§ 686. Overpayment.-- (a) General.-- The commissioner of taxation and
finance, within the applicable period of limitations, may credit an
overpayment of income tax and interest on such overpayment against any
liability in respect of any tax imposed by this chapter, including taxes
imposed under article twenty-three of this chapter, on the person who
made the overpayment, against any liability in respect of any tax
imposed pursuant to the authority of this chapter or any other law on
such person if such tax is administered by the commissioner of taxation
and finance and, as provided in sections one hundred seventy-one-c, one
hundred seventy-one-d, one hundred seventy-one-e, one hundred
seventy-one-f and one hundred seventy-one-l of this chapter, against
past-due support, a past-due legally enforceable debt, a city of New
York tax warrant judgment debt, and against the amount of a default in
repayment of a guaranteed student, state university or city university
loan. The balance shall be refunded by the comptroller out of the
proceeds of the tax retained by him for such general purpose. Any refund
under this section shall be made only upon the filing of a return and
upon a certificate of the commissioner approved by the comptroller. The
comptroller, as a condition precedent to the approval of such a
certificate, may examine into the facts as disclosed by the return of
the person who made the overpayment and other information and data
available in the files of the commissioner.

(b) Excessive withholding.--If the amount allowable as a credit for
tax withheld from the taxpayer exceeds his tax to which the credit
relates, the excess shall be considered an overpayment.

(c) Overpayment by employer.--If there has been an overpayment of tax
required to be deducted and withheld under section six hundred
seventy-one, refund shall be made to the employer only to the extent
that the amount of the overpayment was not deducted and withheld by the
employer.

(d) Overpayment by a deceased person.--Notwithstanding section
thirteen hundred ten of the surrogate's court procedure act, any
overpayment by a decedent not in excess of one thousand dollars may be
refunded to the decedent's surviving spouse unless the return for the
decedent was filed by his or her executor or administrator.

(e) Credits against estimated tax.--The commissioner may prescribe
regulations providing for the crediting against the estimated income tax
for any taxable year of the amount determined to be an overpayment of
the income tax for a preceding taxable year. If any overpayment of
income tax is so claimed as a credit against estimated tax for the
succeeding taxable year, such amount shall be considered as a payment of
the income tax for the succeeding taxable year, and no claim for credit
or refund of such overpayment shall be allowed for the taxable year for
which the overpayment arises, except upon request to the commissioner on
or before the last day prescribed for the filing of the return for the
succeeding taxable year, determined with regard to any extension of time
granted. If good cause is shown for reversing the credit, the
commissioner may, in his or her discretion, credit the overpayment
against a liability or refund the overpayment without interest.
Provided, the person who made the overpayment will not be relieved of
liability for any penalty imposed for a consequent underpayment of
estimated tax for the succeeding taxable year. The decision of the
commissioner to grant or deny the request is final and not subject to
further administrative or judicial review.

(f) Rule where no tax liability.--If there is no tax liability for a
period in respect of which an amount is paid as income tax, such amount
shall be considered an overpayment.

(g) Assessment and collection after limitation period.--If any amount
of income tax is assessed or collected after the expiration of the
period of limitations properly applicable thereto, such amount shall be
considered an overpayment.

(h) Cross reference. For provision barring application of article
fifty-two of the civil practice law and rules to any amount to be
refunded or credited to a taxpayer, see section seven of this chapter.

(i) Overpayment.--In case of an overpayment of tax required to be paid
by an entity as an estimated tax under paragraph four of subsection (c)
of section six hundred fifty-eight of this article, a refund shall be
made to such entity only to the extent that such overpayment is
attributable to a partner, member or shareholder for whom the entity is
not required to pay such estimated tax.