171-n. Certain overpayments credited against outstanding tax debts owed to other states. (1) For the purposes of this section:
(a) "overpayment" means an amount requested for refund or otherwise determined to be in excess of that owed, with respect to any tax administered by the commissioner and remaining after application, as may be determined by the commissioner, to the satisfaction of debts owed by a taxpayer to this state or the federal government;
(b) "taxpayer" means any individual, corporation, partnership, limited liability partnership or company, partner, member, manager, estate, trust, fiduciary or entity, who or which has made an overpayment of any tax administered by the commissioner;
(c) "tax debt" means any past due, legally enforceable tax obligation owed any other state administering that tax, which arises from (i) an enforceable judgment of a court of competent jurisdiction which is no longer subject to judicial review, or (ii) an enforceable determination of an administrative body which is no longer subject to administrative or judicial review, or (iii) an assessment or determination (including self-assessment or self-assessed determination) which has become final or finally and irrevocably fixed and no longer subject to administrative or judicial review; and
(d) "claimant state" means any state which requests application of an overpayment to a tax debt.
(2) The commissioner may, in his or her discretion, agree to pay the whole or part of an overpayment of tax administered by the commissioner to a claimant state owed a tax debt by a taxpayer, provided the claimant state grants substantially similar privileges to this state. An agreement with a claimant state must provide for thirty days advance written notice to, and an opportunity for, taxpayers to present written or oral evidence about application of their overpayments to tax debts. A proceeding may be commenced by a taxpayer within four months after a copy of a decision adverse to the taxpayer is mailed to the taxpayer for judicial review of the decision in the manner provided by article seventy-eight of the civil practice law and rules. Article forty of this chapter shall not apply to any hearing or proceeding on whether an overpayment may be applied to a tax debt in accordance with this section. The remedy provided by this section for review of hearings and proceedings shall be the exclusive remedy available to judicially determine whether an overpayment may be applied to a tax debt in accordance with this section. The amount of a tax debt remaining due as certified by a claimant state shall be prima facie evidence of the correct amount of a tax debt.
Last modified: February 3, 2019