N.Y. Tax Law § 686 — Overpayment

§ 686. Overpayment.-- (a) General.-- The commissioner of taxation and\nfinance, within the applicable period of limitations, may credit an\noverpayment of income tax and interest on such overpayment against any\nliability in respect of any tax imposed by this chapter, including taxes\nimposed under article twenty-three of this chapter, on the person who\nmade the overpayment, against any liability in respect of any tax\nimposed pursuant to the authority of this chapter or any other law on\nsuch person if such tax is administered by the commissioner of taxation\nand finance and, as provided in sections one hundred seventy-one-c, one\nhundred seventy-one-d, one hundred seventy-one-e, one hundred\nseventy-one-f and one hundred seventy-one-l of this chapter, against\npast-due support, a past-due legally enforceable debt, a city of New\nYork tax warrant judgment debt, and against the amount of a default in\nrepayment of a guaranteed student, state university or city university\nloan. The balance shall be refunded by the comptroller out of the\nproceeds of the tax retained by him for such general purpose. Any refund\nunder this section shall be made only upon the filing of a return and\nupon a certificate of the commissioner approved by the comptroller. The\ncomptroller, as a condition precedent to the approval of such a\ncertificate, may examine into the facts as disclosed by the return of\nthe person who made the overpayment and other information and data\navailable in the files of the commissioner.\n (b) Excessive withholding.--If the amount allowable as a credit for\ntax withheld from the taxpayer exceeds his tax to which the credit\nrelates, the excess shall be considered an overpayment.\n (c) Overpayment by employer.--If there has been an overpayment of tax\nrequired to be deducted and withheld under section six hundred\nseventy-one, refund shall be made to the employer only to the extent\nthat the amount of the overpayment was not deducted and withheld by the\nemployer.\n (d) Overpayment by a deceased person.--Notwithstanding section\nthirteen hundred ten of the surrogate's court procedure act, any\noverpayment by a decedent not in excess of one thousand dollars may be\nrefunded to the decedent's surviving spouse unless the return for the\ndecedent was filed by his or her executor or administrator.\n (e) Credits against estimated tax.--The commissioner may prescribe\nregulations providing for the crediting against the estimated income tax\nfor any taxable year of the amount determined to be an overpayment of\nthe income tax for a preceding taxable year. If any overpayment of\nincome tax is so claimed as a credit against estimated tax for the\nsucceeding taxable year, such amount shall be considered as a payment of\nthe income tax for the succeeding taxable year, and no claim for credit\nor refund of such overpayment shall be allowed for the taxable year for\nwhich the overpayment arises, except upon request to the commissioner on\nor before the last day prescribed for the filing of the return for the\nsucceeding taxable year, determined with regard to any extension of time\ngranted. If good cause is shown for reversing the credit, the\ncommissioner may, in his or her discretion, credit the overpayment\nagainst a liability or refund the overpayment without interest.\nProvided, the person who made the overpayment will not be relieved of\nliability for any penalty imposed for a consequent underpayment of\nestimated tax for the succeeding taxable year. The decision of the\ncommissioner to grant or deny the request is final and not subject to\nfurther administrative or judicial review.\n (f) Rule where no tax liability.--If there is no tax liability for a\nperiod in respect of which an amount is paid as income tax, such amount\nshall be considered an overpayment.\n (g) Assessment and collection after limitation period.--If any amount\nof income tax is assessed or collected after the expiration of the\nperiod of limitations properly applicable thereto, such amount shall be\nconsidered an overpayment.\n (h) Cross reference. For provision barring application of article\nfifty-two of the civil practice law and rules to any amount to be\nrefunded or credited to a taxpayer, see section seven of this chapter.\n (i) Overpayment.--In case of an overpayment of tax required to be paid\nby an entity as an estimated tax under paragraph four of subsection (c)\nof section six hundred fifty-eight of this article, a refund shall be\nmade to such entity only to the extent that such overpayment is\nattributable to a partner, member or shareholder for whom the entity is\nnot required to pay such estimated tax.\n