NY Tax L § 688 (2021)
2021 New York Laws TAX - Tax Article 22 - Personal Income Tax Part 6 - Procedure and Administration 688 - Interest on Overpayment.

§  688.  Interest  on  overpayment.--(a) General.--Notwithstanding the provisions of section sixteen of the state finance law,  interest  shall be  allowed  and  paid  as  follows  at  the overpayment rate set by the commissioner pursuant to section six hundred ninety-seven, or if no rate is set, at the rate of six per cent per annum upon  any  overpayment  in respect of the tax imposed by this article:  (1)  from  the  date  of  the overpayment to the due date of an amount against which a credit is taken;  (2) from the date of the overpayment to a date (to  be  determined  by the  commissioner) preceding the date of a refund check by not more than thirty days, whether or  not  such  refund  check  is  accepted  by  the taxpayer  after  tender of such check to the taxpayer. The acceptance of such check shall be without prejudice to any right of  the  taxpayer  to claim any additional overpayment and interest thereon.  (3)  Late  returns. Notwithstanding the provisions of paragraph one or two of this subsection, in the case of a return of tax  which  is  filed after  the  last date prescribed for filing such return (determined with regard to extensions), no interest shall be allowed or paid for any  day before the date on which the return is filed.  (4)  Interest  on  certain  refunds.  To  the  extent  provided for in regulations promulgated by the commissioner of taxation and finance,  if an  item  of income, gain, loss, deduction or credit is changed from the taxable year or period in which it is reported to the  taxable  year  or period  in which it belongs and the change results in an underpayment in a taxable year or period and an overpayment in some other  taxable  year or  period,  the  provisions  of paragraph three of this subsection with respect to an overpayment shall not be applicable to the extent that the limitation in such paragraph on the right to interest would result in  a taxpayer not being allowed interest for a length of time with respect to an  overpayment  while  being  required to pay interest on an equivalent amount of the related underpayment. However, this paragraph shall not be construed as limiting  or  mitigating  the  effect  of  any  statute  of limitations  or  any other provision of law relating to the authority of such commissioner to issue a notice of deficiency or to allow  a  credit or refund on an overpayment.  (5) Amounts of less than five dollars. No interest shall be allowed or paid if the amount thereof is less than five dollars.  (b)  Advance  payment of tax, payment of estimated tax, and credit for income tax withholding.--The provisions of subsections (h)  and  (i)  of section  six  hundred eighty-seven applicable in determining the date of payment of tax for purposes of determining the period of limitations  on credit or refund, shall be applicable in determining the date of payment for purposes of this section.  (c)   Income   tax   refund   within  forty-five  days  of  claim  for overpayment.--If any overpayment of  tax  imposed  by  this  article  is credited  or  refunded  within  forty-five  days  after  the  last  date prescribed (or permitted by extension of time) for filing the return  of such tax on which such overpayment was claimed or within forty-five days after  such  return  was filed, whichever is later, or within six months after a demand is filed pursuant to paragraph six of subsection  (b)  of section  six  hundred  fifty-one  of  this chapter, no interest shall be allowed under this section on any such  overpayment.  In  regard  to  an amended return claiming such overpayment or a claim for credit or refund on  which  such overpayment was claimed, if such overpayment is refunded within forty-five days of filing such return or such claim, no  interest shall  be allowed from the date such return or such claim is filed until the day the refund is made. For purposes of this subsection, any amended return or  claim  for  credit  or  refund  filed  before  the  last  day  prescribed  (or  permitted  by  extension of time) for the filing of the return of tax for such year shall be considered as filed  on  such  last day.  (d)  Refund  of  income tax caused by carryback.--For purposes of this section, if any overpayment of tax imposed by this article results  from a  carryback  of  a net operating loss, such overpayment shall be deemed not to have been made prior to the filing date for the taxable  year  in which  such  net  operating  loss  arises.  Such  filing  date  shall be determined without regard to extensions of time to file. For purposes of subsection (c) of this section any overpayment described herein shall be treated as an overpayment for the loss year and such subsection shall be applied with respect to such overpayment by treating the return for  the loss  year  as not filed before claim for such overpayment is filed. The term "loss year" means the taxable year in which such loss arises.  (e) No interest until return in processible form.  (1) For purposes of subsections (a) and (c) of this section, a  return shall not be treated as filed until it is filed in processible form.  (2) For purposes of paragraph one of this subsection, a return is in a processible form if--  (A) such return is filed on a permitted form, and  (B) such return contains--  (i)  the  taxpayer's  name,  address,  and  identifying number and the required signatures, and  (ii) sufficient required information (whether  on  the  return  or  on required  attachments)  to  permit  the mathematical verification of tax liability shown on the return.  (f) Overpayment  credited  against  past-due  support,  or  against  a past-due  legally  enforceable  debt,  or a city of New York tax warrant judgment debt, or defaulted guaranteed student, state university or city university loans.--If interest is payable pursuant to  this  section  on that  portion  of an overpayment of tax imposed by this article which is certified by the commissioner of taxation and finance to the comptroller as the amount to be credited against  past-due  support,  or  against  a past-due  legally  enforceable  debt,  or a city of New York tax warrant judgment debt, or the amount of a default in repayment of  a  guaranteed student,  state  university or city university loan, as the case may be, pursuant to the provisions of section one hundred seventy-one-c, section one hundred seventy-one-d, section one  hundred  seventy-one-e,  section one  hundred  seventy-one-f or section one hundred seventy-one-l of this chapter, such portion  of  such  an  overpayment  shall  cease  to  bear interest on the date of such certification.  (g)  Cross-reference.--For  provision  with  respect to interest after failure to file notice of  federal  change  under  section  six  hundred fifty-nine, see subsection (c) of section six hundred eighty-seven.  (h)  Notwithstanding any other provisions in this section, for taxable years beginning on or after January first, two thousand eight and before January first, two  thousand  nine,  interest  will  be  allowed  on  an overpayment on any return or report on which one or more empire zone tax credits  are  claimed, only from the one hundred eightieth day after the taxpayer files with the department an empire zone retention  certificate issued pursuant to subdivision (w) of section nine hundred fifty-nine of the  general  municipal  law  to the empire zone enterprise which is the basis for the tax credit or credits claimed on the return or report.