NY Tax L § 171-T (2021)
2021 New York Laws TAX - Tax Article 8 - Department of Taxation and Finance; Commissioner of Taxation and Finance 171-T - Reciprocal Offset Agreements With the United States or Other States.

§  171-t. Reciprocal offset agreements with the United States or other states. (1) For the purposes of this section, the  definitions  provided for  in section one hundred seventy-one-n of this article apply together with the following:  (a) "Claimant" means any state or the United States that enters into a reciprocal agreement under this section or  requests  application  of  a vendor payment or an overpayment to a debt.  (b)  "Debt"  means  (i),  for  purposes of state debt, a "tax debt" as defined in section one hundred seventy-one-n of  this  article  and  any other  past  due  legally  enforceable obligation owed to a state, which arises from  (A)  an  enforceable  judgment  of  a  court  of  competent jurisdiction  that  is  no  longer subject to judicial review, or (B) an enforceable determination of an administrative body that  is  no  longer subject  to  administrative  or  judicial review, or (C) a determination that has become final or finally and irrevocably  fixed  and  no  longer subject  to  administrative or judicial review; or (ii), for purposes of federal debt, debt means any amount of money, funds or property that has been determined by an appropriate official of the federal government  to be  owed  to  the  United  States  by a person, organization, or entity, except another federal agency, to the extent such amount is eligible for offset under federal law. The term includes debt administered by a third party acting as an agent for the federal government.  (c) "Debtor" means a person who owes a debt.  (d) "Person" has the same meaning as that term has in subdivision  (a) of section eleven hundred one of this chapter.  (e)  "Vendor  payment"  means  any payment, other than an overpayment, made by a state or the United States to any person, and includes but  is not  limited to any expense reimbursement to an employee of the state or the United States; but does not include  a  person's  salary,  wages  or pension.  (2)  The  commissioner  may,  in  his  or her discretion, enter into a collection and offset agreement with another state or  with  the  United States secretary of the treasury through the internal revenue service or the  financial  management  service of the department of the treasury of the United States under which the commissioner, on behalf of  the  state of  New  York, may, in his or her discretion, agree to pay to a claimant owed a debt by a taxpayer or other  person  the  whole  or  part  of  an overpayment  or  a  vendor payment owed by the state to that taxpayer or other  person,  provided  the  claimant  grants  substantially   similar privileges  to  this  state.  However,  the  United  States  will not be required under this section to offset tax overpayments owed by it except to the extent that it agrees to do so. An agreement  with  the  claimant must  specify  that  a taxpayer or any person owed a vendor payment will receive thirty days advance written notice of the  offset  and  will  be provided  with  an opportunity to present written or oral evidence about the application of the overpayment or vendor  payment  to  the  debt.  A proceeding for judicial review of the decision in the manner provided by article  seventy-eight  of  the  civil  practice  law  and  rules may be commenced by a taxpayer or a person owed a vendor  payment  within  four months after a copy of a decision adverse to the taxpayer or that person is  mailed to the taxpayer or that person. Article forty of this chapter does not apply to any hearing or proceeding on whether an overpayment or vendor payment may be applied to a debt under this section.  The  remedy provided  by  this section for review of hearings and proceedings is the exclusive  remedy  available  to   judicially   determine   whether   an overpayment  or  vendor  payment  may  be  applied  to a debt under this section. The amount of a debt remaining due as certified by  a  claimant will be prima facie evidence of the correct amount of a debt.  (3)  The  commissioner will calculate the amount of an overpayment and interest thereon that is to be credited against the amount of a past due legally enforceable debt owed by a taxpayer which is  certified  to  the department  for  collection  under  this  section  using  the  rules  in subdivision  five  of section one hundred seventy-one-f of this article. If a taxpayer or a person owes more than one debt which is certified  to the  commissioner  for collection under this section, any overpayment or vendor payment will be credited against the debts in the order in  which the debts accrued. A debt will be considered to have accrued at the time at which the debt became past due.  (4)  Notwithstanding  any other law, the commissioner is authorized to release to a claimant taxpayer information for purposes of  implementing and  administering  an  agreement  entered into between the claimant and this state under this section.