N.Y. Comp. Codes R. & Regs. tit. 20 § 2396.4

Current through Register Vol. 46, No. 45, November 2, 2024

Section 2396.4 - Eligibility determinations, notification to taxpayers and selection of payment option

(a) Annual determination. The department shall conduct annual eligibility determinations for the program, using the most recent annual reconciliation of withholding required to be filed and such other information as the department deems necessary for this purpose. Taxpayers identified as being required to participate in the program shall do so for the succeeding July 1st-June 30th period.

(b) Notification and procedures.

(1) By June 1st of each year, the department shall, by certified mail, send a notice to taxpayers newly identified as being required to participate in the program for the immediately following July 1st-June 30th period. The notice will:

(i) provide the taxpayer with a description of the program, and the means to access or obtain the information necessary to ensure successful participation in the program;

(ii) provide the applicable due date for the taxpayer's first payment, provided, that such due date must occur on or after 30 calendar days following receipt by the taxpayer of the notice of required participation but no later than 60 calendar days after receipt by the taxpayer of that notice; and

(iii) inform taxpayers of their obligation to enroll in such program within 20 calendar days of the postmark date of the notice unless the taxpayer challenges the determination of required participation by requesting a hearing within such 20-day period.

(2) If a newly identified taxpayer believes that it is exempt from participation in the program because its aggregate tax withheld, pursuant to its most recent reconciliation of withholding, is less than $100,000, or because it is a health care provider, the taxpayer must submit a Statement of Exemption from Mandatory Participation, with all information necessary to prove that it qualifies for exemption. The taxpayer must submit this statement to the department within 20 calendar days of the postmark date of the notice described in paragraph (1) of this subdivision. The statement shall be signed by the chief fiscal officer of the taxpayer. The department shall notify the taxpayer of the decision to grant or deny the exemption within 14 calendar days of receipt of the taxpayer's statement. If the department denies the exemption, the denial notice will also advise the taxpayer of the procedural steps which must be then taken to enroll in the program.

(3) A taxpayer newly required to participate in the program shall transmit a completed enrollment form to the department. The taxpayer shall, at this point in the enrollment process, select its chosen payment option from ACH debit, ACH credit, fedwire, or certified check.

(4) If a taxpayer newly required to participate in the program has not enrolled within 20 calendar days of the postmark date of the notice described in paragraph (1) of this subdivision, or where a taxpayer files for a hearing and such protest is not sustained, and the taxpayer does not enroll in the program within 10 calendar days of the postmark date of the notification thereof, the department shall send, by certified mail, another notice, in addition to making other reasonable attempts (including follow-up telephone calls and correspondence which shall be sent by certified mail) to inform the taxpayer of the civil penalty that has been assessed for failure to enroll, of the opportunity for abatement of such penalty, and of the future penalties that may result from continued failure to enroll.

(5) Taxpayers no longer required to participate. By June 1st of each year, the department shall notify currently participating taxpayers identified as no longer meeting the program eligibility criteria. The notice will inform taxpayers that they will continue in the program as voluntary participants unless they choose not to participate. The notice will include information explaining how taxpayers can notify the department of the choice not to participate.

(6) Taxpayers whose eligibility has not changed. The department will not provide notice to participating taxpayers whose eligibility status for the program has not changed. If a taxpayer believes that its eligibility status has changed, it may submit a Statement of Exemption from Mandatory Participation to the department. (See paragraph [2] of this subdivision for a description of the information needed in the statement.) The department shall notify the taxpayer of the decision within 14 calendar days of receipt of the statement. If it grants the exemption, the notice shall also advise the taxpayer of the earliest possible date for final filing and payment by EFT method.

N.Y. Comp. Codes R. & Regs. Tit. 20 § 2396.4