2023 New York Laws › GCT - General City › Article 2-D - City Personal Income Tax on Residents › 25-A-67 - Limitations on Credit or Refund.

§ 67. Limitations on credit or refund.--(a) General.--Claim for credit
or refund of an overpayment of income tax shall be filed by the taxpayer
within  three years from the time the return was filed or two years from
the time the tax was paid, whichever of such periods expire  the  later,
or  if  no  return was filed, within two years from the time the tax was
paid. If the claim is filed within the three year period, the amount  of
the credit or refund shall not exceed the portion of the tax paid within
the  three  years immediately preceding the filing of the claim plus the
period of any extension of time for filing the return. If the  claim  is
not filed within the three year period, but is filed within the two year
period,  the amount of the credit or refund shall not exceed the portion
of the tax paid during the two years immediately preceding the filing of
the claim. Except as otherwise provided in this section, if no claim  is
filed,  the  amount  of  a  credit or refund shall not exceed the amount
which would be allowable if a claim had  been  filed  on  the  date  the
credit or refund is allowed.
(b)  Extension  of  time  by  agreement.--If  an  agreement  under the
provisions of paragraph two of subdivision (c)  of  section  sixty-three
(extending  the  period  for assessment of income tax)is made within the
period prescribed in subdivision (a) for  the  filing  of  a  claim  for
credit or refund, the period for filing a claim for credit or refund, or
for making credit or refund if no claim is filed, shall not expire prior
to  six  months  after  the  expiration  of  the  period within which an
assessment may be made  pursuant  to  the  agreement  or  any  extension
thereof.  The  amount  of  such  credit  or  refund shall not exceed the
portion of the tax paid after the execution of the agreement and  before
the  filing  of  the claim or the making of the credit or refund, as the
case may be, plus the portion of the tax paid within  the  period  which
would  be  applicable under subdivision (a) if a claim had been filed on
the date the agreement was executed.
(c) Notice of change or correction of federal income.--If  a  taxpayer
is  required  by section thirty-nine to report a change or correction in
federal taxable income reported on his federal income tax return, or  to
report  a change or correction which is treated in the same manner as if
it were an overpayment for federal income tax purposes, or  to  file  an
amended return with the administrator, claim for credit or refund of any
resulting  overpayment  of tax shall be filed by the taxpayer within two
years from the time the notice of such  change  or  correction  or  such
amended  return  was required to be filed with the administrator. If the
report or amended return required by section thirty-nine  is  not  filed
within  the  ninety  day  period  therein  specified,  interest  on  any
resulting refund or credit shall cease to accrue  after  such  ninetieth
day.  The amount of such credit or refund shall not exceed the amount of
the reduction in tax attributable to such federal change, correction  or
items  amended on the taxpayer's amended federal income tax return. This
subdivision shall not affect the time within which  or  the  amount  for
which  a  claim  for  credit  or  refund  may  be  filed apart from this
subdivision.
(d) Overpayment attributable to net operating loss carryback.--A claim
for credit or refund of so much of an overpayment as is attributable  to
the  application to the taxpayer of a net operating loss carryback shall
be filed within three years from the time the return  was  due  for  the
taxable year of the loss, or within the period prescribed in subdivision
(b)  in respect of such taxable year, or within the period prescribed in
subdivision (c), where applicable, in respect of  the  taxable  year  to
which  the  net  operating  loss  is carried back, whichever expires the
latest.
(e) Failure to file claim  within  prescribed  period.--No  credit  or
refund  shall  be allowed or made, except as provided in subdivision (f)
of this  section  or  subdivision  (d)  of  section  seventy  after  the
expiration  of  the  applicable  period  of limitation specified in this
local  law  unless a claim for credit or refund is filed by the taxpayer
within such period. Any later credit shall be void and any later  refund
erroneous.  No  period  of  limitations specified in any other law shall
apply to the recovery by a taxpayer of moneys paid in respect  of  taxes
under this local law.
(f)  Effect  of  petition to administrator.--If a notice of deficiency
for a taxable year  has  been  mailed  to  the  taxpayer  under  section
sixty-one  and  if  the  taxpayer  files  a  timely  petition  with  the
administrator under  section  sixty-nine,  he  may  determine  that  the
taxpayer  has  made an overpayment for such year (whether or not it also
determines a deficiency for such year). No separate claim for credit  or
refund  for  such  year shall be filed, and no credit or refund for such
year shall be allowed or made, except--
(1) as to overpayments determined by a decision of  the  administrator
which has become final;
(2)  as  to  any  amount  collected in excess of an amount computed in
accordance with the decision  of  the  administrator  which  has  become
final;
(3) as to any amount collected after the period of limitation upon the
making of levy for collection has expired; and
(4)  as  to  any  amount claimed as a result of a change or correction
described in subdivision (c).
(g) Limit on amount of credit or refund.--The  amount  of  overpayment
determined  under  subdivision  (f)  shall,  when  the  decision  of the
administrator has become final, be credited or  refunded  in  accordance
with  subdivision  (a)  of  section  sixty-six  and shall not exceed the
amount of tax which the administrator determines as part of his decision
was paid--
(1) after the mailing of the notice of deficiency, or
(2) within the period which would  be  applicable  under  subdivisions
(a),  (b)  or  (c),  if  on  the  date  of  the mailing of the notice of
deficiency a claim had been filed (whether or  not  filed)  stating  the
grounds upon which the administrator finds that there is an overpayment.
(h)  Early  return.--For  purposes  of  this section, any return filed
before  the  last  day  prescribed  for  the  filing  thereof  shall  be
considered  as  filed on such last day, determined without regard to any
extension of time granted the taxpayer.
(i) Prepaid income tax.--For purposes of this section, any tax paid by
the taxpayer before the last day prescribed for its payment, any  income
tax  withheld from the taxpayer during any calendar year, and any amount
paid by the taxpayer as estimated income tax for a taxable year shall be
deemed to have been paid by him on the fifteenth day of the fourth month
following the close of his taxable  year  with  respect  to  which  such
amount constitutes a credit or payment.
(j)   Return   and   payment   of   withholding  tax.--Notwithstanding
subdivision (h), for purposes  of  this  section  with  respect  to  any
withholding tax--
(1)  if  a return for any period ending with or within a calendar year
is filed before April fifteenth of the succeeding  calendar  year,  such
return  shall  be considered filed on April fifteenth of such succeeding
calendar year; and
(2) if a tax with respect  to  remuneration  paid  during  any  period
ending  with or within a calendar year is paid before April fifteenth of

the succeeding calendar year, such tax shall be considered paid on April
fifteenth of such succeeding calendar year.
(k)  Cross  reference.--For  provision  barring  refund of overpayment
credited against tax of  a  succeeding  year,  see  subdivision  (d)  of
section sixty-six.