§ 34-04 Review.
RCNY § 34-04
(a)Process.
(1)Where an offer-in-compromise is based solely on doubt as to collectibility, the Department's Collections Division shall review the offer-in-compromise. If the offer-in-compromise was filed with a bureau or division of the Department other than the Collections Division, that bureau or division shall refer such offer-in-compromise to the Collections Division for review.
(2)Where the offer-in-compromise is based in part on doubt as to collectibility and in part on doubt as to liability, the offer-in-compromise shall be first reviewed by the Collections Division pursuant to paragraph (1) of this subdivision and thereafter by Office of Legal Affairs pursuant to paragraph (3) of this subdivision.
(3)Where an offer-in-compromise is based solely on doubt as to liability, the Department's Office of Legal Affairs shall review the offer-in-compromise. If the offer-in-compromise was filed with a bureau or division of the Department other than the Office of Legal Affairs, that bureau or division shall refer the offer-in-compromise to the Office of Legal Affairs.
(4)If the offer-in-compromise is not complete when filed, the division reviewing the offer may hold the offer-in-compromise in abeyance. In such a case, the taxpayer will ordinarily have 30 days after notification from the division reviewing the offer in which to complete the offer-in-compromise and supply any required information or documentation, unless the taxpayer can demonstrate to the satisfaction of that division that more time is necessary. If the offer-in-compromise is not completed within the required time period, the offer will be deemed to have been withdrawn by the taxpayer under subdivision (c) of this section. The division reviewing the offer will give the taxpayer written notice of this deemed withdrawal.
(5)The acceptance of an offer-in-compromise will not be a ground for acceptance of any other subsequent offer-in-compromise regarding prior, concurrent, or subsequent periods or liabilities for the same or any other tax or charge.
(b)Good Faith Filing. The taxpayer must act in good faith in making the offer-in-compromise. The Department will work with the taxpayer, to the extent possible, to try to effect a compromise likely to be accepted by the Commissioner of Finance. Generally, once an offer-in-compromise has been rejected, that offer-in-compromise may not be reconsidered, and another offer covering any of the same tax liabilities will not be considered. However, the Department may reconsider an offer that has been rejected, or consider another offer with respect to the same liabilities if the taxpayer can show a material change in circumstances.
(c)Withdrawal.
(d)Conditions for Acceptance. No offer-in-compromise will be accepted unless the taxpayer: (1) agrees to pay an amount in addition to all amounts previously paid or collected against the tax liability, including all amounts to which the taxpayer may be entitled through overpayments of tax, interest or penalties, for periods ending before or as of the end of the calendar year in which the offer is accepted; (2) agrees to immediately return to the Department any refunds of overpayments received by the taxpayer after the taxpayer's offer was filed; (3) agrees to waive the right to seek a refund of any payment of the compromise amount or any other amounts paid or collected against the liability that is the subject of the offer-in-compromise; (4) agrees not to contest in court or otherwise, the amount of the liability to be compromised, and, in non-final matters, withdraws from any proceeding with respect to the liability pending in the Conciliation Bureau, the Tribunal or any other court; (5) waives the running of the statutory period of limitations on collection of the liability to be compromised for the period beginning on the day the offer-in-compromise is filed and ending one year following the date on which the compromise amount has been paid in full (including any interest due on any installment thereof); (6) agrees to comply with all provisions of the Code relating to filing of returns and paying required taxes in the five-year period beginning with the first day of the year in which the offer-in-compromise is accepted; (7) is in compliance with all tax filing and payment requirements for periods not covered in the offer-in-compromise up to and including the year in which the offer-in-compromise is filed; (8) agrees, in non-final matters, that the Department may proceed with any appropriate collection procedures for the compromise as if the matter were a fixed and final matter; (9) meets any and all other conditions that the Department may also require as a condition of acceptance of an offer, including: (i) entering into a signed agreement under which the taxpayer agrees to pay over a fixed percentage of the taxpayer's future earnings or other income for a specific period of time; (ii) pledging collateral or other security for the duration of any provision of the compromise agreement which allows for periodic payments as permitted under paragraph (2) of subdivision (c) of 19 RCNY § 34-06; or (iii) providing a guarantee of the taxpayer's obligations under the compromise agreement or any collateral agreement; (iv) anything else deemed necessary given the facts of the case and the taxpayer's circumstances.
(e)Recommendations to Commissioner of Finance.
(i)If the aggregate amount of the liability subject to the offer-in-compromise (including interest, additions to tax and penalties) is less than $25,000, the Collections Division shall send the offer-in-compromise, together with that Division's recommendation directly to the Commissioner of Finance.
(ii)If the aggregate amount of the liability that is the subject of the offer-in-compromise (including interest, additions to tax and penalties) is $25,000 or more, the Collections Division shall submit the offer-in-compromise, together with the Collection Division's recommendation, to the Office of Legal Affairs, which shall review the offer-in-compromise and the Collection Division's recommendation. The Office of Legal Affairs shall give its recommendation as to whether the offer-in-compromise meets the requirements of subdivision (c) of 19 RCNY § 34-02, and shall submit its written recommendation along with the recommendation of the Collections Division and the offer-in-compromise to the Commissioner of Finance.
(f)Decision of the Commissioner of Finance.
