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 539.5 - Bonds and trust accounts
Universal Citation: 20 NY Comp Codes Rules and Regs ยง 539.5
Current through Register Vol. 46, No. 12, March 20, 2024
(a)
(1) Whenever the department deems it
necessary to protect the revenues due under article 28 of the Tax Law and
pursuant to article 29 of the Tax Law, it may require any holder of a
certificate of authority who is required to collect tax under article 28 and
pursuant to article 29 of the Tax Law to file a bond (issued by a surety
company authorized to transact business in this State and approved by the
Superintendent of Insurance in this State as to solvency and responsibility) or
such other security acceptable to the department, in such amount as may be
determined by the department, to secure the payment of any tax, penalties or
interest due or which may become due from such person under article 28 and
pursuant to article 29 of the Tax Law.
(2) Where a person who holds a certificate of
authority has been given notice by the department to file a bond, such person
must file such bond or security within 30 days of such notice, unless within
five days after the giving of such notice such person shall, in writing,
petition for a hearing or request a conciliation conference.
(i) 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).
(ii) Where such person timely files for such
hearing or conference the department will not pursue any suspension or
revocation proceedings based solely upon a failure to file or maintain such
bond or security until such time that the matter has been finally adjudicated
through the administrative process.
(iii) As provided for by section
539.4
of this Part, the department may suspend or revoke the certificate of authority
of any person who fails to post or maintain a bond or any other acceptable
security as required by this section.
(b)
(1) The
department may require any person who fails to collect, truthfully account for,
pay over tax, or file returns of the tax as required under article 28 and
pursuant to article 29 of the Tax Law to create an account and deposit such
taxes in a banking institution (approved by the Commissioner of Taxation and
Finance and located in this State) the deposits in which are insured by any
agency of the Federal government.
(2) Such account and deposits thereto shall
be in trust for and payable to the Department of Taxation and Finance. The
amount of such tax deposited in the account shall not be removed therefrom
until payment over to the Department of Taxation and Finance.
(3) The department may require deposit of tax
collected or required to be paid or collected to such account monthly, weekly,
daily or upon such other basis as it shall determine.
(4) Failure to establish such an account or
make such deposits thereto as required, may, as provided for by section
539.4
of this Part, result in the suspension or revocation of such person's
certificate of authority.
Cross-reference:For bonds and trust accounts see Tax Law, section 1137(e)(2) and (3) and section 533.4(c) and (d) of this Title.
Disclaimer: These regulations may not be the most recent version. New York may have more current or accurate information. We make no warranties or guarantees about the accuracy, completeness, or adequacy of the information contained on this site or the information linked to on the state site. Please check official sources.
This site is protected by reCAPTCHA and the Google
Privacy Policy and
Terms of Service apply.
