Trachtenberg v. New York State Tax Commission

OPINION OF THE COURT

Casey, J.

Petitioner challenges the imposition of a penalty against him pursuant to Tax Law § 685 (g), “which imposes personal liability in the form of a penalty on any person within the corporate structure who is required to and fails to pay over withholding *58taxes to the Tax Commission” (Matter of Yellin v New York State Tax Commn., 81 AD2d 196, 198). The basis for petitioner’s challenge rests in his claim, that during proceedings which culminated in the corporation’s discharge in bankruptcy, respondent entered into a settlement with the trustee of the creditors of the…