I moved to CA from NY in May of 2008. The IRS did a tax audit on my 2008 return and made changes and I had to pay a few thousand dollars to them in 2009. Now in July of 2012, New York State is claiming that I was supposed to inform them of the IRS audit and changes (which I wasn’t aware of) and NY State is indicating that since I never informed them (required by section 659 of the NY Tax Law), they are indicating that they can now assess the tax due by me to them based on their calculations without any time limit (section 683 (c) of the NY Tax Law) and apply interest (section 684 (c) of the NY Tax Law. My question is: isn’t there a 3 year time limitation on this type of assessment and they were informed by the IRS of the changes as they noted on their letter to me. Thanks.
State/Country relating to question: New York
research of ny tax law online
Hi from Just Answer. I work in NY, and have seen this come up many times.
New York does indeed take the position that the audit statute never starts without your filing an amended return (or what used to be a Report of Federal Changes). Yes, they are notified, but no, that does not relieve you of your filing burden.
The courts have upheld this treatment as similar to a return never having been filed, and as such, the statute does not start.
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