July 6, 2016

Tax Flash – New York City Unsolicited Refunds Alert

Contributor Andrew Ebneter, Partner, Tax & Business

Tax Flash – New York City Unsolicited Refunds Alert

In recent weeks, many Marcum clients and other NYC taxpayers have been in receipt of unsolicited tax refund checks.

The New York City Department of Finance implemented a new business tax processing system in January 2016, which was designed to enhance the Department’s tax processing services. As a result of the new system’s implementation, tax refund checks are being issued to corporate and individual taxpayers (relating to several different tax periods) where no claim for refund had been filed.

Further, these checks have been issued with little-to-no description or explanation regarding reason for the refund or tax year. The Department maintains that a number of these refunds are overpayments due from prior years, while acknowledging that certain refunds may have been errantly issued due to problems with the new system’s functionality. After further correspondence, the Department has urged recipients of such refunds to deposit the refund checks they received. In addition, the Department stated that in the event that a refund was errantly issued, interest and penalties would not be imposed with regard to the amounts incorrectly refunded.

The City has appointed the following individuals to answer specific questions:

Grace Wong
Phone: (212) 291-4175
Fax: (212) 232-1891
WongGrace@finance.nyc.gov

Wanda Reyes
reyesw@finance.nyc.gov

If you or your business has received a tax refund check from New York City without the filing of a refund claim and you are uncertain whether such refund is accurate, please either contact the individuals noted above or discuss the matter with your Marcum tax advisor.