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This entry was published on 2015-01-09
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SECTION 171-L
Certain overpayments credited against outstanding tax debt owed to the city of New York
Tax (TAX) CHAPTER 60, ARTICLE 8
§ 171-1. Certain overpayments credited against outstanding tax debt
owed to the city of New York. (1) For the purposes of this section:

(a) "taxpayer" shall mean a corporation, association, company,
partnership, estate, trust, liquidator, fiduciary or other entity or
individual who or which is liable for any tax or other imposition
imposed by or pursuant to article nine, nine-A, twenty-two, thirty,
thirty-A, thirty-B or thirty-three of this chapter, which tax or other
imposition is administered by the commissioner of taxation and finance,
or who or which is under a duty to perform an act under or pursuant to
such tax or imposition, excluding a state agency, a municipal
corporation or a district corporation;

(b) "overpayment" shall mean an overpayment which has been requested
or determined to be refunded, a refund or a reimbursement, of a tax or
other imposition imposed by or pursuant to article nine, nine-A,
twenty-two, thirty, thirty-A, thirty-B or thirty-three of this chapter,
which is administered by the commissioner of taxation and finance; and

(c) "city of New York tax warrant judgment debt," shall mean tax debt
owed to the city of New York that is the subject of a tax warrant issued
by the city of New York department of finance and docketed pursuant to
the provisions of title eleven of the administrative code of the city of
New York and that remains outstanding.

(2) The commissioner of taxation and finance shall enter into a
written agreement with the commissioner of finance of the city of New
York, which shall set forth the procedures for crediting any overpayment
by a taxpayer and the interest thereon against city of New York tax
warrant judgment debt owed by such taxpayer of which the commissioner of
taxation and finance has been notified by the city of New York
commissioner of finance pursuant to the provisions of such agreement.

(3) Such agreement shall include:

(a) the procedure under which the city of New York commissioner of
finance shall notify the commissioner of taxation and finance of
liability for city of New York tax warrant judgment debt, specifying
when the commissioner of taxation and finance will be notified, the
information to be contained in such notification and the form and format
to be used for such notification;

(b) the fee, if not waived, for reimbursement of the commissioner of
taxation and finance by the city of New York department of finance for
the full cost of carrying out the procedures authorized by this section;

(c) the minimum period of delinquency of the city of New York tax
warrant judgment debt, and the minimum amount of the past due city of
New York tax warrant judgment debt against which the commissioner of
taxation and finance shall, pursuant to this section, credit an
overpayment;

(d) the procedure for transferring the overpayments to the city of New
York department of finance so the overpayments can be applied to credit
the past due city of New York tax warrant judgment debt;

(e) the procedure for reimbursement of the comptroller by the city of
New York department of finance for any overpayment and interest thereon
which has been credited against city of New York tax warrant judgment
debt owed by a taxpayer, but which was paid by the taxpayer prior to the
overpayment being applied;

(f) the procedure for reimbursement of the comptroller by the city of
New York department of finance for any overpayment and interest thereon
which has been credited against city of New York tax warrant judgment
debt owed by a taxpayer filing a joint return, but which has been
refunded by the comptroller, pursuant to paragraph six of subsection (b)
of section six hundred fifty-one of this chapter, to a spouse not liable
for the city of New York tax warrant judgment debt owed by such
taxpayer;

(g) a provision to the effect that if a taxpayer owes past-due legally
enforceable debt that has been certified to the commissioner of taxation
and finance for collection pursuant to section one hundred seventy-one-f
of this article and city of New York tax warrant judgment debt that has
been certified to the commissioner of taxation and finance for
collection pursuant to this section, then the overpayment and interest
thereon shall be credited against the debts in the order in which the
debts accrued. The city of New York tax warrant judgment debt shall be
deemed for purposes of this section to have accrued at the time of
docketing of the tax warrant; and

(h) such other matters as the parties to such agreement shall deem
necessary to carry out the provisions of this section, including
provisions relating to the notice to be given to the taxpayer.

(4)(a) In calculating the amount of an overpayment and interest
thereon that shall be credited against city of New York tax warrant
judgment debt owed by a taxpayer that has been certified to the
commissioner of taxation and finance for collection pursuant to this
section, the commissioner of taxation and finance shall first credit the
overpayment and interest thereon against any:

(i) liability of such taxpayer in respect of any tax or other
imposition imposed by this chapter and administered by the commissioner
of taxation and finance;

(ii) liability of such taxpayer for any tax imposed pursuant to the
authority of this chapter or any other law if such tax is administered
by the commissioner of taxation and finance;

(iii) estimated tax for the succeeding taxable year if the taxpayer
claims such overpayment or a portion thereof as a credit against
estimated tax for such succeeding taxable year pursuant to subsection
(e) of section six hundred eighty-six or subsection (b) of section one
thousand eighty-six of this chapter or subdivision (e) of section
11-1786 of the administrative code of the city of New York or for any
tax imposed pursuant to the authority of this chapter or any other law
if such tax is administered by the commissioner of taxation and finance;

(iv) past-due support owed by the taxpayer pursuant to section one
hundred seventy-one-c of this article;

(v) unreimbursed medical assistance paid on behalf of a child payable
pursuant to section three hundred sixty-seven-a of the social services
law; and

(vi) the amount of a default in repayment of a state university or
city university loan pursuant to section one hundred seventy-one-e of
this article.

(b) Only the balance remaining, after the overpayment and the interest
thereon has been credited as described in paragraph (a) of this
subdivision, shall be certified to the comptroller as an overpayment
plus any interest to be credited, in accordance with paragraph (g) of
subdivision three of this section, against city of New York tax warrant
judgment debt that has been certified to the commissioner of taxation
and finance for collection pursuant to this section, and/or past-due
legally enforceable debt that has been certified to the commissioner of
taxation and finance for collection pursuant to section one hundred
seventy-one-f of this article, with the remainder to be refunded to the
taxpayer if such remainder is not required to satisfy the amount of a
default in repayment of a guaranteed student loan pursuant to section
one hundred seventy-one-d of this article. If a taxpayer owes city of
New York tax warrant judgment debt that has been certified to the
commissioner of taxation and finance for collection pursuant to this
section and past-due legally enforceable debt that has been certified to
the commissioner of taxation and finance for collection pursuant to
section one hundred seventy-one-f of this article, then the overpayment
and interest thereon shall be credited against the debts in the order in
which the debts accrued.

(5) The commissioner of taxation and finance shall certify to the
comptroller the amount of each overpayment and the interest thereon to
be credited against city of New York tax warrant judgment debt, and the
balance, if any, of each such overpayment and interest to be refunded to
the taxpayer.

(6) The commissioner of taxation and finance shall notify each
taxpayer who makes an overpayment, in writing, of the amount of such
overpayment and the interest thereon certified to the comptroller as the
amount to be credited against city of New York tax warrant judgment
debt. Such notice shall include notification to any other person who may
have filed a joint return with the taxpayer of the steps such other
person may take in order to secure his or her proper share of the
refund.

(7) From the time the commissioner of taxation and finance is notified
by the city of New York department of finance of a taxpayer's liability
for city of New York tax warrant judgment debt under the agreement
provided for in this section, the commissioner of taxation and finance
shall be relieved from all liability to such taxpayer, its assigns,
successors, heirs or representatives for the amount of an overpayment
and interest thereon certified to the comptroller to be credited against
city of New York tax warrant judgment debt and the taxpayer shall have
no right to commence a court action or proceeding or to any other legal
recourse against the commissioner of taxation and finance to recover
such overpayment or interest thereon certified to the comptroller to be
credited against city of New York tax warrant judgment debt. Provided,
however, nothing herein shall be construed to prohibit such taxpayer
from proceeding against the city of New York department of finance to
recover that part of such overpayment or interest thereon so certified
to the comptroller to be credited against city of New York tax warrant
judgment debt that is greater than the amount of city of New York tax
warrant judgment debt owed by such taxpayer on the date of such
certification.

(8) The commissioner of taxation and finance and the city of New York
department of finance may promulgate such rules and regulations as they
deem necessary to carry out the provisions of this section.