1086 - Overpayment.

§ 1086. Overpayment.--- (a) General.--The commissioner of taxation and  finance,  within  the  applicable  period  of limitations, may credit an  overpayment  of  tax  and  interest  on  such  overpayment  against  any  liability  in  respect of any tax imposed by the tax law on the taxpayer  who made the overpayment,  or  against  any  liability  for  a  past-due  legally enforceable debt of which he is notified pursuant to section one  hundred  seventy-one-f  of this chapter, or against any city of New York  tax warrant judgment debt of which he is notified  pursuant  to  section  one  hundred  seventy-one-l  of  this  chapter, and the balance shall be  refunded by the comptroller out of the proceeds of the tax  retained  by  him  for  such  general  purpose.  Provided,  however, in the case of an  overpayment claimed on a return or report, such  refund  shall  be  made  only  if  application  therefor is made on such return or report. In the  absence of such application, the amount of such overpayment with respect  to any taxable year shall be credited  against,  and  considered  as,  a  payment  of  tax  liability  with respect to such tax for the succeeding  taxable year and shall be credited against the estimated  tax,  if  any,  for  such year (whether or not claimed as a credit in the declaration of  estimated tax for such succeeding taxable year). The commissioner  shall  notify  the taxpayer that such overpayment has been so credited, and the  taxpayer may, prior to the due date (without regard  to  extensions)  of  the  taxpayer's return or report for such succeeding taxable year, claim  a refund of such overpayment. Any refund under  this  section  shall  be  made  only  upon  the  filing  of a return and upon a certificate of the  commissioner  approved  by  the  comptroller.  The  comptroller,  as   a  condition  precedent  to the approval of such a certificate, may examine  into the facts as disclosed by the return of the taxpayer who  made  the  overpayment and other information and data available in the files of the  commissioner.    (b)  Credits against estimated tax.---The tax commission may prescribe  regulations providing for the crediting against the estimated 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.    (c)  Rule where no tax liability.---If there is no tax liability for a  period in respect of which an amount is paid as tax, such  amount  shall  be considered an overpayment.    (d) Assessment and collection after limitation period.---If any amount  of  tax  is  assessed or collected after the expiration of the period of  limitations properly applicable thereto, such amount shall be considered  an overpayment.    (e) Assignment of overpayment.---A credit for an  overpayment  of  tax  under  article  nine,  nine-a,  nine-b  or nine-c may be assigned by the  taxpayer to a  corporation  liable  to  pay  taxes  under  any  of  such  articles,  and  the assignee of the whole or any part of such credit, on  filing such assignment with  the  tax  commission,  shall  thereupon  be  entitled  to  credit upon the books of the tax commission for the amount  thereof on its current account for taxes, in the same manner and to  the  same  effect  as  though  the  credit had originally been allowed in its  favor.