N.Y. TAX. LAW § 683 : NY Code - Section 683: Limitations on assessment

--(a) General.--Except as otherwise
  provided in this section, any tax under this article shall  be  assessed
  within  three  years  after  the  return  was filed (whether or not such
  return was filed on or after the date prescribed).
    (b) Time return deemed filed.--
    (1) Early return.--For purposes of this section  a  return  of  income
  tax, except withholding tax, filed before the last day prescribed by law
  or  by  regulations  promulgated pursuant to law for the filing thereof,
  shall be deemed to be filed on such last day.
    (2) Return of withholding tax.--For purposes of  this  section,  if  a
  return  of  withholding  tax  for  any  period  ending  with or within a
  calendar year is filed before April fifteenth of the succeeding calendar
  year, such return shall be deemed to be filed on April fifteenth of such
  succeeding calendar year.
    (c) Exceptions.--
    (1) Assessment at any time.--The tax may be assessed at any time if--
    (A) no return is filed,
    (B) a false or fraudulent return is filed with intent to evade tax, or
    (C) the taxpayer or employer fails to comply with section six  hundred
  fifty-nine.
    (2)  Extension by agreement.--Where, before the expiration of the time
  prescribed in this section for the  assessment  of  tax,  both  the  tax
  commission  and the taxpayer have consented in writing to its assessment
  after such time, the tax may be  assessed  at  any  time  prior  to  the
  expiration  of  the period agreed upon. The period so agreed upon may be
  extended by subsequent agreements in writing made before the  expiration
  of the period previously agreed upon.
    (3)  Report  of federal changes, corrections or disallowances.--If the
  taxpayer or employer complies with section six hundred  fifty-nine,  the
  assessment  (if  not  deemed  to  have  been made upon the filing of the
  report or amended return) may be made at any time within two years after
  such report or amended return was filed. The amount of  such  assessment
  of  tax  shall  not  exceed  the  amount of the increase in New York tax
  attributable to such federal change or  correction.  The  provisions  of
  this  paragraph shall not affect the time within which or the amount for
  which an assessment may otherwise be made.
    (4) Deficiency attributable to net  operating  loss  carryback.--If  a
  deficiency  is  attributable to the application to the taxpayer of a net
  operating loss carryback,  it  may  be  assessed  at  any  time  that  a
  deficiency for the taxable year of the loss may be assessed.
    (5)  Recovery  of  erroneous  refund.--An  erroneous  refund  shall be
  considered an underpayment of tax on the date made, and an assessment of
  a deficiency arising out of an erroneous refund may be made at any  time
  within  two  years  from  the  making  of  the  refund,  except that the
  assessment may be made within five years from the making of  the  refund
  if  it  appears  that  any  part  of  the refund was induced by fraud or
  misrepresentation of a material fact.
    (6) Request for prompt assessment.--If a  return  is  required  for  a
  decedent  or for his estate during the period of administration, the tax
  shall be asseessed within eighteen months after written request therefor
  (made after the return is filed) by the executor, administrator or other
  person representing the estate of such decedent, but not more than three
  years after the return was filed, except as otherwise provided  in  this
  subsection and subsection (d).
    (7)  Report  on  use  of  certain  property.--Under  the circumstances
  described in paragraph two of subsection  (g)  of  section  six  hundred
  twelve, the tax may be assessed within three years after the filing of a

  return  reporting  that  property  has been used for purposes other than
  research and development to a greater extent than originally reported.
    (8)  Report concerning waste treatment facility, air pollution control
  facility  or  eligible  business  facility.  Under   the   circumstances
  described  in  paragraph  (3)  of  subsection (h) of section six hundred
  twelve or in paragraph four of subsection (c) of section  seven  hundred
  one,  the tax may be assessed within three years after the filing of the
  return containing the information required by such paragraph, or,  if  a
  certificate  of  compliance  in  respect  to  an  air  pollution control
  facility shall be revoked, within three years after the  tax  commission
  shall receive notice of such revocation from the taxpayer or as required
  by   subdivision   three   of   section  19-0309  of  the  environmental
  conservation law, whichever notice is received earlier.
    (9)  Reports  concerning  empire  zone  credits.   If   a   taxpayer's
  certification  under  article eighteen-B of the general municipal law is
  revoked with respect to an empire zone or zone equivalent area, any  tax
  liability  generated  by  reason of such decertification may be assessed
  within three years after the commissioner has received  notice  of  such
  decertification  as  required by subdivision (a) of section nine hundred
  fifty-nine of the general municipal law.
    (10) Reports concerning a certificate of completion. If  a  taxpayer's
  certificate  of  completion  issued  pursuant  to section 27-1419 of the
  environmental conservation law is  revoked  by  a  determination  issued
  pursuant  to  section 27-1419 of the environmental conservation law, any
  tax liability generated by reason of such  revocation  may  be  assessed
  within  one  year  after  such  determination  is final and is no longer
  subject to judicial review.
    * (11) Extended statute of limitations for tax avoidance transactions.
  (A) If a taxpayer or person fails  to  file,  disclose  or  provide  any
  statement, return or other information for any taxable year with respect
  to a listed transaction, as defined in paragraph three of subsection (x)
  of  section  six  hundred eighty-five of this article, which is required
  under subdivision (a) of section twenty-five of this chapter,  the  time
  for  assessment  of any tax imposed by this article with respect to such
  transaction shall not expire before the date which is one year after the
  earlier of:
    (i) the date on which the commissioner  is  furnished  the  statement,
  return, or information so required, or
    (ii)  the  date  that  the  requirements of subdivision (c) of section
  twenty-five of this chapter are met with respect to a request under such
  subdivision by the commissioner relating to such transaction.
    (B) If later than the time for assessment otherwise provided  by  this
  section,  tax  may  be  assessed  at any time within six years after the
  return was filed if the deficiency is attributable  to  an  abusive  tax
  avoidance transaction.
    (C)  For  purposes  of subparagraph (B) of this paragraph, an "abusive
  tax avoidance transaction" means a plan or arrangement devised  for  the
  principal  purpose  of  avoiding tax. Abusive tax avoidance transactions
  include, but are  not  limited  to,  listed  transactions  described  in
  paragraph five of subsection (p-1) of section six hundred eighty-five of
  this article.
    * NB Repealed July 1, 2011
    * (d)  Omission  of  income,  item  of tax preference, distribution of
  assets from a qualified higher education fund or total taxable amount or
  ordinary income portion of a lump sum distribution on  return.--The  tax
  may  be assessed at any time within six years after the return was filed
  if--

    (1) an individual omits from his New York adjusted gross  income,  the
  sum  of  his  items  of  tax preference, the amount of a distribution of
  assets from a qualified higher  education  fund  or  the  total  taxable
  amount  or  ordinary income portion of a lump sum distribution an amount
  properly  includible  therein which is in excess of twenty-five per cent
  of the amount of New York adjusted gross income, the sum of the items of
  tax preference,  the  amount  of  the  distribution  of  assets  from  a
  qualified  higher education fund or the total taxable amount or ordinary
  income portion of a lump sum distribution stated in the return, or
    (2) an estate or trust omits income from its return in  an  amount  in
  excess of twenty-five per cent of its income determined as if it were an
  individual  computing  his  New York adjusted gross income under section
  six hundred twelve in the case of a resident estate or  trust  or  under
  section  six  hundred  thirty-two in the case of a nonresident estate or
  trust, or
    (3) an estate or trust  omits  from  the  sum  of  its  items  of  tax
  preference  an  amount properly includible therein which is in excess of
  twenty-five per cent of the sum of the items of tax preference stated in
  the return, or
    (4) an estate or trust omits from the  amount  of  a  distribution  of
  assets  from  a  qualified  higher  education  fund  an  amount properly
  includible therein which is in excess of twenty-five  per  cent  of  the
  amount  of  the distribution of assets from a qualified higher education
  fund stated in the return, or
    (5) an estate or trust omits from the  amount  of  the  total  taxable
  amount  or  ordinary income portion of a lump sum distribution an amount
  properly includible therein which is in excess of twenty-five  per  cent
  of  the amount of the total taxable amount or ordinary income portion of
  a lump sum distribution, respectively, stated in the return.
    For purposes of this subsection there shall not be taken into  account
  any amount which is omitted in the return if such amount is disclosed in
  the  return,  or  in  a  statement  attached  to the return, in a manner
  adequate to apprise the tax commission of the nature and amount  of  the
  item  of income, tax preference, distribution of assets from a qualified
  higher education fund or total taxable amount or ordinary income portion
  of a lump sum distribution.
  * NB Applies to distributions  from  qualified  higher  education  funds
  occurring prior to April 20, 1987
    * (d) Omission of income, item of tax preference, total taxable amount
  or  ordinary  income  portion of a lump sum distribution on return.--The
  tax may be assessed at any time within six years after  the  return  was
  filed if--
    (1)  an  individual omits from his New York adjusted gross income, the
  sum of his items of tax preference,  or  the  total  taxable  amount  or
  ordinary  income  portion  of a lump sum distribution an amount properly
  includible therein which is in excess  of  twenty-five  percent  of  the
  amount  of  New  York adjusted gross income, the sum of the items of tax
  preference, or the total taxable amount or ordinary income portion of  a
  lump sum distribution stated in the return, or
    (2)  an estate or trust omits from its New York adjusted gross income,
  the sum of its items of tax preference, or the total taxable  amount  or
  ordinary  income  portion  of a lump sum distribution an amount properly
  includible therein which is in excess  of  twenty-five  percent  of  the
  amount stated in the return of New York adjusted gross income determined
  in  accordance  with  paragraph  four  of  subsection (e) of section six
  hundred one, or the sum of the items of tax  preference,  or  the  total
  taxable  amount  or  ordinary income portion of a lump sum distribution,
  respectively. For purposes of this subsection there shall not  be  taken

  into account any amount which is omitted in the return if such amount is
  disclosed  in the return, or in a statement attached to the return, in a
  manner adequate to apprise the commissioner of the nature and amount  of
  the  item  of  income,  tax preference, total taxable amount or ordinary
  income portion of a lump sum distribution.
    * NB Applies to distributions from qualified  higher  education  funds
  occurring on or after April 20, 1987
    (e) Suspension of running of period of limitation.--The running of the
  period of limitations on assessment or collection of tax or other amount
  (or of a transferee's liability) shall, after the mailing of a notice of
  deficiency,  be suspended for the period during which the tax commission
  is prohibited under subsection (c) of  section  six  hundred  eighty-one
  from making the assessment or from collecting by levy.