Sec. 8-3.3. Assessment pending review; review bond

Tax Law, § 1090(c)

Irrespective of any restrictions on the assessment and collection of deficiencies (see Subpart 8-1 of this Part and Subpart 7-4 of this Title—Collection), the Tax Commission may assess a deficiency after the expiration of the four-month period specified in section 8-3.1 of this Subpart, even though an application for judicial review in respect of such deficiency has been duly made by the taxpayer. The Tax Commission may not assess the deficiency if the taxpayer at or before the time the taxpayer's application for review is made, has done one of the following:

(a) paid the deficiency;

(b) deposited the amount of the deficiency with the Tax Commission; or

(c) filed with the Tax Commission a bond (which may be a jeopardy bond under section 1094[h] of the Tax Law) in the amount of the portion of the deficiency, including interest and other amounts, in respect of which the application for review is made. The bond must also secure all costs and charges which may accrue against the taxpayer in the prosecution of the proceeding, including costs of all appeals, and with surety approved by a New York Supreme Court justice. The bond must be conditioned upon the payment of the deficiency, including interest and other amounts, as finally determined and such costs and charges. If as a result of a waiver of the restrictions on the assessment and collection of a deficiency any part of the amount determined by the Tax Commission is paid after the filing of the review bond, such bond shall, at the request of the taxpayer, be proportionately reduced.