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New York Tax Law Section 171-d - Certain Overpayments Credited Against Defaulted Guaranteed Student Loans.Legal Research Home > New York Lawyer > Tax > New York Tax Law Section 171-d - Certain Overpayments Credited Against Defaulted Guaranteed Student Loans. Sponsored Links
§ 171-d. Certain overpayments credited against defaulted guaranteed
student loans. (1) The commissioner of taxation and finance, on behalf
of the tax commission, shall enter into a written agreement with the
president of the New York state higher education services corporation,
on behalf of such corporation, 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 the amount of any default in repayment of a
guaranteed student loan owed by such individual, estate or trust of
which the commissioner of taxation and finance has been notified by the
president of the New York state higher education services corporation
pursuant to the provisions of such agreement.
(2) Such agreement shall apply only to the amount of a default in
repayment of a guaranteed student loan as to which the New York state
higher education services corporation has obtained a judgment or has
made a determination that satisfies the requirements of subdivision
three of section one hundred seventy-one-f of this article.
(3) Such agreement shall include:
(a) the procedure under which the New York state higher education
services corporation shall notify the commissioner of taxation and
finance of a default in repayment of a guaranteed student loan, such
procedure to specify when the commissioner of taxation and finance shall
be notified and the content of such notification;
(b) the minimum amount outstanding on a default in repayment of a
guaranteed student loan against which the commissioner of taxation and
finance shall, pursuant to this section, credit an overpayment;
(c) the procedure for reimbursement of the commissioner of taxation
and finance by the New York state higher education services corporation
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 New York
state higher education services corporation for overpayment and interest
thereon which has been credited against the amount of default in
repayment of a guaranteed student loan 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 amount of default in repayment
of a guaranteed student loan owed by such taxpayer.
(4) (i) In calculating the amount of an overpayment and interest
thereon which shall be credited against the amount of a default in
repayment of a guaranteed student loan owed by a taxpayer, the
commissioner of taxation and finance 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;
(C) estimated tax for the succeeding taxable year if such 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; and
(D) past-due support owed by the taxpayer pursuant to section one
hundred seventy-one-c of this chapter.
(E) 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 chapter.
(F) the amount of a past-due legally enforceable debt owed to a state
agency pursuant to section one hundred seventy-one-f of this article.
(G) the amount of a city of New York tax warrant judgment debt owed to
the city of New York pursuant to section one hundred seventy-one-l of
this article.
(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 the amount of a default in repayment of a guaranteed
student loan, with the remainder to be refunded to the taxpayer.
(5) 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 the amount of the default in repayment of a guaranteed
student loan and the balance of such overpayment and interest to be
refunded to the taxpayer.
(6) 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 the amount of a default in repayment of a guaranteed
student loan. 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.
(7) From the time the state tax commission is notified by the New York
state higher education services corporation of an individual's, estate's
or trust's default in repayment of a guaranteed student loan 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 overpayment and interest on such
amount certified to the comptroller to be credited against the amount of
default in repayment of a guaranteed student loan 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 the amount of default in repayment of a guaranteed student loan.
Provided, however, nothing herein shall be construed to prohibit such
individual, estate or trust from proceeding against the New York state
higher education services corporation to recover that part of such
overpayment or interest thereon so certified to the comptroller to be
credited against the amount of a default in repayment of a guaranteed
student loan which is greater than the amount of such default owed by
such individual, estate or trust on the date of such certification.
(8) 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 |