N.Y.
Tax Law Section 171-E
Certain overpayments credited against national defense/national direct, health professions or nursing student loans
(1)
As used in this section only, the term “state university loan” or “city university loan” refers to loans provided to students at state-operated units of the state university of New York or the city university of New York respectively under the national defense/national direct, health professions or nursing student loan programs.(2)
The commissioner of taxation and finance, on behalf of the tax commission, shall enter into a written agreement with the state university of New York or the city university of New York respectively which shall set forth the procedures for crediting any overpayment by an individual, estate or trust of income tax imposed by article 22 (Personal Income Tax)article twenty-two of this chapter, city personal income tax on residents imposed pursuant to the authority of article 30 (City Personal Income Tax)article thirty of this chapter, city income tax surcharge on residents imposed pursuant to the authority of article 30-A (City Income Tax Surcharge)article thirty-A of this chapter, city earnings tax on nonresidents imposed pursuant to the authority of article two-E of the general city law and city earnings tax on nonresidents imposed pursuant to the authority of article thirty-B of this chapter and the interest on such overpayments against the amount of any default in repayment of a state university loan or city university loan owed by such individual, estate or trust of which the commissioner of taxation and finance has been notified by the state university of New York or the city university of New York respectively pursuant to the provisions of such agreement.(3)
Such agreement shall apply only to the amount of a default in repayment of a state university loan or city university loan as to which the state and/or state university of New York or the city university of New York respectively has obtained a judgment or has made a determination that satisfies the requirements of subdivision three of § 171-F (Certain overpayments credited against outstanding debts owed to a state agency)section one hundred seventy-one-f of this article.(4)
Such agreement shall include:(a)
the procedure under which the state university of New York or the city university of New York respectively shall notify the commissioner of taxation and finance of a default in a repayment of a state university loan or city university loan, such procedure to specify when the commissioner of taxation and finance shall be notified and the content of such notification;(b)
the minimum amount outstanding on a default in repayment of a state university loan or city university loan against which the commissioner of taxation and finance shall, pursuant to this section, credit an overpayment;(c)
the procedure for reimbursement of the commissioner of taxation and finance by the state university of New York or the city university of New York respectively for the full cost of carrying out the procedures authorized by this section;(d)
a provision providing that information furnished to the state university of New York or the city university of New York respectively by the commissioner of taxation and finance and the comptroller pursuant to said agreement shall be considered confidential and shall not be disclosed except to such federal or state department or agency entitled to such information;(e)
such other matters as the parties to such agreement shall deem necessary to carry out the provisions of this section; and(f)
the procedure for reimbursement of the comptroller by the state university of New York or city university of New York for any overpayment and interest thereon which has been credited against the amount of default on repayment of a state university loan or a city university loan owed by a taxpayer filing a joint return, but which has been refunded by the comptroller, pursuant to paragraph six of subsection (b) of § 651 (Returns and liabilities)section six hundred fifty-one of this chapter, to a spouse not liable for the amount of default in repayment of a state university loan or city university loan owed by such taxpayer.(5)
(a) In calculating the amount of an overpayment and interest thereon which shall be credited against the amount of a default in repayment of a state university loan or city university loan owed by a taxpayer, the tax commission shall first credit the overpayment and interest thereon against any: (A) liability of such taxpayer in respect of any tax imposed by this chapter; (B) liability of such taxpayer for any tax imposed pursuant to the authority of this chapter or any other law if such tax is administered by the tax commission; (C) estimated tax for the succeeding taxable year if such taxpayer claims such overpayment or a portion thereof as a credit against estimated tax for such succeeding taxable year pursuant to subsection (e) of § 686 (Overpayment)section six hundred eighty-six of this chapter or subdivision (e) of section 11-1786 of the administrative code of the city of New York for any tax imposed pursuant to the authority of this chapter or any other law if such tax is administered by the tax commission; and (D) past-due support owed by the taxpayer pursuant to § 171-C (Certain overpayments credited against past-due support)section one hundred seventy-one-c of this chapter;(b)
Only the balance remaining, after such overpayment and the interest thereon has been credited as described in paragraph (a) of this subdivision, shall be certified as an overpayment plus any interest to be credited against the amount of a default in repayment of a state university loan or city university loan, with the remainder to be refunded to the taxpayer if such remainder is not required to satisfy the amount of a past-due legally enforceable debt pursuant to § 171-F (Certain overpayments credited against outstanding debts owed to a state agency)section one hundred seventy-one-f of this article, and/or a city of New York tax warrant judgment debt 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 article and/or the amount of a default in repayment of a guaranteed student loan pursuant to § 171-D (Certain overpayments credited against defaulted governmental education loans)section one hundred seventy-one-d of this article.(6)
The tax commission shall certify to the comptroller the total amount of the overpayment and the interest on such overpayment, the amount of such overpayment and the interest on such amount to be credited against the amount of the default in repayment of a state university loan or city university loan and the balance of such overpayment and interest to be refunded to the taxpayer.(7)
The commissioner of taxation and finance shall notify the taxpayer making the overpayment, in writing, of the amount of such overpayment and the interest thereon certified to the comptroller as the amount to be credited against the amount of a default in repayment of a state university loan or city university loan. Such notice shall include notification to any other person who may have filed a joint return with the taxpayer of the steps such other person may take in order to secure his or her proper share of the refund.(8)
From the time the state tax commission is notified by the state university of New York or the city university of New York respectively of an individual’s, estate’s or trust’s default in repayment of a state university loan or city university loan under the agreement provided for in this section, the state tax commission and the department of taxation and finance shall be relieved from all liability to such individual, estate or trust, their assigns, successors, heirs or representatives for the amount of an overpayment and interest on such amount certified to the comptroller to be credited against the amount of a default in repayment of such state university loan or city university loan and such individual, estate or trust shall have no right to commence a court action or proceeding or to any other legal recourse against the state tax commission or the department of taxation and finance to recover such overpayment or such interest certified to the comptroller to be credited against the amount of default in repayment of a state university loan or city university loan. Provided, however, nothing herein shall be construed to prohibit such individual, estate or trust from proceeding against the state university of New York or the city university of New York respectively to recover that part of such overpayment or interest thereon so certified to the comptroller to be credited against the amount of a default in repayment of a state university loan or city university loan which is greater than the amount of such default owed by such individual, estate or trust on the date of such certification.(9)
The tax commission shall promulgate such rules and regulations as it deems necessary to carry out the provisions of this section.
Source:
Section 171-E — Certain overpayments credited against national defense/national direct, health professions or nursing student loans, https://www.nysenate.gov/legislation/laws/TAX/171-E (updated Sep. 22, 2014; accessed Oct. 26, 2024).
