Enacts the "taxpayer advocate act" to create the office of taxpayer advocate

10 Co-sponsors

• John J. Bonacic
• Martin J. Golden
• Owen H. Johnson
• Andrew J. Lanza
• William J. Larkin Jr.
• Thomas P. Morahan
• Frank Padavan
• Michael H. Ranzenhofer
• Dale M. Volker
• Catharine Young

Title of bill

An act to amend the tax law, in relation to enacting the "taxpayer advocate act"

Purpose

To enact the "Taxpayer Advocate Act" and create the Office of Taxpayer Advocate to assist New York State taxpayers in their dealings with the New York State Department of Taxation and Finance. This office is modeled after the Taxpayer Advocate office which functions in many other state governments and within the Internal Revenue Service (IRS).

Summary of provisions

The bill amends the tax law by adding a new section 3013 to create the Office of Taxpayer Advocate under the direction of the Taxpayer Advocate, appointed by the Governor and confirmed by the Senate. The duties of the Taxpayer Advocate are to:

1. Assist taxpayers in resolving problems with the tax department;

2. Identify areas in which taxpayers have problems dealing with the department;

3. Propose solutions, including administrative changes to departmental practices and procedures;

4. Recommend legislative action;

5. Promote communication;

6. Prepare an annual report by December 31 of every year to identify initiatives taken, summarize the fifteen most serious taxpayer problems, describe actions taken and not taken on behalf of each taxpayer, recommend administrative and legislative action to resolve taxpayer problems.

Finally, the legislation creates a distinct separation between the Taxpayer Advocate and the Tax Commissioner with respect to submission of budget and management of the Office of Taxpayer Advocate. In this, it follows the precedent of the Tax Tribunal.

Justification

The federal government and several other states have successful Taxpayer Advocate offices. The Advocates serve a useful yet limited role as an ombudsman on behalf of taxpayers against the government, attempting to prevent hardship and ensure a fair and consistent application of tax laws and departmental policies. Importantly, the Taxpayer Advocate can provide a fresh look at laws, rules and procedures and can suggest meaningful changes in policy that benefit taxpayers.

By enacting this bill into law, we can establish a new ally for the taxpayer within New York State government.

Legislative history

2001-2002: A.7100 2003-2004: A.5369 2005-2006: A.3944 2007: A.4606/S.4023 (Vetoed) 2008: A.11100/S.6664-A (Vetoed)

Fiscal implications

Approximately $250,000 annually.

Local fiscal implications

None.

Effective date

Immediately.