N.Y. Tax Law 1613-C – Crediting of lottery prizes against liabilities for taxes administered by the commissioner
§ 1613-c. Crediting of lottery prizes against liabilities for taxes administered by the commissioner. (1) The director, on behalf of the division, shall enter into a written agreement with the commissioner, on behalf of the department, within sixty days of the effective date of this section, which will set forth procedures for crediting lottery prizes of more than six hundred dollars awarded to holders of winning lottery tickets, whether individuals, corporations, associations, companies, partnerships, limited liability partnerships or companies, partners, members, managers, estates, trust fiduciaries or entities, against past due tax liabilities owed by such holders for any tax administered by the commissioner, about which the director has been notified by the commissioner pursuant to the provisions of such agreement.
Terms Used In N.Y. Tax Law 1613-C
- Commissioner: means the commissioner of taxation and finance or his or her duly appointed delegate. See N.Y. Tax Law 1602
- Director: means the director of the division of the lottery, except for purposes of paragraph four of subsection c of section one thousand six hundred thirteen and sections one thousand six hundred fourteen and one thousand six hundred fifteen of this chapter the term "director" shall mean the "commission". See N.Y. Tax Law 1602
- division: means the "division of gaming" as created pursuant to section one hundred two of the racing, pari-mutuel wagering and breeding law. See N.Y. Tax Law 1602
- Liabilities: The aggregate of all debts and other legal obligations of a particular person or legal entity.
- Lottery: means the lottery operated by the state pursuant to this article. See N.Y. Tax Law 1602
- Recourse: An arrangement in which a bank retains, in form or in substance, any credit risk directly or indirectly associated with an asset it has sold (in accordance with generally accepted accounting principles) that exceeds a pro rata share of the bank's claim on the asset. If a bank has no claim on an asset it has sold, then the retention of any credit risk is recourse. Source: FDIC
- Remainder: An interest in property that takes effect in the future at a specified time or after the occurrence of some event, such as the death of a life tenant.
(2) Such agreement shall apply to any past due tax liability which arises from (i) an enforceable warrant or judgment, (ii) an enforceable determination of an administrative body which is no longer subject to administrative or judicial review, or (iii) an assessment or determination (including self-assessment or self-assessed determination) which has become final or finally and irrevocably fixed and no longer subject to administrative or judicial review.
(3) Such agreement shall include:
(a) the procedure under which the department will notify the division of tax liabilities, including when the division will be notified and the content of that notification;
(b) the procedure for reimbursement of the division by the department for the cost of carrying out the procedures authorized by this section; and
(c) any other matters the parties to the agreement deem necessary to carry out the provisions of this section.
(4) Prior to awarding lottery prizes of more than six hundred dollars, the division shall review the most recent notice of tax liabilities provided by the commissioner. For holders of winning lottery tickets identified on that notice, the division shall credit to the department the amount of each holder's prize necessary to satisfy that holder's tax liability, and the remainder of the prize shall be awarded to the holder of the winning ticket.
(5) If the division has also received a notice of liability of a prize winner for past-due support or public assistance benefits pursuant to section sixteen hundred thirteen-a or sixteen hundred thirteen-b of this article, then the amount of any prize shall be first credited or applied to the income tax required to be withheld by law, then as required by section sixteen hundred thirteen-a or sixteen hundred thirteen-b of this article, then to the past due tax liability as required by this section. The balance will then be paid to the holder of the winning lottery ticket.
(6) The division shall certify to the comptroller the total amount of the lottery prize to be credited against past due tax liabilities and the remainder of the prize to be awarded to the holder of the winning lottery ticket.
(7) The division shall notify the holder of the winning lottery ticket, in writing, of the total amount of the lottery prize credited against past due tax liabilities and the remainder of the prize to be awarded to the holder. That notice must also advise the holder that the department will provide separate notice, in writing, of the procedure for and time frame by which the holder may contest such crediting.
(8) The department shall notify the holder of the winning lottery ticket, in writing, of the amount of a prize to be credited against past due tax liabilities and the procedure for and time frame by which the holder may contest the crediting of the prize.
(9) From the time the division is notified by the department of a past due tax liability of a holder of a winning lottery ticket, the division shall be relieved from all liability to the holder, and the holder's heirs, representatives, estate, successors or assigns for the amount of a prize certified to the comptroller to be credited against past due tax liabilities and the holder and the holder's heirs, representatives, estate, successor or assigns shall have no right to commence a court action or proceeding or to any other legal recourse against the division to recover any amount certified to the comptroller to be credited against past due tax liabilities. Provided however, nothing herein shall be construed to prohibit a holder of a winning lottery ticket and the holder's heirs, representatives, estate, successors or assigns from proceeding against the department to recover the part of the prize certified to the comptroller and credited to past due tax liabilities which is greater than the amount of past due tax liabilities owed by that holder on the date of certification.
(10) Notwithstanding any law to the contrary, the department and its officers and employees may furnish to the division any abstract of any tax return or report, or any information concerning an item contained in any such return or report or disclosed by any investigation of tax liability under this chapter, but only for the purpose of crediting lottery prizes against past due tax liabilities described in subdivision two of this section.