Bill Text: NY S06126 | 2019-2020 | General Assembly | Introduced

Bill Title: Requires employers to notify employees of potential state and federal earned income tax credits and delineates the contents, timing and manner of providing notice as well as options available to the employer.

Spectrum: Partisan Bill (Democrat 1-0)

Status: (Introduced) 2019-05-16 - REFERRED TO BUDGET AND REVENUE [S06126 Detail]

Download: New_York-2019-S06126-Introduced.html

                STATE OF NEW YORK


                               2019-2020 Regular Sessions

                    IN SENATE

                                      May 16, 2019

        Introduced  by  Sen.  MONTGOMERY  -- 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  requiring  employers  to
          provide notice of potential eligibility for federal and New York state
          earned income tax credits

          The  People of the State of New York, represented in Senate and Assem-
        bly, do enact as follows:

     1    Section 1. Paragraph 6 of subsection (d) of section  606  of  the  tax
     2  law,  as  amended  by  section  3 of part V of chapter 60 of the laws of
     3  2004, is amended to read as follows:
     4    (6) Notification.  (i) The commissioner shall  periodically,  but  not
     5  less than every three years, make efforts to alert taxpayers that may be
     6  currently eligible to receive the credit provided under this subsection,
     7  and  the  credit  provided  under  any  local  law  enacted  pursuant to
     8  subsection (f) of section thirteen hundred ten of this  chapter,  as  to
     9  their  potential  eligibility.  In making the determination of whether a
    10  taxpayer may be eligible for such credit,  the  commissioner  shall  use
    11  such data as may be appropriate and available, including, but not limit-
    12  ed  to,  data  available  from the United States Department of Treasury,
    13  Internal Revenue Service and New  York  state  income  tax  returns  for
    14  preceding tax years.
    15    (ii) Except as set forth in clause (d) of this subparagraph, employers
    16  with  persons  in  their  employ  in  New  York state for whom they must
    17  provide an annual wage summary shall each  year  furnish  to  each  such
    18  person a notice that he or she may be eligible for a state earned income
    19  tax  credit  pursuant to this subsection and a federal earned income tax
    20  credit pursuant to section thirty-two of the internal revenue code.  For
    21  purposes of this subparagraph, employer shall have the same  meaning  as
    22  set  forth in subsection (a) of section three thousand three hundred six
    23  of the internal revenue code.

         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.

        S. 6126                             2

     1    (a) Contents of notice. The New York state department of taxation  and
     2  finance  shall  promulgate  guidance as necessary specifying the minimum
     3  requirements of such notice, which will include, but not be limited  to,
     4  information  as to the availability of and potential eligibility for the
     5  Federal  Earned  Income  Tax Credit and the New York State Earned Income
     6  Tax Credit. Such notice shall refer persons to both the Internal Revenue
     7  Service and the New York state department of  taxation  and  finance  by
     8  telephone  and  through  their websites for information regarding annual
     9  eligibility thresholds by household type, filing requirements,  and  how
    10  to obtain necessary forms and instructions.
    11    (b)  Timing  of notice. The employer shall provide the notice required
    12  by this subparagraph within one week before or after,  or  at  the  same
    13  time,  the  employer provides the annual wage summary, including but not
    14  limited to, a Form W-2 or a Form 1099.  The  notice  shall  be  provided
    15  either separately or as part of the annual wage summary.
    16    (c)  Manner of providing notice. The employer shall provide the notice
    17  required by this subparagraph to each person by hand delivery, or  elec-
    18  tronic mail, or by mail to the last known address.
    19    (d)  Employer's  option.  At  the  employer's option, the employer may
    20  choose to provide the notice required pursuant to this subparagraph only
    21  to those employees whose gross annual incomes do  not  equal  or  exceed
    22  sixty thousand dollars or the maximum income at which an employee may be
    23  eligible for the earned income tax credit, whichever is higher.
    24    § 2. This act shall take effect January 1, 2022.