§ 27. Subdivision 8 of section 11-601 of the administrative code of the city of New York is renumbered subdivision 9 and a new subdivision 8 is added to read as follows:

8. "Tax appeals tribunal" means the tax appeals tribunal established by section one hundred sixty-eight of the charter.

§ 28. Subdivisions 2, 3 and 4, paragraph (b) of subdivision 5 and paragraph (b) of subdivision 9 of section 11-672 of the administrative

code of the city of New York are amended to read as follows:

2. Notice of deficiency as assessment. After ninety days from the mailing of a notice of deficiency or, if the commissioner of finance has established a conciliation procedure pursuant to section 11-124 of the code and the taxpayer has requested a conciliation conference in accordance therewith, after ninety days from the mailing of the conciliation decision or the date of the commissioner's confirmation of the discontinuance of the conciliation proceeding, such notice shall be an assessment of the amount of tax specified [in such notice] therein, together with the interest, additions to tax and penalties stated in such notice, except only for any such tax or other amounts as to which the taxpayer has within such ninety day period filed with the [commissioner of finance] tax appeals tribunal a petition under section 11-680 of this subchapter. If the notice of deficiency or conciliation decision is addressed to a taxpayer whose last known address is outside of the United States, such period shall be one hundred fifty days instead of ninety days.

3. Restrictions on assessment and levy. No assessment of a deficiency in tax and no levy or proceeding in court for its collection shall be made, begun or prosecuted, except as otherwise provided in section 11-685 of this subchapter, until a notice of deficiency has been mailed to the taxpayer, nor until the expiration of the time for filing a petition with the tax appeals tribunal contesting such notice, nor, if a petition with respect to the taxable year has been both served on the commissioner of finance and filed with the [commissioner of finance] tax appeals tribunal, until the decision of the [commissioner of finance] tax appeals tribunal has become final. For exception in the case of judicial review of the decision of the [commissioner of finance] tax appeals tribunal, see subdivision three of section 11-681 of this subchapter.

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4. Exceptions for mathematical errors. If a mathematical error appears on a return (including an overstatement of the amount paid as timated tax), the commissioner of finance shall notify the taxpayer that an amount of tax in excess of that shown upon the return is due, and that such excess has been assessed. Such notice shall not be considered as a notice of deficiency for the purposes of this section, subdivision six of section 11-678 (limiting credits or refunds after petition to the [commissioner of finance] tax appeals tribunal), or subdivision two of section 11-680 of this subchapter (authorizing the filing of a petition with the [commissioner of finance] tax appeals tribunal based on a notice of deficiency), nor shall such assessment or collection be prohibited by the provisions of subdivision three of this section. (b) Such notice shall not be considered as a notice of deficiency for the purposes of this section, subdivision six of section 11-678 (limiting credits or refunds after petition to the [commissioner of finance] tax appeals tribunal), or subdivision two of section 11-680 of this subchapter (authorizing the filing of a petition with the [commissioner of finance] tax appeals tribunal based on a notice of deficiency), nor shall such assessment or the collection thereof be pro

hibited by the provisions of subdivision three of this section.

(b) Such notice shall not be considered as a notice of deficiency for the purposes of this section, subdivision six of section 11-678 (limiting credits or refunds after petition to the [commissioner of finance] tax appeals tribunal), or subdivision two of section 11-680 (authorizing the filing of a petition with the [commissioner of finance] tax appeals tribunal based on a notice of deficiency), nor shall such assessment or the collection thereof be prohibited by the provisions of subdivision three of this section.

§ 29. The first unnumbered paragraph of subdivision 1 of section 11-673 of the administrative code of the city of New York is amended to read as follows:

The amount of tax which a return shows to be due, or the amount of tax which a return would have shown to be due but for a mathematical error, shall be deemed to be assessed on the date of filing of the return (including any amended return showing an increase of tax). If a notice

of deficiency has been mailed, the amount of the deficiency shall be deemed to be assessed on the date specified in subdivision two of section 11-672 of this subchapter if no petition [to] is both served on the commissioner of finance [is] and filed with the tax appeals tribunal, or if a petition is so served and filed, then upon the date when a decision of the [commissioner of finance] tax appeals tribunal establishing the amount of the deficiency becomes final. If a report or an amended return filed pursuant to subchapter two or three of this chapter[,] concedes the accuracy of a federal or New York state adjustment or change or correction or renegotiation or computation or recomputation of tax, any deficiency in tax under subchapter two or three of this chapter resulting therefrom shall be deemed to be assessed on the date of filing such report or amended return, and such assessment shall be timely notwithstanding section 11-674 of this chapter.

§ 30. Subdivisions 6 and 7 of section 11-678 of the administrative code of the city of New York, subdivision 7 as amended by chapter 525 of the laws of 1988, are amended to read as follows:

6. Effect of a petition to [commissioner of finance] tax appeals tribunal. If a notice of deficiency for a taxable year has been mailed to the taxpayer under section 11-672 of this subchapter and if the taxpayer files a timely petition with the [commissioner of finance] tax appeals tribunal under section 11-680 of this subchapter, the [commissioner] tax appeals tribunal may determine that the taxpayer has made an overpayment for such year (whether or not [the commissioner] it also determines a deficiency for such year). No separate claim for credit or refund for such year shall be filed, and no credit or refund for such year shall be allowed or made, except:

(a) as to overpayment determined by a decision of the [commissioner of finance] tax appeals tribunal which has become final; and

(b) as to any amount collected in excess of an amount computed in accordance with the decision of the [commissioner of finance] tax appeals tribunal which has become final; and

(c) as to any amount collected after the period of limitation upon the making of levy for collection has expired; and

(d) as to any amount claimed as a result of a change or correction described in subdivision three.

7. Limit on amount of credit or refund. The amount of overpayment determined under subdivision six shall, when the decision of the [commissioner of finance] tax appeals tribunal has become final, be credited or refunded in accordance with subdivision one of section

11-677 of this subchapter and shall not exceed the amount of tax which the [commissioner of finance] tax appeals tribunal determines as part of [the commissioner's] its decision was paid:

(a) after the mailing of the notice of deficiency, or

(b) within the period which would be applicable under subdivision one, two or three, if on the date of the mailing of the notice of deficiency a claim had been filed (whether or not filed) stating the ground upon which the [commissioner of finance] tax appeals tribunal finds that there is an overpayment.

For special restriction on credit or refund in a proceeding on a petition for redetermination of a deficiency where the notice of deficiency is issued as a result of (i) a net operating loss carryback, or (ii) an increase or decrease in federal or New York state taxable income or other basis of tax or federal or New York state tax, or (iii) a federal or New York state change or correction or renegotiation, òr computation or recomputation of tax, which is treated in the same manner as if it were a deficiency for federal or New York state income tax purposes, see paragraph (g) of subdivision three of section 11-674 of this subchapter. § 31. Section 11-680 of the administrative code of the city of New York, subdivision 2, paragraph (d) of subdivision 4 and paragraph (c) of subdivision 5 as amended by chapter 525 of the laws of 1988, subdivision 5 as amended by chapter 765 of the laws of 1985, is amended to read as follows:

§ 11-680 Petition to [commissioner of finance] tax appeals tribunal. 1. General. The form of a petition to the [commissioner of finance] tax appeals tribunal, and further proceedings before the [commissioner of finance] tax appeals tribunal in any case initiated by the filing of a petition, shall be governed by such rules as the [commissioner of finance] tax appeals tribunal shall prescribe. No petition shall be EXPLANATION-Matter in italics is new; matter in brackets [] is old law

denied in whole or in part without opportunity for a hearing on reasonable prior notice. Such hearing and any appeal to the tribunal sitting en banc from the decision rendered in such hearing shall be conducted [by the commissioner of finance, or by a hearing officer designated by the commissioner of finance to take evidence and report to the commissioner of finance] in the manner and subject to the requirements prescribed by the tax appeals tribunal pursuant to sections one hundred sixty-eight through one hundred seventy-two of the charter. A decision of the tax appeals tribunal shall be rendered, and notice thereof shall be given, in the manner provided by section one hundred seventy-one of the charter. [The commissioner of finance shall decide the case as quickly as practicable. Notice of decision shall be mailed promptly to the taxpayer by certified or registered mail at its last known address, and such notice shall set forth the commissioner's findings of fact and a brief statement of the grounds of decision in each case decided in whole or in part adversely to the taxpayer.]

2. Petition for redetermination of a deficiency. Within ninety days, or one hundred fifty days if the notice is addressed to a taxpayer whose last known address is outside of the United States, after the mailing of the notice of deficiency authorized by section 11-672 of this subchapter, or if the commissioner of finance has established a conciliation procedure pursuant to section 11-124 of the code and the taxpayer has requested a conciliation conference in accordance therewith, after ninety days from the mailing of the conciliation decision or the date of the commissioner's confirmation of the discontinuance of the conciliation proceeding, the taxpayer may file a petition with the [commissioner of finance] tax appeals tribunal for redetermination of the deficiency. Such petition may also assert a claim for refund for the same taxable year or years, subject to the limitations of subdivision seven of section 11-678 of this subchapter. For special restriction where the notice of deficiency relates to a proposed assessment made as a result of: (a) a net operating loss carryback, (b) an increase or decrease in federal or New York state taxable income or other basis of tax or federal or New York state tax, or (c) a federal or New York state change or correction or renegotiation, or computation or recomputation of tax, which is treated in the same manner as if it were a deficiency for federal or New York state income tax purposes, see paragraph (g) of subdivision three of section 11-674 of this subchapter.

3. Petition for refund. A taxpayer may file a petition with the [commissioner of finance] tax appeals tribunal for the amounts asserted in a claim for refund if:

(a) the taxpayer has filed a timely claim for refund with the commissioner of finance,

(b) the taxpayer has not previously filed with the [commissioner of finance] tax appeals tribunal a timely petition under subdivision two for the same taxable year unless the petition under this subdivision relates to a separate claim for credit or refund properly filed under subdivision six of section 11-678 of this subchapter, and

(c) either: (1) six months have expired since the claim was filed, or (2) the commissioner of finance has mailed to the taxpayer, by registered or certified mail, a notice of disallowance of such claim in whole or in part.

No petition under this subdivision shall be filed more than two years after the date of mailing of a notice of disallowance, unless prior to the expiration of such two year period it has been extended by written agreement between the taxpayer and the commissioner of finance. If a taxpayer files a written waiver of the requirement that the taxpayer be mailed a notice of disallowance, the two year period prescribed by this subdivision for filing a petition for refund shall begin on the date such waiver is filed.

(d) If the commissioner of finance has established a conciliation procedure pursuant to section 11-124 of the code, a taxpayer which is eligible to file a petition for refund with the tax appeals tribunal pursuant to this subdivision may request a conciliation conference prior to filing such petition, provided the request is made within the time prescribed for filing the petition. Notwithstanding anything in this subdivision to the contrary, if the taxpayer has requested a conciliation conference in accordance with the procedure established pursuant to section 11-124 of the code, a petition for refund may be filed no later than ninety days from the mailing of the conciliation decision or the date of the commissioner's confirmation of the discontinuance of the conciliation proceeding.

4. Assertion of deficiency after filing petition. (a) Petition for redetermination of deficiency. If a taxpayer files with the [commissioner of finance] tax appeals tribunal a petition for redetermination of a deficiency, the [commissioner of finance] tax appeals tribunal shall have power to determine a greater deficiency than asserted in the notice of deficiency and to determine if there should be assessed any addition to tax or penalty provided in section 11-676 of this subchapter, if claim therefor is asserted at or before the hearing under rules of the [commissioner of finance] tax appeals tribunal.

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(b) Petition for refund. If the taxpayer files with the [commissioner of finance] tax appeals tribunal a petition for credit or refund for taxable year, the [commissioner of finance] tax appeals tribunal may: (1) determine a deficiency [or] for such year as to any amount of deficiency asserted at or before the hearing under rules of the [commissioner of finance] tax appeals tribunal and within the period in which an assessment would be timely under section 11-674 of this subchapter, or

(2) deny so much of the amount for which credit or refund is sought in the petition, as is offset by other issues pertaining to the same taxable year which are asserted at or before the hearing under rules of the [commissioner of finance] tax appeals tribunal.

(c) Opportunity to respond. A taxpayer shall be given a reasonable opportunity to respond to any matters asserted by the commissioner of finance under this subdivision.

(d) Restriction on further notices of deficiency. If the taxpayer files a petition with the [commissioner of finance] tax appeals tribunal under this section, no notice of deficiency under Section 11-672 of this subchapter may thereafter be issued by the commissioner of finance for the same taxable year, except in case of fraud or with respect to an increase or decrease in federal or New York state taxable income, alternative minimum taxable income or other basis of tax or federal or New York state tax or a federal or New York state change or correction or renegotiation, or computation or recomputation of tax, which is treated in the same manner as if it were a deficiency for federal or New York state income tax purposes, required to be reported under subchapter two or three of this chapter or with respect to a state change or correction of sales and compensating use tax liability required to be reported under subchapter two of this chapter.

5. Burden of proof. In any case before the [commissioner of finance] tax appeals tribunal under this subchapter, the burden of proof shall be upon the petitioner except for the following issues, as to which the burden of proof shall be upon the commissioner of finance:

(a) whether the petitioner has been guilty of fraud with intent to evade tax;

(b) whether the petitioner is liable as the transferee of property of a taxpayer, but not to show that the taxpayer was liable for the tax; (c) whether the petitioner is liable for any increase in a deficiency where such increase is asserted initially after a notice of deficiency was mailed and a petition under this section filed, unless such increase in deficiency is the result of an increase or decrease in federal or New York state taxable income, alternative minimum taxable income or other basis of tax or federal or New York state tax or a federal or New York state change or correction or renegotiation, or computation or recomputation of tax, which is treated in the same manner as if it were a deficiency for federal or New York state income tax purposes, required to be reported under subchapter two or three of this chapter, and of which increase, decrease, change or correction or renegotiation, or computation or recomputation, the commissioner of finance had no notice at the time he or she mailed the notice of deficiency or unless such increase in deficiency is the result of a change or correction of sales and compensating use tax liability required to be reported under subchapter two of this chapter, and of which change or correction the commissioner of finance had no notice at the time he or she mailed the notice of deficiency; and

(d) whether any person is liable for a penalty under subdivision twelve of section 11-676.

6. Evidence of related federal or state determination. Evidence of a federal or state determination relating to issues raised in a case before the [commissioner of finance] tax appeals tribunal under this EXPLANATION-Matter in italics is new; matter in brackets [ ] is old law

section shall be admissible, under rules sioner of finance] tax appeals tribunal.

established by the [commis

7. Jurisdiction over other years. The [commissioner of finance] tax appeals tribunal shall consider such facts with relation to the taxes for other years as may be necessary correctly to determine the tax for the taxable year, but in so doing shall have no jurisdiction to determine whether or not the tax for any other year has been overpaid or underpaid. 11-681 of the administrative code of the city of New

§ 32. Section

York is amended to read as follows:

§ 11-681 Review of [commissioner's] tax appeals tribunal's decision. 1. General. A decision of the [commissioner of finance] tax appeals tribunal sitting en banc shall be subject to judicial review at the instance of any taxpayer affected thereby in the manner provided by law for the review of a final decision or action of administrative agencies of the city. An application by a taxpayer for such review must be made within four months after notice of the decision is sent by certified [or registered] mail, return receipt requested, to the taxpayer and the commissioner of finance.

2. Judicial review exclusive remedy [of taxpayer]. The review of a decision of the [commissioner of finance] tax appeals tribunal provided by this section shall be the exclusive remedy available to any taxpayer for the judicial determination of the liability of the taxpayer for the taxes imposed by the named subchapters.

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3. Assessment pending review; review bond. Irrespective of any restrictions on the assessment and collection of deficiencies, the commissioner of finance may assess a deficiency determined by the tax appeals tribunal in a decision rendered pursuant to section one hundred seventyof the charter after the expiration of the period specified in subdivision one, notwithstanding that an application for judicial review in respect of such deficiency has been duly made by the taxpayer unless the taxpayer, at or before the time the taxpayer's application for review is made, has paid the deficiency, has deposited with the commissioner of finance the amount of the deficiency, or has filed with the commissioner of finance a bond (which may be a jeopardy bond under subdivision eight of section 11-685 of this subchapter) in the amount of the portion of the deficiency (including interest and other amounts) in respect of which the application for review is made and all costs and charges which may accrue against the taxpayer in the prosecution of the proceeding, including costs of all appeals, and with surety approved by a justice of the supreme court of the state, conditioned upon the payment of the deficiency (including interest and other amounts) as finally determined and such costs and charges. If, as a result of a waiver of the restrictions on the assessment and collection of a deficiency, any part of the amount determined by the [commissioner of finance] tax appeals tribunal is paid after the filing of the review bond, such bond shall, at the request of the taxpayer, be proportionately reduced.

4. Credit, refund or abatement after review. If the amount of a deficiency determined by the [commissioner of finance] tax appeals tribunal is disallowed in whole or in part by the court of review, the amount so disallowed shall be credited or refunded to the taxpayer, without the making of claim therefor, or, if payment has not been made, shall be abated.

5. Date of finality of [commissioner of finance] tax appeals tribunal decision. A decision of the [commissioner of finance] tax appeals tribunal shall become final upon the expiration of the period specified in subdivision one for making an application for review, if no such application has been duly made within such time, or if such application has been duly made, upon expiration of the time for all further judicial review, or upon the rendering by the [commissioner of finance] tax appeals tribunal of a decision in accordance with the mandate of the court on review. Notwithstanding the foregoing, for the purpose of making an application for review, the decision of the [commissioner of finance] tax appeals tribunal shall be deemed final on the date the notice of decision is sent by certified [or registered] mail to the taxpayer and the commissioner of finance.

§ 33. Subdivisions 1 and 4 of section 11-682 of the administrative code of the city of New York, subdivision 4 as added by chapter 765 of the laws of 1985, are amended to read as follows:

1. Timely mailing. If any return, declaration of estimated tax, claim, statement, notice, petition, or other document required to be filed, or any payment required to be made, within a prescribed period or on or