New York Codes, Rules and Regulations
Title 20 - DEPARTMENT OF TAXATION AND FINANCE
Chapter IV - Sales And Use And Other Miscellaneous Taxes
Subchapter A - Sales And Use Taxes
Part 539 - Vendor Registration
Section 539.3 - Refusal to issue a certificate of authority
Universal Citation: 20 NY Comp Codes Rules and Regs ยง 539.3
Current through Register Vol. 46, No. 12, March 20, 2024
(a) The department may refuse to issue a certificate of authority to a person (applicant) who pursuant to section 539.2 of this Part files a certificate of registration for such certificate of authority if in considering such application the department ascertains that:
(1) any tax imposed under the Tax Law or any
related statute has been finally determined to be due from the applicant and
has not been paid in full; or
(2) a
tax due under or pursuant to article 28 or 29 of the Tax Law has been finally
determined to be due from an officer, director, partner, manager, member, or
employee of the applicant (as such persons are described in section
539.2(h)(2)
of this Part) in his/her capacity as a person required to collect tax on behalf
of the applicant and has not been paid in full; or
(3) a tax due under or pursuant to article 28
or 29 of the Tax Law has been finally determined to be due from an officer,
director, partner, manager, member, or employee of the applicant (as such
persons are described in section
539.2(h)(2)
of this Part) in his/her capacity as a person required to collect tax on behalf
of any entity other than the applicant and has not been paid in full;
or
(4) the applicant has been
convicted of a crime under the Tax Law within one year from the date on which
the certificate of registration is filed by the applicant; or
(5) an officer, director, partner, manager,
member, or employee of the applicant (as such persons are described in section
539.2(h)(2)
of this Part) has, in his/her capacity as a person required to collect tax on
behalf of the applicant or in his/her capacity as a person required to collect
tax on behalf of any other person, been convicted of a crime provided for in
the Tax Law within one year from the date on which such certificate of
registration was filed by the applicant; or
(6) a shareholder owning more than 50 percent
of the number of shares of stock of a corporate applicant (entitling the holder
thereof to vote for the election of directors or trustees) was the owner of
more than 50 percent of the number of shares of stock of another corporation at
the time any tax imposed under the Tax Law or any related statute was finally
determined to be due from such other corporation and such tax has not been paid
in full; or
(7) a shareholder
owning more than 50 percent of the number of shares of stock of a corporate
applicant (entitling the holder thereof to vote for the election of directors
or trustees) was the owner of more than 50 percent of the number of shares of
stock of another corporation at the time such other corporation was convicted
of a crime under the Tax Law but only if such conviction is within one year
from the date on which such certificate of registration was filed by the
applicant; or
(8) a certificate of
authority issued to the applicant has been revoked or suspended under section
1134(a)(4)(A) of article 28 of the Tax Law (see section
539.4
of this Part), but only if such revocation or suspension occurred within one
year from the date on which such applicant filed a certificate of registration.
As used herein, the term related statute means any tax imposed by any law, ordinance or resolution enacted pursuant to the authority of the Tax Law or article two-E of the General City Law, and administered by the Department of Taxation and Finance.
(b) Notification of proposed refusal to issue a certificate of authority.
(1) In the case
of a person applying for a certificate of authority pursuant to section
1134(a)(1) of article 28 of the Tax Law (see section
539.2 of
this Part), a notice of proposed refusal to issue such certificate must be
issued within five days after a timely and properly completed certificate of
registration is received by the Department of Taxation and Finance.
(2) Such notice shall be sent by certified or
registered mail to the applicant at the address on its certificate of
registration filed with the department.
(3) Such notification shall:
(i) state the basis for such proposed refusal
to issue a certificate of authority;
(ii) clearly notify the applicant that the
impending refusal may be protested by filing an application for a hearing or a
request for a conciliation conference; and
(iii) notify the applicant that the notice of
proposed refusal to issue a certificate of authority shall be final unless such
applicant shall have filed an application for a hearing or a request for a
conciliation conference within 90 days of the date of such notice.
(c) Protest procedure.
(1) Unless the applicant files a petition for
a hearing or a request for a conciliation conference within 90 days of the date
of a notice of proposed refusal to issue a certificate of authority, such
notice shall be final.
(2) Upon
timely application, a hearing or conference will be scheduled in accordance
with the procedures described in the Tax Appeals Tribunal Rules of Practice and
Procedure (Part 3000 of this Title) or the Division of Taxation's Bureau of
Conciliation and Mediation Services Rules of Practice and Procedure (Part 4000
of this Title).
(3)
(i) Unless within three months from an
application for a hearing (determined with regard to any postponements of any
scheduled hearing made at the request of the applicant) the applicant has
received a determination from an Administrative Law Judge which has become
final or a decision of the Tax Appeals Tribunal, if applicable, the department
will issue a certificate of authority to such applicant with the condition that
such certificate be returned immediately should the department's position be
sustained.
(ii) Any certificate
issued pursuant to the provisions of this paragraph shall be conditioned upon
final adjudication in the administrative hearing process.
(a) Any certificate of authority issued
pursuant to the provisions of this paragraph shall expire 30 days from the
issuance of a determination of an Administrative Law Judge upholding the
department's proposed notice of refusal, unless within such time the applicant
files an exception to such determination requesting review thereof by the Tax
Appeals Tribunal. Where no such exception is filed, such certificate of
authority must be returned immediately upon expiration.
(b) Where an exception has been taken from
the determination of an Administrative Law Judge seeking review thereof by the
Tax Appeals Tribunal, a certificate issued pursuant to the provisions of this
paragraph expires upon receipt by the applicant or its representative of a
decision of the Tax Appeals Tribunal upholding the department's proposed notice
of refusal regardless of whether the applicant files an appeal of such
decision. For the purposes of this paragraph only, the decision of the Tax
Appeals Tribunal shall be considered to have been received by the applicant on
the date such decision was delivered or delivery thereof was refused. Nothing
herein shall be construed to expand or otherwise affect the rights an applicant
may have to appeal the decision of the Tax Appeals Tribunal or any limitations
or restrictions applicable thereto.
(c) Any certificate issued pursuant to the
provisions of this paragraph which does not expire pursuant to the provisions
of this paragraph shall be subject to expiration pursuant to Part 540 of this
Title. Any such certificate may be issued for a specified period, in which case
it shall expire at the end of the specified period.
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