# N.Y. TAX Law § 992: Addition to tax in the case of valuation understatement

> New York · Statutes · In force

URL: https://www.frixlaw.com/law-library/statutes/STATE_NY_ATAX_A26_P4_S992

## Section

- **Citation:** N.Y. TAX Law § 992
- **Heading:** Addition to tax in the case of valuation understatement
- **Jurisdiction:** New York
- **Kind:** Statutes
- **Status:** In force
- **Text as of:** August 14, 2026
- **Source:** Compiled text
- **Location:** New York Code / Act TAX / Article 26 / Part 4 / Section 992

## Text

§ 992. Addition to tax in the case of valuation understatement. In the\ncase of any underpayment of a tax imposed by this article which is\nattributable to a valuation understatement, there shall be added to the\ntax an amount equal to the applicable percentage of the underpayment so\nattributed.\n (a) For purposes of this section, the applicable percentage shall be\ndetermined under the following table:\n If the valuation claimed is\n the following percent of the The applicable\n correct valuation: percentage is:\n fifty percent or more but\n not more than sixty-six\n and two-thirds percent .................... ten\n forty percent or more but\n less than fifty percent ................... twenty\n less than forty percent ................... thirty\n (b) For purposes of this section, there is a valuation understatement\nif the claimed value of any property is sixty-six and two-thirds percent\nor less of the amount determined to be the correct amount of such\nvaluation.\n (c) This section shall not apply if the underpayment is less than one\nthousand dollars with respect to the estate of the decedent.\n (d) The commissioner may waive all or any part of the addition to tax\nprovided by this section on showing by the executor that there was a\nreasonable basis for the claimed valuation and that such claim was made\nin good faith.\n

## Nearby sections

- [N.Y. TAX Law § 990 Applicability of other tax law provisions](https://www.frixlaw.com/law-library/statutes/STATE_NY_ATAX_A26_P4_S990.md)
- [N.Y. TAX Law § 991 Interest accrual relief for additional tax attributable to newly-discovered abandoned property](https://www.frixlaw.com/law-library/statutes/STATE_NY_ATAX_A26_P4_S991.md)
- [N.Y. TAX Law § 992 Addition to tax in the case of valuation understatement](https://www.frixlaw.com/law-library/statutes/STATE_NY_ATAX_A26_P4_S992.md)
- [N.Y. TAX Law § 994 Secrecy requirement and penalties for violation](https://www.frixlaw.com/law-library/statutes/STATE_NY_ATAX_A26_P4_S994.md)
- [N.Y. TAX Law § 997 Extensions of time for payment of estate tax where estate consists largely of interest in closely held businesses](https://www.frixlaw.com/law-library/statutes/STATE_NY_ATAX_A26_P4_S997.md)
- [N.Y. TAX Law § 998 Petition to the surrogate's court and appeal](https://www.frixlaw.com/law-library/statutes/STATE_NY_ATAX_A26_P4_S998.md)
- [N.Y. TAX Law § 999 Deposit and disposition of revenue](https://www.frixlaw.com/law-library/statutes/STATE_NY_ATAX_A26_P4_S999.md)
- [N.Y. TAX Law § 999-A Appendix to article twenty-six](https://www.frixlaw.com/law-library/statutes/STATE_NY_ATAX_A26_P4_S999-A.md)

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Source: Frix Law Library, https://www.frixlaw.com/law-library/statutes/STATE_NY_ATAX_A26_P4_S992. Check the current official text before relying on it. Not legal advice.