New York Senate Bill S09721

New York 2025-2026 Regular Session

• Introduced: 4/2/26
• Refer: 4/2/26

Caption

Relates to the liability of a person who makes or uses a false record or statement material to an obligation to pay money to the state or a local government under the tax law, or who conceals or improperly avoids or decreases an obligation to pay money to the state or a local government under the tax law.

Summary

S09721 amends the State Finance Law to expand liability for false claims involving tax-related obligations owed to New York State or a local government. The bill would make a person liable if they make or use a false record or statement material to their own tax obligation, or to the tax obligation of a subsidiary, partnership, corporation, or other entity they control. It would also cover conduct that conceals, improperly avoids, or decreases those obligations. The bill specifies that damages may include consequential damages, and it expressly defines consequential damages to include interest owed under the Tax Law. It also clarifies that liability does not require proof of specific intent to defraud, while excluding conduct that is merely negligent or accidental. The measure takes effect immediately and applies to covered false claims and tax obligations occurring before, on, or after the effective date.

Impact

The bill would broaden the scope of the state’s false claims framework in State Finance Law section 189 by expressly tying it to tax-law payment obligations owed to the state or local governments. It would create or clarify civil liability for tax-related false statements and concealment involving a person’s own obligations and those of controlled business entities, potentially increasing recovery tools for government entities seeking unpaid taxes, interest, and related damages.

Sentiment

There is limited recorded legislative discussion or voting history available for this bill, so no clear partisan or committee sentiment can be inferred from debate. Based on the text alone, the bill appears aimed at strengthening enforcement against tax avoidance and false reporting, which suggests a generally pro-enforcement posture. Because there are no transcripts or votes, any opposition or support is not documented in the available materials.

Contention

The main policy issue is the breadth of liability: the bill reaches not only direct tax obligations but also obligations of subsidiaries, partnerships, corporations, or other entities a person controls. Another point of possible contention is the lowered mens rea threshold, since the bill states that specific intent to defraud is not required, though it excludes mere mistakes and negligence. Supporters would likely favor stronger anti-fraud and tax-collection tools, while critics may worry about expanded civil exposure for business owners and managers and the potential for overreach in tax enforcement.