NY Tax L § 687 (2021)
2021 New York Laws TAX - Tax Article 22 - Personal Income Tax Part 6 - Procedure and Administration 687 - Limitations on Credit or Refund.

§  687.  Limitations  on  credit or refund.-- (a) General.-- Claim for credit or refund of an overpayment of income tax 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  unless  such  claim is for a credit or a portion thereof provided pursuant to paragraph two or four of subsection (c), paragraph two or four  of  subsection  (d)  or  subsection  (e)  of section  six  hundred  six  of  this  chapter. 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  unless  such  claim is for a credit or a portion thereof provided pursuant to paragraph two or four of subsection (c),  paragraph  two  or four  of  subsection (d) or subsection (e) of section six hundred six of this chapter. 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. 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.  (b) Extension  of  time  by  agreement.--If  an  agreement  under  the provisions  of  paragraph  (2)  of subsection (c) of section six hundred eighty-three (extending the period for assessment of income 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  federal change or correction.-- A claim for credit or refund of any overpayment of tax attributable to  a  federal  change  or correction  required  to  be  reported  pursuant  to section six hundred fifty-nine shall be filed by the taxpayer within two years from the time the notice of such change or  correction  or  such  amended  return  was required  to  be filed with the commissioner of taxation and finance. If the report or amended return required by section six hundred  fifty-nine is not filed within the ninety day 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  shall  not exceed the amount of the reduction in tax  attributable to such federal change, correction or items amended on  the taxpayer's  amended federal income tax return. 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.--A claim for  credit or refund of so much of an overpayment as is attributable to the application to the taxpayer of a net operating 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 is carried back, whichever expires the latest.  (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 six hundred 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 this article.  (f)  Effect  of petition to tax commission.--If a notice of deficiency for a taxable year has been mailed to the  taxpayer  under  section  six hundred  eighty-one and if the taxpayer files a timely petition with the tax commission under section six hundred 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 six hundred 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.  (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 income tax.--For purposes of this section, any tax paid by the taxpayer before the last day prescribed for its payment, any  income tax  withheld from the taxpayer during any calendar year, and any amount paid by the taxpayer as estimated income tax for a taxable year shall be  deemed to have been paid by him on the fifteenth day of the fourth month following the close of his taxable  year  with  respect  to  which  such amount constitutes a credit or payment.  (j) Return and payment of withholding tax.--Notwithstanding subsection (h), for purposes of this section with respect to any withholding tax--  (1)  if  a return for any period ending with or within a calendar year is filed before April fifteenth of the succeeding  calendar  year,  such return  shall  be considered filed on April fifteenth of such succeeding calendar year; and  (2) if a tax with respect  to  remuneration  paid  during  any  period ending  with or within a calendar year is paid before April fifteenth of the succeeding calendar year, such tax shall be considered paid on April fifteenth of such succeeding calendar year.  (k) Running of periods  of  limitation  suspended  while  taxpayer  is unable to manage financial affairs due to disability. -- (1) In the case of  an  individual  taxpayer,  the  running  of the periods specified in subsections (a), (b), and (c) of this section shall be suspended  during any period of such individual's life that such individual is financially disabled.  For purposes of this subsection, an individual taxpayer is an individual  who  is subject to any state or local personal income tax or surcharge administered by the commissioner.  (2) For purposes of paragraph one of this  subsection,  an  individual taxpayer  is financially disabled if such individual is unable to manage his or her financial affairs  by  reason  of  a  medically  determinable physical  or  mental impairment of that individual which can be expected to result in death or which has lasted or can be expected to last for  a continuous  period  of  not less than twelve months. An individual shall not be considered to  have  such  an  impairment  unless  proof  of  the existence   thereof  is  furnished  in  such  form  and  manner  as  the commissioner may require.  (3) An  individual  taxpayer  shall  not  be  treated  as  financially disabled  during  any  period that such individual's spouse or any other person is authorized to act on behalf of such  individual  in  financial matters.  (l)  Cross  reference.--  For  provision barring refund of overpayment credited against tax of a succeeding year, except for good cause  shown, see subsection (e) of section six hundred eighty-six.