Limitations on assessment of NY taxes
The limitation on assessment for NY corporate income tax are as follows:
Assessments may be filed up to three years after the return was filed (Sec. 1083(a), Tax Law; ).
In addition, a tax may be assessed at any time if: (i) no report is filed; (ii) a false or fraudulent report is filed with the intent to evade tax; or (iii) the taxpayer fails to file a report or an amended report (Reg. Sec. 8-1.2).
When a taxpayer omits income amounting to more than 25% of the gross income stated in the return, the limitation period is six years after the return was filed (Sec. 1083(d), Tax Law; ). Similarly, a tax may be assessed at any time within six years after the return was filed if a taxpayer omits from the sum of its items of tax preference and adjustments required in the computation of minimum taxable income an amount in excess of 25% of the sum stated in the return.
The rules are similar for the sales and use tax except for the 6-year limitation for omissions of more than 25%. See (Tax Law Sec. 1147(b)).
As for motor fuels tax, a determination of tax may be made by the Commissioner of Taxation and Finance within three years after an incorrect or insufficient return has been filed by a distributor (Sec. 288, Tax Law; ). An assessment may be made at any time, however, for a distributor who has not registered, has failed to file a return, or has filed a willfully false or fraudulent return with an intent to evade the tax.