2023 New York Laws › TAX - Tax › Article 8 - Department of Taxation and Finance; Commissioner of Taxation and Finance › 171-C - Certain Overpayments Credited Against Past-Due Support.

§  171-c.  Certain overpayments credited against past-due support. (1)
The commissioner, on behalf  of  the  department,  shall  enter  into  a
written  agreement  with the commissioner of the office of temporary and
disability assistance, on behalf of the state office  of  temporary  and
disability   assistance,  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 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  past-due
support   owed  by  such  individual,  estate  or  trust  of  which  the
commissioner has been notified by the  commissioner  of  the  office  of
temporary  and  disability assistance pursuant to the provisions of such
agreement.
(2) Such agreement shall apply to past-due support which  is  owed  to
persons  or  entities  entitled  to  enforce  an  order  of support. For
purposes of this section, an "order of support" means any  final  order,
decree  or  judgment in a matrimonial action or family court proceeding,
or any foreign support order, decree or  judgment  which  is  registered
pursuant  to section thirty-seven-a of the domestic relations law, which
requires the payment of alimony, maintenance, support or child  support.
For  purposes  of this section, "past-due support" means the amount of a
delinquency determined from an order of support  no  longer  subject  to
appellate judicial review.
(3) Such agreement shall include:
(a)  the  procedure  under  which  the  state  department of office of
temporary and disability assistance shall  notify  the  commissioner  of
liability  for  past-due  support,  such  procedure  to specify when the
commissioner shall be notified and the content of such notification;
(b) the minimum period of delinquency in payment of  past-due  support
and  the  minimum  amount  of past-due support with respect to which the
commissioner of taxation and finance shall, pursuant  to  this  section,
credit an overpayment against past-due support;
(c)  the  procedure for reimbursement of the commissioner by the state
office of temporary and disability  assistance  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  state
office  of  temporary  and disability assistance for any overpayment and
interest thereon which has been credited against past due  support  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 past
due support owed by such taxpayer.
(4) (a) With regard to persons owed past-due support who are receiving
services pursuant to title six-A of article three of the social services
law, no later than thirty days prior to the date a local social services
district  requests  the  state  office  of  temporary   and   disability
assistance to notify the commissioner of the liability of an individual,
estate  or  trust  for past-due support, such district shall notify such
individual, estate or trust in writing that such request may be made and
shall also notify him or it that he or it may correct any error in  such
request  and  may avoid such notification by the office of temporary and
disability assistance to the commissioner by satisfying  such  liability
within  thirty  days  of  the  date of the written notice from the local

social services district to  such  individual,  estate  or  trust.  Such
notice  shall also set forth the name of an employee of the local social
services district, including his address and telephone number,  who  may
be  contacted  with  respect  to correction of any error in such request
concerning such individual's, estate's or trust's liability for past-due
support or with respect to payment of such liability.
(b) With regard to persons owed past-due  support  who  are  receiving
services pursuant to title six-B of article three of the social services
law,  no  later  than  thirty days prior to the date the state office of
temporary and disability assistance notifies  the  commissioner  of  the
liability  of  an individual, estate or trust for past-due support, such
office shall notify such individual, estate or  trust  in  writing  that
such  request  may be made and shall also notify him or it that he or it
may correct any error in such request and may avoid such notification by
such office  to  the  commissioner  by  satisfying  such  liability  and
submitting  proof  thereof satisfactory to the office within thirty days
of the date of the written notice from such office to  such  individual,
estate  or  trust.  Such  notice  shall  also  set  forth the name of an
employee of such office, including his  or  her  address  and  telephone
number,  who may be contacted with respect to correction of any error in
such request concerning such individual's, estate's or trust's liability
for past-due support or with respect to payment of such liability.
(5) (i) In calculating the  amount  of  an  overpayment  and  interest
thereon  which  shall  be  credited  against  past-due support owed by a
taxpayer, the tax commission 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; and
(C) estimated tax for the succeeding  taxable  year  if  the  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.
(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 past-due support, with the remainder to be refunded
to the taxpayer if such remainder is not required to satisfy 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
and/or  the  amount  of  a past-due legally enforceable debt pursuant to
section one hundred seventy-one-f of this article and/or a city  of  New
York   tax  warrant  judgment  debt  pursuant  to  section  one  hundred
seventy-one-l of  this  article  and/or  the  amount  of  a  default  in
repayment  of  a guaranteed student loan pursuant to section one hundred
seventy-one-d of this article. In cases where the taxpayer owes past-due
support to more than one person or  entity,  and  the  total  amount  of
past-due  support  certified  to the commissioner by the state office of
temporary and disability assistance exceeds the balance remaining,  each
such  person  or  entity  shall  receive a pro rata share of the balance
remaining, such share to be based on the amount of past-due support owed
to such person or entity as certified to the commissioner by such office
pursuant to this section. The state office of temporary  and  disability

assistance  shall  be  responsible for determining and distributing each
person's or entity's pro rata share  of  past-due  support  pursuant  to
regulations of such office.
(6)  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 past-due support and the balance  of  such  overpayment
and interest to be refunded to the taxpayer.
(7) The commissioner of taxation and finance 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  past-due  support.  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.
(8) (a) For purposes of this section, past-due support owed to persons
who are receiving services pursuant to title six-A of article  three  of
the social services law may include:
(i)  amounts  representing  delinquencies  which  have accrued under a
court order of support;
(ii) with  respect  to  any  court  order  of  support  issued  before
September   first,  nineteen  hundred  eighty-four  which  provided  for
periodic payments toward  an  established  arrears  amount,  the  entire
amount  of  such  arrears  where  the  respondent  is, at any time after
September first, nineteen hundred eighty-four, delinquent in making such
periodic payments; and
(iii) with respect to any court order of  support  made  on  or  after
September  first,  nineteen  hundred  eighty-four  which  establishes an
arrears amount, the entire amount of such  arrears,  unless  such  order
includes a finding that any anticipated tax refunds have been considered
by  the  court  and  taken  into  account  in  determining the amount of
periodic  payments  to  be  made  toward  the  arrears  amount,  or   in
determining  the  amount  of  the  current  support order, and expressly
provides that such arrears are not to be so certified.
(b) For the purpose of the state child support  program,  any  payment
made  by  a  respondent  which is insufficient to fully satisfy both the
current support obligation and a periodic payment toward the balance  of
any  arrears  amount  established  by court order shall be first applied
toward the current support obligation or  any  delinquency  thereon  and
then  toward  the  periodic payment on any arrears amount established by
court order unless otherwise required by federal regulation.
(9) From the time the commissioner is notified by the state office  of
temporary  and  disability  assistance  of  an individual's, estate's or
trust's liability for past-due support under the agreement provided  for
in  this  section, the commissioner 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 over payment
and interest on such amount certified to the comptroller to be  credited
against past-due support 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 commissioner or  the  department  to  recover  such
overpayment or such interest certified to the comptroller to be credited
against  past-due  support.  Provided,  however, nothing herein shall be
construed to prohibit such individual, estate or trust  from  proceeding
against  the  state office of temporary and disability assistance or the
appropriate local social services district to recover that part of  such
overpayment  or  interest  thereon so certified to the comptroller to be
credited against past-due support which is greater than  the  amount  of

past-due support owed by such individual, estate or trust on the date of
such certification.
(10) The tax commission shall promulgate such rules and regulations as
it deems necessary to carry out the provisions of this section.