Section 11-672. Notice of deficiency

1. General. If upon examination of a
  taxpayer's return, the commissioner of finance determines that there  is
  a deficiency of tax, the commissioner may mail a notice of deficiency to
  the taxpayer. If a taxpayer fails to file a tax return, the commissioner
  of  finance  is authorized to estimate the taxpayer's city tax liability
  from any information in the commissioner's possession,  and  to  mail  a
  notice  of  deficiency  to the taxpayer. A notice of deficiency shall be
  mailed by certified or registered mail to  the  taxpayer,  at  its  last
  known  address in or out of the city. If the taxpayer has terminated its
  existence, a notice of deficiency  may  be  mailed  to  its  last  known
  address  in  or out of the city, and such notice shall be sufficient for
  purposes of this subchapter. If the commissioner of finance has received
  notice that a person is acting for the taxpayer in a fiduciary capacity,
  a copy of such notice shall also be mailed to  the  fiduciary  named  in
  such notice.
    2.  Notice  of  deficiency  as  assessment. After ninety days from the
  mailing of a notice of deficiency or, if the commissioner of finance has
  established a conciliation procedure pursuant to section 11-124  of  the
  code  and  the  taxpayer  has  requested  a  conciliation  conference in
  accordance  therewith,  after  ninety  days  from  the  mailing  of  the
  conciliation  decision or the date of the commissioner's confirmation of
  the discontinuance of the conciliation proceeding, such notice shall  be
  an  assessment of the amount of tax specified therein, together with the
  interest, additions to tax and penalties stated in such  notice,  except
  only  for  any  such  tax  or other amounts as to which the taxpayer has
  within such ninety day period filed with  the  tax  appeals  tribunal  a
  petition  under  section  11-680  of  this  subchapter. If the notice of
  deficiency or conciliation decision is addressed  to  a  taxpayer  whose
  last known address is outside of the United States, such period shall be
  one hundred fifty days instead of ninety days.
    3.  Restrictions on assessment and levy. No assessment of a deficiency
  in tax and no levy or proceeding in court for its  collection  shall  be
  made,  begun  or  prosecuted,  except  as  otherwise provided in section
  11-685 of this subchapter, until a notice of deficiency has been  mailed
  to  the  taxpayer,  nor  until  the  expiration of the time for filing a
  petition with the tax appeals tribunal contesting such notice, nor, if a
  petition with respect to the taxable year has been both  served  on  the
  commissioner  of  finance and filed with the tax appeals tribunal, until
  the decision of the tax appeals tribunal has become final. For exception
  in the case of judicial review  of  the  decision  of  the  tax  appeals
  tribunal, see subdivision three of section 11-681 of this subchapter.
    4. Exceptions for mathematical errors. If a mathematical error appears
  on  a return (including an overstatement of the amount paid as estimated
  tax), the commissioner of finance shall  notify  the  taxpayer  that  an
  amount  of  tax in excess of that shown upon the return is due, and that
  such excess has been assessed. Such notice shall not be considered as  a
  notice  of  deficiency for the purposes of this section, subdivision six
  of section 11-678 (limiting credits or refunds after petition to the tax
  appeals  tribunal),  or  subdivision  two  of  section  11-680  of  this
  subchapter  (authorizing  the  filing of a petition with the tax appeals
  tribunal based on a notice of deficiency), nor shall such assessment  or
  collection  be prohibited by the provisions of subdivision three of this
  section.
    5. Exception where federal or New York state change or  correction  is
  not reported.
    (a)  If  the  taxpayer fails to comply with subchapter two or three of
  this chapter in not reporting a change or correction  or  renegotiation,
  or  computation  or  recomputation  of tax, increasing or decreasing its

  federal or New York state taxable income,  alternative  minimum  taxable
  income  or  other  basis  of  tax as reported on its federal or New York
  state income tax return or in not reporting a change  or  correction  or
  renegotiation,  or computation or recomputation of tax, which is treated
  in the same manner as if it were a deficiency for federal  or  New  York
  state  income  tax purposes or in not filing an amended return or in not
  reporting the execution of a  notice  of  waiver  executed  pursuant  to
  subsection  (d)  of  section  six  thousand  two hundred thirteen of the
  internal revenue code or pursuant to  subdivision  (f)  of  section  one
  thousand  eighty-one  of  the  tax  law, instead of the mode and time of
  assessment  provided  for  in  subdivision  two  of  this  section,  the
  commissioner  of  finance  may  assess  a  deficiency  based  upon  such
  increased or  decreased  federal  or  New  York  state  taxable  income,
  alternative  minimum  taxable income or other basis of tax by mailing to
  the taxpayer a notice of additional tax due specifying the amount of the
  deficiency, and such deficiency, together with the  interest,  additions
  to  tax and penalties stated in such notice, shall be deemed assessed on
  the date such notice is mailed  unless  within  thirty  days  after  the
  mailing  of such notice a report of the federal or New York state change
  or correction or renegotiation, or computation or recomputation of  tax,
  or  an  amended return, where such return was required by subchapter two
  or three, is filed accompanied  by  a  statement  showing  wherein  such
  federal  or  New  York state determination and such notice of additional
  tax due are erroneous.
    (b) Such notice shall not be considered as a notice of deficiency  for
  the  purposes  of  this  section,  subdivision  six  of  section  11-678
  (limiting  credits  or  refunds  after  petition  to  the  tax   appeals
  tribunal),  or  subdivision  two  of  section  11-680 of this subchapter
  (authorizing the filing of a petition  with  the  tax  appeals  tribunal
  based  on  a  notice  of  deficiency),  nor shall such assessment or the
  collection thereof be prohibited by the provisions of subdivision  three
  of this section.
    (c)  If  the  taxpayer  has  terminated  its  existence,  a  notice of
  additional tax due may be mailed to the taxpayer's last known address in
  or out of the city, and such notice shall be sufficient for purposes  of
  this subchapter. If the commissioner of finance has received notice that
  a  person  is acting for the taxpayer in a fiduciary capacity, a copy of
  such notice shall also be mailed to the fiduciary named in such notice.
    6. Waiver of restrictions. The taxpayer shall at any time (whether  or
  not  a notice of deficiency has been issued) have the right to waive the
  restrictions on assessment and collection of the whole or  any  part  of
  the deficiency by a signed notice in writing filed with the commissioner
  of finance.
    7.  Two  or  more  corporations.  In  case  of a combined return under
  subchapter two or a consolidated return under subchapter three of two or
  more  corporations,  the  commissioner  of  finance  may   determine   a
  deficiency  of  tax  under  subchapter  two  or subchapter three of this
  chapter with respect to the entire tax due upon such return against  any
  taxpayer  included  therein.  In the case of a taxpayer which might have
  been included in such a return under subchapter two or subchapter  three
  of  this  chapter when the tax was originally reported, the commissioner
  of finance may determine a deficiency of tax  under  subchapter  two  or
  three  of  this  chapter  against  such  taxpayer  and against any other
  taxpayers which might have been included in such a return.
    8.  Deficiency  defined.  For  the  purposes  of  this  subchapter,  a
  deficiency means the amount of the tax imposed by the named subchapters,
  or  any  of  them,  less:  (a)  the  amount  shown  as  the tax upon the
  taxpayer's return (whether the return was made or the tax computed by it

  or by the commissioner of finance), and less (b) the amounts  previously
  assessed  (or collected without assessment) as a deficiency and plus (c)
  the amount of any rebates. For the purpose of this definition,  the  tax
  imposed  by subchapter two or three of this chapter and the tax shown on
  the return shall both be determined without regard  to  any  payment  of
  estimated  tax;  and  a  rebate  means  so much of an abatement, credit,
  refund or other repayment (whether or not erroneous) as was made on  the
  ground  that  the  amounts  entering into the definition of a deficiency
  showed a balance in favor of the taxpayer.
    9. Exception where change or correction of sales and compensating  use
  tax liability is not reported.
    (a)  If a taxpayer fails to comply with subchapter two of this chapter
  in not reporting a change or correction of its  sales  and  compensating
  use tax liability or in not filing a copy of an amended return or report
  relating to its sales and compensating use tax liability, instead of the
  mode  and  time  of  assessment  provided for in subdivision two of this
  section, the commissioner of finance may assess a deficiency based  upon
  such  changed  or corrected sales and compensating use tax liability, as
  same relates to credits claimed under subchapter two of this chapter, by
  mailing to the taxpayer a notice of additional tax  due  specifying  the
  amount  of  the  deficiency,  and  such  deficiency,  together  with the
  interest, additions to tax and penalties stated in such notice, shall be
  deemed assessed on the date such notice is mailed unless  within  thirty
  days  after  the  mailing of such notice a report of the state change or
  correction or a copy of an amended return or report, where such copy was
  required by subchapter two, is filed accompanied by a statement  showing
  wherein  such  state determination and such notice of additional tax due
  are erroneous.
    (b) Such notice shall not be considered as a notice of deficiency  for
  the  purposes  of  this  section,  subdivision  six  of  section  11-678
  (limiting  credits  or  refunds  after  petition  to  the  tax   appeals
  tribunal),  or subdivision two of section 11-680 (authorizing the filing
  of a petition with the  tax  appeals  tribunal  based  on  a  notice  of
  deficiency),  nor  shall  such  assessment  or the collection thereof be
  prohibited by the provisions of subdivision three of this section.
    (c) If  the  taxpayer  has  terminated  its  existence,  a  notice  of
  additional  tax due may be mailed to its last known address in or out of
  the city, and such notice shall  be  sufficient  for  purposes  of  this
  subchapter.  If  the  commissioner of finance has received notice that a
  person is acting for the taxpayer in a fiduciary  capacity,  a  copy  of
  such notice shall also be mailed to the fiduciary named in such notice.