2023 New York Laws › TAX - Tax › Article 8 - Department of Taxation and Finance; Commissioner of Taxation and Finance › 171-E - Certain Overpayments Credited Against National Defense/national Direct, Health Professions or Nursing Student Loans.

§ 171-e. Certain     overpayments     credited     against    national
defense/national direct, health professions or  nursing  student  loans.
(1)  As  used  in this section only, the term "state university loan" or
"city  university  loan"  refers  to  loans  provided  to  students   at
state-operated  units  of  the  state university of New York or the city
university of New York respectively under the national  defense/national
direct, health professions or nursing student loan programs.
(2)  The  commissioner  of  taxation and finance, on behalf of the tax
commission,  shall  enter  into  a  written  agreement  with  the  state
university  of  New York or the city university of New York respectively
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 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  a  state  university
loan or city university loan owed by such individual, estate or trust of
which  the commissioner of taxation and finance has been notified by the
state university of  New  York  or  the  city  university  of  New  York
respectively pursuant to the provisions of such agreement.
(3)  Such  agreement  shall  apply  only to the amount of a default in
repayment of a state university loan or city university loan as to which
the state and/or state university of New York or the city university  of
New   York   respectively   has  obtained  a  judgment  or  has  made  a
determination that satisfies the requirements of  subdivision  three  of
section one hundred seventy-one-f of this article.
(4) Such agreement shall include:
(a)  the procedure under which the state university of New York or the
city university of New York respectively shall notify  the  commissioner
of  taxation  and  finance  of  a  default  in  a  repayment  of a state
university loan or city university loan, such procedure to specify  when
the  commissioner  of  taxation  and  finance  shall be notified and the
content of such notification;
(b) the minimum amount outstanding on a  default  in  repayment  of  a
state  university  loan  or  city  university  loan  against  which  the
commissioner of taxation and finance shall, pursuant  to  this  section,
credit an overpayment;
(c)  the  procedure  for reimbursement of the commissioner of taxation
and finance by the state university of New York or the  city  university
of  New  York  respectively  for  the  full  cost  of  carrying  out the
procedures authorized by this section;
(d) a provision providing that  information  furnished  to  the  state
university  of  New York or the city university of New York respectively
by the commissioner of taxation and finance and the comptroller pursuant
to said agreement shall be considered  confidential  and  shall  not  be
disclosed  except to such federal or state department or agency entitled
to such information;
(e) such other matters as the parties to  such  agreement  shall  deem
necessary to carry out the provisions of this section; and
(f)  the  procedure  for reimbursement of the comptroller by the state
university  of  New  York  or  city  university  of  New  York  for  any
overpayment  and  interest  thereon  which has been credited against the
amount of default on repayment of a state  university  loan  or  a  city
university  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  state
university loan or city university loan owed by such taxpayer.
(5)  (a)  In  calculating  the  amount  of an overpayment and interest
thereon which shall be credited against  the  amount  of  a  default  in
repayment  of  a state university loan or city university loan 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;
(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 chapter;
(b) Only  the  balance  remaining,  after  such  overpayment  and  the
interest thereon has been credited as described in paragraph (a) 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  state
university  loan  or  city  university  loan,  with  the remainder to be
refunded to the taxpayer if such remainder is not  required  to  satisfy
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.
(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  the  amount  of  the  default in repayment of a state
university loan  or  city  university  loan  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  the  amount  of a default in repayment of a state
university loan or city  university  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.
(8)  From  the  time the state tax commission is notified by the state
university of New York or the city university of New  York  respectively
of  an individual's, estate's or trust's default in repayment of a state
university loan or city university loan under the agreement provided for
in this section, the state tax commission and the department of taxation
and finance 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  a  default  in

repayment of such state university loan or city university 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 of taxation and finance to recover such
overpayment or such interest certified to the comptroller to be credited
against the amount of default in repayment of a state university loan or
city  university  loan.  Provided,  however,  nothing  herein  shall  be
construed to prohibit such individual, estate or trust  from  proceeding
against  the  state university of New York or the city university of New
York respectively 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  state  university  loan  or  city
university loan which is greater than the amount of such default owed by
such individual, estate or trust on the date of such certification.
(9)  The tax commission shall promulgate such rules and regulations as
it deems necessary to carry out the provisions of this section.