N.Y. General City Model 772/66 § 135: Limitations on credit or refund

§ 135. Limitations on credit or refund. (a) General.--Claim for credit

or refund of an overpayment of income tax shall be filed by the taxpayer

within three years from the time the return was filed or two years from

the time the tax was paid, whichever of such periods expires the later,

or if no return was filed, within two years from the time the tax was

paid. If the claim is filed within the three year period, the amount of

the credit or refund shall not exceed the portion of the tax paid within

the three years immediately preceding the filing of the claim plus the

period of any extension of time for filing the return. If the claim is

not filed within the three year period, but is filed within the two year

period, the amount of the credit or refund shall not exceed the portion

of the tax paid during the two years immediately preceding the filing of

the claim. Except as otherwise provided in this section, if no claim is

filed, the amount of a credit or refund shall not exceed the amount

which would be allowable if a claim had been filed on the date the

credit or refund is allowed.

(b) Extension of time by agreement.--If an agreement under the

provisions of paragraph two of subdivision (c) of section one hundred

thirty-one (extending the period for assessment of income tax) is made

within the period prescribed in subdivision (a) for the filing of a

claim for credit or refund, the period for filing a claim for credit or

refund, or for making credit or refund if no claim is filed, shall not

expire prior to six months after the expiration of the period within

which an assessment may be made pursuant to the agreement or any

extension thereof. The amount of such credit or refund shall not exceed

the portion of the tax paid after the execution of the agreement and

before the filing of the claim or the making of the credit or refund, as

the case may be, plus the portion of the tax paid within the period

which would be applicable under subdivision (a) if a claim had been

filed on the date the agreement was executed.

(c) Notice of change or correction of federal taxable income.--If a

taxpayer is required by section one hundred twenty-seven to report a

change or correction in federal taxable income reported on his federal

income tax return, or to report a change or correction which is treated

in the same manner as if it were an overpayment for federal income tax

purposes, or to file an amended return with the director of finance,

claim for credit or refund of any resulting overpayment of tax shall be

filed by the taxpayer within two years from the time the notice of such

change or correction or such amended return was required to be filed

with the director of finance. If the report or amended return required

by section one hundred twenty-seven is not filed within the ninety day

period therein specified, interest or any resulting refund or credit

shall cease to accrue after such ninetieth day. The amount of such

credit or refund shall not exceed the amount of the reduction in tax

attributable to such federal change, correction or items amended on the

taxpayer's amended federal income tax return. This subdivision shall

not affect the time within which or the amount for which a claim for

credit or refund my be filed apart from this subdivision.

(d) Overpayment attributable to net operating loss carryback.--A claim

for credit or refund of so much of an overpayment as is attributable to

the application to the taxpayer of a net operating loss carryback shall

be filed within three years from the time the return was due for the

taxable year of the loss, or within the period prescribed in subdivision

(b) in respect of such taxable year, or within the period prescribed in

subdivision (c), where applicable, in respect of the taxable year to

which the net operating loss is carried back, whichever expires the

latest.

(e) Failure to file claim within prescribed period.--No credit or

refund shall be allowed or made, except as provided in subdivision (f)

of this section or subdivision (d) of section one hundred thirty-eight

after the expiration of the applicable period of limitation specified in

this title unless a claim for credit or refund is filed by the taxpayer

within such period. Any later credit shall be void and any later refund

erroneous. No period of limitations specified in any other law shall

apply to the recovery by a taxpayer of moneys paid in respect of taxes

under this title.

(f) Effect of petition to director of finance.--If a notice of

deficiency for a taxable year has been mailed to the taxpayer under

section one hundred twenty-nine and if the taxpayer files a timely

petition with the director of finance under section one hundred

thirty-seven, he may determine that the taxpayer has made an overpayment

for such year (whether or not it also determines a deficiency for such

year). No separate claim for credit or refund for such year shall be

filed, and no credit or refund for such year shall be allowed or made,

except--

(1) as to overpayments determined by a decision of the director of

finance which has become final;

(2) as to any amount collected in excess of an amount computed in

accordance with the decision of the director of finance which has become

final;

(3) as to any amount collected after the period of limitation upon the

making of levy for collection has expired; and

(4) as to any amount claimed as a result of a change or correction

described in subdivision (c).

(g) Limit on amount of credit or refund.-- The amount of overpayment

determined under subdivision (f) shall, when the decision of the

director of finance has become final, be credited or refunded in

accordance with subdivision (a) of section one hundred thirty-four and

shall not exceed the amount of tax which the director of finance

determines as part of his decision was paid--

(1) after the mailing of the notice of deficiency, or

(2) within the period which would be applicable under subdivisions

(a), (b) or (c), if on the date of the mailing of the notice of

deficiency a claim had been filed (whether or not filed) stating the

grounds upon which the director of finance finds that there is an

overpayment.

(h) Early return.--For purposes of this section, any return filed

before the last day prescribed for the filing thereof shall be

considered as filed on such last day, determined without regard to any

extension of time granted the taxpayer.

(i) Prepaid income tax.--For purposes of this section, any tax paid by

the taxpayer before the last day prescribed for its payment and any

amount paid by the taxpayer as estimated income tax for a taxable year

shall be deemed to have been paid by him on the fifteenth day of the

fourth month following the close of his taxable year with respect to

which such amount constitutes a credit or payment.

(j) Cross reference.--For provision barring refund of overpayment

credited against tax of a succeeding year, see subdivision (d) of

section one hundred thirty-four.

(k) Notice of change or correction of sales and compensating use tax

liability.--If a taxpayer is required by section one hundred

twenty-seven-A to file a report or amended return in respect of a change

or correction of his sales and compensating use tax liability, claim for

credit or refund of any resulting overpayment of tax shall be filed by

the taxpayer within two years from the time such report or amended

return was required to be filed with the commissioner of finance. If the

report or amended return required by section one hundred twenty-seven-A

is not filed within the ninety day period therein specified, interest on

any resulting refund or credit shall cease to accrue after such

ninetieth day. The amount of such credit or refund shall be computed

without change of the allocation of income or capital upon which the

taxpayer's return (or any additional assessment) was based, and shall

not exceed the amount of the reduction in tax attributable to such

change or correction of sales and compensating use tax liability. This

subdivision shall not affect the time within which or the amount for

which a claim for credit or refund may be filed apart from this

subdivision.