An administrative law judge has affirmed that Peter Madoff was properly notified in 2009 that he owes more than $1 million in unpaid state taxes for income he allegedly made through the fraudulent securities firm of his brother, Bernard Madoff. Because the state notice was properly addressed and sent, Madoff’s subsequent request for a conciliation conference to discuss what he said were errors in the state’s notice of tax deficiency was filed about a month too late, and he is not allowed to challenge the findings of tax liability, Division of Tax Appeals Administrative Law Judge Arthur Bray ruled.

Read the ALJ’s ruling.

Bray held that the testimony of state tax officials confirmed that notice of a tax deficiency was properly sent to Peter Madoff on May 4, 2009, at his last known address at 34 Pheasant Run in Old Westbury, Nassau County. The notice assessed outstanding tax of $904,288 against Peter Madoff, plus interest, for a total tax liability of $1,063,361. Tax officials said Peter Madoff failed to pay the state sales and use taxes between March 1, 2006, and May 31, 2008.

The Tax Appeals Tribunal ruled last year that Madoff’s objections raised a "triable and material" issue of fact whether he had, in fact, received the state’s notice of tax deficiency (NYLJ, May 1, 2012). The matter was sent back to Bray for further consideration.

Peter Madoff, 67, pleaded guilty in June to conspiracy to commit securities fraud and falsifying documents. He began serving a 10-year sentence in federal prison last week.