N.Y. Tax Law § 1086: Overpayment

§ 1086. Overpayment.--- (a) General.--The commissioner of taxation and

finance, within the applicable period of limitations, may credit an

overpayment of tax and interest on such overpayment against any

liability in respect of any tax imposed by the tax law on the taxpayer

who made the overpayment, or against any liability for a past-due

legally enforceable debt of which he is notified pursuant to section one

hundred seventy-one-f of this chapter, or against any city of New York

tax warrant judgment debt of which he is notified pursuant to section

one hundred seventy-one-l of this chapter, and the balance shall be

refunded by the comptroller out of the proceeds of the tax retained by

him for such general purpose. Provided, however, in the case of an

overpayment claimed on a return or report, such refund shall be made

only if application therefor is made on such return or report. In the

absence of such application, the amount of such overpayment with respect

to any taxable year shall be credited against, and considered as, a

payment of tax liability with respect to such tax for the succeeding

taxable year and shall be credited against the estimated tax, if any,

for such year (whether or not claimed as a credit in the declaration of

estimated tax for such succeeding taxable year). The commissioner shall

notify the taxpayer that such overpayment has been so credited, and the

taxpayer may, prior to the due date (without regard to extensions) of

the taxpayer's return or report for such succeeding taxable year, claim

a refund of such overpayment. Any refund under this section shall be

made only upon the filing of a return and upon a certificate of the

commissioner approved by the comptroller. The comptroller, as a

condition precedent to the approval of such a certificate, may examine

into the facts as disclosed by the return of the taxpayer who made the

overpayment and other information and data available in the files of the

commissioner.

(b) Credits against estimated tax.---The commissioner may prescribe

regulations providing for the crediting against the estimated tax under

article nine-a for any taxable year of the amount determined to be an

overpayment of tax under such article for a preceding taxable year. If

any overpayment of tax is so claimed as a credit against estimated tax

for the succeeding taxable year, such amount shall be considered as a

payment of the tax under article nine-a of this chapter for the

succeeding taxable year (whether or not claimed as a credit in the

declaration of estimated tax for such succeeding taxable year), and no

claim for credit or refund of such overpayment shall be allowed for the

taxable year for which the overpayment arises, except upon request to

the commissioner on or before the last day prescribed for the filing of

the return for the succeeding taxable year, determined with regard to

any extension of time granted. If good cause is shown for reversing the

credit, the commissioner may, in his or her discretion, credit the

overpayment against a liability or refund the overpayment without

interest. Provided, the person who made the overpayment will not be

relieved of liability for any penalty imposed for a consequent

underpayment of estimated tax for the succeeding taxable year. The

decision of the commissioner to grant or deny the request is final and

not subject to further administrative or judicial review.

(c) Rule where no tax liability.---If there is no tax liability for a

period in respect of which an amount is paid as tax, such amount shall

be considered an overpayment.

(d) Assessment and collection after limitation period.---If any amount

of tax is assessed or collected after the expiration of the period of

limitations properly applicable thereto, such amount shall be considered

an overpayment.

(e) Assignment of overpayment.---A credit for an overpayment of tax

under article nine, nine-a, nine-b or nine-c may be assigned by the

taxpayer to a corporation liable to pay taxes under any of such

articles, and the assignee of the whole or any part of such credit, on

filing such assignment with the tax commission, shall thereupon be

entitled to credit upon the books of the tax commission for the amount

thereof on its current account for taxes, in the same manner and to the

same effect as though the credit had originally been allowed in its

favor.