Bill > S00944

This bill amends the New York State Finance Law to expand provisions related to tax fraud and liability. Specifically, the bill creates a new legal framework that allows the state or local government to pursue damages against individuals or entities who make false records or statements material to tax obligations, or who conceal, improperly avoid, or decrease tax obligations. Under the new provisions, such actions would make the responsible person liable for damages, including consequential damages like interest owed under tax law, even if these actions involve subsidiaries, partnerships, corporations, or controlled entities. The bill clarifies that while specific intent to defraud must be proven, acts occurring by mistake or mere negligence are not covered by this definition. Importantly, the bill has retroactive effect, applying to false claims, records, statements, and obligations that were concealed, avoided, or decreased before, on, or after the bill's effective date, thereby providing a broader mechanism for the state to recover unpaid taxes and penalize tax evasion.

Budget and Finance

https://www.nysenate.gov/legislation/bills/2025/S944