§ 16-05 Effect.
RCNY § 16-05
(a)A ruling represents an expression of the views of the Department of Finance as to the application of law, regulations and other precedential material to the set of facts specified in the ruling request. A ruling shall be binding upon the Department of Finance only with respect to the person to whom the ruling is rendered, provided that the facts are as stated in the ruling request. A taxpayer may not rely on a ruling issued to another taxpayer. All bureaus of the Department of Finance must follow the conclusions stated in the ruling where the factual situations are the same.
(b)A ruling may be revoked or modified at any time under appropriate circumstances. If a ruling is revoked or modified, the revocation or modification applies to all years open under the statutes, unless the Commissioner or the Commissioner's delegate exercises discretionary authority to limit the retroactive effect of the revocation or modification.
(c)Except in rare or unusual circumstances, the revocation or modification of a ruling will not be applied retroactively to the taxpayer for whom the ruling was issued or to a taxpayer whose tax liability was directly involved in the ruling if (1) there has been no misstatement or omission of material facts, (2) the facts developed later are not materially different from the facts on which the ruling was based, (3) there has been no change in the applicable law, (4) the ruling was originally issued with respect to a prospective or proposed transaction, and (5) the taxpayer directly involved in the ruling acted in good faith in reliance upon the ruling and the retroactive revocation would be to the taxpayer's detriment.
