2023 New York Laws › TAX - Tax › Article 27 - Corporate Tax Procedure and Administration › 1087 - Limitations on Credit or Refund.

§  1087.  Limitations  on  credit  or refund.--(a) General.--Claim for
credit or refund of an overpayment of tax under article nine  or  nine-A
shall  be filed by the taxpayer within (i) three years from the time the
return was filed, (ii) two years from the time the tax was paid or (iii)
in the case of any overpayment arising from an erroneous denial  by  the
department   of   environmental   conservation  of  a  certification  of
completion pursuant to section 27-1419 of the environmental conservation
law, two years from the time a final determination to  the  effect  that
such  denial  was erroneous is made and is no longer subject to judicial
review, whichever of such periods expires the latest, 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. In the case of a claim for credit  or  refund  filed  within  the
period  prescribed  in paragraph (iii) of this subsection, the amount of
the credit or refund may exceed the portion of the tax paid  within  the
applicable  period specified in the two immediately preceding sentences,
but only to the extent of the amount of the overpayment attributable  to
the  denial  described  in  such  paragraph  (iii).  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.  For
special  restriction  in  a proceeding on a claim for refund of tax paid
pursuant to an assessment made as a result of (i) a net  operating  loss
carryback  or capital loss carryback, or (ii) an increase or decrease in
federal taxable income or federal tax, or  (iii)  a  federal  change  or
correction  or  renegotiation,  or  computation or recomputation of tax,
which is treated in the same manner as  if  it  were  a  deficiency  for
federal  income  tax  purposes,  see  paragraph (7) of subsection (c) of
section one thousand eighty-three.
(b) Extension  of  time  by  agreement.--If  an  agreement  under  the
provisions  of  paragraph  (2) of subsection (c) of section one thousand
eighty-three (extending the period for assessment of tax) is made within
the period prescribed in subsection (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 subsection (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  subdivision  three  of  section  two hundred eleven or
paragraph one of subdivision (e) of section fifteen hundred  fifteen  of
this  chapter,  to  file  a report or amended return in respect of (i) a
decrease or increase in federal taxable income  or  federal  alternative
minimum  taxable  income  or  federal  tax,  or (ii) a federal change or
correction or renegotiation, or computation  or  recomputation  of  tax,
which  is  treated  in  the same manner as if it were an overpayment for
federal income tax purposes, claim for credit or refund of any resulting

overpayment of tax shall be filed by the taxpayer within two years  from
the time such report or amended return was required to be filed with the
commissioner.  If  the  report  or  amended  return required by any such
provision  of  law  is not filed within the period therein specified, no
interest shall be payable on any claim  for  credit  or  refund  of  the
overpayment attributable to the federal change or correction. The amount
of such credit or refund--
(1)  shall  be  computed without change of the allocation of income or
capital upon which the taxpayer's return (or any additional  assessment)
was based, and
(2)  shall  not exceed the amount of the reduction in tax attributable
to  such  decrease  or  increase  in  federal  taxable  income,  federal
alternative  minimum  taxable  income, or federal tax or to such federal
change or correction or renegotiation, or computation  or  recomputation
of  tax.   This subsection shall not affect the time within which or the
amount for which a claim for credit or refund may be  filed  apart  from
this subsection.
(d)  Overpayment  attributable  to  net  operating  loss  carryback or
capital loss carryback.--A claim for credit or refund of so much  of  an
overpayment  under  article nine-a as is attributable to the application
to the taxpayer of a net operating loss  carryback  or  a  capital  loss
carryback shall be filed within three years from the time the return was
due  (including extensions thereof) for the taxable year of the loss, or
within the period prescribed  in  subsection  (b)  in  respect  of  such
taxable  year,  or within the period prescribed in subsection (c), where
applicable, in respect of the taxable year to which  the  net  operating
loss  or  capital  loss  is  carried back, whichever expires the latest.
Where such claim for credit or refund is filed after the  expiration  of
the  period  prescribed  in  subsection  (a), or in subsection (b) where
applicable, in respect of the taxable year to which  the  net  operating
loss  or  capital  loss  is  carried  back, the amount of such credit or
refund shall be computed without change of the allocation of  income  or
capital  upon which the taxpayer's return (or any additional assessment)
was based.
(e) Failure to file claim  within  prescribed  period.--No  credit  or
refund shall be allowed or made, except as provided in subsection (f) of
this section or subsection (d) of section one thousand ninety, after the
expiration  of  the  applicable  period  of limitation specified in this
article, 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 article nine, nine-a, nine-b or nine-c.
(f) effect of petition to tax commission.--If a notice  of  deficiency
for  a  taxable  year  has been mailed to the taxpayer under section one
thousand eighty-one and if the taxpayer files a timely petition with the
tax commission under section one thousand eighty-nine, it 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 tax  commission
which has become final; and
(2)  as  to  any  amount  collected in excess of an amount computed in
accordance with the decision of the  tax  commission  which  has  become
final; and
(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 subsection (c).
(g)  Limit  on  amount of credit or refund.--The amount of overpayment
determined under subsection (f) shall, when  the  decision  of  the  tax
commission  has become final, be credited or refunded in accordance with
subsection (a) of section one thousand eighty-six and shall  not  exceed
the  amount  of  tax  which the tax commission determines as part of its
decision was paid--
(1) after the mailing of the notice of deficiency, or
(2) within the period which would be applicable under subsections (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 tax commission finds that there is an overpayment.
For special restriction on credit or  refund  in  a  proceeding  on  a
petition  for  redetermination  of  a  deficiency  where  the  notice of
deficiency is issued as a result of (i) a net operating  loss  carryback
or  a capital loss carryback, or (ii) an increase or decrease in federal
taxable income or federal tax, or (iii) a federal change  or  correction
or  renegotiation,  or  computation  or  recomputation  of tax, which is
treated in the same manner as if it were a deficiency for federal income
tax purposes, see  paragraph  (7)  of  subsection  (c)  of  section  one
thousand eighty-three.
(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 tax.--For purposes of this section, any tax  paid  by  the
taxpayer  before  the last day prescribed for its payment (including any
amount paid by the taxpayer as estimated tax for a taxable  year)  shall
be  deemed  to  have  been  paid by it on the fifteenth day of the third
month following the close of the taxable year the income of which is the
basis for tax under article nine-a, or on the  last  day  prescribed  in
article  nine for the filing of a final return for such taxable year, or
portion thereof, determined in all cases without regard to any extension
of time granted the taxpayer, for taxable years beginning before January
first, two thousand sixteen, and on the  fifteenth  day  of  the  fourth
month following the close of the taxable year the income of which is the
basis  for  tax  under  article nine-a, or on the last day prescribed in
article nine for the filing of a final return for such taxable year,  or
portion thereof, determined in all cases without regard to any extension
of  time  granted  the taxpayer, for taxable years beginning on or after
January first, two thousand sixteen.
(j) Cross reference.--For  provision  barring  refund  of  overpayment
credited  against tax of a succeeding year, except for good cause shown,
see subsection (b) of section one thousand eighty-six.