§ 136 — Interest on overpayment

§ 136. Interest on overpayment. (a) General.--Notwithstanding the\nprovisions of section three-a of the general municipal law, interest\nshall be allowed and paid as follows at the rate set by the commissioner\nof finance pursuant to section one hundred forty-five, or, if no rate is\nset, at the rate of six percent per annum upon any overpayment in\nrespect of the tax imposed by this title:\n (1) from the date of the overpayment to the due date of an amount\nagainst which a credit is taken; or\n (2) from the date of the overpayment to a date (to be determined by\nthe commissioner of finance), preceding the date of a refund check by\nnot more than thirty days, whether or not such refund check is accepted\nby the taxpayer after tender of such check to the taxpayer. The\nacceptance of such check shall be without prejudice to any right of the\ntaxpayer to claim any additional overpayment and interest thereon.\n (3) late returns. Notwithstanding paragraph one or two of this\nsubdivision, in the case of a return of tax which is filed after the\nlast date prescribed for filing such return (determined with regard to\nextensions), no interest shall be allowed or paid for any day before the\ndate on which the return is filed.\n No interest shall be allowed or paid if the amount thereof is less\nthan one dollar.\n (b) Advance payment of tax and payment of estimated tax.--The\nprovisions of subdivisions (h) and (i) of section one hundred\nthirty-five applicable in determining the date of payment of tax for\npurposes of determining the period of limitations on credit or refund,\nshall be applicable in determining the date of payment for purposes of\nthis section.\n (c) Income tax refund within three months of due date of tax.--If any\noverpayment of tax imposed by this title is refunded within three months\nafter the last date prescribed (or permitted by extension of time) for\nfiling the return of such tax or within three months after the return\nwas filed, whichever is later, no interest shall be allowed under this\nsection on such overpayment.\n (d) Refund of income tax caused by carryback.--For purposes of this\nsection, if any overpayment of tax imposed by this title results from a\ncarryback of a net operating loss, such overpayment shall be deemed not\nto have been made prior to the filing date for the taxable year in which\nsuch net operating loss arises. Such filing date shall be determined\nwithout regard to extensions of time to file. For purposes of\nsubdivision (c) of this section any overpayment described herein shall\nbe treated as an overpayment for the loss year and such subdivision\nshall be applied with respect to such overpayment by treating the return\nfor the loss year as not filed before claim for such overpayment is\nfiled. The term "loss year" means the taxable year in which such loss\narises.\n (e) No interest until return in processible form.--\n (1) For purposes of subdivisions (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 subdivision, a return is in\na processible 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) Cross-reference.--For provision terminating interest after failure\nto file notice of federal change under section one hundred twenty-seven,\nsee subdivision (c) of section one hundred thirty-five.\n