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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.

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    § 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