order may require the department to release
48 property of the taxpayer levied on, cease any action or refrain from
49 taking any action to enforce the state tax laws against the taxpayer
50 until the issue or issues giving rise to the order have been resolved.
51 (c) The running of the applicable period of limitations for such
52 department action shall be suspended from the date of the taxpayer's
53 request for a taxpayer assistance order or the date the order is issued,
54 whichever is earlier, until one of the following shall occur:
55 (1) The expiration date of the order.
A. 2927 3
1 (2) If an order is modified, the expiration date of the modification
2 order.
3 (3) If an order is rescinded, the date of the rescission order.
4 (d) A taxpayer assistance order shall not be used to contest the
5 merits of a tax liability or as a substitute for informal protest proce-
6 dures or administrative or judicial proceedings for the review of a tax
7 assessment or collection action or denial of refund.
8 § 2. Subdivisions 1, 3 and 4 of section 170 of the tax law, subdivi-
9 sions 1 and 3 as amended by chapter 282 of the laws of 1986 and subdivi-
10 sion 4 as amended by chapter 283 of the laws of 1986, are amended to
11 read as follows:
12 1. The existing department of taxation and finance and its present
13 functions are continued. The head of the department of taxation and
14 finance shall be the commissioner of taxation and finance who shall have
15 sole charge of the administration of such department except with regard
16 to the administration of the division of tax appeals which shall be the
17 sole charge of the tax appeals tribunal authorized by article forty of
18 this chapter and the office of the taxpayer advocate authorized by
19 sections three thousand thirteen and three thousand fourteen of this
20 chapter. The commissioner of taxation and finance shall be appointed by
21 the governor by and with the advice and consent of the senate and shall
22 hold office as commissioner of taxation and finance until the end of the
23 term of the governor by whom he was appointed and until his successor
24 has been appointed and has qualified.
25 3. The commissioner of taxation and finance may establish such addi-
26 tional divisions and bureaus as he may deem necessary. He may appoint
27 the heads of such divisions and bureaus and fix their duties and he may
28 consolidate, alter or abolish any divisions or bureaus, except that such
29 commissioner shall have no such authority or power with regard to the
30 division of tax appeals and the office of the taxpayer advocate.
31 4. The commissioner of taxation and finance may appoint and remove
32 such officers, assistants and other employees as he may deem necessary
33 for the exercise of the powers and duties of the department, all of whom
34 shall be in the classified civil service unless otherwise provided by
35 law; and he may prescribe their duties, and fix their compensation with-
36 in the amounts appropriated therefor. The commissioner of taxation and
37 finance may transfer officers or employees from their positions to other
38 positions in the department, or abolish or consolidate such positions.
39 He shall have all powers necessary to perform the duties conferred upon
40 him regarding the state lottery authorized by article thirty-four of
41 this chapter. However, the commissioner of taxation and finance shall
42 have no power to appoint or remove any personnel of the division of tax
43 appeals or of the office of the taxpayer advocate nor shall such commis-
44 sioner have any power or authority with regard to the operation and
45 administration of such division or office including any power or author-
46 ity over such division's or office's budget. The commissioner shall
47 furnish to the director of the division of the budget the itemized esti-
48 mates of the financial needs of the division of tax appeals and the
49 office of the taxpayer advocate prepared by the tax appeals tribunal and
50 the office of the taxpayer advocate. Such itemized estimates may not be
51 revised or altered in any manner by the commissioner.
52 § 3. This act shall take effect immediately; provided, however, that
53 section 3014 of the tax law, as added by section one of this act shall
54 not take effect until the later of April first next succeeding the date
55 on which it shall have become a law, or the latest date on which any
56 state appropriations relating to the operations of the department of
A. 2927 4
1 taxation and finance for the state fiscal year commencing on such April
2 first, becomes law; provided, however, that the commissioner of taxation
3 and finance shall take all steps necessary to promulgate rules and regu-
4 lations necessary to achieve the intent and purposes of this act and to
5 implement this act prior to such April first so that such rules and
6 regulations shall be effective on the effective date of such section
7 3014 of the tax law.
