§ 64 — Interest on underpayment

§ 64. Interest on underpayment.--(a) General.--If any amount of income\ntax is not paid on or before the last date prescribed in this local law\nfor payment, interest on such amount at the rate of six percentum per\nannum shall be paid for the period from such last date to the date paid,\nwhether or not any extension of time for payment was granted. Interest\nunder this subdivision shall not be paid if the amount thereof is less\nthan one dollar. If the time for filing a return of tax withheld by an\nemployer is extended, the employer shall pay interest for the period for\nwhich the extension is granted and may not charge such interest to the\nemployee.\n (b) Exception as to estimated tax.--This section shall not apply to\nany failure to pay estimated tax under section thirty-six.\n (c) Exception for mathematical error.--No interest shall be imposed on\nany underpayment of tax due solely to mathematical error if the taxpayer\nfiles a return within the time prescribed in this local law (including\nany extension of time) and pays the amount of underpayment within three\nmonths after the due date of such return, as it may be extended.\n (d) No interest on interest.--No interest under this local law shall\nbe imposed on any interest provided by this title.\n (e) Suspension of interest on deficiencies.--If a waiver of\nrestrictions on assessment of a deficiency has been filed by the\ntaxpayer, and if notice and demand by the administrator for payment of\nsuch deficiency is not made within thirty days after the filing of such\nwaiver, interest shall not be imposed on such deficiency for the period\nbeginning immediately after such thirtieth day and ending with the date\nof notice and demand.\n (f) Tax reduced by carryback.--If the amount of tax for any taxable\nyear is reduced by reason of a carryback of a net operating loss, such\nreduction in tax shall not affect the computation of interest under this\nsection for the period ending with the last day of the taxable year in\nwhich the net operating loss arises.\n (g) Interest treated as tax.--Interest under this section shall be\npaid upon notice and demand and shall be assessed, collected and paid in\nthe same manner as income tax. Any reference in this title to the tax\nimposed by this local law shall be deemed also to refer to interest\nimposed by this section on such tax.\n (h) Interest on penalties or additions to tax.--Interest shall be\nimposed under subdivision (a) in respect of any assessable penalty or\naddition to tax only if such assessable penalty or addition to tax is\nnot paid within ten days from the date of the notice and demand therefor\nunder subdivision (b) of section seventy-two, and in such case interest\nshall be imposed only for the period from such date of the notice and\ndemand to the date of payment.\n (i) Payment prior to notice of deficiency.--If, prior to the mailing\nto the taxpayer of a notice of deficiency under subdivision (b) of\nsection sixty-one, the administrator mails to the taxpayer a notice of\nproposed increase of tax and within thirty days after the date of the\nnotice of proposed increase the taxpayer pays all amounts shown on the\nnotice to be due to the administrator, no interest under this section on\nthe amount so paid shall be imposed for the period after the date of\nsuch notice of proposed increase.\n (j) Payment within ninety days after notice of deficiency.--If a\nnotice of deficiency under section sixty-one is mailed to the taxpayer,\nand the total amount specified in such notice is paid on or before the\nninetieth day after the date of mailing, interest under this section\nshall not be imposed for the period after the date of the notice.\n (k) Payment within ten days after notice and demand.--If notice and\ndemand is made for payment of any amount under subdivision (b) of\nsection seventy-two, and if such amount is paid within ten days after\nthe date of such notice and demand, interest under this section on the\namount so paid shall not be imposed for the period after the date of\nsuch notice and demand.\n (l) Limitation on assessment and collection.--Interest prescribed\nunder this section may be assessed and collected at any time during the\nperiod within which the tax or other amount to which such interest\nrelates may be assessed and collected, respectively.\n (m) Interest on erroneous refund.--Any portion of tax or other amount\nwhich has been erroneously refunded, and which is recoverable by the\nadministrator, shall bear interest at the rate of six per centum per\nannum from the date of the payment of the refund, but only if it appears\nthat any part of the refund was induced by fraud or a misrepresentation\nof a material fact.\n (n) Satisfaction by credits.--If any portion of a tax is satisfied by\ncredit of an overpayment, then no interest shall be imposed under this\nsection on the portion of the tax so satisfied for any period during\nwhich, if the credit had not been made, interest would have been\nallowable with respect to such overpayment.\n