§ 3008. Abatement of certain interest, penalties and additions to tax.
(a) Interest attributable to unreasonable errors and delays by the
department. (1) In the case of any assessment or final determination of
interest on:

(A) any deficiency or any tax finally determined to be due
attributable in whole or in part to any unreasonable error or delay by
an officer or employee of the department (acting in his or her official
capacity) in performing a ministerial or managerial act, or

(B) any payment of any tax to the extent that any unreasonable error
or delay in such payment is attributable to such officer or employee
being erroneous or dilatory in performing a ministerial or managerial
act, the commissioner may abate the assessment or final determination of
all or any part of such interest for any period.

(2) For purposes of paragraph one of this subdivision, an unreasonable
error or delay shall be taken into account only if no significant aspect
of such unreasonable error or delay can be attributed to the taxpayer
involved, and after the department has contacted the taxpayer in writing
with respect to such deficiency, tax finally determined to be due or
payment. The commissioner shall determine what constitutes timely
performance of various ministerial or managerial acts performed under or
pursuant to the authority of this chapter, the general city law and
section 27-0923 of the environmental conservation law. Any regulations
adopted with respect to other provisions of this subdivision shall
conform, to the extent practicable, with corresponding federal
regulations under the comparable provisions of the laws of the United
States. Administrative and judicial review of abatements under this
subdivision shall be limited to review of whether failure to abate would
be widely perceived as grossly unfair.

(b) Abatement of any penalty or addition to tax or excess interest
attributable to erroneous written advice by the department of taxation
and finance.

(1) The commissioner shall abate any portion of any penalty or
addition to tax or excess interest attributable to erroneous advice
furnished to the taxpayer in writing by an officer or employee of the
department of taxation and finance, acting in such officer's or
employee's official capacity.

(2) Paragraph one of this subdivision shall apply only if:

(A) the written advice was reasonably relied upon by the taxpayer and
was in response to specific written request of the taxpayer, and

(B) the portion of the penalty or addition to tax or excess interest
did not result from a failure by the taxpayer to provide adequate or
accurate information.

(3) This subdivision shall not be construed to require the department
to provide written advice to taxpayers or other persons or entities.

(c) Assessments attributable to certain mathematical errors by the
department. In the case of an assessment of any tax imposed by or
pursuant to the authority of article twenty-two, thirty, thirty-A or
thirty-B of this chapter or article two-E of the general city law
attributable in whole or in part to a mathematical error described in
subparagraph (A) of paragraph two of subsection (g) of section sixty-two
hundred thirteen of the federal internal revenue code, if the return was
prepared by an officer or employee of the department acting in his or
her official capacity to provide assistance to taxpayers in the
preparation of income tax returns, the commissioner is authorized to
abate the assessment of all or any part of any interest on such
deficiency for any period ending on or before the tenth day following
the date of notice and demand by the commissioner for payment of the
deficiency.

(d) Interest attributable to misappropriation of taxpayer payments.
(1) The commissioner shall be authorized to abate, for the period
specified in paragraph two of this subdivision, any assessment or final
determination of interest attributable to the misappropriation of a
taxpayer's payment if:

(A) the taxpayer timely tenders payment to the department for a
liability incurred under any tax, and the taxpayer's account with the
department is not properly credited with such payment due to
misappropriation thereof;

(B) the taxpayer does not cause, or in any way contribute to, the
misappropriation of such payment; and

(C) the taxpayer tenders a replacement payment to the department in
the original amount of such tax due no later than one year from the date
of mailing of notice from the department of failure to pay.

(2) The commissioner shall be authorized to abate any assessment or
final determination of interest pursuant to this subdivision for some or
all of the period from the date of the underpayment to (A) the date
which is one year from the date of mailing of the department's notice of
failure to pay, (B) the date which is one year from the date the
taxpayer discovers that the payment was not properly credited to the
taxpayer's account or (C) thirty days from the date the taxpayer
recovers use of the misappropriated funds, whichever is earliest.

(3) For purposes of this subdivision, the term "misappropriation"
means circumstances in which a person wrongfully intercepts a taxpayer's
payment tendered to the department prior to the department crediting the
taxpayer's account, and obtains use of the taxpayer's funds.