§ 1087 — Limitations on credit or refund

New York § 1087

• Jurisdiction: New York
• Law TAX: Tax
• Art. 27: Corporate Tax Procedure and Administration

Text

§ 1087. Limitations on credit or refund.--(a) General.--Claim for\ncredit or refund of an overpayment of tax under article nine or nine-A\nshall be filed by the taxpayer within (i) three years from the time the\nreturn was filed, (ii) two years from the time the tax was paid or (iii)\nin the case of any overpayment arising from an erroneous denial by the\ndepartment of environmental conservation of a certification of\ncompletion pursuant to section 27-1419 of the environmental conservation\nlaw, two years from the time a final determination to the effect that\nsuch denial was erroneous is made and is no longer subject to judicial\nreview, whichever of such periods expires the latest, or if no return\nwas filed, within two years from the time the tax was paid. If the claim\nis filed within the three year period, the amount of the credit or\nrefund shall not exceed the portion of the tax paid within the three\nyears immediately preceding the filing of the claim plus the period of\nany extension of time for filing the return. If the claim is not filed\nwithin the three year period, but is filed within the two year period,\nthe amount of the credit or refund shall not exceed the portion of the\ntax paid during the two years immediately preceding the filing of the\nclaim. In the case of a claim for credit or refund filed within the\nperiod prescribed in paragraph (iii) of this subsection, the amount of\nthe credit or refund may exceed the portion of the tax paid within the\napplicable period specified in the two immediately preceding sentences,\nbut only to the extent of the amount of the overpayment attributable to\nthe denial described in such paragraph (iii). Except as otherwise\nprovided in this section, if no claim is filed, the amount of a credit\nor refund shall not exceed the amount which would be allowable if a\nclaim had been filed on the date the credit or refund is allowed. For\nspecial restriction in a proceeding on a claim for refund of tax paid\npursuant to an assessment made as a result of (i) a net operating loss\ncarryback or capital loss carryback, or (ii) an increase or decrease in\nfederal taxable income or federal tax, or (iii) a federal change or\ncorrection or renegotiation, or computation or recomputation of tax,\nwhich is treated in the same manner as if it were a deficiency for\nfederal income tax purposes, see paragraph (7) of subsection (c) of\nsection one thousand eighty-three.\n (b) Extension of time by agreement.--If an agreement under the\nprovisions of paragraph (2) of subsection (c) of section one thousand\neighty-three (extending the period for assessment of tax) is made within\nthe period prescribed in subsection (a) for the filing of a claim for\ncredit or refund, the period for filing a claim for credit or refund, or\nfor making credit or refund if no claim is filed, shall not expire prior\nto six months after the expiration of the period within which an\nassessment may be made pursuant to the agreement or any extension\nthereof. The amount of such credit or refund shall not exceed the\nportion of the tax paid after the execution of the agreement and before\nthe filing of the claim or the making of the credit or refund, as the\ncase may be, plus the portion of the tax paid within the period which\nwould be applicable under subsection (a) if a claim had been filed on\nthe date the agreement was executed.\n (c) Notice of change or correction of federal income.-- If a taxpayer\nis required by subdivision three of section two hundred eleven or\nparagraph one of subdivision (e) of section fifteen hundred fifteen of\nthis chapter, to file a report or amended return in respect of (i) a\ndecrease or increase in federal taxable income or federal alternative\nminimum taxable income or federal tax, or (ii) a federal change or\ncorrection or renegotiation, or computation or recomputation of tax,\nwhich is treated in the same manner as if it were an overpayment for\nfederal income tax purposes, claim for credit or refund of any resulting\noverpayment of tax shall be filed by the taxpayer within two years from\nthe time such report or amended return was required to be filed with the\ncommissioner. If the report or amended return required by any such\nprovision of law is not filed within the period therein specified, no\ninterest shall be payable on any claim for credit or refund of the\noverpayment attributable to the federal change or correction. The amount\nof such credit or refund--\n (1) shall be computed without change of the allocation of income or\ncapital upon which the taxpayer's return (or any additional assessment)\nwas based, and\n (2) shall not exceed the amount of the reduction in tax attributable\nto such decrease or increase in federal taxable income, federal\nalternative minimum taxable income, or federal tax or to such federal\nchange or correction or renegotiation, or computation or recomputation\nof tax. This subsection shall not affect the time within which or the\namount for which a claim for credit or refund may be filed apart from\nthis subsection.\n (d) Overpayment attributable to net operating loss carryback or\ncapital loss carryback.--A claim for credit or refund of so much of an\noverpayment under article nine-a as is attributable to the application\nto the taxpayer of a net operating loss carryback or a capital loss\ncarryback shall be filed within three years from the time the return was\ndue (including extensions thereof) for the taxable year of the loss, or\nwithin the period prescribed in subsection (b) in respect of such\ntaxable year, or within the period prescribed in subsection (c), where\napplicable, in respect of the taxable year to which the net operating\nloss or capital loss is carried back, whichever expires the latest.\nWhere such claim for credit or refund is filed after the expiration of\nthe period prescribed in subsection (a), or in subsection (b) where\napplicable, in respect of the taxable year to which the net operating\nloss or capital loss is carried back, the amount of such credit or\nrefund shall be computed without change of the allocation of income or\ncapital upon which the taxpayer's return (or any additional assessment)\nwas based.\n (e) Failure to file claim within prescribed period.--No credit or\nrefund shall be allowed or made, except as provided in subsection (f) of\nthis section or subsection (d) of section one thousand ninety, after the\nexpiration of the applicable period of limitation specified in this\narticle, unless a claim for credit or refund is filed by the taxpayer\nwithin such period. Any later credit shall be void and any later refund\nerroneous. No period of limitations specified in any other law shall\napply to the recovery by a taxpayer of moneys paid in respect of taxes\nunder article nine, nine-a, nine-b or nine-c.\n (f) effect of petition to tax commission.--If a notice of deficiency\nfor a taxable year has been mailed to the taxpayer under section one\nthousand eighty-one and if the taxpayer files a timely petition with the\ntax commission under section one thousand eighty-nine, it may determine\nthat the taxpayer has made an overpayment for such year (whether or not\nit also determines a deficiency for such year). No separate claim for\ncredit or refund for such year shall be filed, and no credit or refund\nfor such year shall be allowed or made, except--\n (1) as to overpayments determined by a decision of the tax commission\nwhich has become final; and\n (2) as to any amount collected in excess of an amount computed in\naccordance with the decision of the tax commission which has become\nfinal; and\n (3) as to any amount collected after the period of limitation upon the\nmaking of levy for collection has expired; and\n (4) as to any amount claimed as a result of a change or correction\ndescribed in subsection (c).\n (g) Limit on amount of credit or refund.--The amount of overpayment\ndetermined under subsection (f) shall, when the decision of the tax\ncommission has become final, be credited or refunded in accordance with\nsubsection (a) of section one thousand eighty-six and shall not exceed\nthe amount of tax which the tax commission determines as part of its\ndecision was paid--\n (1) after the mailing of the notice of deficiency, or\n (2) within the period which would be applicable under subsections (a),\n(b) or (c), if on the date of the mailing of the notice of deficiency a\nclaim had been filed (whether or not filed) stating the grounds upon\nwhich the tax commission finds that there is an overpayment.\n For special restriction on credit or refund in a proceeding on a\npetition for redetermination of a deficiency where the notice of\ndeficiency is issued as a result of (i) a net operating loss carryback\nor a capital loss carryback, or (ii) an increase or decrease in federal\ntaxable income or federal tax, or (iii) a federal change or correction\nor renegotiation, or computation or recomputation of tax, which is\ntreated in the same manner as if it were a deficiency for federal income\ntax purposes, see paragraph (7) of subsection (c) of section one\nthousand eighty-three.\n (h) Early return.--For purposes of this section, any return filed\nbefore the last day prescribed for the filing thereof shall be\nconsidered as filed on such last day, determined without regard to any\nextension of time granted the taxpayer.\n (i) Prepaid tax.--For purposes of this section, any tax paid by the\ntaxpayer before the last day prescribed for its payment (including any\namount paid by the taxpayer as estimated tax for a taxable year) shall\nbe deemed to have been paid by it on the fifteenth day of the third\nmonth following the close of the taxable year the income of which is the\nbasis for tax under article nine-a, or on the last day prescribed in\narticle nine for the filing of a final return for such taxable year, or\nportion thereof, determined in all cases without regard to any extension\nof time granted the taxpayer, for taxable years beginning before January\nfirst, two thousand sixteen, and on the fifteenth day of the fourth\nmonth following the close of the taxable year the income of which is the\nbasis for tax under article nine-a, or on the last day prescribed in\narticle nine for the filing of a final return for such taxable year, or\nportion thereof, determined in all cases without regard to any extension\nof time granted the taxpayer, for taxable years beginning on or after\nJanuary first, two thousand sixteen.\n (j) Cross reference.--For provision barring refund of overpayment\ncredited against tax of a succeeding year, except for good cause shown,\nsee subsection (b) of section one thousand eighty-six.\n