S T A T E O F N E W Y O R K
________________________________________________________________________
7239
2011-2012 Regular Sessions
I N A S S E M B L Y
April 19, 2011
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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.
LBD09459-01-1
A. 7239 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-
A. 7239 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.