§ 1-04 Taxpayer Eligibility.
RCNY § 1-04
(a)General.
(1)Amnesty shall not be granted to any taxpayer who is the subject of any criminal investigation being conducted by any agency of the City of New York or of the State or any political subdivision thereof, who is a party to any civil or criminal litigation which is pending on the date of the taxpayer's application in any court of this State or the United States for nonpayment, delinquency or fraud in relation to the taxes (plus interest thereon) with respect to which amnesty is sought, or employs more than 500 employees in the United States on the date of taxpayer application. A civil litigation shall not be deemed to be pending if the taxpayer withdraws from such litigation prior to the granting of amnesty. (Chapter 765 of the Laws of 1985, § 84(c)) (2) A taxpayer's eligibility is determined separately in relation to each designated tax. Thus, a taxpayer may be ineligible for amnesty for one designated tax, but may be eligible for amnesty for another designated tax. Example: A taxpayer is under criminal investigation relating only to his 1982 unincorporated business tax liability. Although he is not eligible for that designated tax (1982 Unincorporated Business Tax), he may be eligible for amnesty for his 1983 Unincorporated Business Tax liability.
(3)A taxpayer's eligibility is determined as of the date of application.
(b)Eligibility for amnesty for penalties relating to taxes imposed under Chapters 5 and 6 of Title 11 of the Administrative Code (hereinafter "restricted tax types") is restricted to taxpayers that have 500 or fewer employees in the United States on the date of their application. (Chapter 765 of the Laws of 1985, § 84(g)) (1) A taxpayer applying for amnesty from penalties imposed under Chapters 5 and 6 of Title 11 of the Administrative Code must certify on its application that it has in its employ 500 or fewer persons in the United States on the date of its application.
(2)If it is determined that a taxpayer had more than 500 employees in the United States on the date of its application, amnesty will be denied or revoked.
(c)Criminal investigation.
(ii)The Commissioner shall indicate on the denial letter sent to the applicant (see: subdivision (c) of 19 RCNY § 1-09) that such application was timely received, but is denied due to an ongoing criminal investigation. The denial letter is the only evidence that a timely application was made for the designated tax, and must be produced by the taxpayer to substantiate any subsequent claims for amnesty for such designated tax.
(4)(i) An applicant denied amnesty under paragraph (2) of this subdivision shall have 30 days in which to protest the denial (see subdivision (c) of 19 RCNY § 1-09).
(iii)Upon a subsequent finding of no criminal liability, whether through a prosecution not resulting in a conviction or by the investigating agency otherwise terminating the investigation, the applicant has 30 days to apply for amnesty for the amount, tax and tax period previously denied. The applicant must re-submit its application, returns and payment along with the denial letter.
(5)The return under paragraph (3) of this subdivision of any application, payment or returns submitted under the amnesty program shall not be considered a rejection or refusal of payment or returns for any other purpose.
(d)Criminal litigation.
(e)Civil litigation.
(f)If because of an applicant's failure to supply complete and accurate information, amnesty is erroneously granted to an ineligible applicant, as defined in subdivisions (b), (c), (d) and (e) of this section, amnesty will be revoked and materials submitted will be kept by the Commissioner of Finance. All materials will be treated as if they were received apart from an amnesty application. Penalties will not be waived and there will not be a bar to any civil, administrative or criminal action or proceeding relating thereto.
