Section 25. Disclosure of certain transactions and related information

(a)(1) Every taxpayer, or person as defined in  section  seven  thousand
  seven  hundred  one  of  the  internal  revenue code, required to file a
  disclosure statement with  the  internal  revenue  service  pursuant  to
  section  six  thousand  eleven  of  the  internal  revenue  code, or the
  regulations promulgated thereunder, related to a reportable  transaction
  or  a  listed transaction, as those terms are defined in such section or
  regulations, must attach a duplicate of such disclosure statement to the
  return or report required to be filed by such taxpayer or person for the
  taxable year under  article  nine,  nine-A,  twenty-two,  thirty-two  or
  thirty-three of this chapter, and provide such other information related
  to  such  disclosure  as prescribed by the commissioner. Such disclosure
  shall be made notwithstanding that one member of an affiliated group, as
  defined by section fifteen hundred four of the  internal  revenue  code,
  may  file such disclosure statement with the internal revenue service on
  behalf of its affiliates including such taxpayer or person.
    (2) Every taxpayer or such person  who  participates  in  a  New  York
  reportable   transaction   for   a   taxable  year  must  disclose  such
  participation with its return or  report  required  to  be  filed  under
  article  nine,  nine-A,  twenty-two,  thirty-two or thirty-three of this
  chapter for the taxable year in a form prescribed by  the  commissioner,
  and  provide  such  other  information  related  to  such transaction as
  prescribed by the commissioner. A New York reportable transaction  is  a
  transaction  that has the potential to be a tax avoidance transaction as
  determined by the commissioner.
    (3) The commissioner may in his discretion prescribe,  by  regulation,
  New York reportable transactions.
    (4)  Provided  the commissioner has prescribed regulations pursuant to
  paragraph three of this subdivision the commissioner  is  authorized  to
  designate  specific  transactions that are the same as, or substantially
  similar to, transactions that the commissioner has determined to be  tax
  avoidance  transactions.  The  provisions  of  article  two of the state
  administrative procedure act shall not apply to  the  designation  of  a
  specific  transaction as a tax avoidance transaction; provided, however,
  that the commissioner shall designate any such transaction by notice  or
  other form of published guidance.
    (b)(1)  Every  person  required to make and file a statement or return
  pursuant to section six thousand one  hundred  eleven  of  the  internal
  revenue  code  must  file  a  duplicate  of  such  statement  or return,
  including all documentation submitted to the internal revenue service in
  connection with such statement or return, with the commissioner  if  any
  of the following conditions apply:
    (A) the person is organized in this state,
    (B) the person is doing business in this state,
    (C) the person is deriving income in this state, or
    (D)(i)  the  list required to be maintained by such person pursuant to
  section six thousand one hundred twelve of  the  internal  revenue  code
  identifies  or  is  required to identify a taxpayer subject to tax under
  article nine, nine-A, twenty-two, thirty-two  or  thirty-three  of  this
  chapter, and
    (ii)  such  person  is  a  material advisor, as defined in section six
  thousand one hundred eleven of the internal revenue code,  who  provides
  any  material  aid,  assistance,  or  advice with respect to organizing,
  managing,  promoting,  selling,  implementing,  or  carrying   out   any
  reportable transaction.
    (2) Such duplicate statement or return must be filed within sixty days
  of the later of:

    (A)  the  date  required  for  filing the statement or return with the
  internal revenue service,
    (B)  the date that any of the conditions described in paragraph (1) of
  this subdivision first applies, or
    (C) ninety days after the enactment of this section.
    (c) Every person who  is  required  to  maintain  a  list  of  persons
  pursuant  to  section  six  thousand  one hundred twelve of the internal
  revenue code, or the regulations promulgated thereunder, must maintain a
  duplicate of such list if any of the conditions described  in  paragraph
  one  of  subdivision (b) of this section applies to such person and must
  furnish a copy thereof to the  commissioner  within  twenty  days  after
  written request is made for such list by the commissioner.
    (d) Every person required by this section to disclose any transaction,
  file  any  duplicate  return,  or  maintain  any  list  shall retain all
  relevant correspondence, memoranda, notes,  valuation  studies,  meeting
  minutes, spreadsheets, models, opinions, records required to be retained
  pursuant to section six thousand eleven of the internal revenue code, or
  the  regulations  promulgated  thereunder,  and  all  other  records  or
  documents  related  to  the  disclosure,  filing  and  list  maintenance
  requirements   of  this  section  for  six  years  and  must  make  such
  information available for inspection by the commissioner  in  connection
  with any examination.
    (e)  The filing, disclosure and retention requirements of this section
  shall be in addition  to  any  other  filing,  disclosure  or  retention
  requirements, general or specific, provided by law. The commissioner may
  require  electronic  filing  or  disclosure  of  any  or all submissions
  required under this section,  shall  have  the  authority  to  prescribe
  whether  a  signature, including an electronic signature, is required on
  any or all filings or disclosures under this section. If  an  electronic
  signature  is  so  required,  it  shall be in a form consistent with the
  provisions of the electronic signatures and records  act  of  the  state
  technology law.
    (f)(1)  The  penalties  imposed  for a violation of subdivision (a) of
  this section are contained in subsection  (x)  of  section  six  hundred
  eighty-five  and  subsection  (p) of section one thousand eighty-five of
  this chapter.
    (2) The penalties imposed for a violation of subdivision (b)  of  this
  section   are  contained  in  subsection  (y)  of  section  six  hundred
  eighty-five and subsection (q) of section one  thousand  eighty-five  of
  this chapter.
    (3)  The  penalties imposed for a violation of subdivision (c) of this
  section  are  contained  in  subsection  (z)  of  section  six   hundred
  eighty-five  and  subsection  (r) of section one thousand eighty-five of
  this chapter.
    * NB Repealed July 1, 2011