1. Which Tax Notices Give You the Right to Appeal?
A tax bill does not necessarily carry the right to an administrative hearing. New York provides formal protest rights through specified notices, including a Notice of Deficiency or Notice of Determination.
A Statement of Proposed Audit Changes ordinarily presents an auditor's findings before a formal assessment. The taxpayer may challenge the proposed figures, but correspondence with the auditor is not a formal appeal.
Proposed Changes and Formal Assessments
Some bills arise from mathematical errors or unpaid amounts already reported on a return. The department may offer a review process without granting the same hearing rights as a statutory assessment notice.
A formal notice identifies the disputed tax period and the available protest procedure. The difference matters when an initial tax audit adjustment becomes an assessment that can be challenged.
2. When Must a Taxpayer File an Appeal?
Many income and sales tax assessments carry a 90-day protest period. The applicable statute determines when that period begins, so the date of receipt does not necessarily control.
For sales tax, Tax Law § 1138(a)(1) generally measures the period from mailing the Notice of Determination. If the taxpayer does not file a timely protest, the assessment may become final.
When the Deadline Is Different
Certain income and sales tax notices addressed to persons outside the United States allow 150 days. Some licensing matters and other statutory determinations have shorter periods.
The notice's instructions must be compared with the applicable tax provision. A deadline should not be calculated solely from the day the letter was opened.
Informal Discussions Do Not Extend the Deadline
An auditor may continue discussing proposed adjustments after issuing a formal notice. Those discussions do not automatically suspend the statutory filing period.
Under Tax Law § 170(3-a), a timely request for a BCMS conciliation conference suspends the period for filing a Tax Appeals petition. After the conciliation order, the ordinary petition period is 90 days, although specified matters require filing within 30 days.
3. BCMS Conciliation and Tax Appeals Hearings
Eligible taxpayers can request an informal conference or file a petition directly with the Division of Tax Appeals. Both routes address qualifying disputes, but they differ in procedure and available review.
| Issue | BCMS | Division of Tax Appeals |
|---|---|---|
| Filing | Conciliation request | TA-100 petition |
| Procedure | Informal conference | Administrative hearing |
| Outcome | Conciliation order | ALJ determination |
| Further review | Petition when permitted | Tribunal exception |
Filing
- BCMSConciliation request
- Division of Tax AppealsTA-100 petition
Procedure
- BCMSInformal conference
- Division of Tax AppealsAdministrative hearing
Outcome
- BCMSConciliation order
- Division of Tax AppealsALJ determination
Further review
- BCMSPetition when permitted
- Division of Tax AppealsTribunal exception
Requesting a BCMS Conference
The Bureau of Conciliation and Mediation Services operates within the Department of Taxation and Finance. A conferee considers the taxpayer's objections and the department's position.
Eligible taxpayers may request a conference through the department's available online process or the prescribed CMS-1 procedure. The type of notice determines whether conciliation is available.
Petitioning the Division of Tax Appeals
The Division of Tax Appeals hears qualifying disputes independently of the department's audit function. An administrative law judge evaluates the evidence and issues a written determination.
The petition must identify the disputed action and explain the alleged errors. A disagreement about the assessment itself differs from a request for tax debt resolution after liability has been established.
4. Where and How Is a Petition Filed?
The Division of Tax Appeals receives petitions at Agency Building 1, Empire State Plaza, Albany, NY 12223. Its published instructions permit filing by mail or personal delivery.
A taxpayer must submit the original TA-100 petition, two identical copies, and the required attachments. The Division does not accept petitions by email or fax.
Documents and Filing Records
The petition must identify the taxpayer, relevant tax periods, disputed notice, and grounds for relief. A copy of the notice must accompany the filing, along with a conciliation order when applicable.
If a representative signs the petition, appropriate authorization may also be required. Mailing receipts and retained copies can help establish what was submitted and when.
The Albany filing address serves taxpayers throughout New York State. It does not create a separate deadline for local residents.
5. What Evidence Can Challenge the Assessment?
The strongest evidence addresses the specific calculation the department disputes. A claimed deduction requires different documentation from an allegation that a business failed to report taxable sales.
In an income tax dispute, wage statements and payment records may establish amounts reported or withheld. Documents supporting deductions should show both the underlying expense and its treatment under the applicable tax law.
Estimated Sales Tax Assessments
Tax Law § 1138(a)(1) permits the department to estimate sales tax when a return is missing, incorrect, or insufficient. The department may rely on available information, including external indicators of business activity.
A business can compare the estimate with invoices, sales records, and exemption certificates. The records may reveal whether the calculation includes transactions that were not taxable.
Bank deposits do not necessarily equal taxable sales. Loans, transfers, and exempt receipts must be evaluated according to their actual character and supporting documentation.
Review after an Administrative Law Judge'S Decision
Under Tax Law § 2006(7), a party generally has 30 days after notice of an ALJ determination to file an exception with the Tax Appeals Tribunal.
The Tribunal may affirm, reverse, modify, or remand the determination. A request to extend the exception deadline must be made within the original period and supported by good cause.
Small Claims Decisions Are Different
Eligible taxpayers may elect the Small Claims Unit if the amount in controversy satisfies the applicable limits. The current thresholds are $40,000 for sales and use tax and $20,000 for other taxes, measured for each 12-month period and excluding penalties and interest.
A Small Claims Unit determination is binding on both parties. Unlike an ordinary ALJ determination, it is not subject to Tribunal or judicial review.
Judicial Review and Financial Conditions
Tax Law § 2016 generally permits judicial review within four months after service of a final Tribunal decision. The proceeding begins in the Appellate Division, Third Department, under the applicable Article 78 framework.
Additional requirements may apply before judicial review begins. For example, Tax Law § 1138(a)(4) imposes deposit or undertaking requirements in certain sales tax proceedings, subject to statutory exceptions.
The court reviews the administrative record rather than conducting the original hearing again. These requirements distinguish judicial review from the earlier tax controversy and litigation stages.
6. Why IRS Appeals Follow Different Rules
New York's BCMS and Division of Tax Appeals do not determine federal tax liabilities. An IRS dispute follows federal statutes and the procedures associated with the particular federal notice.
Under Internal Revenue Code § 6213, a qualifying federal deficiency notice generally allows 90 days to petition the U.S. Tax Court. Certain notices addressed outside the United States provide 150 days.
The issuing agency determines which system applies. Similar filing periods do not make state and federal appeal procedures interchangeable.
20 Oct, 2026
