2023 New York Laws › TAX - Tax › Article 27 - Corporate Tax Procedure and Administration › 1086 - Overpayment.

§ 1086. Overpayment.--- (a) General.--The commissioner of taxation and
finance,  within  the  applicable  period  of limitations, may credit an
overpayment  of  tax  and  interest  on  such  overpayment  against  any
liability  in  respect of any tax imposed by the tax law on the taxpayer
who made the overpayment,  or  against  any  liability  for  a  past-due
legally enforceable debt of which he is notified pursuant to section one
hundred  seventy-one-f  of this chapter, or against any city of New York
tax warrant judgment debt of which he is notified  pursuant  to  section
one  hundred  seventy-one-l  of  this  chapter, and the balance shall be
refunded by the comptroller out of the proceeds of the tax  retained  by
him  for  such  general  purpose.  Provided,  however, in the case of an
overpayment claimed on a return or report, such  refund  shall  be  made
only  if  application  therefor is made on such return or report. In the
absence of such application, the amount of such overpayment with respect
to any taxable year shall be credited  against,  and  considered  as,  a
payment  of  tax  liability  with respect to such tax for the succeeding
taxable year and shall be credited against the estimated  tax,  if  any,
for  such year (whether or not claimed as a credit in the declaration of
estimated tax for such succeeding taxable year). The commissioner  shall
notify  the taxpayer that such overpayment has been so credited, and the
taxpayer may, prior to the due date (without regard  to  extensions)  of
the  taxpayer's return or report for such succeeding taxable year, claim
a refund of such overpayment. Any refund under  this  section  shall  be
made  only  upon  the  filing  of a return and upon a certificate of the
commissioner  approved  by  the  comptroller.  The  comptroller,  as   a
condition  precedent  to the approval of such a certificate, may examine
into the facts as disclosed by the return of the taxpayer who  made  the
overpayment and other information and data available in the files of the
commissioner.
(b)  Credits  against  estimated tax.---The commissioner may prescribe
regulations providing for the crediting against the estimated tax  under
article  nine-a  for  any taxable year of the amount determined to be an
overpayment of tax under such article for a preceding taxable  year.  If
any  overpayment  of tax is so claimed as a credit against estimated tax
for the succeeding taxable year, such amount shall be  considered  as  a
payment  of  the  tax  under  article  nine-a  of  this  chapter for the
succeeding taxable year (whether or not  claimed  as  a  credit  in  the
declaration  of  estimated tax for such succeeding taxable year), and no
claim for credit or refund of such overpayment shall be allowed for  the
taxable  year  for  which the overpayment arises, except upon request to
the commissioner on or before the last day prescribed for the filing  of
the  return  for  the succeeding taxable year, determined with regard to
any extension of time granted. If good cause is shown for reversing  the
credit,  the  commissioner  may,  in  his  or her discretion, credit the
overpayment against  a  liability  or  refund  the  overpayment  without
interest.  Provided,  the  person  who  made the overpayment will not be
relieved  of  liability  for  any  penalty  imposed  for  a   consequent
underpayment  of  estimated  tax  for  the  succeeding taxable year. The
decision of the commissioner to grant or deny the request is  final  and
not subject to further administrative or judicial review.
(c)  Rule where no tax liability.---If there is no tax liability for a
period in respect of which an amount is paid as tax, such  amount  shall
be considered an overpayment.
(d) Assessment and collection after limitation period.---If any amount
of  tax  is  assessed or collected after the expiration of the period of
limitations properly applicable thereto, such amount shall be considered
an overpayment.
(e) Assignment of overpayment.---A credit for an  overpayment  of  tax
under  article  nine,  nine-a,  nine-b  or nine-c may be assigned by the
taxpayer to a  corporation  liable  to  pay  taxes  under  any  of  such
articles,  and  the assignee of the whole or any part of such credit, on
filing  such  assignment  with  the  tax  commission, shall thereupon be
entitled to credit upon the books of the tax commission for  the  amount
thereof  on its current account for taxes, in the same manner and to the
same effect as though the credit had  originally  been  allowed  in  its
favor.