2023 New York Laws › TAX - Tax › Article 22 - Personal Income Tax › Part 6 - Procedure and Administration › 684 - Interest on Underpayment.

§  684.  Interest  on  underpayment.--  (a) General.--If any amount of
income tax is not paid on or before the last  date  prescribed  in  this
article  for  payment,  interest on such amount at the underpayment rate
set by the commissioner pursuant to section six hundred ninety-seven  of
this  part,  or  if  no  rate  is set, at the rate of seven and one-half
percent per annum shall be paid for the period from such  last  date  to
the  date  paid,  whether  or  not any extension of time for payment was
granted. Interest under this subsection shall not be paid if the  amount
thereof  is  less than one dollar. If the time for filing of a return of
tax withheld by an employer is extended, the employer shall pay interest
for the period for which the extension is granted  and  may  not  charge
such interest to the employee.
(b)  Exception  as  to estimated tax.--This section shall not apply to
any failure to pay estimated tax.
(c) Exception for mathematical or clerical error.--No  interest  shall
be  imposed  on  any  underpayment  of tax due solely to mathematical or
clerical error if the taxpayer files a return within the time prescribed
in this article (including any extension of time) and pays the amount of
underpayment within three months after the due date of such  return,  as
it may be extended.
(d)   Suspension   of   interest  on  deficiencies.--If  a  waiver  of
restrictions on assessment  of  a  deficiency  has  been  filed  by  the
taxpayer,  and if notice and demand by the tax commission for payment of
such deficiency is not made within thirty days after the filing of  such
waiver,  interest shall not be imposed on such deficiency for the period
beginning immediately after such thirtieth day and ending with the  date
of notice and demand.
(e)  Tax  reduced  by carryback.--If the amount of tax for any taxable
year is reduced by reason of a carryback of a net operating  loss,  such
reduction in tax shall not affect the computation of interest under this
section  for the period ending with the filing date for the taxable year
in which the net operating  loss  arises.  Such  filing  date  shall  be
determined without regard to extensions of time to file.
(f)  Interest  treated  as  tax.--Interest under this section shall be
paid upon notice and demand and shall be assessed, collected and paid in
the same manner as income tax. Any reference in this article to the  tax
imposed  by  this  article  shall  be  deemed  also to refer to interest
imposed by this section on such tax.
(g) Interest on penalties or  additions  to  tax.--Interest  shall  be
imposed  under  subsection  (a)  of  this  section  in  respect  of  any
assessable penalty or addition to tax only if such assessable penalty or
addition to tax is not paid within twenty-one  calendar  days  from  the
date  of  the notice and demand therefor under subsection (b) of section
six hundred ninety-two of this article (ten business days if the  amount
for  which  such notice and demand is made equals or exceeds one hundred
thousand dollars), and in such case interest shall be imposed  only  for
the  period  from  such  date  of  the  notice and demand to the date of
payment.
(h) Payment within  specified  period  after  notice  and  demand.--If
notice and demand is made for payment of any amount under subsection (b)
of section six hundred ninety-two of this article, and if such amount is
paid  within  twenty-one  calendar days (ten business days if the amount
for which such notice and demand is made equals or exceeds  one  hundred
thousand  dollars)  after  the  date of such notice and demand, interest
under this section on the amount so paid shall not be  imposed  for  the
period after the date of such notice and demand.
(i)  Limitation  on  assessment  and  collection.--Interest prescribed
under this section may be assessed and collected at any time during  the

period  within  which  the  tax  or  other amount to which such interest
relates may be assessed and collected, respectively.
(j)  Interest on erroneous refund.--Any portion of tax or other amount
which has been erroneously refunded, and which  is  recoverable  by  the
commissioner,  shall  bear  interest at the underpayment rate set by the
commissioner pursuant to section six hundred ninety-seven of this  part,
or  if  no  rate  is  set, at the rate of seven and one-half percent per
annum from the date of the payment of the refund, but only if it appears
that any part of the refund was induced by fraud or a  misrepresentation
of a material fact.
(k)  Satisfaction by credits.--If any portion of a tax is satisfied by
credit of an overpayment, then no interest shall be imposed  under  this
section  on  the  portion  of the tax so satisfied for any period during
which, if the credit  had  not  been  made,  interest  would  have  been
allowable with respect to such overpayment.