New York Consolidated Law|SECTION 1087

                                                

  § 1087. Limitations on credit or refund.--(a) General.--Claim for
credit or refund of an overpayment of tax under article nine or nine-A
shall be filed by the taxpayer within (i) three years from the time the
return was filed, (ii) two years from the time the tax was paid or (iii)
in the case of any overpayment arising from an erroneous denial by the
department of environmental conservation of a certification of
completion pursuant to section 27-1419 of the environmental conservation
law, two years from the time a final determination to the effect that
such denial was erroneous is made and is no longer subject to judicial
review, whichever of such periods expires the latest, or if no return
was filed, within two years from the time the tax was paid. If the claim
is filed within the three year period, the amount of the credit or
refund shall not exceed the portion of the tax paid within the three
years immediately preceding the filing of the claim plus the period of
any extension of time for filing the return. If the claim is not filed
within the three year period, but is filed within the two year period,
the amount of the credit or refund shall not exceed the portion of the
tax paid during the two years immediately preceding the filing of the
claim. In the case of a claim for credit or refund filed within the
period prescribed in paragraph (iii) of this subsection, the amount of
the credit or refund may exceed the portion of the tax paid within the
applicable period specified in the two immediately preceding sentences,
but only to the extent of the amount of the overpayment attributable to
the denial described in such paragraph (iii). Except as otherwise
provided in this section, if no claim is filed, the amount of a credit
or refund shall not exceed the amount which would be allowable if a
claim had been filed on the date the credit or refund is allowed. For
special restriction in a proceeding on a claim for refund of tax paid
pursuant to an assessment made as a result of (i) a net operating loss
carryback or capital loss carryback, or (ii) an increase or decrease in
federal taxable income or federal tax, or (iii) a federal change or
correction or renegotiation, or computation or recomputation of tax,
which is treated in the same manner as if it were a deficiency for
federal income tax purposes, see paragraph (7) of subsection (c) of
section one thousand eighty-three.

(b) Extension of time by agreement.--If an agreement under the
provisions of paragraph (2) of subsection (c) of section one thousand
eighty-three (extending the period for assessment of tax) is made within
the period prescribed in subsection (a) for the filing of a claim for
credit or refund, the period for filing a claim for credit or refund, or
for making credit or refund if no claim is filed, shall not expire prior
to six months after the expiration of the period within which an
assessment may be made pursuant to the agreement or any extension
thereof. The amount of such credit or refund shall not exceed the
portion of the tax paid after the execution of the agreement and before
the filing of the claim or the making of the credit or refund, as the
case may be, plus the portion of the tax paid within the period which
would be applicable under subsection (a) if a claim had been filed on
the date the agreement was executed.

(c) Notice of change or correction of federal income.-- If a taxpayer
is required by subdivision three of section two hundred eleven or
paragraph one of subdivision (e) of section fifteen hundred fifteen of
this chapter, to file a report or amended return in respect of (i) a
decrease or increase in federal taxable income or federal alternative
minimum taxable income or federal tax, or (ii) a federal change or
correction or renegotiation, or computation or recomputation of tax,
which is treated in the same manner as if it were an overpayment for
federal income tax purposes, claim for credit or refund of any resulting
overpayment of tax shall be filed by the taxpayer within two years from
the time such report or amended return was required to be filed with the
commissioner. If the report or amended return required by any such
provision of law is not filed within the period therein specified, no
interest shall be payable on any claim for credit or refund of the
overpayment attributable to the federal change or correction. The amount
of such credit or refund--

(1) shall be computed without change of the allocation of income or
capital upon which the taxpayer's return (or any additional assessment)
was based, and

(2) shall not exceed the amount of the reduction in tax attributable
to such decrease or increase in federal taxable income, federal
alternative minimum taxable income, or federal tax or to such federal
change or correction or renegotiation, or computation or recomputation
of tax.  This subsection shall not affect the time within which or the
amount for which a claim for credit or refund may be filed apart from
this subsection.

(d) Overpayment attributable to net operating loss carryback or
capital loss carryback.--A claim for credit or refund of so much of an
overpayment under article nine-a as is attributable to the application
to the taxpayer of a net operating loss carryback or a capital loss
carryback shall be filed within three years from the time the return was
due (including extensions thereof) for the taxable year of the loss, or
within the period prescribed in subsection (b) in respect of such
taxable year, or within the period prescribed in subsection (c), where
applicable, in respect of the taxable year to which the net operating
loss or capital loss is carried back, whichever expires the latest.
Where such claim for credit or refund is filed after the expiration of
the period prescribed in subsection (a), or in subsection (b) where
applicable, in respect of the taxable year to which the net operating
loss or capital loss is carried back, the amount of such credit or
refund shall be computed without change of the allocation of income or
capital upon which the taxpayer's return (or any additional assessment)
was based.

(e) Failure to file claim within prescribed period.--No credit or
refund shall be allowed or made, except as provided in subsection (f) of
this section or subsection (d) of section one thousand ninety, after the
expiration of the applicable period of limitation specified in this
article, unless a claim for credit or refund is filed by the taxpayer
within such period. Any later credit shall be void and any later refund
erroneous. No period of limitations specified in any other law shall
apply to the recovery by a taxpayer of moneys paid in respect of taxes
under article nine, nine-a, nine-b or nine-c.

(f) effect of petition to tax commission.--If a notice of deficiency
for a taxable year has been mailed to the taxpayer under section one
thousand eighty-one and if the taxpayer files a timely petition with the
tax commission under section one thousand eighty-nine, it may determine
that the taxpayer has made an overpayment for such year (whether or not
it also determines a deficiency for such year). No separate claim for
credit or refund for such year shall be filed, and no credit or refund
for such year shall be allowed or made, except--

(1) as to overpayments determined by a decision of the tax commission
which has become final; and

(2) as to any amount collected in excess of an amount computed in
accordance with the decision of the tax commission which has become
final; and

(3) as to any amount collected after the period of limitation upon the
making of levy for collection has expired; and

(4) as to any amount claimed as a result of a change or correction
described in subsection (c).

(g) Limit on amount of credit or refund.--The amount of overpayment
determined under subsection (f) shall, when the decision of the tax
commission has become final, be credited or refunded in accordance with
subsection (a) of section one thousand eighty-six and shall not exceed
the amount of tax which the tax commission determines as part of its
decision was paid--

(1) after the mailing of the notice of deficiency, or

(2) within the period which would be applicable under subsections (a),
(b) or (c), if on the date of the mailing of the notice of deficiency a
claim had been filed (whether or not filed) stating the grounds upon
which the tax commission finds that there is an overpayment.

For special restriction on credit or refund in a proceeding on a
petition for redetermination of a deficiency where the notice of
deficiency is issued as a result of (i) a net operating loss carryback
or a capital loss carryback, or (ii) an increase or decrease in federal
taxable income or federal tax, or (iii) a federal change or correction
or renegotiation, or computation or recomputation of tax, which is
treated in the same manner as if it were a deficiency for federal income
tax purposes, see paragraph (7) of subsection (c) of section one
thousand eighty-three.

(h) Early return.--For purposes of this section, any return filed
before the last day prescribed for the filing thereof shall be
considered as filed on such last day, determined without regard to any
extension of time granted the taxpayer.

(i) Prepaid tax.--For purposes of this section, any tax paid by the
taxpayer before the last day prescribed for its payment (including any
amount paid by the taxpayer as estimated tax for a taxable year) shall
be deemed to have been paid by it on the fifteenth day of the third
month following the close of the taxable year the income of which is the
basis for tax under article nine-a, or on the last day prescribed in
article nine for the filing of a final return for such taxable year, or
portion thereof, determined in all cases without regard to any extension
of time granted the taxpayer, for taxable years beginning before January
first, two thousand sixteen, and on the fifteenth day of the fourth
month following the close of the taxable year the income of which is the
basis for tax under article nine-a, or on the last day prescribed in
article nine for the filing of a final return for such taxable year, or
portion thereof, determined in all cases without regard to any extension
of time granted the taxpayer, for taxable years beginning on or after
January first, two thousand sixteen.

(j) Cross reference.--For provision barring refund of overpayment
credited against tax of a succeeding year, except for good cause shown,
see subsection (b) of section one thousand eighty-six.