Sources told the gossip site that a building official called NYPD when Bynes began smoking a joint in the lobby of her apartment building. Bynes reportedly yelled "Don't you know who I am?" during the arrest.
According to E!, Bynes' doorman called 911 around 7:42 pm ET when he saw her in the lobby with pot.
By the time the police arrived, the 27-year-old actress had gone back to her apartment. Officers said they saw her throw a bong out of her apartment window in an apparent attempt to hide evidence.
NBC New York confirmed that Bynes was taken to Roosevelt Hospital in Manhattan to undergo psychiatric evaluation before booking. She is expected to appear in court on Friday morning.