67. Limitations on credit or refund.--(a) General.--Claim for credit or refund of an overpayment of income tax shall be filed by the taxpayer within three years from the time the return was filed or two years from the time the tax was paid, whichever of such periods expire the later, or if no return was filed, within two years from the time the tax was paid. If the claim is filed within the three year period, the amount of the credit or refund shall not exceed the portion of the tax paid within the three years immediately preceding the filing of the claim plus the period of any extension of time for filing the return. If the claim is not filed within the three year period, but is filed within the two year period, the amount of the credit or refund shall not exceed the portion of the tax paid during the two years immediately preceding the filing of the claim. Except as otherwise provided in this section, if no claim is filed, the amount of a credit or refund shall not exceed the amount which would be allowable if a claim had been filed on the date the credit or refund is allowed.
(b) Extension of time by agreement.--If an agreement under the provisions of paragraph two of subdivision (c) of section sixty-three (extending the period for assessment of income tax)is made within the period prescribed in subdivision (a) for the filing of a claim for credit or refund, the period for filing a claim for credit or refund, or for making credit or refund if no claim is filed, shall not expire prior to six months after the expiration of the period within which an assessment may be made pursuant to the agreement or any extension thereof. The amount of such credit or refund shall not exceed the portion of the tax paid after the execution of the agreement and before the filing of the claim or the making of the credit or refund, as the case may be, plus the portion of the tax paid within the period which would be applicable under subdivision (a) if a claim had been filed on the date the agreement was executed.
(c) Notice of change or correction of federal income.--If a taxpayer is required by section thirty-nine to report a change or correction in federal taxable income reported on his federal income tax return, or to report a change or correction which is treated in the same manner as if it were an overpayment for federal income tax purposes, or to file an amended return with the administrator, claim for credit or refund of any resulting overpayment of tax shall be filed by the taxpayer within two years from the time the notice of such change or correction or such amended return was required to be filed with the administrator. If the report or amended return required by section thirty-nine is not filed within the ninety day period therein specified, interest on any resulting refund or credit shall cease to accrue after such ninetieth day. The amount of such credit or refund shall not exceed the amount of the reduction in tax attributable to such federal change, correction or items amended on the taxpayer's amended federal income tax return. This subdivision shall not affect the time within which or the amount for which a claim for credit or refund may be filed apart from this subdivision.
(d) Overpayment attributable to net operating loss carryback.--A claim for credit or refund of so much of an overpayment as is attributable to the application to the taxpayer of a net operating loss carryback shall be filed within three years from the time the return was due for the taxable year of the loss, or within the period prescribed in subdivision (b) in respect of such taxable year, or within the period prescribed in subdivision (c), where applicable, in respect of the taxable year to which the net operating loss is carried back, whichever expires the latest.
(e) Failure to file claim within prescribed period.--No credit or refund shall be allowed or made, except as provided in subdivision (f) of this section or subdivision (d) of section seventy after the expiration of the applicable period of limitation specified in this local law unless a claim for credit or refund is filed by the taxpayer within such period. Any later credit shall be void and any later refund erroneous. No period of limitations specified in any other law shall apply to the recovery by a taxpayer of moneys paid in respect of taxes under this local law.
(f) Effect of petition to administrator.--If a notice of deficiency for a taxable year has been mailed to the taxpayer under section sixty-one and if the taxpayer files a timely petition with the administrator under section sixty-nine, he may determine that the taxpayer has made an overpayment for such year (whether or not it also determines a deficiency for such year). No separate claim for credit or refund for such year shall be filed, and no credit or refund for such year shall be allowed or made, except--
(1) as to overpayments determined by a decision of the administrator which has become final;
(2) as to any amount collected in excess of an amount computed in accordance with the decision of the administrator which has become final;
(3) as to any amount collected after the period of limitation upon the making of levy for collection has expired; and
(4) as to any amount claimed as a result of a change or correction described in subdivision (c).
(g) Limit on amount of credit or refund.--The amount of overpayment determined under subdivision (f) shall, when the decision of the administrator has become final, be credited or refunded in accordance with subdivision (a) of section sixty-six and shall not exceed the amount of tax which the administrator determines as part of his decision was paid--
(1) after the mailing of the notice of deficiency, or
(2) within the period which would be applicable under subdivisions (a), (b) or (c), if on the date of the mailing of the notice of deficiency a claim had been filed (whether or not filed) stating the grounds upon which the administrator finds that there is an overpayment.
(h) Early return.--For purposes of this section, any return filed before the last day prescribed for the filing thereof shall be considered as filed on such last day, determined without regard to any extension of time granted the taxpayer.
(i) Prepaid income tax.--For purposes of this section, any tax paid by the taxpayer before the last day prescribed for its payment, any income tax withheld from the taxpayer during any calendar year, and any amount paid by the taxpayer as estimated income tax for a taxable year shall be deemed to have been paid by him on the fifteenth day of the fourth month following the close of his taxable year with respect to which such amount constitutes a credit or payment.
(j) Return and payment of withholding tax.--Notwithstanding subdivision (h), for purposes of this section with respect to any withholding tax--
(1) if a return for any period ending with or within a calendar year is filed before April fifteenth of the succeeding calendar year, such return shall be considered filed on April fifteenth of such succeeding calendar year; and
(2) if a tax with respect to remuneration paid during any period ending with or within a calendar year is paid before April fifteenth of the succeeding calendar year, such tax shall be considered paid on April fifteenth of such succeeding calendar year.
(k) Cross reference.--For provision barring refund of overpayment credited against tax of a succeeding year, see subdivision (d) of section sixty-six.
Last modified: February 3, 2019