§ 34-05 Rejection.
RCNY § 34-05
(a)Basis. The following exemplify reasons for rejecting an offer-in-compromise: (1) failure to meet the statutory requirements (e.g., the taxpayer has not been discharged in bankruptcy or is not insolvent and/or the department can collect more through legal proceedings than the amount being offered); (2) making a frivolous offer or filing an offer for the purpose of delaying the collection of tax liabilities; (3) failure to verify financial information, where required; (4) failure to make full financial disclosure (e.g., not fully disclosing all assets or income); (5) there is evidence of conveyance of assets for less than fair market value; (6) public policy considerations; (7) the taxpayer has not demonstrated a good faith effort to repay/resolve the tax debt (e.g., where the taxpayer has displayed a wanton disregard for the tax debt over an extended period of time and disposed of significant assets and other holdings); or (8) the tax liability sought to be compromised relates to any crime of which the taxpayer has been convicted. The causes for rejection of an offer-in-compromise set forth in this subdivision are not all-inclusive nor should any one cause be interpreted as restricting or otherwise limiting the Department's discretion with respect to other causes.
(b)Effect.
(1)If an offer-in-compromise is rejected, the taxpayer will be promptly notified in writing. Further, the Department will have the same rights that it would have had with respect to the any liability that was the subject of the offer-in-compromise, including all rights to assess or collect the liability, had the offer-in-compromise not been submitted.
(2)Written notification of the taxpayer of the decision to reject the offer-in-compromise will not constitute a statutory notice. The acceptance or rejection of an offer-in-compromise is within the exclusive authority of the Commissioner of Finance and is not subject to administrative review by the Conciliation Bureau or the Tribunal.
(3)In non-final matters, the filing of the offer-in-compromise constitutes the taxpayer's waiver of the statute of limitations as provided under paragraph (2) of subdivision (c) of 19 RCNY § 34-03, for the period therein provided, which includes the six-month period after the offer-in-compromise has been rejected. Such six-month period shall commence on the date of the Commissioner's written notice of rejection.
