What's happening
This bill creates a voluntary program for taxpayers to improve sales tax recordkeeping, offering protections from estimated tax assessments if they comply.
Why it matters
Encourages Better Recordkeeping. By providing a formal framework for voluntary compliance, the bill incentivizes businesses and individuals to improve their sales tax recordkeeping, potentially reducing errors and omissions that can lead to costly audits.
Limits State’s Use of Estimates. Taxpayers who join the program and maintain compliant records are protected from having their taxes estimated using external indices, which can often result in higher tax bills if records are missing or inadequate.
Potentially Reduces Audit Anxiety. The agreement offers a measure of certainty and protection for compliant taxpayers, making it less likely they’ll be subject to aggressive estimated assessments—thus lowering the risk and anxiety associated with state audits.
Could Drive Adoption of Technology. The program may require (or encourage) the use of certified point-of-sale systems, nudging small businesses to adopt modern technology that could improve efficiency and accuracy in tax reporting.
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Who cares
Headline styles
Voluntary Sales Tax Recordkeeping
Plain English, a few words. Used as the page title.
Sponsors
3 Co-sponsors
History
- Referred to ways and means
- Referred to ways and means
Companion bill
The same bill in the other chamber. A bill becomes law when one version passes both houses and the governor signs it, so either number can carry it.
Voluntary Sales Tax Recordkeeping
In Senate Committee · Investigations And Government Operations · Sponsor Catharine Young
Full text
2 pagesUnderlined is new[Struck] is removedOfficial text on nysenate.gov ↗
STATE OF NEW YORK
3608
2017-2018 Regular Sessions
IN ASSEMBLY
January 30, 2017
Introduced by M. of A. SCHIMMINGER, ZEBROWSKI, STECK, JAFFEE, KEARNS -- Multi-Sponsored by -- M. of A. COOK, GLICK, MAGEE, McDONALD, RIVERA -read once and referred to the Committee on Ways and Means
AN ACT to amend the tax law, in relation to establishing the recordkeeping voluntary compliance program for purposes of sales tax liability
The People of the State of New York, represented in Senate and Assembly, do enact as follows:
Section 1. The tax law is amended by adding a new section 1135-a to read as follows:
§ 1135-a. Recordkeeping voluntary compliance program. 1. Notwithstanding any other provision of law to the contrary, there shall be established a recordkeeping voluntary compliance program to be administered by the commissioner, for all eligible taxpayers.
2. For purposes of this section, an "eligible taxpayer" is an individual, partnership, estate, trust, corporation, limited liability company, joint stock company, or any other company, trustee, receiver, assignee, referee, society, association, business or any other person subject to sales tax imposed by or pursuant to the authority of this chapter.
3. The commissioner is authorized to enter into a recordkeeping voluntary compliance agreement with an eligible taxpayer. A recordkeeping voluntary compliance agreement shall be in a form to be established by the commissioner and include such terms as the commissioner may reasonably require to require the eligible taxpayer to maintain books and records in a form pursuant to section eleven hundred thirty-five of this part and to comply with this chapter in the future including, but not limited to requiring the use of certified point of sales systems.
§ 2. Section 1138 of the tax law is amended by adding a new subdivision (e) to read as follows:
(e) Notwithstanding any other provision of law to the contrary, a taxpayer that is a party to a recordkeeping voluntary compliance agreement pursuant to section eleven hundred thirty-five-a of this part shall
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD05749-01-7
A. 3608 2
not be subject to the provisions of paragraph one of subdivision (a) of this section and no tax shall be estimated on the basis of external indices unless the commissioner finds that the taxpayer is in substantial non-compliance with its recordkeeping voluntary compliance agreement.
§ 3. This act shall take effect immediately.
Reflowed for reading: line numbers and page breaks removed. Cite the official text.
Summaries, headlines and scores are AI-generated from the official bill text. How we score bills. Source: NYS Open Legislation.