Sec. 8-2.3. Notice of change or correction of Federal income

Tax Law, §§ 211(3), 1087(c)

If a taxpayer is required to file a report or amended report in respect to a decrease in Federal taxable income or Federal tax, or 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, a report or amended report is required to be filed within 90 days of the final Federal determination. If the report or amended report is not filed within the 90-day period following final Federal determination, interest on any resulting credit or refund shall cease to accrue after the 90th day. The claim for credit or refund of any resulting overpayment of tax must be filed by the taxpayer within two years from the 90th day after the final Federal determination. The amount of refund or credit shall be limited to the reduction in tax attributable to the Federal change or correction or renegotiation, or computation or recomputation, and shall be computed without change in the allocation of income or capital upon which the taxpayer's return (or any additional assessment) was based.