New York’s personal income tax law, like that of other states, conforms with the federal system of income taxation. The reason typically given for such conformity is to simplify tax return preparation, improve compliance and...more
7/24/2025
/ Audits ,
Compliance ,
Income Taxes ,
Internal Revenue Code (IRC) ,
IRS ,
Like Kind Exchanges ,
Limited Liability Company (LLC) ,
New York ,
Partnerships ,
Real Estate Transactions ,
Section 1031 Exchange ,
State Taxes ,
Tax Liability ,
Tax Planning ,
Tax Returns ,
Taxation
Last month, Bloomberg carried an article about a “small but growing trend” of states that are either cutting their individual income taxes or phasing them out entirely.
According to the article, the states adopting these...more
4/29/2025
/ Appeals ,
Business Entities ,
Capital Gains ,
Corporate Taxes ,
Income Taxes ,
Non-Residents ,
S-Corporation ,
Shareholders ,
State Taxes ,
Tax Liability ,
Taxation
Late last year, the Office of the State Comptroller (the “OSC”) estimated that sales and use tax receipts would increase by 2.3% in the SFY 2024-2025. The OSC also projected that collections from sales and use taxes would...more
2/18/2025
/ Appeals ,
Audits ,
Business Entities ,
Compliance ,
Corporate Governance ,
Corporate Misconduct ,
Delinquency Status ,
New York ,
Noncompliance ,
Penalties ,
Personal Liability ,
Sales Tax ,
Shareholders ,
State and Local Government ,
State Taxes ,
Tax Liability ,
Tax Returns ,
Taxation
You are probably aware that many employers are discarding the fully flexible, remote work policies that were forced upon them – as “nonessential” businesses – during the COVID-19 pandemic[i] and which they retained as an...more
1/22/2025
/ Administrative Law Judge (ALJ) ,
Compliance ,
Coronavirus/COVID-19 ,
Employment Policies ,
Income Taxes ,
New York ,
Non-Essential Businesses ,
Non-Residents ,
Public Health Emergency ,
Remote Working ,
Return-to-Work Agreements ,
State Labor Laws ,
State Taxes ,
Tax Appeals ,
Tax Liability ,
Tax Planning
During the weeks leading up to the Presidential election, the media carried stories about wealthy supporters from each Party who had announced their intention to leave the country if the other Party’s candidate became...more
11/22/2024
/ Business Ownership ,
Capital Gains ,
Citizenship ,
Domicile ,
Exit Strategies ,
Exit Tax ,
New York ,
Non-Resident Income Taxes ,
Presidential Elections ,
Residency Status ,
Selling a Business ,
State Taxes ,
Tax Appeals ,
Tax Returns
Last Friday, New York’s Governor Hochul delivered the following remarks at the annual meeting of the Business Council of New York State:“Someone asked me today, are we going to raise income taxes? I said, ‘I’m not raising...more
9/26/2024
/ Administrative Law Judge (ALJ) ,
Business Taxes ,
Disallowance Defense ,
Income Taxes ,
New York ,
Non-Resident Income Taxes ,
Remote Working ,
State Budgets ,
State Taxes ,
Tax Audits ,
Tax Liability ,
Taxable Income
As far back as I can remember, the end of August has always elicited a sense of dread comparable to what many schoolchildren, and a fair number of adults, experience every Sunday afternoon. In retrospect, I cannot say that...more
9/4/2024
/ Adjusted Gross Income ,
Administrative Law Judge (ALJ) ,
Bonuses ,
Dividends ,
New York ,
Non-Resident Income Taxes ,
Non-Residents ,
Restricted Stocks ,
State Taxes ,
Stock Appreciation Rights ,
Tax Audits ,
Taxable Income ,
Vesting
The Office of the New York State Comptroller just released a new report that examines taxpayer migration trends during the pandemic. The report, which builds on an earlier analysis of pre-pandemic taxpayer migration trends,...more
12/8/2023
/ Administrative Law Judge (ALJ) ,
Capital Gains ,
Carried Interest ,
Compensation ,
Conciliation ,
Dividends ,
Double Taxation ,
Investment Management ,
K-1 ,
Limited Liability Company (LLC) ,
New York ,
Non-Residents ,
Partnerships ,
Relocation ,
Resident Status ,
State Taxes ,
Tax Appeals ,
Tax Credits ,
Tax Rates ,
Tax Returns ,
Taxable Income ,
Tribunals
NY Needs the Revenue-
A couple of weeks ago, the Tax Foundation released its latest “State Business Tax Climate Index,” which assesses a state’s tax system and compares it to that of other states. New York seems to be a...more
11/15/2023
/ Audits ,
Conciliation ,
Investors ,
Limited Liability Company (LLC) ,
Managing Members ,
New York ,
OCC ,
Penalties ,
Personal Liability ,
Responsible Person Liability ,
Sales Tax ,
State Taxes ,
Tax Liability ,
Tax Revenues
Another Change-
Last week BDO confirmed that it was going to convert from an entity organized as a limited liability partnership under state law to one organized as a corporation.
With that, BDO became the latest in a...more
6/29/2023
/ Attestation Requirements ,
Audits ,
Business Income ,
Business Profits ,
Business Taxes ,
C-Corporation ,
Corporate Conversions ,
Corporate Taxes ,
CPAs ,
Distribution Rules ,
Dividends ,
Earnings Tax ,
Employment Tax ,
Federal Taxes ,
Industry Consolidation ,
Limited Liability Company (LLC) ,
Mergers ,
Partnerships ,
Pass-Through Entities ,
Reorganizations ,
Restructuring ,
Shareholders ,
State Taxes
Decisions-
It is often the case that the optimal form of legal entity through which a business should operate, at least for income tax purposes, will depend in part upon the stage of its life cycle in which the business...more
6/20/2023
/ Acquisitions ,
C-Corporation ,
Federal Taxes ,
Investors ,
Limited Liability Company (LLC) ,
Liquidation ,
Partnerships ,
Pass-Through Entities ,
Reinvestment Funds ,
Shareholders ,
State Taxes ,
Tax-Free Transfers ,
Taxable Income
Hasta La Vista N.Y.-
Wealthy individuals continue to leave New York for tax friendlier jurisdictions.
Be Prepared-
Some of these taxpayers take a very methodical approach toward planning for their departure. They...more
5/18/2023
/ Administrative Law Judge (ALJ) ,
Audits ,
Capital Gains ,
Documentation ,
Domicile ,
Exit Tax ,
Income Taxes ,
Limited Liability Company (LLC) ,
Membership Interest ,
New York ,
Non-Resident Income Taxes ,
Purchase and Sale Agreements ,
Relocation ,
State Taxes ,
Tax Court ,
Taxation
Many years ago, New York revised its personal income tax law to achieve close conformity with the Federal system of income taxation. The stated purpose for the revision was to simplify tax return preparation, improve...more
3/27/2023
/ Adjusted Gross Income ,
Audits ,
Documentation ,
Income Taxes ,
IRS ,
New York ,
Real Estate Professionals ,
Rental Property ,
State Taxes ,
Tax Appeals ,
Tax Deductions ,
Taxable Income ,
Taxation
History is replete with examples of leaders who chose to battle, or who were forced into defending against, enemies on two fronts. Rarely did it end well for the combatant that occupied the middle ground.
In a sense, New...more
3/1/2023
/ Amicus Briefs ,
Bona Fide Relationship Test ,
Connecticut ,
Coronavirus/COVID-19 ,
Double Taxation ,
Income Taxes ,
Local Revenues ,
New Jersey ,
New York ,
Non-Resident Income Taxes ,
Non-Residents ,
Out-of-State Employees ,
Remote Working ,
State Taxes ,
Tax Policy ,
Tax Revenues ,
Telecommuting
Last Thursday, New York State Senator Gustavo Rivera, who represents the 33rd District (basically, the northwestern quadrant of The Bronx), proposed legislation that seeks to collect more taxes from the State’s high-income...more
1/26/2023
/ Capital Gains ,
Estate Tax ,
High Net-Worth ,
Income Taxes ,
Net Investment Income ,
New York ,
Selling a Business ,
State Taxes ,
Tax Increases ,
Tax Rates ,
Taxable Income ,
Trusts ,
Wealth Tax
The Mid-Terms-
With 50 seats in the Senate, the Dems still control that Chamber. A win in the Georgia runoff, however, may lessen the burden for Majority Leader Schumer by, perhaps, neutralizing the significance of a certain...more
11/17/2022
/ Business Ownership ,
Business Taxes ,
Domicile ,
IRS ,
Jurisdiction ,
Partnership Interests ,
Political Candidates ,
Political Parties ,
Primary Residence ,
State Elections ,
State Taxes ,
Tax Returns
The New Jersey Division of Taxation recently provided guidance on registration and licensing requirements, Social Equity Excise Fees, and the Sales & Use tax applicable to companies operating in the cannabis industry.
...more
Last week, Governor Murphy of New Jersey staked out a position on New York City’s congestion pricing proposal, stating that it “can’t be ‘on the backs of New Jersey commuters.’”
“Whether it’s how we’re taxed by our...more
9/15/2022
/ Administrative Law Judge (ALJ) ,
Audits ,
Capital Gains ,
Commuting ,
Financial Statements ,
Governor Murphy ,
Information Document Requests ,
New Jersey ,
New York ,
Out-of-State Employees ,
Residency Status ,
State of Residency ,
State Taxes ,
Tax Appeals ,
Tax Tribunal
Everyone has heard about the affluent, or even not-so-affluent, New Yorkers who have moved to Florida, or to another state, to escape New York’s tax regime, not to mention the cold.
More recently, some of us are...more
8/30/2022
/ Burden of Proof ,
Citizenship ,
Conditional Permanent Residence ,
Domicile ,
Estate Tax ,
Exit Tax ,
Intangible Property ,
Intent ,
New York ,
Non-Residents ,
Primary Residence ,
Relocation ,
State Taxes
“Summertime and the Living” Isn’t Easy-
Summer in the New York Metro Area can be challenging. Some would say it sucks. It gets really hot. When it rains, it pours – no spritz here. The humidity is oppressive. Ironically, a...more
7/20/2022
/ Administrative Law Judge (ALJ) ,
Audits ,
Business Licenses ,
Business Ownership ,
Cannabis Products ,
Cannabis-Related Businesses (CRBs) ,
Cost-of-Living Adjustment (COLA) ,
Domicile ,
Financial Statements ,
Florida ,
Homestead Exemption ,
Income Taxes ,
Information Document Requests ,
New York ,
Non-Residents ,
Online Gaming ,
Price Inflation ,
S-Corporation ,
Sports Betting ,
State Budgets ,
State Taxes ,
Stock Markets ,
Tax Increases ,
Tax Revenues
Escape from New York-
According to data released by the IRS earlier this year, the pandemic triggered a “wealth migration” that saw high-tax states like New York lose high-income earners to low-tax jurisdictions such as...more
7/6/2022
/ Administrative Law Judge (ALJ) ,
Appellate Courts ,
CPLR ,
Income Taxes ,
IRS ,
New York ,
Non-Permanent Residents ,
Non-Residents ,
Price Inflation ,
Remote Working ,
Residency Status ,
Resident Non-Domiciled (RND) ,
Stabilization Issues ,
State Taxes ,
Tax Appeals ,
Tax Returns ,
Tax Revenues ,
Tax Tribunal ,
Vacation Homes
State Finances-
Much has been written over the last few weeks about the unprecedented financial cushion that many states have accumulated thanks to federal support prompted by the pandemic and larger-than-expected tax...more
5/24/2022
/ Adjusted Gross Income ,
Administrative Law Judge (ALJ) ,
Audits ,
Federal Aid ,
IRS ,
Limited Liability Company (LLC) ,
New York ,
State Budgets ,
State Taxes ,
Tax Appeals ,
Tax Liability ,
Tax Returns ,
Tax Revenues ,
Taxable Income
The 2023 Budget-
Last week, the New York Legislature passed the State’s 2022-2023 Budget. The $220 billion Budget reflects an $8 billion increase over last year’s budget (a more than 3 percent jump). It is also $4 billion...more
4/13/2022
/ Cannabis-Related Businesses (CRBs) ,
Controlled Substances Act ,
Decriminalization of Marijuana ,
Federalism ,
Financial Services Industry ,
Financial Stimulus ,
Internal Revenue Code (IRC) ,
IRS ,
Medical Marijuana ,
Pass-Through Entities ,
Popular ,
State Budgets ,
State Taxes ,
Tax Revenues
Taxes and Snowy Weather?
How many of you awoke Saturday to find that the winter storm about which we had heard so much during the preceding days had lived up to its hype? What was your first thought? “Fudge,” right?...more
2/4/2022
/ C-Corporation ,
Income Taxes ,
IRS ,
Liquidation ,
New York ,
Partnerships ,
Pass-Through Entities ,
S-Corporation ,
State Taxes ,
Tax Authority ,
Tax Deductions ,
Taxable Income ,
Unincorporated Business Tax (UBT)
Last Week-
What a week it was.
It began relatively well, with the Cowboys losing the NFC wild card game, albeit to a California team.
It ended disturbingly, with the Arizona Democratic Party censuring Senator Sinema...more
1/24/2022
/ Audits ,
Domicile ,
Holding Periods ,
Joe Biden ,
Jurisdiction ,
Lawful Permanent Residents ,
Non-Residents ,
Out-of-State Employees ,
Property Owners ,
State Taxes ,
Sustainability ,
Tax Increases ,
Taxable Income