N.Y. Tax Law § 688 — Interest on overpayment

§ 688. Interest on overpayment.--(a) General.--Notwithstanding the\nprovisions of section sixteen of the state finance law, interest shall\nbe allowed and paid as follows at the overpayment rate set by the\ncommissioner pursuant to section six hundred ninety-seven, or if no rate\nis set, at the rate of six per cent per annum upon any overpayment in\nrespect of the tax imposed by this article:\n (1) from the date of the overpayment to the due date of an amount\nagainst which a credit is taken;\n (2) from the date of the overpayment to a date (to be determined by\nthe commissioner) preceding the date of a refund check by not more than\nthirty days, whether or not such refund check is accepted by the\ntaxpayer after tender of such check to the taxpayer. The acceptance of\nsuch check shall be without prejudice to any right of the taxpayer to\nclaim any additional overpayment and interest thereon.\n (3) Late returns. Notwithstanding the provisions of paragraph one or\ntwo of this subsection, in the case of a return of tax which is filed\nafter the last date prescribed for filing such return (determined with\nregard to extensions), no interest shall be allowed or paid for any day\nbefore the date on which the return is filed.\n (4) Interest on certain refunds. To the extent provided for in\nregulations promulgated by the commissioner of taxation and finance, if\nan item of income, gain, loss, deduction or credit is changed from the\ntaxable year or period in which it is reported to the taxable year or\nperiod in which it belongs and the change results in an underpayment in\na taxable year or period and an overpayment in some other taxable year\nor period, the provisions of paragraph three of this subsection with\nrespect to an overpayment shall not be applicable to the extent that the\nlimitation in such paragraph on the right to interest would result in a\ntaxpayer not being allowed interest for a length of time with respect to\nan overpayment while being required to pay interest on an equivalent\namount of the related underpayment. However, this paragraph shall not be\nconstrued as limiting or mitigating the effect of any statute of\nlimitations or any other provision of law relating to the authority of\nsuch commissioner to issue a notice of deficiency or to allow a credit\nor refund on an overpayment.\n (5) Amounts of less than five dollars. No interest shall be allowed or\npaid if the amount thereof is less than five dollars.\n (b) Advance payment of tax, payment of estimated tax, and credit for\nincome tax withholding.--The provisions of subsections (h) and (i) of\nsection six hundred eighty-seven applicable in determining the date of\npayment of tax for purposes of determining the period of limitations on\ncredit or refund, shall be applicable in determining the date of payment\nfor purposes of this section.\n (c) Income tax refund within forty-five days of claim for\noverpayment.--If any overpayment of tax imposed by this article is\ncredited or refunded within forty-five days after the last date\nprescribed (or permitted by extension of time) for filing the return of\nsuch tax on which such overpayment was claimed or within forty-five days\nafter such return was filed, whichever is later, or within six months\nafter a demand is filed pursuant to paragraph six of subsection (b) of\nsection six hundred fifty-one of this chapter, no interest shall be\nallowed under this section on any such overpayment. In regard to an\namended return claiming such overpayment or a claim for credit or refund\non which such overpayment was claimed, if such overpayment is refunded\nwithin forty-five days of filing such return or such claim, no interest\nshall be allowed from the date such return or such claim is filed until\nthe day the refund is made. For purposes of this subsection, any amended\nreturn or claim for credit or refund filed before the last day\nprescribed (or permitted by extension of time) for the filing of the\nreturn of tax for such year shall be considered as filed on such last\nday.\n (d) Refund of income tax caused by carryback.--For purposes of this\nsection, if any overpayment of tax imposed by this article results from\na carryback of a net operating loss, such overpayment shall be deemed\nnot to have been made prior to the filing date for the taxable year in\nwhich such net operating loss arises. Such filing date shall be\ndetermined without regard to extensions of time to file. For purposes of\nsubsection (c) of this section any overpayment described herein shall be\ntreated as an overpayment for the loss year and such subsection shall be\napplied with respect to such overpayment by treating the return for the\nloss year as not filed before claim for such overpayment is filed. The\nterm "loss year" means the taxable year in which such loss arises.\n (e) No interest until return in processible form.\n (1) For purposes of subsections (a) and (c) of this section, a return\nshall not be treated as filed until it is filed in processible form.\n (2) For purposes of paragraph one of this subsection, a return is in a\nprocessible form if--\n (A) such return is filed on a permitted form, and\n (B) such return contains--\n (i) the taxpayer's name, address, and identifying number and the\nrequired signatures, and\n (ii) sufficient required information (whether on the return or on\nrequired attachments) to permit the mathematical verification of tax\nliability shown on the return.\n (f) Overpayment credited against past-due support, or against a\npast-due legally enforceable debt, or a city of New York tax warrant\njudgment debt, or defaulted guaranteed student, state university or city\nuniversity loans.--If interest is payable pursuant to this section on\nthat portion of an overpayment of tax imposed by this article which is\ncertified by the commissioner of taxation and finance to the comptroller\nas the amount to be credited against past-due support, or against a\npast-due legally enforceable debt, or a city of New York tax warrant\njudgment debt, or the amount of a default in repayment of a guaranteed\nstudent, state university or city university loan, as the case may be,\npursuant to the provisions of section one hundred seventy-one-c, section\none hundred seventy-one-d, section one hundred seventy-one-e, section\none hundred seventy-one-f or section one hundred seventy-one-l of this\nchapter, such portion of such an overpayment shall cease to bear\ninterest on the date of such certification.\n (g) Cross-reference.--For provision with respect to interest after\nfailure to file notice of federal change under section six hundred\nfifty-nine or six hundred fifty-nine-a, see subsection (c) of section\nsix hundred eighty-seven.\n (h) Notwithstanding any other provisions in this section, for taxable\nyears beginning on or after January first, two thousand eight and before\nJanuary first, two thousand nine, interest will be allowed on an\noverpayment on any return or report on which one or more empire zone tax\ncredits are claimed, only from the one hundred eightieth day after the\ntaxpayer files with the department an empire zone retention certificate\nissued pursuant to subdivision (w) of section nine hundred fifty-nine of\nthe general municipal law to the empire zone enterprise which is the\nbasis for the tax credit or credits claimed on the return or report.\n