N.Y. Tax Law Section 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 § 171-F (Certain overpayments credited against outstanding debts owed to a state agency)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 § 171-L (Certain overpayments credited against outstanding tax debt owed to the city of New York)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 9-A (Franchise Tax On Business Corporations)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.

Source: Section 1086 — Overpayment, https://www.­nysenate.­gov/legislation/laws/TAX/1086 (updated Sep. 22, 2014; accessed Mar. 9, 2025).

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Accessed:
Mar. 9, 2025

Last modified:
Sep. 22, 2014

§ 1086’s source at nysenate​.gov

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