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

BILL NUMBER:S1072

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 Stale 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 would amend the tax law 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 would be 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 would also create 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

2008: A.11100/S.6664-A Passed Both Houses - (Vetoed)

Fiscal implications

This Office of Taxpayer Advocate, and its directorship position could be created within current fiscal appropriations provided to the Executive Branch.

Effective date

Immediately.