S T A T E   O F   N E W   Y O R K
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                                  8175

                       2009-2010 Regular Sessions

                          I N  A S S E M B L Y

                               May 6, 2009
                               ___________

Introduced by M. of A. FARRELL -- (at request of the Department of Taxa-
  tion  and  Finance) -- read once and referred to the Committee on Ways
  and Means

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.
                                                           LBD09494-01-9

              

A. 8175                             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]  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  COMMISSIONER  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  SUCCEED-
ING  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, such section 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-

A. 8175                             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.