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20 CRR-NY 2397.2NY-CRR

STATE COMPILATION OF CODES, RULES AND REGULATIONS OF THE STATE OF NEW YORK

TITLE 20. DEPARTMENT OF TAXATION AND FINANCE

CHAPTER IX. PROCEDURAL REGULATIONS

PART 2397. ELECTRONIC FUNDS TRANSFERPROGRAM FOR CERTAIN TAXPAYERS REMITTING TAXES UNDER AND PURSUANT TOTHE AUTHORITY OF ARTICLES 12-A, 13-A, 28 AND 29 OF THE TAX LAW

20 CRR-NY 2397.2

2397.2 Participatingtaxpayer.

(a) General rules.

(1)

(i) If a taxpayer isliable during the applicable look-back period for more than $500,000of State and local sales and compensating use taxes imposed by article28 and pursuant to the authority of article 29 of the Tax Law (wheresuch taxes are administered by the department), the taxpayer is requiredto participate in the program.

(ii) If a taxpayeris liable during the applicable look-back period for more than $5,000,000of the prepaid State and local sales and compensating use taxes imposedon motor fuel and diesel motor fuel by section 1102 of the Tax Law,the taxpayer is required to participate in the program.

(iii) If a taxpayeris liable during the applicable look-back period for more than $5,000,000of the taxes on motor fuel and diesel motor fuel imposed by and pursuantto the authority of article 12-A of the Tax Law and the tax on petroleumbusinesses imposed by article 13-A of such law (but excluding thosetaxes imposed by section 301-h of article 13-A), the taxpayer is requiredto participate in the program.

(2) A taxpayer shallbe required to participate in the program only with respect to taxesfor which the applicable dollar threshold prescribed in subparagraphs(i), (ii) and (iii) of paragraph (1) of this subdivision has beenmet. In determining whether such applicable dollar threshold has beenmet, the taxes described in subparagraphs (i), (ii) and (iii) of paragraph(1) of this subdivision shall not be aggregated; however, the taxesdescribed within each of such subparagraphs shall be aggregated.

(b) Hardship.

A taxpayer may, within 40 calendar days of the postmarkdate of the notice informing the taxpayer of its required participationin the program (see subdivision [b] of section 2397.3 ofthis Part), or after having already enrolled in the program, applyto the department for a hardship exemption using a form prescribedby the department for such purpose. To be granted a hardship exemption,the taxpayer must demonstrate that the criteria set forth in paragraph(4) of subdivision (b) of section 10 of the Tax Law, as applicable,have been met. The department shall advise the taxpayer of it'sdetermination within 14 calendar days of receipt of the taxpayer'scompleted application.

(c) When a taxpayeris required to pay prepaid sales tax on cigarettes during the look-backperiod used to determine program eligibility, only the amount of salestax on cigarettes for which a cigarette retailer is liable will beincluded in its total State and local sales and compensating use taxliability used to determine mandatory participation in the programunder subparagraph (a)(1)(i) of this section.

(d) Voluntary participation.

(1) Any taxpayer notrequired to participate in the program, but who is otherwise requiredto remit any of the taxes specified in paragraph (1) of subdivision(a) of this section, may, at any time, submit a request to the departmentfor permission to participate in such program on a voluntary basis.

(2) Any taxpayer describedin paragraph (1) of this subdivision shall be granted permission toparticipate in the program unless the department determines that theadministrative costs associated with accepting new enrollees intothe program (including, but not limited to, increasing systems capacities,adding depository bank resources and adding program specialists withinthe department) outweigh the revenue and tax administration benefitsassociated with payment by EFT or certified check.

(3)

(i) Within 30 calendardays after receipt of the completed request, the department shallnotify the taxpayer of the decision. If the department grants thetaxpayer permission to voluntarily participate, the department shallmake available all the information and instructions necessary to ensuresuccessful participation in the program.

(ii) The departmentmay limit the selection of payment options available to voluntaryparticipants in the program. If the department limits the selectionof options, it will inform taxpayers during the enrollment processabout which payment options are available. (See section 2397.4 ofthis Part for more information about payment options.)

(4) Duration of participation.

(i) A taxpayer acceptedto voluntarily participate in the program shall be required to continuein the program through at least the end of the applicable programyear unless otherwise notified by the department.

(ii)

(a) No later than August 21st, if in writing, or August31st, if online, of each year, a taxpayer voluntarily participatingin the program may notify the department that it no longer electsto participate in the program beyond the end of the applicable programyear. The department shall advise the taxpayer of whether the notificationwas timely made. If such notification is not timely made, a taxpayervoluntarily participating in the program must continue to participatein the program for the upcoming program year.

(b) Notwithstanding the rules specifiedin clause (a) of this subparagraph and in subparagraph (i)of this paragraph, a taxpayer may request release from voluntary participationin the program at any time. To be granted such release, the taxpayermust demonstrate to the department that continuation of its voluntaryparticipation will result in hardship to such taxpayer. If the requestis granted, the department shall advise the taxpayer, within 30 calendardays of receipt of the completed request, of the date for its finalpayment by EFT or certified check.

(iii) The departmentmay, at any time after enrollment and on 30 business days' notice,advise the taxpayer that it will no longer be permitted to participatein the program on a voluntary basis.

(5) The provisions ofthis Part shall, except as otherwise expressly provided, apply toall taxpayers voluntarily participating in the program.

20 CRR-NY 2397.2

Current through September 30, 2022

End of Document

IMPORTANT NOTE REGARDING CONTENT CURRENCY: JULY 31, 2023, is the date of the most recently produced official NYCRR supplement covering this rule section. For later updates to this section, if any, please: consult editions of the NYS Register published after this date; or contact the NYS Department of State Division of Admisnistrative Rules at [email protected]. See Help for additional information on the currency of this unofficial version of the NYS Rules.