N.Y. Tax Law § 171-C — Certain overpayments credited against past-due support

§ 171-c. Certain overpayments credited against past-due support. (1)\nThe commissioner, on behalf of the department, shall enter into a\nwritten agreement with the commissioner of the office of temporary and\ndisability assistance, on behalf of the state office of temporary and\ndisability assistance, which shall set forth the procedures for\ncrediting any overpayment by an individual, estate or trust of income\ntax imposed by article twenty-two of this chapter, city personal income\ntax on residents imposed pursuant to the authority of article thirty of\nthis chapter, city income tax surcharge on residents imposed pursuant to\nthe authority of article thirty-A of this chapter and city earnings tax\non nonresidents imposed pursuant to the authority of article thirty-B of\nthis chapter and the interest on such overpayments against past-due\nsupport owed by such individual, estate or trust of which the\ncommissioner has been notified by the commissioner of the office of\ntemporary and disability assistance pursuant to the provisions of such\nagreement.\n (2) Such agreement shall apply to past-due support which is owed to\npersons or entities entitled to enforce an order of support. For\npurposes of this section, an "order of support" means any final order,\ndecree or judgment in a matrimonial action or family court proceeding,\nor any foreign support order, decree or judgment which is registered\npursuant to section thirty-seven-a of the domestic relations law, which\nrequires the payment of alimony, maintenance, support or child support.\nFor purposes of this section, "past-due support" means the amount of a\ndelinquency determined from an order of support no longer subject to\nappellate judicial review.\n (3) Such agreement shall include:\n (a) the procedure under which the state department of office of\ntemporary and disability assistance shall notify the commissioner of\nliability for past-due support, such procedure to specify when the\ncommissioner shall be notified and the content of such notification;\n (b) the minimum period of delinquency in payment of past-due support\nand the minimum amount of past-due support with respect to which the\ncommissioner of taxation and finance shall, pursuant to this section,\ncredit an overpayment against past-due support;\n (c) the procedure for reimbursement of the commissioner by the state\noffice of temporary and disability assistance for the full cost of\ncarrying out the procedures authorized by this section;\n (d) such other matters as the parties to such agreement shall deem\nnecessary to carry out the provisions of this section; and\n (e) the procedure for reimbursement of the comptroller by the state\noffice of temporary and disability assistance for any overpayment and\ninterest thereon which has been credited against past due support owed\nby a taxpayer filing a joint return, but which has been refunded by the\ncomptroller, pursuant to paragraph six of subsection (b) of section six\nhundred fifty-one of this chapter, to a spouse not liable for the past\ndue support owed by such taxpayer.\n (4) (a) With regard to persons owed past-due support who are receiving\nservices pursuant to title six-A of article three of the social services\nlaw, no later than thirty days prior to the date a local social services\ndistrict requests the state office of temporary and disability\nassistance to notify the commissioner of the liability of an individual,\nestate or trust for past-due support, such district shall notify such\nindividual, estate or trust in writing that such request may be made and\nshall also notify him or it that he or it may correct any error in such\nrequest and may avoid such notification by the office of temporary and\ndisability assistance to the commissioner by satisfying such liability\nwithin thirty days of the date of the written notice from the local\nsocial services district to such individual, estate or trust. Such\nnotice shall also set forth the name of an employee of the local social\nservices district, including his address and telephone number, who may\nbe contacted with respect to correction of any error in such request\nconcerning such individual's, estate's or trust's liability for past-due\nsupport or with respect to payment of such liability.\n (b) With regard to persons owed past-due support who are receiving\nservices pursuant to title six-B of article three of the social services\nlaw, no later than thirty days prior to the date the state office of\ntemporary and disability assistance notifies the commissioner of the\nliability of an individual, estate or trust for past-due support, such\noffice shall notify such individual, estate or trust in writing that\nsuch request may be made and shall also notify him or it that he or it\nmay correct any error in such request and may avoid such notification by\nsuch office to the commissioner by satisfying such liability and\nsubmitting proof thereof satisfactory to the office within thirty days\nof the date of the written notice from such office to such individual,\nestate or trust. Such notice shall also set forth the name of an\nemployee of such office, including his or her address and telephone\nnumber, who may be contacted with respect to correction of any error in\nsuch request concerning such individual's, estate's or trust's liability\nfor past-due support or with respect to payment of such liability.\n (5) (i) In calculating the amount of an overpayment and interest\nthereon which shall be credited against past-due support owed by a\ntaxpayer, the tax commission shall first credit the overpayment and\ninterest thereon against any:\n (A) liability of such taxpayer in respect of any tax imposed by this\nchapter;\n (B) liability of such taxpayer for any tax imposed pursuant to the\nauthority of this chapter or any other law if such tax is administered\nby the tax commission; and\n (C) estimated tax for the succeeding taxable year if the taxpayer\nclaims such overpayment or a portion thereof as a credit against\nestimated tax for such succeeding taxable year pursuant to subsection\n(e) of section six hundred eighty-six of this chapter or subdivision (e)\nof section 11-1786 of the administrative code of the city of New York\nfor any tax imposed pursuant to the authority of this chapter or any\nother law if such tax is administered by the tax commission.\n (ii) Only the balance remaining, after such overpayment and the\ninterest thereon has been credited as described in paragraph (i) of this\nsubdivision, shall be certified as an overpayment plus any interest to\nbe credited against past-due support, with the remainder to be refunded\nto the taxpayer if such remainder is not required to satisfy the amount\nof a default in repayment of a state university loan or city university\nloan pursuant to section one hundred seventy-one-e of this article\nand/or the amount of a past-due legally enforceable debt pursuant to\nsection one hundred seventy-one-f of this article and/or a city of New\nYork tax warrant judgment debt pursuant to section one hundred\nseventy-one-l of this article and/or the amount of a default in\nrepayment of a guaranteed student loan pursuant to section one hundred\nseventy-one-d of this article. In cases where the taxpayer owes past-due\nsupport to more than one person or entity, and the total amount of\npast-due support certified to the commissioner by the state office of\ntemporary and disability assistance exceeds the balance remaining, each\nsuch person or entity shall receive a pro rata share of the balance\nremaining, such share to be based on the amount of past-due support owed\nto such person or entity as certified to the commissioner by such office\npursuant to this section. The state office of temporary and disability\nassistance shall be responsible for determining and distributing each\nperson's or entity's pro rata share of past-due support pursuant to\nregulations of such office.\n (6) The tax commission shall certify to the comptroller the total\namount of the overpayment and the interest on such overpayment, the\namount of such overpayment and the interest on such amount to be\ncredited against past-due support and the balance of such overpayment\nand interest to be refunded to the taxpayer.\n (7) The commissioner of taxation and finance shall notify the taxpayer\nmaking the overpayment, in writing, of the amount of such overpayment\nand the interest thereon certified to the comptroller as the amount to\nbe credited against past-due support. Such notice shall include\nnotification to any other person who may have filed a joint return with\nthe taxpayer of the steps such other person may take in order to secure\nhis or her proper share of the refund.\n (8) (a) For purposes of this section, past-due support owed to persons\nwho are receiving services pursuant to title six-A of article three of\nthe social services law may include:\n (i) amounts representing delinquencies which have accrued under a\ncourt order of support;\n (ii) with respect to any court order of support issued before\nSeptember first, nineteen hundred eighty-four which provided for\nperiodic payments toward an established arrears amount, the entire\namount of such arrears where the respondent is, at any time after\nSeptember first, nineteen hundred eighty-four, delinquent in making such\nperiodic payments; and\n (iii) with respect to any court order of support made on or after\nSeptember first, nineteen hundred eighty-four which establishes an\narrears amount, the entire amount of such arrears, unless such order\nincludes a finding that any anticipated tax refunds have been considered\nby the court and taken into account in determining the amount of\nperiodic payments to be made toward the arrears amount, or in\ndetermining the amount of the current support order, and expressly\nprovides that such arrears are not to be so certified.\n (b) For the purpose of the state child support program, any payment\nmade by a respondent which is insufficient to fully satisfy both the\ncurrent support obligation and a periodic payment toward the balance of\nany arrears amount established by court order shall be first applied\ntoward the current support obligation or any delinquency thereon and\nthen toward the periodic payment on any arrears amount established by\ncourt order unless otherwise required by federal regulation.\n (9) From the time the commissioner is notified by the state office of\ntemporary and disability assistance of an individual's, estate's or\ntrust's liability for past-due support under the agreement provided for\nin this section, the commissioner and the department shall be relieved\nfrom all liability to such individual, estate or trust, their assigns,\nsuccessors, heirs or representatives for the amount of an over payment\nand interest on such amount certified to the comptroller to be credited\nagainst past-due support and such individual, estate or trust shall have\nno right to commence a court action or proceeding or to any other legal\nrecourse against the commissioner or the department to recover such\noverpayment or such interest certified to the comptroller to be credited\nagainst past-due support. Provided, however, nothing herein shall be\nconstrued to prohibit such individual, estate or trust from proceeding\nagainst the state office of temporary and disability assistance or the\nappropriate local social services district to recover that part of such\noverpayment or interest thereon so certified to the comptroller to be\ncredited against past-due support which is greater than the amount of\npast-due support owed by such individual, estate or trust on the date of\nsuch certification.\n (10) The tax commission shall promulgate such rules and regulations as\nit deems necessary to carry out the provisions of this section.\n