N.Y. General City Law art. 2-D, § 64: Interest on underpayment

§ 64. Interest on underpayment.--(a) General.--If any amount of income

tax is not paid on or before the last date prescribed in this local law

for payment, interest on such amount at the rate of six percentum per

annum shall be paid for the period from such last date to the date paid,

whether or not any extension of time for payment was granted. Interest

under this subdivision shall not be paid if the amount thereof is less

than one dollar. If the time for filing a return of tax withheld by an

employer is extended, the employer shall pay interest for the period for

which the extension is granted and may not charge such interest to the

employee.

(b) Exception as to estimated tax.--This section shall not apply to

any failure to pay estimated tax under section thirty-six.

(c) Exception for mathematical error.--No interest shall be imposed on

any underpayment of tax due solely to mathematical error if the taxpayer

files a return within the time prescribed in this local law (including

any extension of time) and pays the amount of underpayment within three

months after the due date of such return, as it may be extended.

(d) No interest on interest.--No interest under this local law shall

be imposed on any interest provided by this title.

(e) Suspension of interest on deficiencies.--If a waiver of

restrictions on assessment of a deficiency has been filed by the

taxpayer, and if notice and demand by the administrator for payment of

such deficiency is not made within thirty days after the filing of such

waiver, interest shall not be imposed on such deficiency for the period

beginning immediately after such thirtieth day and ending with the date

of notice and demand.

(f) Tax reduced by carryback.--If the amount of tax for any taxable

year is reduced by reason of a carryback of a net operating loss, such

reduction in tax shall not affect the computation of interest under this

section for the period ending with the last day of the taxable year in

which the net operating loss arises.

(g) Interest treated as tax.--Interest under this section shall be

paid upon notice and demand and shall be assessed, collected and paid in

the same manner as income tax. Any reference in this title to the tax

imposed by this local law shall be deemed also to refer to interest

imposed by this section on such tax.

(h) Interest on penalties or additions to tax.--Interest shall be

imposed under subdivision (a) in respect of any assessable penalty or

addition to tax only if such assessable penalty or addition to tax is

not paid within ten days from the date of the notice and demand therefor

under subdivision (b) of section seventy-two, and in such case interest

shall be imposed only for the period from such date of the notice and

demand to the date of payment.

(i) Payment prior to notice of deficiency.--If, prior to the mailing

to the taxpayer of a notice of deficiency under subdivision (b) of

section sixty-one, the administrator mails to the taxpayer a notice of

proposed increase of tax and within thirty days after the date of the

notice of proposed increase the taxpayer pays all amounts shown on the

notice to be due to the administrator, no interest under this section on

the amount so paid shall be imposed for the period after the date of

such notice of proposed increase.

(j) Payment within ninety days after notice of deficiency.--If a

notice of deficiency under section sixty-one is mailed to the taxpayer,

and the total amount specified in such notice is paid on or before the

ninetieth day after the date of mailing, interest under this section

shall not be imposed for the period after the date of the notice.

(k) Payment within ten days after notice and demand.--If notice and

demand is made for payment of any amount under subdivision (b) of

section seventy-two, and if such amount is paid within ten days after

the date of such notice and demand, interest under this section on the

amount so paid shall not be imposed for the period after the date of

such notice and demand.

(l) Limitation on assessment and collection.--Interest prescribed

under this section may be assessed and collected at any time during the

period within which the tax or other amount to which such interest

relates may be assessed and collected, respectively.

(m) Interest on erroneous refund.--Any portion of tax or other amount

which has been erroneously refunded, and which is recoverable by the

administrator, shall bear interest at the rate of six per centum per

annum from the date of the payment of the refund, but only if it appears

that any part of the refund was induced by fraud or a misrepresentation

of a material fact.

(n) Satisfaction by credits.--If any portion of a tax is satisfied by

credit of an overpayment, then no interest shall be imposed under this

section on the portion of the tax so satisfied for any period during

which, if the credit had not been made, interest would have been

allowable with respect to such overpayment.