N.Y. Tax Law § 686: Overpayment

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

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

overpayment of income tax and interest on such overpayment against any

liability in respect of any tax imposed by this chapter, including taxes

imposed under article twenty-three of this chapter, on the person who

made the overpayment, against any liability in respect of any tax

imposed pursuant to the authority of this chapter or any other law on

such person if such tax is administered by the commissioner of taxation

and finance and, as provided in sections one hundred seventy-one-c, one

hundred seventy-one-d, one hundred seventy-one-e, one hundred

seventy-one-f and one hundred seventy-one-l of this chapter, against

past-due support, a past-due legally enforceable debt, a city of New

York tax warrant judgment debt, and against the amount of a default in

repayment of a guaranteed student, state university or city university

loan. The balance shall be refunded by the comptroller out of the

proceeds of the tax retained by him for such general purpose. 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 person who made the overpayment and other information and data

available in the files of the commissioner.

(b) Excessive withholding.--If the amount allowable as a credit for

tax withheld from the taxpayer exceeds his tax to which the credit

relates, the excess shall be considered an overpayment.

(c) Overpayment by employer.--If there has been an overpayment of tax

required to be deducted and withheld under section six hundred

seventy-one, refund shall be made to the employer only to the extent

that the amount of the overpayment was not deducted and withheld by the

employer.

(d) Overpayment by a deceased person.--Notwithstanding section

thirteen hundred ten of the surrogate's court procedure act, any

overpayment by a decedent not in excess of one thousand dollars may be

refunded to the decedent's surviving spouse unless the return for the

decedent was filed by his or her executor or administrator.

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

regulations providing for the crediting against the estimated income tax

for any taxable year of the amount determined to be an overpayment of

the income tax for a preceding taxable year. If any overpayment of

income 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 income tax for the 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.

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

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

shall be considered an overpayment.

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

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

period of limitations properly applicable thereto, such amount shall be

considered an overpayment.

(h) Cross reference. For provision barring application of article

fifty-two of the civil practice law and rules to any amount to be

refunded or credited to a taxpayer, see section seven of this chapter.

(i) Overpayment.--In case of an overpayment of tax required to be paid

by an entity as an estimated tax under paragraph four of subsection (c)

of section six hundred fifty-eight of this article, a refund shall be

made to such entity only to the extent that such overpayment is

attributable to a partner, member or shareholder for whom the entity is

not required to pay such estimated tax.