S T A T E   O F   N E W   Y O R K
________________________________________________________________________

                                  3944

                       2011-2012 Regular Sessions

                            I N  S E N A T E

                             March 10, 2011
                               ___________

Introduced by Sen. DeFRANCISCO -- (at request of the Department of Taxa-
  tion  and Finance) -- read twice and ordered printed, and when printed
  to be committed to the  Committee  on  Investigations  and  Government
  Operations

AN  ACT  to amend the tax law and the administrative code of the city of
  New York, in relation to reversing the crediting of a personal  income
  tax  or  corporate franchise tax overpayment against estimated tax for
  the succeeding taxable year in certain circumstances

  THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
BLY, DO ENACT AS FOLLOWS:

  Section 1. Subsection (e) of section 686 of the tax law, as amended by
chapter 65 of the laws of 1985, is amended to read as follows:
  (e)  Credits against estimated tax.--The [tax commission] COMMISSIONER
may prescribe regulations providing for the crediting against the  esti-
mated  income tax for any taxable year of the amount determined to be an
overpayment of the income tax for a preceding taxable year. If any over-
payment of income tax is so claimed as a credit  against  estimated  tax
for  the  succeeding  taxable year, such amount shall be considered as a
payment of the income tax for the succeeding taxable year, and no  claim
for  credit or refund of such overpayment shall be allowed for the taxa-
ble year for which the overpayment arises, EXCEPT UPON  REQUEST  TO  THE
COMMISSIONER  ON OR BEFORE THE LAST DAY PRESCRIBED FOR THE FILING OF THE
RETURN FOR THE SUCCEEDING TAXABLE YEAR, DETERMINED WITH  REGARD  TO  ANY
EXTENSION  OF  TIME  GRANTED.  IF  GOOD CAUSE IS SHOWN FOR REVERSING THE
CREDIT, THE COMMISSIONER MAY, IN HIS OR HER DISCRETION, CREDIT THE OVER-
PAYMENT AGAINST A LIABILITY OR REFUND THE OVERPAYMENT WITHOUT  INTEREST.
PROVIDED,  THE  PERSON  WHO MADE THE OVERPAYMENT WILL NOT BE RELIEVED OF
LIABILITY FOR ANY PENALTY IMPOSED FOR A CONSEQUENT UNDERPAYMENT OF ESTI-
MATED TAX FOR THE SUCCEEDING TAXABLE YEAR. THE DECISION OF  THE  COMMIS-
SIONER  TO GRANT OR DENY THE REQUEST IS FINAL AND NOT SUBJECT TO FURTHER
ADMINISTRATIVE OR JUDICIAL REVIEW.

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD09459-01-1
              

S. 3944                             2

  S 2. Subsection (k) of section 687 of the tax law, as amended by chap-
ter 1014 of the laws of 1968, is amended to read as follows:
  (k)  Cross  reference.--  For  provision barring refund of overpayment
credited against tax of a succeeding year, EXCEPT FOR GOOD CAUSE  SHOWN,
see subsection (e) of section six hundred eighty-six.
  S  3. Subsection (b) of section 1086 of the tax law, as added by chap-
ter 188 of the laws of 1964, is amended to read as follows:
  (b) Credits against estimated tax.---The [tax commission] COMMISSIONER
may prescribe regulations providing for the crediting against the  esti-
mated  tax under article nine-a[, nine-b or nine-c] for any taxable year
of the amount determined to be an overpayment of tax  under  [any]  such
article  for  a  preceding taxable year. If any overpayment of tax is so
claimed as a credit against estimated tax  for  the  succeeding  taxable
year,  such  amount  shall  be  considered as a payment of the tax under
article nine-a[, nine-b or nine-c] OF THIS CHAPTER  for  the  succeeding
taxable  year  (whether or not claimed as a credit in the declaration of
estimated tax for such succeeding taxable year), and no claim for credit
or refund of such overpayment shall be allowed for the taxable year  for
which the overpayment arises, EXCEPT UPON REQUEST TO THE COMMISSIONER ON
OR  BEFORE  THE LAST DAY PRESCRIBED FOR THE FILING OF THE RETURN FOR THE
SUCCEEDING TAXABLE YEAR, DETERMINED WITH REGARD TO ANY EXTENSION OF TIME
GRANTED.  IF GOOD CAUSE IS SHOWN FOR REVERSING THE CREDIT,  THE  COMMIS-
SIONER  MAY,  IN HIS OR HER DISCRETION, CREDIT THE OVERPAYMENT AGAINST A
LIABILITY OR REFUND THE  OVERPAYMENT  WITHOUT  INTEREST.  PROVIDED,  THE
PERSON  WHO  MADE  THE OVERPAYMENT WILL NOT BE RELIEVED OF LIABILITY FOR
ANY PENALTY IMPOSED FOR A CONSEQUENT UNDERPAYMENT OF ESTIMATED  TAX  FOR
THE  SUCCEEDING  TAXABLE YEAR. THE DECISION OF THE COMMISSIONER TO GRANT
OR DENY THE REQUEST IS FINAL AND NOT SUBJECT TO  FURTHER  ADMINISTRATIVE
OR JUDICIAL REVIEW.
  S  4. Subsection (j) of section 1087 of the tax law, as added by chap-
ter 188 of the laws of 1964, is amended to read as follows:
  (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.
  S 5. Subdivision (e) of section 11-1786 of the administrative code  of
the  city of New York, as renumbered by chapter 639 of the laws of 1986,
is amended to read as follows:
  (e) Credits against estimated tax. The [tax  commission]  COMMISSIONER
OF  TAXATION  AND  FINANCE  may  prescribe regulations providing for the
crediting against the estimated income tax for any taxable year  of  the
amount determined to be an overpayment of the income tax for a preceding
taxable year. If any overpayment of income tax is so claimed as a credit
against estimated tax for the succeeding taxable year, such amount shall
be  considered as a payment of the income tax for the succeeding taxable
year, and no claim for credit or refund of  such  overpayment  shall  be
allowed  for  the  taxable year for which the overpayment arises, EXCEPT
UPON REQUEST TO THE COMMISSIONER OF TAXATION AND FINANCE  ON  OR  BEFORE
THE  LAST DAY PRESCRIBED FOR THE FILING OF THE RETURN FOR THE SUCCEEDING
TAXABLE YEAR, DETERMINED WITH REGARD TO ANY EXTENSION OF  TIME  GRANTED.
IF  GOOD  CAUSE  IS  SHOWN FOR REVERSING THE CREDIT, THE COMMISSIONER OF
TAXATION AND FINANCE MAY, IN HIS OR HER DISCRETION, CREDIT THE  OVERPAY-
MENT  AGAINST  A  LIABILITY  OR REFUND THE OVERPAYMENT WITHOUT INTEREST.
PROVIDED, THE PERSON WHO MADE THE OVERPAYMENT WILL NOT  BE  RELIEVED  OF
LIABILITY FOR ANY PENALTY IMPOSED FOR A CONSEQUENT UNDERPAYMENT OF ESTI-
MATED  TAX  FOR THE SUCCEEDING TAXABLE YEAR. THE DECISION OF THE COMMIS-

S. 3944                             3

SIONER OF TAXATION AND FINANCE TO GRANT OR DENY THE REQUEST IS FINAL AND
NOT SUBJECT TO FURTHER ADMINISTRATIVE OR JUDICIAL REVIEW.
  S  6. Subdivision (k) of section 11-1787 of the administrative code of
the city of New York, as amended by chapter 639 of the laws of 1986,  is
amended to read as follows:
  (k) Cross reference. For provision barring refund of overpayment cred-
ited  against tax of a succeeding year, EXCEPT FOR GOOD CAUSE SHOWN, see
subdivision (e) of section 11-1786.
  S 7. This act shall take effect immediately.