§ 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.