New York Codes, Rules and Regulations
Title 20 - DEPARTMENT OF TAXATION AND FINANCE
Chapter IX - Procedural Regulations
Part 2397 - Electronic Funds Transfer Program For Certain Taxpayers Remitting Taxes Under And Pursuant To The Authority Of Articles 12-a, 13-a, 28 And 29 Of The Tax Law
Section 2397.7 - Mailing rules; reasonable cause

(1) ACH debit, ACH credit and fedwire taxpayers. The mailing rules specified in sections 289-d, 315 and 1147 of the Tax Law and in regulations promulgated thereunder shall not be applicable to payments made by taxpayers electing the ACH debit, ACH credit or fedwire payment option. Such taxpayers shall be deemed to have timely made their payment of tax when the department's depository bank receives the payment of tax on or before the applicable due date.

(2) Certified check taxpayers. The mailing rules specified in sections 289-d, 315 and 1147 of the Tax Law and regulations promulgated thereunder shall be applicable to payments made by taxpayers electing the certified check payment option and mailing such certified checks and accompanying completed transmittal forms to the department's depository bank, subject to the proviso that the taxpayer must mail its certified check for the tax liability on or before the second business day prior to the applicable due date.

(1) In the event that the penalty or penalties described in subdivision (g) of section 10 of the Tax Law have been imposed and it is later determined that any such failure was due to reasonable cause and not due to willful neglect, all of such penalties shall be waived, and in the case of interest imposed with respect to the sales and use taxes required to be remitted by electronic funds transfer pursuant to section 10 of the Tax Law, that portion of the interest that exceeds the amount that would be payable if such interest were computed at the rate set by the commissioner pursuant to section 1142(9) of the Tax Law (see Part 2393 of this Title) shall also be waived. The absence of willful neglect alone is not sufficient grounds for not imposing or for cancelling such penalty or penalties, and interest.

(2) All of the facts alleged as a basis for reasonable cause and absence of willful neglect may be required to be affirmatively shown in a written statement made by the taxpayer against whom the penalty or penalties have been assessed or are assessable. Where the taxpayer is unable to provide such statement or does not have personal knowledge of such facts, a showing of reasonable cause and absence of willful neglect may be made on behalf of the taxpayer by an individual with personal knowledge of such facts. In determining whether reasonable cause exists, in addition to an evaluation of such facts, the taxpayer's previous compliance record with respect to all of the taxes imposed pursuant to the Tax Law may be taken into account.

(3) Grounds for reasonable cause. The following exemplify grounds for reasonable cause and absence of willful neglect, where clearly established by or on behalf of the taxpayer: