§ 136. Interest on overpayment. (a) General.--Notwithstanding the
provisions of section three-a of the general municipal law, interest
shall be allowed and paid as follows at the rate set by the commissioner
of finance pursuant to section one hundred forty-five, or, if no rate is
set, at the rate of six percent per annum upon any overpayment in
respect of the tax imposed by this title:

(1) from the date of the overpayment to the due date of an amount
against which a credit is taken; or

(2) from the date of the overpayment to a date (to be determined by
the commissioner of finance), preceding the date of a refund check by
not more than thirty days, whether or not such refund check is accepted
by the taxpayer after tender of such check to the taxpayer. The
acceptance of such check shall be without prejudice to any right of the
taxpayer to claim any additional overpayment and interest thereon.

(3) late returns. Notwithstanding paragraph one or two of this
subdivision, in the case of a return of tax which is filed after the
last date prescribed for filing such return (determined with regard to
extensions), no interest shall be allowed or paid for any day before the
date on which the return is filed.

No interest shall be allowed or paid if the amount thereof is less
than one dollar.

(b) Advance payment of tax and payment of estimated tax.--The
provisions of subdivisions (h) and (i) of section one hundred
thirty-five applicable in determining the date of payment of tax for
purposes of determining the period of limitations on credit or refund,
shall be applicable in determining the date of payment for purposes of
this section.

(c) Income tax refund within three months of due date of tax.--If any
overpayment of tax imposed by this title is refunded within three months
after the last date prescribed (or permitted by extension of time) for
filing the return of such tax or within three months after the return
was filed, whichever is later, no interest shall be allowed under this
section on such overpayment.

(d) Refund of income tax caused by carryback.--For purposes of this
section, if any overpayment of tax imposed by this title results from a
carryback of a net operating loss, such overpayment shall be deemed not
to have been made prior to the filing date for the taxable year in which
such net operating loss arises. Such filing date shall be determined
without regard to extensions of time to file. For purposes of
subdivision (c) of this section any overpayment described herein shall
be treated as an overpayment for the loss year and such subdivision
shall be applied with respect to such overpayment by treating the return
for the loss year as not filed before claim for such overpayment is
filed. The term "loss year" means the taxable year in which such loss
arises.

(e) No interest until return in processible form.--

(1) For purposes of subdivisions (a) and (c) of this section, a return
shall not be treated as filed until it is filed in processible form.

(2) For purposes of paragraph one of this subdivision, a return is in
a processible form if--

(A) such return is filed on a permitted form, and

(B) such return contains--

(i) the taxpayer's name, address, and identifying number and the
required signatures, and

(ii) sufficient required information (whether on the return or on
required attachments) to permit the mathematical verification of tax
liability shown on the return.

(f) Cross-reference.--For provision terminating interest after failure
to file notice of federal change under section one hundred twenty-seven,
see subdivision (c) of section one hundred thirty-five.