N.Y. Tax Law § 684: Interest on underpayment

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

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

article for payment, interest on such amount at the underpayment rate

set by the commissioner pursuant to section six hundred ninety-seven of

this part, 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. If the time for filing of 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.

(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 this article (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 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 filing date for the taxable year

in which the net operating 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 income tax. Any reference in this article to the tax

imposed by this article 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

six hundred 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 six hundred 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 six hundred ninety-seven of this part,

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.