NY Tax L § 1088 (2021)
2021 New York Laws TAX - Tax Article 27 - Corporate Tax Procedure and Administration 1088 - Interest on Overpayment.

§  1088.  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 of taxation and finance pursuant to  section  one  thousand ninety-six,  or  if no rate is set, at the rate of six percent per annum upon any overpayment in respect of the tax imposed by  article  nine  or nine-a:  (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  and  amended  returns  and  claims  for  credit  or refund. Notwithstanding paragraph one or two of this subsection, in the case  of an  overpayment claimed on a return of tax which is filed after the last date prescribed for  filing  such  return  (determined  with  regard  to extensions),  or  claimed  on  an  amended return of tax or claimed on a claim for credit or refund, no interest shall be allowed or paid for any day before the date on which such return or claim 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  and  estimated  tax.--The  provisions  of subsections  (h) and (i) of section one thousand 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) Tax refund within three months of claim for  overpayment.  (1)  If any  overpayment of tax imposed by article nine or nine-a is credited or refunded  within  three  months  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  three  months  after  such return  was  filed,  whichever is later, or within three months after an amended return was filed  claiming  such  overpayment  or  within  three months  after  a  claim  for  credit  or  refund was filed on which such overpayment was claimed, no interest shall be allowed under this section on any such overpayment. 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 or period shall be considered as filed on such last day.  (2)  In  the  case of an overpayment of tax credited due to absence of application by the taxpayer for refund under subsection (a)  of  section one  thousand  eighty-six,  where the commissioner notifies the taxpayer that such overpayment has been so credited within three months 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 three months  after  such  return was filed, whichever is later, and where the taxpayer subsequent to such notice makes a claim for refund  of  all  or part  of  such  overpayment,  no  interest  shall  be allowed under this section prior to the date of such claim for refund.  (d) Refund of tax caused by carryback.--For purposes of this  section, if  any  overpayment  of  tax  imposed  by article nine-a results from a carryback  of  a  net  operating  loss  or  a  net  capital  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  or  net capital  loss  arises.  In  the  case  of  a  taxpayer which has made an election under subchapter s of chapter one of the internal revenue code, where an overpayment of tax results from a carryback of a net  operating loss arising in a taxable year ending on or after December thirty-first, nineteen  hundred seventy-six, or from a carryback of a net capital loss arising in a taxable year ending  on  or  after  December  thirty-first, nineteen  hundred  eighty-one,  unless  a claim for refund based on such overpayment has been filed within a period ending twelve months and  one hundred  eighty  days  subsequent to the last day of the taxable year in which the net operating loss or net capital loss arises, interest on any resulting refund or credit shall cease to accrue upon the conclusion  of such  period.  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  indentifying  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  legally  enforceable debts.--If interest is payable pursuant to this section on that  portion of an overpayment which is certified by the commissioner of taxation and finance  to  the  comptroller  as  the  amount  to be credited against a past-due legally enforceable debt pursuant to the provisions of  section one  hundred  seventy-one-f  of  this chapter, or a city of New York tax warrant judgment debt pursuant to the provisions of 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 a report or amended return under  subdivision  three  of  section  two  hundred  eleven  or  paragraph  one  of subdivision (e) of section fifteen hundred fifteen,  see  subsection  (c)  of  section  one thousand eighty-seven.  (h)  Notwithstanding  any other provision 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.