Amd SS686, 687, 1086 & 1087, Tax L; amd SS11-1786 & 11-1787, NYC Ad Cd
Relates 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.
STATE OF NEW YORK
________________________________________________________________________
3886
2009-2010 Regular Sessions
IN SENATE
April 2, 2009
___________
Introduced by Sens. C. JOHNSON, DIAZ, DILAN, ONORATO, SAVINO -- (at
request of the Department of Taxation 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:
1 Section 1. Subsection (e) of section 686 of the tax law, as amended by
2 chapter 65 of the laws of 1985, is amended to read as follows:
3 (e) Credits against estimated tax.--The [tax commission] commissioner
4 may prescribe regulations providing for the crediting against the esti-
5 mated income tax for any taxable year of the amount determined to be an
6 overpayment of the income tax for a preceding taxable year. If any over-
7 payment of income tax is so claimed as a credit against estimated tax
8 for the succeeding taxable year, such amount shall be considered as a
9 payment of the income tax for the succeeding taxable year, and no claim
10 for credit or refund of such overpayment shall be allowed for the taxa-
11 ble year for which the overpayment arises, except upon request to the
12 commissioner on or before the last day prescribed for the filing of the
13 return for the succeeding taxable year, determined with regard to any
14 extension of time granted. If good cause is shown for reversing the
15 credit, the commissioner may, in his or her discretion, credit the over-
16 payment against a liability or refund the overpayment without interest.
17 Provided, the person who made the overpayment will not be relieved of
18 liability for any penalty imposed for a consequent underpayment of esti-
19 mated tax for the succeeding taxable year. The decision of the commis-
20 sioner to grant or deny the request is final and not subject to further
21 administrative or judicial review.
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[] is old law to be omitted.
LBD09494-01-9
S. 3886 2
1 § 2. Subsection (k) of section 687 of the tax law, as amended by chap-
2 ter 1014 of the laws of 1968, is amended to read as follows:
3 (k) Cross reference. -- For provision barring refund of overpayment
4 credited against tax of a succeeding year, except for good cause shown,
5 see subsection (e) of section six hundred eighty-six.
6 § 3. Subsection (b) of section 1086 of the tax law, as added by chap-
7 ter 188 of the laws of 1964, is amended to read as follows:
8 (b) Credits against estimated tax.---The [tax commission] commissioner
9 may prescribe regulations providing for the crediting against the esti-
10 mated tax under article nine-a[, nine-b or nine-c] for any taxable year
11 of the amount determined to be an overpayment of tax under [any] such
12 article for a preceding taxable year. If any overpayment of tax is so
13 claimed as a credit against estimated tax for the succeeding taxable
14 year, such amount shall be considered as a payment of the tax under
15 article nine-a[, nine-b or nine-c] for the succeeding taxable year
16 (whether or not claimed as a credit in the declaration of estimated tax
17 for such succeeding taxable year), and no claim for credit or refund of
18 such overpayment shall be allowed for the taxable year for which the
19 overpayment arises, except upon request to the commissioner on or before
20 the last day prescribed for the filing of the return for the succeeding
21 taxable year, determined with regard to any extension of time granted.
22 If good cause is shown for reversing the credit, the commissioner may,
23 in his or her discretion, credit the overpayment against a liability or
24 refund the overpayment without interest. Provided, the person who made
25 the overpayment will not be relieved of liability for any penalty
26 imposed for a consequent underpayment of estimated tax for the succeed-
27 ing taxable year. The decision of the commissioner to grant or deny the
28 request is final and not subject to further administrative or judicial
29 review.
30 § 4. Subsection (j) of section 1087 of the tax law, as added by chap-
31 ter 188 of the laws of 1964, is amended to read as follows:
32 (j) Cross reference.--For provision barring refund of overpayment
33 credited against tax of a succeeding year, except for good cause shown,
34 see subsection (b) of section one thousand eighty-six.
35 § 5. Subdivision (e) of section 11-1786 of the administrative code of
36 the city of New York, such section as renumbered by chapter 639 of the
37 laws of 1986, is amended to read as follows:
38 (e) Credits against estimated tax. The [tax commission] commissioner
39 of taxation and finance may prescribe regulations providing for the
40 crediting against the estimated income tax for any taxable year of the
41 amount determined to be an overpayment of the income tax for a preceding
42 taxable year. If any overpayment of income tax is so claimed as a credit
43 against estimated tax for the succeeding taxable year, such amount shall
44 be considered as a payment of the income tax for the succeeding taxable
45 year, and no claim for credit or refund of such overpayment shall be
46 allowed for the taxable year for which the overpayment arises, except
47 upon request to the commissioner of taxation and finance on or before
48 the last day prescribed for the filing of the return for the succeeding
49 taxable year, determined with regard to any extension of time granted.
50 If good cause is shown for reversing the credit, the commissioner of
51 taxation and finance may, in his or her discretion, credit the overpay-
52 ment against a liability or refund the overpayment without interest.
53 Provided, the person who made the overpayment will not be relieved of
54 liability for any penalty imposed for a consequent underpayment of esti-
55 mated tax for the succeeding taxable year. The decision of the commis-
S. 3886 3
1 sioner of taxation and finance to grant or deny the request is final and
2 not subject to further administrative or judicial review.
3 § 6. Subdivision (k) of section 11-1787 of the administrative code of
4 the city of New York, as amended by chapter 639 of the laws of 1986, is
5 amended to read as follows:
6 (k) Cross reference. For provision barring refund of overpayment cred-
7 ited against tax of a succeeding year, except for good cause shown, see
8 subdivision (e) of section 11-1786.
9 § 7. This act shall take effect immediately.
