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New York Tax Law Section 171-c - Certain Overpayments Credited Against Past-due Support.

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    § 171-c.  Certain overpayments credited against past-due support. (1)
  The  commissioner  of  taxation  and  finance,  on  behalf  of  the  tax
  commission,  shall  enter into a written agreement with the commissioner
  of social  services,  on  behalf  of  the  state  department  of  social
  services,  which  shall  set  forth  the  procedures  for  crediting any
  overpayment by an individual, estate or trust of income tax  imposed  by
  article  twenty-two  of  this  chapter,  city  personal  income  tax  on
  residents imposed pursuant to the authority of article  thirty  of  this
  chapter,  city income tax surcharge on residents imposed pursuant to the
  authority of article thirty-A of this  chapter,  city  earnings  tax  on
  nonresidents  imposed  pursuant to the authority of article two-E of the
  general city law and city earnings tax on nonresidents imposed  pursuant
  to the authority of article thirty-B of this chapter and the interest on
  such  overpayments  against  past-due  support  owed by such individual,
  estate or trust of which the commissioner of taxation  and  finance  has
  been  notified  by  the  commissioner of social services pursuant to the
  provisions of such agreement.
    (2) Such agreement shall apply to past-due support which  is  owed  to
  persons  or  entities  entitled  to  enforce  an  order  of support. For
  purposes of this section, an "order of support" means any  final  order,
  decree  or  judgment in a matrimonial action or family court proceeding,
  or any foreign support order, decree or  judgment  which  is  registered
  pursuant  to section thirty-seven-a of the domestic relations law, which
  requires the payment of alimony, maintenance, support or child  support.
  For  purposes  of this section, "past-due support" means the amount of a
  delinquency determined from an order of support  no  longer  subject  to
  appellate judicial review.
    (3) Such agreement shall include:
    (a)  the procedure under which the state department of social services
  shall notify the commissioner of taxation and finance of  liability  for
  past-due  support,  such  procedure  to specify when the commissioner of
  taxation  and  finance  shall  be  notified  and  the  content  of  such
  notification;
    (b)  the  minimum period of delinquency in payment of past-due support
  and the minimum amount of past-due support with  respect  to  which  the
  commissioner  of  taxation  and finance shall, pursuant to this section,
  credit an overpayment against past-due support;
    (c) the procedure for reimbursement of the  commissioner  of  taxation
  and finance by the state department of social services for the full cost
  of carrying out the procedures authorized by this section;
    (d)  such  other  matters  as the parties to such agreement shall deem
  necessary to carry out the provisions of this section; and
    (e) the procedure for reimbursement of the comptroller  by  the  state
  department  of  social services for any overpayment and interest thereon
  which has been credited against past due  support  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 past due
  support owed by such taxpayer.
    (4) (a) With regard to persons owed past-due support who are receiving
  services pursuant to title six-A of article three of the social services
  law, no later than thirty days prior to the date a local social services
  district requests the state department of social services to notify  the
  tax  commission  of  the liability of an individual, estate or trust for
  past-due support, such district shall notify such individual, estate  or
  trust in writing that such request may be made and shall also notify him
  or  it that he or it may correct any error in such request and may avoid
  such notification by the  department  of  social  services  to  the  tax
  commission  by  satisfying such liability within thirty days of the date
  of the written notice from the local social services  district  to  such
  individual,  estate  or trust. Such notice shall also set forth the name
  of  an  employee  of  the  local social services district, including his
  address and telephone number, who  may  be  contacted  with  respect  to
  correction  of  any  error in such request concerning such individual's,
  estate's or trust's liability for past-due support or  with  respect  to
  payment of such liability.
    (b)  With  regard  to  persons owed past-due support who are receiving
  services pursuant to title six-B of article three of the social services
  law, no later than thirty days prior to the date the state department of
  social services notifies the tax  commission  of  the  liability  of  an
  individual,  estate or trust for past-due support, such department shall
  notify such individual, estate or trust in writing that such request may
  be made and shall also notify him or it that he or it  may  correct  any
  error in such request and may avoid such notification by such department
  to  the tax commission by satisfying such liability and submitting proof
  thereof satisfactory to the department within thirty days of the date of
  the written notice from such department to such  individual,  estate  or
  trust.  Such notice shall also set forth the name of an employee of such
  department, including his address  and  telephone  number,  who  may  be
  contacted  with  respect  to  correction  of  any  error in such request
  concerning such individual's, estate's or trust's liability for past-due
  support or with respect to payment of such liability.
    (5) (i) In calculating the  amount  of  an  overpayment  and  interest
  thereon  which  shall  be  credited  against  past-due support owed by a
  taxpayer, the tax commission shall  first  credit  the  overpayment  and
  interest thereon against any:
    (A)  liability  of such taxpayer in respect of any tax imposed by this
  chapter;
    (B) 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 tax commission; and
    (C) 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 of this chapter or subdivision (e)
  of  section  11-1786  of the administrative code of the city of New York
  for any tax imposed pursuant to the authority of  this  chapter  or  any
  other law if such tax is administered by the tax commission.
    (ii)  Only  the  balance  remaining,  after  such  overpayment and the
  interest thereon has been credited as described in paragraph (i) of this
  subdivision, shall be certified as an overpayment plus any  interest  to
  be  credited against past-due support, 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 state university loan or city university
  loan pursuant to section  one  hundred  seventy-one-e  of  this  article
  and/or  the  amount  of  a past-due legally enforceable debt pursuant to
  section one hundred seventy-one-f of this article and/or a city  of  New
  York   tax  warrant  judgment  debt  pursuant  to  section  one  hundred
  seventy-one-l of  this  article  and/or  the  amount  of  a  default  in
  repayment  of  a guaranteed student loan pursuant to section one hundred
  seventy-one-d of this article. In cases where the taxpayer owes past-due
  support to more than one person or  entity,  and  the  total  amount  of
  past-due  support  certified to the commissioner of taxation and finance
  by  the  state  department  of  social  services  exceeds  the   balance
  remaining,  each such person or entity shall receive a pro rata share of
  the balance remaining, such share to be based on the amount of  past-due
  support  owed  to such person or entity as certified to the commissioner
  of taxation and finance by such department pursuant to this section. The
  state department of social services shall be responsible for determining
  and  distributing  each  person's or entity's pro rata share of past-due
  support pursuant to regulations of such department.
    (6) The tax commission shall certify  to  the  comptroller  the  total
  amount  of  the  overpayment  and  the interest on such overpayment, the
  amount of such overpayment  and  the  interest  on  such  amount  to  be
  credited  against  past-due  support and the balance of such overpayment
  and interest to be refunded to the taxpayer.
    (7) The commissioner of taxation and finance shall notify the taxpayer
  making the overpayment, in writing, of the amount  of  such  overpayment
  and  the  interest thereon certified to the comptroller as the amount to
  be  credited  against  past-due  support.  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.
    (8) (a) For purposes of this section, past-due support owed to persons
  who  are  receiving services pursuant to title six-A of article three of
  the social services law may include:
    (i) amounts representing delinquencies  which  have  accrued  under  a
  court order of support;
    (ii)  with  respect  to  any  court  order  of  support  issued before
  September  first,  nineteen  hundred  eighty-four  which  provided   for
  periodic  payments  toward  an  established  arrears  amount, the entire
  amount of such arrears where  the  respondent  is,  at  any  time  after
  September first, nineteen hundred eighty-four, delinquent in making such
  periodic payments; and
    (iii)  with  respect  to  any  court order of support made on or after
  September first,  nineteen  hundred  eighty-four  which  establishes  an
  arrears  amount,  the  entire  amount of such arrears, unless such order
  includes a finding that any anticipated tax refunds have been considered
  by the court and  taken  into  account  in  determining  the  amount  of
  periodic   payments  to  be  made  toward  the  arrears  amount,  or  in
  determining the amount of  the  current  support  order,  and  expressly
  provides that such arrears are not to be so certified.
    (b)  For  the  purpose of the state child support program, any payment
  made by a respondent which is insufficient to  fully  satisfy  both  the
  current  support obligation and a periodic payment toward the balance of
  any arrears amount established by court order  shall  be  first  applied
  toward  the  current  support  obligation or any delinquency thereon and
  then toward the periodic payment on any arrears  amount  established  by
  court order unless otherwise required by federal regulation.
    (9)  From  the  time the state tax commission is notified by the state
  department of social services of an individual's,  estate's  or  trust's
  liability  for past-due support under the agreement provided for in this
  section, the state tax commission and the  department  of  taxation  and
  finance  shall be relieved from all liability to such individual, estate
  or trust, their assigns, successors, heirs or  representatives  for  the
  amount  of  an over payment and interest on such amount certified to the
  comptroller to be credited against past-due support and such individual,
  estate or trust shall have no  right  to  commence  a  court  action  or
  proceeding  or  to  any  other  legal  recourse  against  the  state tax
  commission or the department of taxation and  finance  to  recover  such
  overpayment or such interest certified to the comptroller to be credited
  against  past-due  support.  Provided,  however, nothing herein shall be
  construed to prohibit such individual, estate or trust  from  proceeding
  against the state department of social services or the appropriate local
  social  services  district  to  recover that part of such overpayment or
  interest thereon so certified to the comptroller to be credited  against
  past-due  support  which  is greater than the amount of past-due support
  owed   by  such  individual,  estate  or  trust  on  the  date  of  such
  certification.
    (10) The tax commission shall promulgate such rules and regulations as
  it deems necessary to carry out the provisions of this section.

Last modified: September 7, 2006