Section 171-P. Costs or fees imposed by the United States or other states for crediting tax overpayments against outstanding tax debts owed to the state of New York

(1) For purposes of this section:    (a) "overpayment" means the amount requested for refund  or  otherwise
  determined  to be in excess of that owed with respect to any tax imposed
  under, or pursuant to the authority of, the internal revenue code or the
  laws of any state;
    (b) "taxpayer" means any individual, corporation, partnership, limited
  liability partnership or  company,  partner,  member,  manager,  estate,
  trust,  fiduciary or entity, who or which has made an overpayment of tax
  as defined in paragraph (a) of this subdivision;
    (c) "tax debt" means any past due, legally enforceable tax  obligation
  administered by the commissioner.
    (2)  The commissioner may implement procedures under which any cost or
  fee imposed or charged by the United States or any state,  with  respect
  to  payment  or  remittance of a taxpayer's overpayment to satisfy a tax
  debt of the taxpayer, must  not  be  credited  by  the  commissioner  to
  payment  or  satisfaction  of the tax debt, must be deemed to be part of
  the taxpayer's tax debt, and must be eligible  for  offset  against  the
  taxpayer's  overpayment to the extent permitted by law. The commissioner
  may also implement procedures under which any cost  or  fee  imposed  or
  charged  by  the  United  States or any other state, with respect to any
  other payment or remittance of a  taxpayer's  overpayment  or  a  vendor
  payment  to satisfy a debt of the taxpayer or the person who is owed the
  vendor payment as authorized by section  one  hundred  seventy-one-t  of
  this  article,  must not be credited by the state of New York to payment
  or satisfaction of the debt, must be deemed to be part of the taxpayer's
  or person's debt, and must be eligible for offset against the taxpayer's
  overpayment or the person's vendor payment to the  extent  permitted  by
  law.