NY Tax L § 171-D (2021)
2021 New York Laws TAX - Tax Article 8 - Department of Taxation and Finance; Commissioner of Taxation and Finance 171-D - Certain Overpayments Credited Against Defaulted Governmental Education Loans.

§  171-d. Certain overpayments credited against defaulted governmental education loans. (1) The commissioner, on behalf of the tax  commission, shall  enter into a written agreement with the president of the New York state  higher  education  services  corporation,  on  behalf   of   such corporation,  which  shall  set  forth  the procedures for crediting any overpayment by an individual, estate or trust of income tax  imposed  by article  twenty-two  of  this  chapter,  city  personal  income  tax  on residents imposed pursuant to the authority of article  thirty  of  this chapter,  city income tax surcharge on residents imposed pursuant to the authority of article thirty-A of this  chapter,  city  earnings  tax  on nonresidents  imposed  pursuant to the authority of former article two-E of the general city law and city earnings tax  on  nonresidents  imposed pursuant  to  the  authority of article thirty-B of this chapter and the interest on such overpayments against  the  amount  of  any  default  in repayment  of  any  governmental education loan owed by such individual, estate or trust of which the  commissioner  has  been  notified  by  the president  of  the  New York state higher education services corporation pursuant to the provisions of  such  agreement.  For  purposes  of  this section,  "governmental  education  loan"  shall mean any education loan debt, including judgments,  owed  to  the  federal  or  New  York  state government  that  is  being  collected  by  the  New  York  state higher education services corporation.  (2) Such agreement shall apply only to the  amount  of  a  default  in repayment  of any governmental education loan debt, including judgments, being  collected  by  the  New  York  state  higher  education  services corporation.  Such  agreement  shall  require  the New York state higher education  services  corporation  to   satisfy   the   requirements   of subdivision three of section one hundred seventy-one-f of this article.  (3) Such agreement shall include:  (a)  the  procedure  under  which  the New York state higher education services corporation shall notify  the  commissioner  of  a  default  in repayment  of  a  governmental education loan, such procedure to specify when the  commissioner  shall  be  notified  and  the  content  of  such notification;  (b)  the  minimum  amount  outstanding  on a default in repayment of a governmental  education  loan  against  which  the  commissioner  shall, pursuant to this section, credit an overpayment;  (c)  the  procedure  for  reimbursement of the commissioner by the New York state higher education services corporation for the  full  cost  of carrying out the procedures authorized by this section;  (d)  such  other  matters  as the parties to such agreement shall deem necessary to carry out the provisions of this section; and  (e) the procedure for reimbursement of the comptroller by the New York state higher education services corporation for overpayment and interest thereon which has  been  credited  against  the  amount  of  default  in repayment  of  a governmental education loan owed by a taxpayer filing a joint return, but which has been refunded by the  comptroller,  pursuant to  paragraph  six of subsection (b) of section six hundred fifty-one of this chapter, to a spouse not  liable  for  the  amount  of  default  in repayment of a governmental education loan owed by such taxpayer.  (4)  (i)  In  calculating  the  amount  of an overpayment and interest thereon which shall be credited against  the  amount  of  a  default  in repayment  of  a  governmental  education  loan  owed by a taxpayer, the commissioner shall first credit the  overpayment  and  interest  thereon against any:  (A)  liability  of such taxpayer in respect of any tax imposed by this chapter;  (B) liability of such taxpayer for any tax  imposed  pursuant  to  the authority  of  this chapter or any other law if such tax is administered by the tax commission;  (C)  estimated  tax  for  the succeeding taxable year if such taxpayer claims such overpayment  or  a  portion  thereof  as  a  credit  against estimated  tax  for  such succeeding taxable year pursuant to subsection (e) of section six hundred eighty-six of this chapter or subdivision (e) of section 11-1786 of the administrative code of the city  of  New  York for  any  tax  imposed  pursuant to the authority of this chapter or any other law if such tax is administered by the tax commission; and  (D) past-due support owed by the  taxpayer  pursuant  to  section  one hundred seventy-one-c of this article.  (E) the amount of a default in repayment of a state university loan or city  university  loan  pursuant to section one hundred seventy-one-e of this article.  (F) the amount of a past-due legally enforceable debt owed to a  state agency pursuant to section one hundred seventy-one-f of this article.  (G) the amount of a city of New York tax warrant judgment debt owed to the  city  of  New York pursuant to section one hundred seventy-one-l of this article.  (ii) Only the  balance  remaining,  after  such  overpayment  and  the interest thereon has been credited as described in paragraph (i) of this subdivision,  shall  be certified as an overpayment plus any interest to be  credited  against  the  amount  of  a  default  in  repayment  of  a governmental  education  loan,  with the remainder to be refunded to the taxpayer.  (5) The tax commission shall certify  to  the  comptroller  the  total amount  of  the  overpayment  and  the interest on such overpayment, the amount of such overpayment  and  the  interest  on  such  amount  to  be credited   against   the  amount  of  the  default  in  repayment  of  a governmental education loan and the  balance  of  such  overpayment  and interest to be refunded to the taxpayer.  (6) The commissioner shall notify the taxpayer making the overpayment, in  writing,  of the amount of such overpayment and the interest thereon certified to the comptroller as the amount to be  credited  against  the amount  of a default in repayment of a governmental education loan. Such notice shall include notification to any other person who may have filed a joint return with the taxpayer of the steps such other person may take in order to secure his or her proper share of the refund.  (7) From the time the state tax commission is notified by the New York state higher education services corporation of an individual's, estate's or trust's default in repayment of a governmental education  loan  under the agreement provided for in this section, the state tax commission and the  department shall be relieved from all liability to such individual, estate or trust, their assigns, successors, heirs or representatives for the amount of an overpayment and interest on such  amount  certified  to the  comptroller  to  be  credited  against  the  amount  of  default in repayment of a governmental education loan and such  individual,  estate or trust shall have no right to commence a court action or proceeding or to  any  other  legal  recourse  against the state tax commission or the department to recover such overpayment or such interest certified to the comptroller to be credited against the amount of default in repayment of a governmental education loan. Provided, however, nothing  herein  shall be   construed  to  prohibit  such  individual,  estate  or  trust  from proceeding  against  the  New  York  state  higher  education   services corporation to recover that part of such overpayment or interest thereon so  certified  to the comptroller to be credited against the amount of a default in repayment of a governmental education loan which  is  greater  than the amount of such default owed by such individual, estate or trust on the date of such certification.  (8)  The tax commission shall promulgate such rules and regulations as it deems necessary to carry out the provisions of this section.