N.Y. Comp. Codes R. & Regs. tit. 20 § 534.2

Current through Register Vol. 46, No. 45, November 2, 2024

Section 534.2 - Administrative procedures

Tax Law, §§ 1139, 1142(9), 1147(c)

(a)Application for a refund or credit.

(1) Application required.

(i) To claim a refund or credit for any tax, penalty or interest collected or paid which may be credited or refunded, a person must file an application for such refund or credit with the Department of Taxation and Finance.

(ii) Where an application for credit has been filed, the applicant may immediately take such credit on the return which is due coincident with or immediately subsequent to the time that the applicant files his application for credit, except with respect to the refund described in section 534.8 or 534.9 of this Part.

(iii) The taking of a credit on a sales and use tax return is deemed to be part of the application for such credit. The application for credit or a copy of the application, if filed earlier, must be attached to the return on which the credit is taken.

(2) Form of application.

(i) An application for a refund or credit must contain the following information:

(a) name of applicant;

(b) address of applicant;

(c) applicant's vendor identification number (if the applicant is registered);

(d) period covered by claim, in the case of a claim for a credit or refund by an omnibus carrier under section 534.4 of this Part, the claim must cover a period of not less than three months;

(e) amount of refund or credit claimed;

(f) name and address of authorized representative (if the applicant has a representative);

(g) a full explanation of facts on which the claim is based, including substantiation of the basis for and the amount of the claim;

(h) a certification that no part of the tax paid for which the claim is made has been refunded or credited to the applicant by the person to whom it was paid, or, in the case of an application by a vendor, a certification and evidence satisfactory to the Department of Taxation and Finance that he has refunded the tax to his customer;

(i) date of application; and

(j) signature of the applicant and, if the applicant is an officer of a corporation or a partner in a partnership, the individual's title.

(ii) All applications for refunds or credits of sales or use taxes are to be filed with the Central Office Audit Bureau, Sales Tax Section, Building 9, W.A. Harriman Campus, Albany, NY 12227. Preprinted refund and credit application forms may be obtained from the Department of Taxation and Finance by contacting the Taxpayer Assistance Bureau at the phone number or address listed in subdivision (c) of section 525.3 of this Title.

(b)Timeliness of applications.

(1) An application for a refund or credit must be filed with the Department of Taxation and Finance within the following time limitations:

(i) where the tax was paid by the applicant to a person required to collect tax, within three years after the date when the tax was payable to the Department of Taxation and Finance by the person who collected the tax from the applicant, as provided in section 1137 of the Tax Law; or

(ii) where the tax, penalty or interest was paid by the applicant to the Department of Taxation and Finance, within three years after the date the tax, interest, or penalty was payable directly to the Department of Taxation and Finance by the applicant as provided in sections 1137 and 1145 of the Tax Law;

(iii) where the tax was paid by the applicant pursuant to a signed statement of consent to the fixing of tax as provided in subdivision (c) of section 1138 of the Tax Law, (a) within the time limitations stated in subparagraphs (i) and (ii) of this paragraph, or (b) within two years of the date of payment of the amount assessed in accordance with the consent filed whichever is later. However, the application described in clause (b) of this subparagraph is limited to the amount of such payment;

(iv) where the tax was paid to the Department of Taxation and Finance by the applicant, purchaser, transferee, or assignee liable for the tax pursuant to subdivision (c) of section 1141 of the Tax Law, within two years after the date of notice by the Department of Taxation and Finance of the amount of tax claimed by the State to be due from the seller, transferor, or assignor;

(v) within three years of the date the consumer receives the refund from the motor vehicle manufacturer of the purchase price, capitalized cost and fees and charges, or portion thereof, pursuant to section 198-a or 396-p (5) of the General Business Law. See section 534.9 of this Part.

(2) Where a person consents in writing to the extension of the period in which taxes may be assessed pursuant to subdivision (c) of section 1147 of the Tax Law, an application for a refund or credit may be made within six months after the last day of the extended period even though the time limitations within which an application may be filed under subparagraphs (i) and (ii) of paragraph (1) of this subdivision may have expired.

(c)Repayment of tax to customer.

(1) Any person who has erroneously, illegally, or unconstitutionally collected any tax from a customer and remitted such tax to the Department of Taxation and Finance must repay such tax to the customer before the Department of Taxation and Finance may refund any amounts to him. Any such person must maintain an accurate record of the:

(i) name and address of each customer to whom the tax was repaid;

(ii) nature of the transaction and the amount of tax paid thereon;

(iii) amount of tax repaid to each customer;

(iv) reason for the repayment of the tax to each customer;

(v) dates of the transactions and repayment to each customer; and

(vi) proof of payment to each customer.

(2) The required records must be made available to the Department of Taxation and Finance upon request.

(d)Action by the Department of Taxation and Finance.

(1) The Division of Taxation on behalf of the Department of Taxation and Finance will grant or deny, in whole or in part, an application for a refund or credit.

(2) The Audit Division will notify the applicant of its determination by mail.

(3) The determination will be final and irrevocable unless the applicant, within 90 days after the date of mailing of the notice of determination, applies to the Bureau of Conciliation and Mediation Services of the Division of Taxation for a conciliation conference or to the Division of Tax Appeals for a hearing to review the determination.

Cross-reference:

See Part 3000 of this Title (Tax Appeals Tribunal Rules of Practice and Procedure) and Part 4000 of this Title (Division of Taxation's Bureau of Conciliation and Mediation Services Rules of Practice and Procedure) for administrative procedures relating to the denial of a refund or credit claim.

(e) Interest.

(1) Rate. For the rate of interest applicable to overpayments of any tax, penalty or interest, which is erroneously, illegally or unconstitutionally collected or paid, see Part 2393 of this Title.

(2) Allowance of interest. Interest will only be allowed and paid on refunds or credits as specifically provided in section 1139 or elsewhere in articles 28 and 29 of the Tax Law.

(f) Comptroller's approval and review.

All refunds approved by the Department of Taxation and Finance must, before payment is made, also be reviewed and approved by the Department of Audit and Control as provided for by section 1 of article V of the State Constitution.

N.Y. Comp. Codes R. & Regs. Tit. 20 § 534.2