Section 11-678. Limitations on credit or refund

1. General. Claim for credit
  or  refund  of  an overpayment of tax under any of the named subchapters
  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  or  New  York
  state  taxable income or other basis of tax or federal or New York state
  tax, or (c) a  federal  or  New  York  state  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  or  New  York
  state  income  tax  purposes,  see paragraph (g) of subdivision three of
  section 11-674 of this subchapter.
    2. Extension  of  time  by  agreement.  If  any  agreement  under  the
  provisions  of  paragraph  (b) of subdivision three of section 11-674 of
  this subchapter (extending the period of  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 federal or New York state  income
  or  other  basis  of tax. If a taxpayer is required by subchapter two or
  three of this chapter to file a report or amended return in  respect  of
  (a)  a decrease or increase in federal or New York state taxable income,
  alternative minimum taxable income or other basis of tax or  federal  or
  New York state tax, (b) a federal or New York state 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  or
  New  York  state  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 subchapter two or three 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:

    (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  or  New  York  state  taxable
  income,  alternative  minimum  taxable  income  or other basis of tax or
  federal or New York state tax or to  such  federal  or  New  York  state
  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  carry  back  or
  capital  loss  carry back. A claim for credit or refund of so much of an
  overpayment under subchapter two of this chapter as is  attributable  to
  the  application to the taxpayer of a net operating loss carry back or a
  capital loss carry back shall be filed within three years from the  time
  the  return  was due (including extensions thereof) 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 to the taxable  year  to
  which  the net operating loss or capital 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 to the taxable year to
  which the net operating loss or capital 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 11-681 of this subchapter,  after
  the  expiration of the applicable period of limitation specified in this
  subchapter, 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 subchapters.
    6.  Effect  of  a  petition  to  tax  appeals tribunal. If a notice of
  deficiency for a taxable year has been  mailed  to  the  taxpayer  under
  section  11-672  of  this  subchapter and if the taxpayer files a timely
  petition with the tax appeals tribunal  under  section  11-680  of  this
  subchapter, 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:
    (a)  as  to  overpayment  determined  by a decision of the tax appeals
  tribunal which has become final; and
    (b) 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; 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  tax

  appeals tribunal has become final, be credited or refunded in accordance
  with  subdivision one of section 11-677 of this subchapter and shall not
  exceed the amount of tax which the tax appeals  tribunal  determines  as
  part of its decision was paid:
    (a) after the mailing of the notice of deficiency, or
    (b) within the period which would be applicable under subdivision 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  ground  upon
  which the tax appeals tribunal 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 or  New  York  state  taxable
  income  or other basis of tax or federal or New York state tax, or (iii)
  a federal or New York state 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 or New York state income tax
  purposes, see paragraph (g) of subdivision three of  section  11-674  of
  this subchapter.
    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 subchapter two or three of this chapter, or on the
  last day prescribed in part one of subchapter three or  subchapter  four
  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 11-677 of this subchapter.
    11. Notice of change or correction of sales and compensating  use  tax
  liability.  (a)  If  a  taxpayer  is  required by subchapter two of this
  chapter 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.  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.
    (b)  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.