S 4166: Relates to taxpayers affected by a federal government shutdown by granting an extension for those who are furloughed and expediting their tax refunds.

  
  STATE OF NEW YORK ________________________________________________________________________ 4166 2025-2026 Regular Sessions  IN SENATE February 3, 2025 ___________ Introduced by Sen. BAILEY -- read twice and ordered printed, and when printed to be committed to the Committee on Budget and Revenue AN ACT to amend the tax law, in relation to taxpayers affected by a federal government shutdown The People of the State of New York, represented in Senate and Assem- bly, do enact as follows: 1 Section 1. Section 657 of the tax law is amended by adding a new 2 subsection (d) to read as follows: 3 (d) Automatic extension for employees affected by a federal government 4 shutdown. An automatic extension shall be granted to any taxpayer who is 5 employed by the federal government and is furloughed as a result of a 6 federal government shutdown. Such extension shall be granted for filing 7 a tax return or paying a tax otherwise required on April fifteenth. The 8 length of such extension shall be sixty days from the date the federal 9 government reopens. Subsection (b) of this section shall not apply to 10 persons granted an extension by this subsection. No penalties or inter- 11 est shall be assessed or imposed upon a taxpayer during such extension 12 as granted herein. 13 § 2. Section 171 of the tax law is amended by adding a new subdivision 14 twenty-ninth to read as follows: 15 Twenty-ninth. (a) Provide for the payment by the department of every 16 refund due to a taxpayer pursuant to subsection (d) of section six 17 hundred fifty-seven of this chapter within thirty days of the receipt by 18 the department of the tax return claiming such refund; provided that, if 19 the department is unable to pay a tax refund because of a discrepancy in 20 the taxpayer's tax return, the department shall, within such thirty day 21 period, provide for written notice to the taxpayer of the specific 22 discrepancy and a date when such discrepancy can be expected to be 23 resolved. 24 (b) Upon the failure to provide a refund or written notice to a 25 taxpayer pursuant to paragraph (a) of this subdivision, the department 26 shall pay the taxpayer interest on the refund owed at a rate of six 27 percent per annum. 28 § 3. This act shall take effect immediately. EXPLANATION--Matter in italics (underscored) is new; matter in brackets [ ] is old law to be omitted. LBD08453-01-5