N.Y. Tax Law § 1084: Interest on underpayment

§ 1084. Interest on underpayment.---(a) General.--If any amount of tax

is not paid on or before the last date prescribed in article nine or

nine-a of this chapter for payment, interest on such amount at the

underpayment rate set by the commissioner pursuant to section one

thousand ninety-six of this article, or if no rate is set, at the rate

of seven and one-half percent 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 subsection shall not

be paid if the amount thereof is less than one dollar.

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

any failure to pay estimated tax under article nine-a, nine-b or nine-c.

(c) Exception for mathematical or clerical error.--- No interest shall

be imposed on any underpayment of tax due solely to mathematical or

clerical error if the taxpayer files a return within the time prescribed

in article nine or nine-A (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) 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 tax commission 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.

(e) Tax reduced by carryback.---If the amount of tax under article

nine-a for any taxable year is reduced by reason of a carryback of a net

operating loss or a capital loss, such reduction in tax shall not affect

the computation of interest under this section for the period ending

with the filing date for the taxable year in which the net operating

loss or capital loss arises. Such filing date shall be determined

without regard to extensions of time to file.

(f) 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 the tax under article nine, nine-a, nine-b or nine-c.

Any reference in this article to the tax imposed by article nine,

nine-a, nine-b or nine-c shall be deemed also to refer to interest

imposed by this section on such tax.

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

imposed under subsection (a) of this section in respect of any

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

addition to tax is not paid within twenty-one calendar days from the

date of the notice and demand therefor under subsection (b) of section

one thousand ninety-two of this article (ten business days if the amount

for which such notice and demand is made equals or exceeds one hundred

thousand dollars) 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.

(h) Payment within specified period after notice and demand.---If

notice and demand is made for payment of any amount under subsection (b)

of section one thousand ninety-two of this article, and if such amount

is paid within twenty-one calendar days (ten business days if the amount

for which such notice and demand is made equals or exceeds one hundred

thousand dollars) 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.

(i) 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.

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

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

commissioner, shall bear interest at the underpayment rate set by the

commissioner pursuant to section one thousand ninety-six of this

article, or if no rate is set, at the rate of seven and one-half percent

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.

(k) 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.