2023 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.