N.Y. Comp. Codes R. & Regs. tit. 20, § 5000.1 – General.

(a) The Commissioner of Taxation and Finance, or such person as may be designated by the commissioner, may compromise any civil liability arising from a tax or other imposition which is administered by the commissioner, prior to the time the tax, other imposition or administrative action becomes finally and irrevocably fixed and is no longer subject to administrative review. The Attorney General may compromise any such liability after reference of a case to the Department of Law for prosecution or defense, but prior to the time the tax, other imposition or the administrative action taken by the commissioner is no longer subject to judicial review. Any such liability may be compromised only upon one or both of the following two grounds:
1. (1) doubt as to liability; or
2. (2) doubt as to collectibility or where collection in full would cause an individual taxpayer undue economic hardship (see section 5005.1[b][3] of this Title for information on undue economic hardship).
(b) No such liability will be compromised under this Part if the liability has been established by a valid warrant or judgment.
(c) An offer in compromise will not be accepted for any reason where acceptance of such an offer would undermine voluntary compliance with taxes or other impositions administered by the commissioner or would not be in the best interests of the State. Factors indicating that an offer would undermine voluntary compliance or would not be in the best interests of the State may include a taxpayer’s overall history of noncompliance, a taxpayer’s deliberate actions to evade payment, and a taxpayer’s encouragement of others to refuse to comply with the tax laws.