Section 78 - Limitations on credit or refund1.General.-Claim for credit or refund of an overpayment of tax under any of the named parts 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 expires 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. For special restriction in a proceeding on a claim for refund of tax paid pursuant to an assessment made as a result of (a) a net operating loss carryback, or (b) an increase or decrease in federal taxable income or federal tax, or (c) a federal change or correction or renegotiation, or computation or recomputation of tax, which is treated in the same manner as if it were a deficiency for federal income tax purposes, see paragraph (g) of subdivision three of section seventy-four.2.Extension of time by agreement.-If an agreement under the provisions of paragraph (b) of subdivision three of section seventy-four (extending the period for assessment of tax) is made within the period prescribed in subdivision one 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 one if a claim had been filed on the date the agreement was executed.3.Notice of change or correction of fedearl income.-If a taxpayer is required by part two or part three of this title to file a report or amended return in respect of (a)a decrease or increase in federal taxable income or federal tax, or(b)a federal change or correction or renegotiation, or computation or recomputation of tax, which is treated in the same manner as if it were an overpayment for federal income tax purposes, claim for credit or refund of any resulting overpayment of tax shall be filed by the taxpayer within two years from the time such report or amended return was required to be filed with the commissioner of finance. If the report or amended return required by part two or part three of this title 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-(c) shall be computed without change of the allocation of income or capital upon which the taxpayer's return (or any additional assessment) was based, and(d) shall not exceed the amount of the reduction in tax attributable to such decrease or increase in federal taxable income or federal tax or to such federal change or correction or renegotiation, or computation or recomputation of tax. 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.
4.Overpayment attributable to net operating loss carryback.-A claim for credit or refund of so much of an overpayment under part two of this title 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 two in respect of such taxable year, or within the period prescribed in subdivision three, where applicable, in respect of the taxable year to which the net operating loss is carried back, whichever expires the latest. Where such claim for credit or refund is filed after the expiration of the period prescribed in subdivision one or in subdivision two where applicable, in respect of the taxable year to which the net operating loss is carried back, the amount of such credit or refund shall be computed without change of the allocation of income or capital upon which the taxpayer's return (or any additional assessment) was based.5.Failure to file claim within prescribed period.-No credit or refund shall be allowed or made, except as provided in subdivision six of this section or subdivision four of section eighty-one, after the expiration of the applicable period of limitation specified in this part, 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 the named parts.6.Effect of petition to director of finance.-If a notice of deficiency for a taxable year has been mailed to the taxpayer under section seventy-two and if the taxpayer files a timely petition with the director of finance under section eighty, he may determine that the taxpayer has made an overpayment for such year (whether or not he 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-(a) as to overpayment determined by a decision of the director of finance which has become final; and(b) as to any amount collected in excess of an amount computed in accordance with the decision of the director of finance which has become final; and(c) as to any amount collected after the period of limitation upon the making of levy for collection has expired; and(d) as to any amount claimed as a result of a change or correction described in subdivision three.7.Limit on amount of credit or refund.-The amount of overpayment determined under subdivision six shall, when the decision of the director of finance has become final, be credited or refunded in accordance with subdivision one of section seventy-seven and shall not exceed the amount of tax which the director of finance determines as part of his decision was paid-(a) after the mailing of the notice of deficiency, or(b) within the period which would be applicable under subdivisions one, two or three, 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 commissioner of finance finds that there is an overpayment. For special restriction on credit or refund in a proceeding on a petition for redetermination of a deficiency where the notice of deficiency is issued as a result of (i) a net operating loss carryback, or (ii) an increase or decrease in federal taxable income or federal tax, or (iii) a federal change or correction or renegotiation, or computation or recomputation of tax, which is treated in the same manner as if it were a deficiency for federal income tax purposes, see paragraph (g) of subdivision three of section seventy-four.
8.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.9.Prepaid tax.-For purposes of this section, any tax paid by the taxpayer before the last day prescribed for its payment (including any amount paid by the taxpayer as estimated tax for a taxable year) shall be deemed to have been paid by it on the fifteenth day of the third month following the close of the taxable year the income of which is the basis for tax under part two or part three of this title, or on the last day prescribed in subpart one of part four or in part five for the filing of a final return for such taxable year, or portion thereof, determined in all cases without regard to any extension of time granted the taxpayer.10.Cross reference.-For provision barring refund of overpayment credited against tax of a succeeding year, see subdivision two of section seventy-seven.11.Notice of change or correction of sales and compensating use tax liability.-If a taxpayer is required by part two of this title to file a report or amended return in respect of a change or correction of its sales and compensating use tax liability, claim for credit or refund of any resulting overpayment of tax shall be filed by the taxpayer within two years from the time such report or amended return was required to be filed with the commissioner of finance. If the report or amended return required by part two of that title 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 be computed without change of the allocation of income or capital upon which the taxpayer's return (or any additional assessment) was based, and shall not exceed the amount of the reduction in tax attributable to such change or correction of sales and compensating use tax liability. 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.
N.Y. General City Model Law § 78