What's happening
This bill removes the one-year time limit for aggregating unpaid tax payments under a common scheme in New York State.
Why it matters
Expands Prosecutorial Tools. By removing the one-year time limit, prosecutors can aggregate unpaid tax liabilities over any duration, making it easier to build stronger cases against individuals or entities engaged in long-running tax evasion schemes.
Targets Sophisticated Evasion. The change addresses situations where tax evaders spread out nonpayment over multiple years to avoid triggering criminal thresholds, thereby closing a loophole that previously protected ongoing or periodic offenders.
Potential for Larger Penalties. Aggregating unpaid taxes over longer periods may result in higher total amounts involved in charges, which can lead to more serious criminal charges and potentially steeper penalties for offenders.
Impacts on Tax Compliance. The amendment increases the risk for those considering tax evasion, potentially acting as a stronger deterrent and encouraging more consistent compliance with tax laws in New York State.
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Who cares
Headline styles
Remove Aggregation Time Limit
Plain English, a few words. Used as the page title.
Sponsors
No co-sponsors yet.
History
- Referred to ways and means
- Delivered to assembly
- Passed senateVote 62–0
- Advanced to third reading
- 2nd report cal.
- 1st report cal.148
- Referred to investigations and government operations
- Returned to senate
- Died in assembly
- Referred to ways and means
- Delivered to assembly
- Passed senateVote 62–0
Show 5 earlier actions
- Advanced to third reading
- Amended 92a
- 2nd report cal.
- 1st report cal.397
- Referred to investigations and government operations
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.
End One-Year Tax Limit
In Assembly Committee · Ways And Means · Sponsor David Buchwald
Full text
1 pageUnderlined is new[Struck] is removedOfficial text on nysenate.gov ↗
STATE OF NEW YORK
92--A Cal. No. 397
2017-2018 Regular Sessions
IN SENATE (Prefiled)
January 4, 2017
Introduced by Sen. HOYLMAN -- read twice and ordered printed, and when printed to be committed to the Committee on Investigations and Government Operations -- reported favorably from said committee, ordered to first and second report, amended on second report, ordered to a third reading, and to be reprinted as amended, retaining its place in the order of third reading
AN ACT to amend the tax law, in relation to eliminating the one-year time requirement for aggregation payments
The People of the State of New York, represented in Senate and Assembly, do enact as follows:
Section 1. Section 1807 of the tax law, as amended by section 5 of subpart A of part S of chapter 57 of the laws of 2010, is amended to read as follows:
§ 1807. Aggregation. For purposes of this article, the payments due and not paid under a single article of this chapter pursuant to a common scheme or plan or due and not paid, [within one year,] may be charged in a single count, and the amount of underpaid tax liability incurred, [within one year,] may be aggregated in a single count.
§ 2. This act shall take effect on the first of January next succeeding the date upon which it shall have become a law.
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD05313-02-7
Reflowed for reading: line numbers and page breaks removed. Cite the official text.
Sponsor's memo
Title of bill
An act to amend the tax law, in relation to eliminating the one-year time requirement for aggregation payments
Purpose or general idea of bill
This legislation allows unpaid taxes to be collected in one aggregate payment, rather than in one-year increments.
Summary of specific provisions
Section 1 amends section 1807 of the tax law by removing the phrase "within one year".
Section 2 provides that this act shall take effect on the first of January next succeeding the date upon which it shall have become a law.
Justification
Currently, individuals being prosecuted for unpaid tax liability in the state of New York must be charged with separate counts of aggregate unpaid taxes for each year that the defendant has an outstanding unpaid tax liability. This is often not reflective of the overall lump sum of tax evaded by the defendant over several years.
This legislation would allow the aggregation of all unpaid taxes into a single charge in tax evasion cases. This eliminates the need to charge someone with multiple lower-level crimes when a single, higher-level charge would be more reflective of the scope of the defendant's crime if the defendant had intentionally under-reported a significant amount of tax liability for several years.
Prior legislative history
S.108 of 2015-2016 (Hoylman): Died in Investigations & Government Operations (2015)/Passed Senate (2016) S.7539 of 2014 (Hoylman): Died in Investigations
Fiscal implications
None to the state.
Effective date
This act shall take effect on the first of January next succeeding the date upon which it shall have become a law.
Summaries, headlines and scores are AI-generated from the official bill text. How we score bills. Source: NYS Open Legislation.