If you disagree with a New York State tax assessment, the Bureau of Conciliation and Mediation Services (BCMS) offers an informal process to resolve your dispute before it escalates to formal litigation. Understanding how conciliation conferences work can help you achieve a favorable outcome without the time and expense of a Division of Tax Appeals hearing.
What Is a Conciliation Conference?
A conciliation conference is an informal administrative proceeding where you meet with a BCMS conciliation conferee to discuss your dispute with the Department of Taxation and Finance. It’s similar to IRS Appeals—a chance to present your case to an independent reviewer who wasn’t involved in the original assessment.
The conferee acts as a neutral decision-maker who evaluates the facts, considers the law, and attempts to reach a settlement that’s acceptable to both you and the DTF. Most cases settle at this stage, avoiding the need for formal hearings.
When to Request a Conciliation Conference
You can request a conciliation conference if you disagree with:
- A Notice of Deficiency (additional tax assessment)
- A denial of a refund claim
- A Notice of Determination (after an audit)
- A penalty assessment
- A collection action
You must file your Request for Conciliation Conference (Form CMS-1) within 90 days of the date on the statutory notice. Missing this deadline means you lose your right to challenge the assessment through BCMS and must either pay the tax or file a petition with the Division of Tax Appeals.
The 90-Day Rule
This deadline is strict. The 90 days begins on the date shown on the notice, not the date you received it. If the 90th day falls on a weekend or holiday, the deadline extends to the next business day. However, relying on mail delays or claiming you didn’t receive the notice won’t extend the deadline.
Filing Your Request
To request a conciliation conference:
- Complete Form CMS-1 (Request for Conciliation Conference)
- Attach a copy of the statutory notice you’re challenging
- Include a brief statement explaining why you disagree with the assessment
- Mail or file electronically with BCMS
You don’t need to provide detailed arguments or evidence at this stage—just enough to identify the issues in dispute.
What Happens After You File
Once BCMS receives your request:
- Collection activity is suspended (no levies or garnishments while your case is pending)
- You’ll receive a confirmation letter with a case number
- A conciliation conferee will be assigned to your case
- You’ll be contacted to schedule the conference (typically 3-6 months after filing)
Preparing for the Conference
Before your conference, gather:
- All correspondence with the DTF
- Supporting documentation (receipts, bank statements, contracts, etc.)
- Legal authority supporting your position (statutes, regulations, case law)
- Calculations showing the correct tax liability
The conferee will review the DTF’s file and your submissions before the conference. Being organized and presenting clear evidence significantly improves your chances of success.
The Conference Itself
Conciliation conferences are informal. They can be conducted:
- In person at a BCMS office
- By telephone
- By video conference
The conferee will:
- Explain the DTF’s position
- Ask you to explain your position
- Review the evidence
- Discuss potential settlement options
- Attempt to reach an agreement
You can represent yourself or have an attorney, CPA, or enrolled agent represent you. Having professional representation often results in better outcomes because experienced representatives understand what arguments resonate with conferees.
Possible Outcomes
After the conference, the conferee will issue a Conciliation Order that:
1. Sustains the assessment (you lose—the DTF’s position is upheld) 2. Cancels the assessment (you win—the assessment is eliminated) 3. Modifies the assessment (partial victory—some adjustments are made in your favor)
Settlement Negotiations
Many cases settle through negotiation. The conferee may propose a compromise where:
- Some tax adjustments are sustained, others are eliminated
- Penalties are reduced or waived
- Interest is recalculated based on the modified assessment
You’re not required to accept a settlement. If you disagree with the conferee’s proposal, you can proceed to the Division of Tax Appeals.
After the Conciliation Order
If you’re satisfied with the outcome, the case is closed. If you disagree with the Conciliation Order, you have 90 days from the date of the order to file a petition with the Division of Tax Appeals.
Advantages of Conciliation
- Informal process: Less intimidating than formal hearings
- Faster resolution: Typically resolves within 6-12 months
- Suspends collection: Protects you from levies and garnishments
- No filing fee: Unlike Tax Court, there’s no cost to file
- Settlement opportunity: Conferees have authority to negotiate
When to Skip Conciliation
In some cases, it may be better to go directly to the Division of Tax Appeals:
- Your case involves complex legal issues requiring formal testimony
- You need discovery (document requests, depositions)
- The DTF’s position is clearly wrong and settlement isn’t appropriate
- Time is critical and you want a faster hearing
However, most practitioners recommend starting with BCMS because it’s faster, less formal, and often results in favorable settlements.
Our Approach
We represent clients at conciliation conferences by:
- Preparing comprehensive case summaries
- Organizing supporting documentation
- Presenting legal arguments effectively
- Negotiating favorable settlements
- Protecting your right to appeal if necessary
If you’ve received a Notice of Deficiency or other statutory notice, contact us immediately to discuss your options and ensure you don’t miss the 90-day deadline.
