Notices
Business taxpayers receive a number of notices from Finance’s Audit Division:
Questionnaire
Letter
Requesting Information
Notice
of Proposed Tax Adjustment / Notice of Tax Due
Notice
of Determination
Delinquency
Notice
Notice and Demand for Payment
Notice of
Refund Disallowance
Deadlines
to Appeal a Notice of Disallowance
Questionnaire
Finance’s Audit Division may send out a questionnaire to find out if a business is operating in the City of New York.
Action Required: If a business receives a notice or questionnaire and is not doing business in the city or is inactive, the owner (or their representative) must return the questionnaire with proof of current status.
- Corporations no longer in business must
submit a copy of their Certificate of Dissolution.
- Unincorporated businesses must submit an affidavit
stating they do not operate in NYC.
- If the business is inactive, submit one of the following:
- Corporations - submit Form NYC-245;
- Partnerships - submit Federal Form 1065; and
- Unincorporated businesses other than partnerships - submit Federal Schedule C and the front page of Federal Form 1040.
Internal Revenue Service (IRS.gov)
NYC-245 Activities Report of Corporation
Download Form (176k)
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Letter Requesting Information
The Audit Division may request additional information from a taxpayer while their return is reviewed.
Action Required:
A taxpayer should respond to
any request by the deadline on the notice. Send complete and current
information after a request because an audit of the business will continue with or
without it.
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Notice of Proposed Tax Adjustment /
Notice of Tax Due
The Notice of Proposed
Tax Adjustment is sent when the Audit Division has decided a business tax
return shows an under-estimate of tax. The notice lists any additional tax
amount plus any penalties and interest. For Real Property Transfer Tax, this
letter is called the Notice of Tax Due.
Action
Required:
A taxpayer who disagrees with a correction should send a
reply stating the reasons within 30 days of the notice date. If Finance incorrectly credits your account, or misses a payment, then proof of the payment(s) must be sent.
If the taxpayer agrees with the correction, the balance due should be paid within 30 days of the date on the notice.
For payments made by check, send a photocopy of the front
and back of the cancelled check. For payments made by money order, obtain a copy of the cancelled order from the place where it was purchased.
Taxpayers are reminded that all correspondence should be sent to the address shown on the notice.
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Notice of Determination
Businesses who do not pay or respond to the first
notice within the 30-day period will have Finance decide what taxes they should
pay. We will then send a Notice of Determination. In these cases the amount of
tax due will be based on past records, external information such as Federal Tax
Returns, and/or estimations.
Action Required:
A business representative has 90 days from the date stated on the Notice of Determination (or 150 days if the notice is addressed outside the US) to decide which of the following options to choose:
Notice and
Demand for Payment
If a taxpayer does not respond at all, Finance issues a Notice and Demand for Payment. Failure to act at this time will result in the beginning of collection procedures.
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Delinquency Notice
Taxpayers who fail to file a required tax return or pay by
its due date receive this notice.
Action Required: Within 30 days of the date on this notice, the taxpayer must either:
- file the return and/or payment; or
- complete the enclosed questionnaire to explain why the notice is incorrect.
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Notice of Refund Disallowance
The Notice of Disallowance or
Partial Disallowance is sent by Finance after a refund request has been examined and all or
part is denied. The Notice explains the reasons for this decision.
Deadlines to
Appeal a Notice of Disallowance
General Corporation and Unincorporated businesses have two years
from the date stated on the Notice of Disallowance to either file a Request for a
Conciliation Conference or a petition for a Tax Appeals Tribunal hearing.
All other taxpayers have 90 days from the date stated on the Notice to either
seek a Conciliation Conference or file a petition with the Tribunal.
If the taxpayer
does not choose either of the above options by the deadline, the disallowance or partial disallowance
becomes final. No further review will be available without good reason.
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