N.Y. Tax Law § 1087: Limitations on credit or refund

§ 1087. Limitations on credit or refund.--(a) General.--Claim for

credit or refund of an overpayment of tax under article nine or nine-A

shall be filed by the taxpayer within (i) three years from the time the

return was filed, (ii) two years from the time the tax was paid or (iii)

in the case of any overpayment arising from an erroneous denial by the

department of environmental conservation of a certification of

completion pursuant to section 27-1419 of the environmental conservation

law, two years from the time a final determination to the effect that

such denial was erroneous is made and is no longer subject to judicial

review, whichever of such periods expires the latest, 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. In the case of a claim for credit or refund filed within the

period prescribed in paragraph (iii) of this subsection, the amount of

the credit or refund may exceed the portion of the tax paid within the

applicable period specified in the two immediately preceding sentences,

but only to the extent of the amount of the overpayment attributable to

the denial described in such paragraph (iii). 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. For

special restriction in a proceeding on a claim for refund of tax paid

pursuant to an assessment made as a result of (i) a net operating loss

carryback or capital loss carryback, or (ii) an increase or decrease in

federal taxable income or federal tax, or (iii) a federal change or

correction or renegotiation, or computation or recomputation of tax,

which is treated in the same manner as if it were a deficiency for

federal income tax purposes, see paragraph (7) of subsection (c) of

section one thousand eighty-three.

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

provisions of paragraph (2) of subsection (c) of section one thousand

eighty-three (extending the period for assessment of tax) is made within

the period prescribed in subsection (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 subsection (a) if a claim had been filed on

the date the agreement was executed.

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

is required by subdivision three of section two hundred eleven or

paragraph one of subdivision (e) of section fifteen hundred fifteen of

this chapter, to file a report or amended return in respect of (i) a

decrease or increase in federal taxable income or federal alternative

minimum taxable income or federal tax, or (ii) a federal change or

correction or renegotiation, or computation or recomputation of tax,

which is treated in the same manner as if it were an overpayment for

federal income tax purposes, 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. If the report or amended return required by any such

provision of law is not filed within the period therein specified, no

interest shall be payable on any claim for credit or refund of the

overpayment attributable to the federal change or correction. The amount

of such credit or refund--

(1) 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

(2) shall not exceed the amount of the reduction in tax attributable

to such decrease or increase in federal taxable income, federal

alternative minimum taxable income, or federal tax or to such federal

change or correction or renegotiation, or computation or recomputation

of tax. This subsection shall not affect the time within which or the

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

this subsection.

(d) Overpayment attributable to net operating loss carryback or

capital loss carryback.--A claim for credit or refund of so much of an

overpayment under article nine-a as is attributable to the application

to the taxpayer of a net operating loss carryback or a capital loss

carryback shall be filed within three years from the time the return was

due (including extensions thereof) for the taxable year of the loss, or

within the period prescribed in subsection (b) in respect of such

taxable year, or within the period prescribed in subsection (c), where

applicable, in respect of the taxable year to which the net operating

loss or capital loss is carried back, whichever expires the latest.

Where such claim for credit or refund is filed after the expiration of

the period prescribed in subsection (a), or in subsection (b) where

applicable, in respect of the taxable year to which the net operating

loss or capital loss is carried back, 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.

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

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

this section or subsection (d) of section one thousand ninety, after the

expiration of the applicable period of limitation specified in this

article, 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 article nine, nine-a, nine-b or nine-c.

(f) effect of petition to tax commission.--If a notice of deficiency

for a taxable year has been mailed to the taxpayer under section one

thousand eighty-one and if the taxpayer files a timely petition with the

tax commission under section one thousand eighty-nine, it 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 tax commission

which has become final; and

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

accordance with the decision of the tax commission which has become

final; and

(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 subsection (c).

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

determined under subsection (f) shall, when the decision of the tax

commission has become final, be credited or refunded in accordance with

subsection (a) of section one thousand eighty-six and shall not exceed

the amount of tax which the tax commission determines as part of its

decision was paid--

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

(2) within the period which would be applicable under subsections (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 tax commission finds that there is an overpayment.

For special restriction on credit or refund in a proceeding on a

petition for redetermination of a deficiency where the notice of

deficiency is issued as a result of (i) a net operating loss carryback

or a capital loss carryback, or (ii) an increase or decrease in federal

taxable income or federal tax, or (iii) a federal change or correction

or renegotiation, or computation or recomputation of tax, which is

treated in the same manner as if it were a deficiency for federal income

tax purposes, see paragraph (7) of subsection (c) of section one

thousand eighty-three.

(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 tax.--For purposes of this section, any tax paid by the

taxpayer before the last day prescribed for its payment (including any

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

be deemed to have been paid by it on the fifteenth day of the third

month following the close of the taxable year the income of which is the

basis for tax under article nine-a, or on the last day prescribed in

article nine for the filing of a final return for such taxable year, or

portion thereof, determined in all cases without regard to any extension

of time granted the taxpayer, for taxable years beginning before January

first, two thousand sixteen, and on the fifteenth day of the fourth

month following the close of the taxable year the income of which is the

basis for tax under article nine-a, or on the last day prescribed in

article nine for the filing of a final return for such taxable year, or

portion thereof, determined in all cases without regard to any extension

of time granted the taxpayer, for taxable years beginning on or after

January first, two thousand sixteen.

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

credited against tax of a succeeding year, except for good cause shown,

see subsection (b) of section one thousand eighty-six.