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§ 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 commissioner may prescribe regulations providing for the crediting against the estimated tax under article nine-a for any taxable year of the amount determined to be an overpayment of tax under 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 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 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 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.

(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.