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 of Disallowance

Questionnaire
Business taxpayers may receive a questionnaire from Finance’s Audit Division so we can ascertain whether a business is – or is not – doing business in the City of New York.

Action Required: If a taxpayer receives a notice or questionnaire and is not doing business (or is no longer doing business or is otherwise inactive) in New York City, the taxpayer must return the notice or questionnaire with proof of current status.

• Corporations that have ceased doing business must submit a copy of their Certificate of Dissolution.
• Unincorporated businesses must submit an affidavit.
• 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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Action Required: It is very important that a taxpayer responds to this request within the time specified. A review of the return will be done with – or without – the requested information, but it is in the taxpayer's best interest to provide Finance with complete and current information.

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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 concluded that a business tax return shows an underestimate of tax due. The Notice of Proposed Tax Adjustment specifies the amount of the deficiency, plus any penalties and interest. For Real Property Transfer Tax returns, this notice is called the Notice of Tax Due.

Action Required: If the taxpayer agrees with the correction, the balance due should be paid within 30 days of the date listed on the Notice.

If the taxpayer disagrees with the correction, a reply indicating reasons for disagreement should be sent to the address indicated within the notice within 30 days. If credit for a payment(s) made has not been given, proof of the payment(s) must also be submitted.

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 indicated on the notice.

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Notice of Determination
Taxpayers who do not pay or otherwise respond to the initial notice within the 30-day period receive a Notice of Determination. In cases where no return was filed, the amount of tax due will be determined from the records and information available or, if necessary, estimated. For Notices of Determination issued by the TPID Unit for Delinquency cases, the amount of tax due is based upon the prior years filing, and for non-filer cases it is an estimate based upon external information, such as Federal tax returns.

Action Required: A taxpayer has 90 days from the date stated on the Notice of Determination (OR 150 days if the notice is addressed to a taxpayer outside the US) to pay the tax shown or file either a Request for a Conciliation Conference or a Petition for a Tax Appeals Tribunal Hearing.

If taxpayer does not respond at all, Finance issues a Notice and Demand for Payment. Failure to act at this time will result in the initiation 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 may either:

• file the return with payment; or
• complete the enclosed questionnaire to explain why the notice is erroneous.

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Notice of Disallowance
The Notice of Disallowance is sent after a refund request has been examined and where it has been concluded that all or part of the refund should be denied. The Notice specifies the basis for the disallowance or partial disallowance.

Action Required: For the General Corporation Tax and the Unincorporated Business Tax, the period of time for the taxpayer to either file a request for a Conciliation Conference or a petition for a New York City Tax Appeals Tribunal (the “Tribunal”) hearing is 2 years from the date stated on the Notice of Disallowance or Partial Disallowance.  For all other taxes, the taxpayer has 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 take either of the above courses of action within the applicable time period, the disallowance or partial disallowance becomes final and no further review will be available.

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