(2) shall not exceed the amount of the reduction in tax attributable to such decrease or increase in federal taxable income or federal tax or to such federal change or correction or renegotiation, or computation or recomputation of tax.

This subsection shall not affect the time within which or the amount for which a claim for credit or refund may be filed apart from this subsection.

§ 9. Subsection (e) of section 1462 of the tax law, as amended by chapter 817 of the laws of 1987, is amended to read as follows:

(e) If the amount of taxable income or alternative minimum taxable income for any year of any taxpayer as returned to the United States treasury department is changed or corrected by the commissioner of internal revenue or other officer of the United States or other competent authority, such taxpayer shall report such change or corrected taxable income or alternative minimum taxable income within ninety days (or one hundred twenty days, in the case of a taxpayer making a combined return under this article for such year) after the final determination_of such change or correction or as required by the [tax commission] commissioner, and shall concede the accuracy of such determination or state wherein it is erroneous. Any taxpayer filing an amended return with such department shall also file within ninety days (or one hundred twenty days, in the case of a taxpayer making a combined return under this article for such year) thereafter an amended return with the [tax commission] commissioner which shall contain such information as [it] the commissioner shall require. The allowance of a tentative carryback adjustment based upon a net capital loss carryback pursuant to section sixty-four hundred eleven of the internal revenue code, shall be treated as a final determination for purposes of this subsection.

§ 10. Paragraph 1 of subdivision (e) of section 1515 of the tax law, as amended by chapter 817 of the laws of 1987, is amended to read as follows:

(1) If the amount of the life insurance company taxable income (which shall include, in the case of a stock life insurance company which has an existing policyholders surplus account, the amount of direct and indirect distributions during the taxable year to shareholders from such account), taxable income of a partnership or taxable income, as the case may be, or alternative minimum taxable income for any year of any taxpayer as returned to the United States treasury department is changed or corrected by the commissioner of internal revenue or other officer of the United States or other competent authority, such taxpayer shall report such change or corrected taxable income or alternative minimum taxable income within ninety days (or one hundred twenty days, in the case of a taxpayer making a combined return under this article for such year) after the final determination of such change or correction or as required by the [tax commission] commissioner, and shall concede the accuracy of such determination or state wherein it is erroneous. Any taxpayer filing an amended return with such department shall also file within ninety days (or one hundred twenty days, in the case of a taxpayer making a combined return under this article for such year) thereafter an amended return with the [tax commission] commissioner which shall contain such information as [it] the commissioner shall require. The allowance of a tentative carryback adjustment based upon a net operating loss carryback or net capital loss carryback pursuant to section sixty-four hundred eleven of the internal revenue code or upon an operations loss carryback pursuant to section eight hundred ten of the internal revenue code, shall be treated as a final determination for purposes of this subdivision.

§ 11. Section 652 of the tax law, as amended by chapter 65 of the laws of 1985, is amended to read as follows: § 652. Time and place for filing returns and paying tax. [A] (a) Except as provided in subsection (b) of this section, a person required to make and file a return under this article shall, without assessment, notice or demand, pay any tax due thereon to the [tax commission] commissioner on or before the date fixed for filing such return determined without regard to any extension of time for filing the return). The [tax commission] commissioner shall prescribe by regulation the place for filing any return, statement, or other document required pursuant to this article and for payment of any tax. (b) The commissioner may allow individuals who have income only from wages, salaries, tips and like remuneration for services performed as an employee, interest, dividends and unemployment compensation to elect to have the commissioner compute the tax due. To provide for expeditious

and

uniform administration of the tax computations which involve numerous variables, the commissioner may further qualify, with regard to period of residency, deductions, credits, exemptions, amount and character of gross income, and any other appropriate factors relative to calculation of tax, those individuals who may elect to have their taxes computed by the commissioner. Any such election shall be made form prescribed by the commissioner for this purpose. If a qualified taxpayer elects to have the commissioner compute the tax, the amount determined by the commissioner shall be paid (i) within ten days from the date of the issuance of a notice and demand therefor or (ii) on the date fixed for filing such return (determined without regard to any extension of time for filing), whichever is later.

on

the

§ 12. Subdivision (a) of section 1803 of the tax law, as separately amended by sections 201 and 230 of chapter 190 of the laws of 1990, is amended to read as follows:

or

one

(a) Any person who, with intent to evade payment of any tax imposed under article nine (other than under section one hundred eighty hundred eighty-one), [nine-a] nine-A, thirteen, thirty-two, thirty-three or thirty-three-A of this chapter, fails to file a return or report for three consecutive taxable years shall be guilty of a class E felony, provided that such person had an unpaid tax liability, in excess of [two hundred fifty dollars,] the threshold amount with respect to each of the three consecutive taxable years. The threshold amount in the case of a taxable year under article nine-A of this chapter ending after June thirtieth, nineteen hundred eighty-nine is the applicable fixed dollar minimum prescribed under paragraph (d) of subdivision one of section two hundred ten of this chapter. In the event such fixed dollar minimum is less than two hundred fifty dollars, the threshold amount in the case of such taxable year is two hundred fifty dollars. In all other cases the threshold amount is two hundred fifty dollars.

§ 13. Section 2012 of the tax law, as added by chapter 282 of the laws of 1986, is amended to read as follows:

§ 2012. Small claims unit. There shall be established in the division of tax appeals a small claims unit. Such unit may hear any case where the amount in controversy is not in excess of an amount to be prescribed by regulations of the tax appeals tribunal. However, the amount so prescribed may not be less than [ten] twelve thousand dollars, excluding penalty and interest, except that with respect to controversies arising out of taxes imposed by article twenty-eight or pursuant to the authority of article twenty-nine of this chapter, the amount so prescribed shall not be less than [twenty] twenty-five thousand dollars, excluding penalty and interest. The option to proceed in the small claims unit shall be determined by the petitioner. At any time prior to the conclusion of a hearing in the small claims unit, a petitioner may by written notice to the secretary to the tax appeals tribunal discontinue such small claims proceeding and request that it be transferred to a proceeding conducted before an administrative law judge. Such transfer shall be effectuated by such written notice and such discontinuance shall be without prejudice to any subsequent proceeding before an administrative law judge. The hearing in the small claims part shall be informal and such evidence and testimony that the presiding officer of the small claims proceeding deems necessary or desirable for a just equitable determination shall be heard or received. All testimony shall be given under oath or affirmation. The final determination of the presiding officer in the small claims unit shall be conclusive upon all parties and shall not be subject to review by any other unit in the division of tax appeals, by the tax appeals tribunal or by any court of the state. However, the tax appeals tribunal may order a rehearing upon proof or allegation of misconduct by the presiding officer of the small claims proceeding. The division shall not be required to publish determinations issued by the small claims unit and such determinations of the small claims unit shall not be cited, shall not be considered as precedent nor be given any force or effect in any other proceeding conducted pursuant to the authority of the division or in any other judicial proceedings conducted in this state.

and

§ 14. Section 11-1752 of the administrative code of the city of New York, as amended by chapter 639 of the laws of 1986, is amended to read as follows:

EXPLANATION-Matter in italics is new; matter in brackets [ ] is old law

§ 11-1752 Time and place for filing returns and paying tax. [A] (a) Except as provided in subdivision (b) of this section, a person required to make and file a return under this chapter shall, without assessment, notice or demand, pay any tax due thereon to the [tax commission] commissioner of taxation and finance on or before the date fixed for filing such return (determined without regard to any extension of time for filing the return). The [tax commission] commissioner shall prescribe by regulation the place for filing any return, statement, or other document required pursuant to this chapter and for payment of any tax.

(b) The commissioner of taxation and finance may allow individuals who have income only from wages, salaries, tips and like remuneration for services performed as an employee, interest, dividends and unemployment compensation to elect to have the commissioner compute the tax due. Το provide for expeditious and uniform administration of the tax computations which involve numerous variables, the commissioner may further qualify, with regard to period of residency, deductions, credits, exemptions, amount and character of gross income, and any other appropriate factors relative to calculation of tax, those individuals who may elect to have their taxes computed by the commissioner. Any such election shall be made on the form prescribed by the commissioner for this purpose. If a qualified taxpayer elects to have the commissioner compute the tax, the amount determined by the commissioner shall be paid (i), within ten days from the date of the issuance of a notice and demand therefor or (ii) on the date fixed for filing such return (determined without regard to any extension of time for filing), whichever is later.

§ 15. Subdivision first of section 171 of the tax law, as amended by chapter 960 of the laws of 1958, is amended to read as follows:

the

First. Make such reasonable rules and regulations, not inconsistent with law, as may be necessary for the exercise of its powers and the performance of its duties under this chapter, including regulations which shall advise the public of (i) the various methods by which department communicates tax policy and interpretations to taxpayers, tax practitioners, personnel of the department and the general public and (ii) the legal force and effect, precedential value and binding nature of each such method of communication.

§ 16. Section 171 of the tax law is amended by adding a new subdivision twenty-third_to read as follows: Twenty-third. Technical memoranda issued by the department shall advise and inform taxpayers and others of existing interpretations of laws and regulations by the department or changes to the statutory or case law of interest to the public. In no event shall technical memoranda be issued by the department in violation of the provisions of the state administrative procedure act where and to the extent that a duly promulgated rule or regulation would be required. Where and to the extent that an opinion of the counsel of the department is deemed to be of sufficient significance and general applicability to a group or group of taxpayers, such opinion shall be disseminated via a technical memorandum.

§ 17. Subdivision twenty-fourth of section 171 of the tax law, as amended by chapter 282 of the laws of 1986, is amended to read as follows:

Twenty-fourth. Be required to render advisory opinions with respect to taxes administered by such commissioner within ninety days of the receipt of a petition for such an opinion. Such ninety day period may be extended by such commissioner, for good cause shown, to no more than thirty additional days. Such advisory opinion shall be rendered to any person subject to a tax or liability under this chapter or claiming exemption from such tax or liability and may, in the discretion of the commissioner, be rendered to any non-taxpayer, including but not limited to a local official, petitioning on behalf of a local jurisdiction, or the head of a state agency, petitioning on behalf of the agency. Such advisory opinions, which shall be published and made available to the public, shall not be binding upon such commissioner except with respect to the person to whom such opinion is rendered provided, however, that a subsequent modification by such commissioner of such an advisory opinion shall operate prospectively only. A petition for an advisory opinion shall contain a specific set of facts and be submitted in such form as may be prescribed by such commissioner and subject to such rules and regulations as such commissioner may promulgate with respect to the procedures for submission of such a petition. Nothing herein shall be construed to limit or otherwise alter the rights of any applicant for a

declaratory ruling pursuant to section two hundred four of the state administrative procedure act.

§ 18. Paragraph (a) of subdivision 6 of section 202 of the state administrative procedure act, as added by chapter 17 of the laws of 1984, is amended to read as follows:

(a) Notwithstanding any other provision of law, (i) if an agency finds that the immediate adoption of a rule is necessary for the preservation of the public health, safety or general welfare and that compliance with the requirements of subdivision one of this section would be contrary to the public interest, the agency may dispense with all or part of such requirements and adopt the rule on an emergency basis.

(ii) If the department of taxation and finance finds that the immediate adoption of a rule is necessary to implement recent statutory enactments or to conform to recent case law, the terms of which must be immediately communicated to the public, and that compliance with the provisions of subdivision one of this section would be contrary to the public interest, the department of taxation and finance may dispense with all or part of such requirements and adopt the rule on an emergency basis.

§ 19. Subparagraph (iv) of paragraph (d) of subdivision 6 of section 202 of the state administrative procedure act, as amended by chapter 850 of the laws of 1990, is amended to read as follows:

a

the

(iv) contain the findings required by paragraphs (a) and (c) of this subdivision and include a statement fully describing the specific reasons for such findings and the facts and circumstances on which such findings are based. Such statement shall include, at a minimum, description of the nature and, if applicable, location of the public health, safety or general welfare need requiring adoption of the rule on an emergency basis[;], and a description of the cause, consequences, and expected duration of such need; or, if applicable, a description of necessity for immediate communication of the terms of recent statutory enactments or recent case law to the public, to ensure the efficient administration of, or compliance with the tax law. In addition, such statement shall include an explanation of why compliance with the requirements of subdivision one of this section would be contrary to the public interest[;] and an explanation of why the current circumstance necessitates that the public and interested parties be given less than the minimum period for notice and comment provided for in subdivision one of this section;

§ 20. Paragraph (e) of subdivision 6 of section 202 of the state administrative procedure act, as amended by chapter 483 of the laws of 1988, is amended to read as follows:

(e) If, prior to the expiration of a rule adopted pursuant to paragraph (a) of this subdivision, the agency finds that the readoption of such rule on an emergency basis is necessary for the preservation of the public health, safety or general welfare, the agency may readopt the rule on an emergency basis provided, however, that the department of taxation and finance shall not readopt a rule adopted on an emergency basis pursuant to subparagraph (ii) of paragraph (a) of this subdivision. No readoption shall be filed with the secretary of state unless the agency has submitted a notice of proposed rule making pursuant to subdivision one of this section. No second or subsequent readoption shall be filed with the secretary of state unless the agency at the same time submits an assessment of public comments prepared pursuant to paragraph (b) of subdivision five of this section. Provided, however, the department of taxation and finance may not So readopt such a rule promulgated pursuant to subparagraph (ii) of paragraph (a) of subdivision six of this section.

§ 21. Subdivision 3 of section 101-a of the executive law, as amended by chapter 483 of the laws of 1988, is amended to read as follows:

3. (a) If the agency finds that it is necessary for the preservation of the public health, safety or general welfare to dispense with the requirements of subdivision two, the agency may dispense with such requirements and adopt the rule, as an emergency measure. Within five days of the filing of such emergency measure in the office of the department of state, the agency taking such action shall send the temporary president of the senate and the speaker of the assembly a notification containing the information required by subdivision two of this section; provided, however, such notification shall also: [(a)] (i) inEXPLANATION-Matter in italics is new; matter in brackets [ ] is old law

clude a brief statement setting forth the reasons why the agency finds that it is necessary for the preservation of the public health, safety or general welfare to dispense with the requirements of subdivision two of this section and adopt the rule as an emergency measure, and [(b)] (ii) provide the date the emergency measure will terminate if the agency does not intend to adopt such measure as a permanent rule, or indicate that the agency intends to adopt such measure as a permanent rule, in which case compliance with the notification requirements of this section shall be deemed satisfied.

(b) Notwithstanding the provisions of paragraph (a) of this subdivision, if the department of taxation and finance finds that the immediate adoption of a rule is necessary due to recent statutory enactments or recent case law, the terms of which must be immediately communicated to the public, and that compliance with the provisions of subdivision one of this section would be contrary to the public interest, the department of taxation and finance may dispense with all or part of such requirements and adopt the rule on an emergency basis. Within five days of the filing of such emergency measure in the office of the department of state, the department shall send the temporary president of the senate and the speaker of the assembly a notification containing the information required by subdivision two of this section; provided, however, such notification shall also: (i) include a brief statement setting forth the reasons why the department finds that it is necessary to immediately communicate the terms of recent statutory enactments or recent case law to the public, by dispensing with the requirements of subdivision two of this section and adopting the rule as an emergency measure, and (ii) provide the date the emergency measure will terminate if the department does not intend to adopt such measure as a permanent rule, or indicate that the agency intends to adopt such measure as a permanent rule, in which case compliance with the notification requirements of this section shall be deemed satisfied.

(c) The effectiveness of any [such] emergency measure adopted pursuant to paragraph (a) or (b) of this subdivision, unless adopted as a permanent rule in the manner prescribed by law, shall not exceed ninety days after the filing of such measure in the office of the department of state, provided, however, if such emergency measure is readopted prior to the expiration of such ninety day period such readoption and any subsequent readoptions shall remain in effect for no longer than sixty

days. ૐ 22. (a) On or before September 30, 1993, the commissioner of taxation and finance shall submit to the persons designated in subdivision (c) of this section a written report regarding the desirability and feasibility of establishing an office of taxpayer advocate within the department of taxation and finance.

(b) On or before September 30, 1993, the commissioner of taxation and finance shall submit to the persons designated in subdivision (c) of this section a written report regarding the desirability and feasibility of (1) reducing the period within which refunds may be made without payment of interest with respect to the tax imposed under article 22 of the tax law or pursuant to the authority of article 30, 30-A or 30-B of the tax law or article 2-E of the general city law and (2) providing for payment of interest on the recovery of erroneous refunds.

(c) The commissioner of taxation and finance shall submit copies of the reports, in a manner consistent with the secrecy provisions of the tax law, prepared pursuant to subdivisions (a) and (b) of this section, to the governor, the temporary president of the senate, the speaker of the assembly, the chair of the senate finance committee and the chair of the assembly ways and means committee and the director of the division of the budget.

This act shall take effect immediately, except that:

§ 23. (a) Sections 3006, 3020 and 3022 of the tax law, as added by section two of this act, shall take effect on the first day of the first month next succeeding the ninetieth day after it shall have become a law;

(b) Subdivision (a) of section 3008 of the tax law, as added by section two of this act, shall apply to interest accruing with respect to deficiencies, amounts of tax due or payments for taxable years, periods incidences or events (whichever is applicable to the tax involved) beginning or occurring on or after the first day of the first month next succeeding the ninetieth day after this act shall have become a law with respect to articles nine, nine-A, twenty-two (but not including part five thereof), twenty-eight, twenty-nine, thirty thirty-A, thirty-B, thirty-two and thirty-three of this chapter, to article two-E of the