§ 683. Limitations on assessment.–(a) General.–Except as otherwise provided in this section, any tax under this article shall be assessed within three years after the return was filed (whether or not such return was filed on or after the date prescribed).

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(b) Time return deemed filed.–

(1) Early return.–For purposes of this section a return of income tax, except withholding tax, filed before the last day prescribed by law or by regulations promulgated pursuant to law for the filing thereof, shall be deemed to be filed on such last day.

(2) Return of withholding tax.–For purposes of this section, if a return of withholding tax for any period ending with or within a calendar year is filed before April fifteenth of the succeeding calendar year, such return shall be deemed to be filed on April fifteenth of such succeeding calendar year.

(c) Exceptions.–

(1) Assessment at any time.–The tax may be assessed at any time if–

(A) no return is filed,

(B) a false or fraudulent return is filed with intent to evade tax, or

(C) the taxpayer or employer fails to comply with section six hundred fifty-nine.

(2) Extension by agreement.–Where, before the expiration of the time prescribed in this section for the assessment of tax, both the tax commission and the taxpayer have consented in writing to its assessment after such time, the tax may be assessed at any time prior to the expiration of the period agreed upon. The period so agreed upon may be extended by subsequent agreements in writing made before the expiration of the period previously agreed upon.

(3) Report of federal changes, corrections or disallowances.–If the taxpayer or employer complies with section six hundred fifty-nine, the assessment (if not deemed to have been made upon the filing of the report or amended return) may be made at any time within two years after such report or amended return was filed. The amount of such assessment of tax shall not exceed the amount of the increase in New York tax attributable to such federal change or correction. The provisions of this paragraph shall not affect the time within which or the amount for which an assessment may otherwise be made.

(4) Deficiency attributable to net operating loss carryback.–If a deficiency is attributable to the application to the taxpayer of a net operating loss carryback, it may be assessed at any time that a deficiency for the taxable year of the loss may be assessed.

(5) Recovery of erroneous refund.–An erroneous refund shall be considered an underpayment of tax on the date made, and an assessment of a deficiency arising out of an erroneous refund may be made at any time within two years from the making of the refund, except that the assessment may be made within five years from the making of the refund if it appears that any part of the refund was induced by fraud or misrepresentation of a material fact.

(6) Request for prompt assessment.–If a return is required for a decedent or for his estate during the period of administration, the tax shall be asseessed within eighteen months after written request therefor (made after the return is filed) by the executor, administrator or other person representing the estate of such decedent, but not more than three years after the return was filed, except as otherwise provided in this subsection and subsection (d).

(7) Report on use of certain property.–Under the circumstances described in paragraph two of subsection (g) of section six hundred twelve, the tax may be assessed within three years after the filing of a return reporting that property has been used for purposes other than research and development to a greater extent than originally reported.

(8) Report concerning waste treatment facility, air pollution control facility or eligible business facility. Under the circumstances described in paragraph (3) of subsection (h) of section six hundred twelve or in paragraph four of subsection (c) of section seven hundred one, the tax may be assessed within three years after the filing of the return containing the information required by such paragraph, or, if a certificate of compliance in respect to an air pollution control facility shall be revoked, within three years after the tax commission shall receive notice of such revocation from the taxpayer or as required by subdivision three of section 19-0309 of the environmental conservation law, whichever notice is received earlier.

(9) Reports concerning empire zone credits. If a taxpayer's certification under Article 18-B of the general municipal law is revoked with respect to an empire zone or zone equivalent area, any tax liability generated by reason of such decertification may be assessed within three years after the commissioner has received notice of such decertification as required by subdivision (a) of § 959 of the general municipal law.

(10) Reports concerning a certificate of completion. If a taxpayer's certificate of completion issued pursuant to section 27-1419 of the environmental conservation law is revoked by a determination issued pursuant to section 27-1419 of the environmental conservation law, any tax liability generated by reason of such revocation may be assessed within one year after such determination is final and is no longer subject to judicial review.

* (11) Extended statute of limitations for tax avoidance transactions. (A) If a taxpayer or person fails to file, disclose or provide any statement, return or other information for any taxable year with respect to a listed transaction, as defined in paragraph three of subsection (x) of section six hundred eighty-five of this article, which is required under subdivision (a) of section twenty-five of this chapter, the time for assessment of any tax imposed by this article with respect to such transaction shall not expire before the date which is one year after the earlier of:

(i) the date on which the commissioner is furnished the statement, return, or information so required, or

(ii) the date that the requirements of subdivision (c) of section twenty-five of this chapter are met with respect to a request under such subdivision by the commissioner relating to such transaction.

(B) If later than the time for assessment otherwise provided by this section, tax may be assessed at any time within six years after the return was filed if the deficiency is attributable to an abusive tax avoidance transaction.

(C) For purposes of subparagraph (B) of this paragraph, an "abusive tax avoidance transaction" means a plan or arrangement devised for the principal purpose of avoiding tax. Abusive tax avoidance transactions include, but are not limited to, listed transactions described in paragraph five of subsection (p-1) of section six hundred eighty-five of this article.

* NB Repealed July 1, 2024

(12) Except as otherwise provided in paragraph three of this subsection, or as otherwise provided in this section where a longer period of time may apply, if a taxpayer files an amended return, an assessment of tax (if not deemed to have been made upon the filing of the amended return), including recovery of a previously paid refund, attributable to a change or correction on the amended return from a prior return may be made at any time within one year after such amended return is filed.

(d) Omission of income, total taxable amount or ordinary income portion of a lump sum distribution on return.–The tax may be assessed at any time within six years after the return was filed if–

(1) an individual omits from his New York adjusted gross income, or the total taxable amount or ordinary income portion of a lump sum distribution an amount properly includible therein which is in excess of twenty-five percent of the amount of New York adjusted gross income, or the total taxable amount or ordinary income portion of a lump sum distribution stated in the return, or

(2) an estate or trust omits from its New York adjusted gross income, or the total taxable amount or ordinary income portion of a lump sum distribution an amount properly includible therein which is in excess of twenty-five percent of the amount stated in the return of New York adjusted gross income determined in accordance with paragraph four of subsection (e) of section six hundred one, or the total taxable amount or ordinary income portion of a lump sum distribution, respectively. For purposes of this subsection there shall not be taken into account any amount which is omitted in the return if such amount is disclosed in the return, or in a statement attached to the return, in a manner adequate to apprise the commissioner of the nature and amount of the item of income, total taxable amount or ordinary income portion of a lump sum distribution.

(e) Suspension of running of period of limitation.–The running of the period of limitations on assessment or collection of tax or other amount (or of a transferee's liability) shall, after the mailing of a notice of deficiency, be suspended for the period during which the tax commission is prohibited under subsection (c) of section six hundred eighty-one from making the assessment or from collecting by levy.