2023 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.