Requires the commissioner of taxation and finance to publish on the department of taxation and finance website lists of taxpayers with tax delinquencies

Summary of specific provisions

Section 1: Section 171 of the tax law is amended adding a new subdivision twenty-ninth which, (a) directs the department to prepare, maintain, and publish on the department website two separate lists for the top 250 income tax delinquents and the top 250 business tax delinquents, to be updated every quarter (e) Each updated list shall not include taxpayers from previous quarterly lists unless:

1) A separate instance of unpaid tax or additions to tax, which ranks the taxpayer's new liability among the to two hundred fifty, subsequent to the publishing of the prior quarter's list occurs or

2) At least one year has elapsed since the taxpayer appeared on the list, and in the commissioner's judgment, placing the taxpayer on the list may significantly increase the likelihood of payment.

Limitations

No taxpayer will be placed on the list until:

1) A tax warrant is filed against such taxpayer for a delinquent liability, and

2) Sixty days have elapsed following the date of mailing a notice by certified mail to such taxpayer, and when it is tile case, to such taxpayer's owners, beneficial owners or officers, of the commissioner's intent to publish such taxpayer's name and other required information.

No taxpayer shall be included on the list if:

1) Since the mailing of the publications notice the taxpayer has paid the liability in full or entered into a written agreement with the department for payment of the delinquency

2) The total liability for all tax and additions to tax is less than five thousand dollars.

3) It has been determined to be uncollectible because the taxpayer has received a discharge in bankruptcy; the taxpayer is deceased; the taxes are debts belonging to a business and the department is unable to find that such business or other persons responsible for the debts have assets from which the debts must be paid; or the debt has been outstanding on the records of the department for more than six years; or is involved in an installment plan entered into with the commissioner.

4) The commissioner uses his discretion upon determining that a taxpayer through the submission of a written request and statement of

reasonable cause cannot make the payment because of extraordinary circumstances.

Justification

Every New York State resident and business benefits from taxpayer funded services. It is only fair that each person and business pays for their legally obligated tax liabilities. Currently, individual income tax delinquents owe the state $1.2 billion and businesses owe the state approximately $88 million dollars (NYS Department of Tax and Finance 0327-09). Posting the top two hundred fifty income and business tax delinquents would add a level of public embarrassment for the top tax delinquents in the state and will aide in the collection of these warranted debts. Other states such as Delaware, upon which this legislation is modeled, have passed and implemented similar legislation. The Department of Tax and Finance website would use the tax delinquent's name, address, and amount of warranted debt owed to the state for identification purposes. This is not an invasion of privacy because once a warrant is issued for the collection of a tax debt it becomes a matter of public record. These lists would increase access and transparency, and increase the likely hood of the state claiming outstanding tax debt.

Prior legislative history

New bill

Fiscal implications

None. This bill aims to capture outstanding taxes owed to the state.

Effective date

Immediately