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New York Tax Law Section 171-c - Certain Overpayments Credited Against Past-due Support.Legal Research Home > New York Lawyer > Tax > New York Tax Law Section 171-c - Certain Overpayments Credited Against Past-due Support. Sponsored Links
§ 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 |