Section 11-527. Limitation on credit or refund

(a) General. Claim for credit
  or refund of an overpayment of 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 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.
    (b) Extension  of  time  by  agreement.  If  an  agreement  under  the
  provisions of paragraph two of subdivision (c) of section 11-523 of this
  chapter  (extending  the  period  for  assessment of income tax) is made
  within the period prescribed in subdivision (a) of this section 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 claims 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) of this section if a
  claim had been filed on the date the agreement was executed.
    (c) Notice of change or  correction  of  federal  or  New  York  state
  taxable  income.  If  a  taxpayer  is required by section 11-519 of this
  chapter to report a change or correction in federal or  New  York  state
  taxable  income  reported  on  the  taxpayer's federal or New York state
  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 or New York
  state income tax purposes,  or  to  file  an  amended  return  with  the
  commissioner  of  finance,  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 commissioner of finance. If the report
  or amended return required by section 11-519  of  this  chapter  is  not
  filed  within the ninety day period therein specified, no interest shall
  be payable on  any  claim  for  credit  or  refund  of  the  overpayment
  attributable  to the federal or New York state change or correction. The
  amount of such credit or refund shall  not  exceed  the  amount  of  the
  reduction  in tax attributable to such federal or New York state change,
  correction or items amended on the taxpayer's  amended  federal  or  New
  York state 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)  of  this  section  in  respect  of such taxable year, or within the
  period prescribed in subdivision (c) of this section,  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 11-530 of this chapter
  after the expiration of the applicable period of limitation specified in
  this chapter 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 chapter.
    (f) Effect of petition  to  tax  appeals  tribunal.  If  a  notice  of
  deficiency  for  a  taxable  year  has been mailed to the taxpayer under
  section 11-521 of this chapter  and  if  the  taxpayer  files  a  timely
  petition  with  the  tax  appeals  tribunal under section 11-529 of this
  chapter, the tax appeals tribunal 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 tax appeals
  tribunal which has become final;
    (2) as to any amount collected in excess  of  an  amount  computed  in
  accordance  with  the  decision  of  the  tax appeals tribunal 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) of this section.
    (g)  Limit  on  amount  of credit or refund. The amount of overpayment
  determined under  subdivision  (f)  of  this  section  shall,  when  the
  decision  of  the  tax appeals tribunal has become final, be credited or
  refunded in accordance with subdivision (a) of section  11-526  of  this
  chapter  and  shall  not  exceed the amount of tax which the tax appeals
  tribunal determines as part of its decision was paid:
    (1) after the mailing of the notice of deficiency, or
    (2) within the period which would be applicable under subdivision (a),
  (b) or (c) of this section, if on the date of the mailing of the  notice
  of  deficiency a claim has been filed (whether or not filed) stating the
  grounds upon which the tax appeals  tribunal  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 tax. For purposes of this section, any  tax  paid  by  the
  taxpayer  before  the last day prescribed for its payment and any amount
  paid by the taxpayer as estimated tax for a taxable year shall be deemed
  to have been paid by the taxpayer on the fifteenth  day  of  the  fourth
  month  following  the  close  of his or her taxable year with respect to
  which such amount constitutes a credit or payment.
    (j) Cross reference.  For  provision  barring  refund  of  overpayment
  credited  against  tax  of  a  succeeding  year,  see subdivision (d) of
  section 11-526 of this chapter.
    (k) Notice of change or correction of sales and compensating  use  tax
  liability. If a taxpayer is required by section 11-519.1 of this chapter
  to  file  a report or amended return or report in respect of a change or
  correction of his or her 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 or report was required to  be  filed  with  the  commissioner  of
  finance.  The  amount of such credit or refund shall be computed without
  change of the allocation of income 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.