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Governor Pataki Signs Bill Expanding Taxpayer Rights
Will Ensure That Taxpayers Who Overpay Are Notified in a Timely Manner
Governor George E. Pataki today announced that he has signed into law a measure ensuring that State taxpayers who overpay their taxes are notified by the State Department of Taxation and Finance when the Department discovers an overpayment during an audit, assessment, collection or enforcement proceeding. The new law also requires the Tax Department to make such notification in a timely manner.
"This measure is part of our ongoing efforts to be as fair and responsive as possible with every taxpayer in New York State," Governor Pataki said. "Put very simply, if taxpayers have paid too much in taxes, we will inform them and reimburse them as quickly as possible."
Under current Tax Department policy, taxpayers are notified by the Department when the Department finds that a taxpayer has overpaid their taxes, but the Department is not formally required to do so under existing law. This new legislation codifies the Tax Department’s existing policy and will ensure that taxpayers continue to be notified when the Department discovers an overpayment.
Under the new law, taxpayers will have 120 days after being notified to apply for a refund or a credit resulting from the overpayment. Taxpayers seeking further information about the measure can contact the Department’s Taxpayer Hotline at 1-800-CALL-TAX. The legislation will take effect immediately.
In 1997, Governor Pataki signed into law a major expansion of the Taxpayer Bill of Rights which included:
• the awarding of attorneys’ fees and other costs to taxpayers in certain tax proceedings and placing the burden of proof on the Tax Department as to whether its position was substantially justified; • allowing tax levies to be released in certain hardship situations; • awarding damages to taxpayers for certain unauthorized actions of the Tax Department; • providing more information to taxpayers on why it is claimed that additional tax is due; and • providing for a compromise of liability on a joint income tax return attributable to a former spouse.
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