News & Analysis as of

Administrative Law Judge (ALJ) State Taxes

Jackson Lewis P.C.

Remote Work Challenges After New York Tax Appeals Tribunal Upholds Income Tax “Convenience Rule”

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In an opinion issued on May 15, 2025, the State of New York Tax Appeals Tribunal, the highest administrative forum for state tax appeals, upheld the application of the state’s income tax “convenience rule” imposing New York...more

Kilpatrick

4 Key Takeaways | Market Based Sourcing and Discretionary Adjustments

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On April 24th, Kilpatrick tax partner Jeff Reed presented during a New York City Bar SALT Committee meeting. Jeff discussed the recent Jefferies Group LLC & Subsidiaries New York Tax Appeals Tribunal decision....more

Blank Rome LLP

Deli’s Party Platters Found Subject to Sales Tax Despite Customer Assembly Required

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In the world of sales tax, the devil is often in the details. A recent decision from the New York State Tax Appeals Tribunal (“Tribunal”) serves as an example of how seemingly insignificant details can determine whether a...more

Rivkin Radler LLP

Employer to Nonresident Employee: “You Cannot Work in New York”; New York to Employee: “We Will Tax You Anyway”

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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

Blank Rome LLP

Asphalt Company Not Liable for $2.6 Million in Sales Tax Where Judge Found No Sale

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It should be obvious that a state may not impose sales tax where there is no sale. This maxim was reinforced in the case Asphalt Emulsion Industries LLC v. North Carolina Department of Revenue, 23 REV 04898 (N.C. OAH Nov. 21,...more

Blank Rome LLP

New York ALJ Finds Convenience of Employer Rule Applicable to Nonresident but Provides a Roadmap for How a Taxpayer May Prove the...

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In another challenge to New York’s so-called convenience of the employer rule (the “convenience rule”), an Administrative Law Judge (“ALJ”) recently issued a determination upholding application of the rule against a...more

Blank Rome LLP

NYC Judge Applies Step Transaction Doctrine but Cancels Real Property Transfer Tax Assessment

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A recent New York City (“NYC”) determination limited the impact of the step transaction doctrine under the New York City real property transfer tax (“RPTT”). An Administrative Law Judge (“ALJ”) held that the collapsing of a...more

Rivkin Radler LLP

New York Tax Continues to Inconvenience Nonresidents Working Remotely

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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

Rivkin Radler LLP

New York’s Tax Treatment of Compensatory Restricted Stock and Dividends in the Hands of a Nonresident Executive

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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

Blank Rome LLP

New York City ALJ Rules That Deductions Allowable for Federal Income Tax Purposes Are Also Allowable under the UBT

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In a recent case, a New York City Administrative Law Judge (“ALJ”) determined that the City’s unincorporated business tax (“UBT”) did not impose a second, discrete requirement that a deduction need be directly connected with...more

Jackson Lewis P.C.

New York Expands Rationale For State Income Tax “Convenience Rule”

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The November 30, 2023, opinion of a New York administrative law judge in In the Matter of the Petition of Edward A. and Doris Zelinsky upholds the state’s so-called income tax “convenience rule” with an expanded legal...more

Blank Rome LLP

New York ALJ Rejects Division of Taxation’s Attempt to Change Its Theory of Liability after the Hearing

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A New York State Administrative Law Judge (“ALJ”) recently rejected an attempt by the Division of Taxation (“Division”) to change its theory of liability after the record was closed, raising its new theory of liability for...more

Blank Rome LLP

New York State Tax Appeals Tribunal Denies Resident Credit for Tax Paid to Connecticut on Carried Interest

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The New York State Tax Appeals Tribunal ("Tribunal") held that a New York resident was not entitled to a resident tax credit for tax she paid to Connecticut on her carried interest. Matter of Greenberg, DTA No. 829737 (N.Y.S....more

Blank Rome LLP

New York ALJ Holds That Convenience of Employer Rule Applies Despite Covid Lockdowns

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In the latest but likely not final chapter of Professor Zelinsky’s ongoing challenge to New York’s convenience of the employer rule, a New York Administrative Law Judge ("ALJ") upheld application of the rule, counting days...more

Rivkin Radler LLP

New York Can Be Stingy Giving Credit – Resident Tax Credit, That Is

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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

Blank Rome LLP

New York State Division of Tax Appeals Finds Hotel Business Liable for Over $15 Million in Franchise Tax

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An Administrative Law Judge (“ALJ”) at the State Division of Tax Appeals sustained two deficiency notices assessing over $15 million in tax against Cushlin Limited (“Cushlin”), a business that acquires and refurbishes hotels....more

Rivkin Radler LLP

Can You Be Sure You’ve Left New York Before The Sale of Your Business? Will It Matter?

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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

Freeman Law

Texas Tax Roundup | April 2023: Pleas to the Jurisdiction, Retail and Wholesale Franchise Tax Rate, and More

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Howdy folks, and welcome back to another edition of the Texas Tax Roundup, where we gab about all things Texas tax and perhaps even some things Texas tax adjacent. As ole T.S. once put it, “April is the cruelest...more

Freeman Law

Texas Tax Roundup | March 2023: Flowback, Welding, Local Taxes, and More!

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Franchise Tax - Apportionment - 34 Tex. Admin. Code § 3.591 (Margin: Apportionment)—The Comptroller adopted his amendments outlined in our previous post to implement the Texas Supreme Court’s opinion in Sirius XM...more

Blank Rome LLP

New York State ALJ Determines Vendor Management Services Provided in Conjunction with Software are Subject to Sales Tax as the...

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An Administrative Law Judge (“ALJ”) recently found that a taxpayer’s vendor and labor management services, which were provided in conjunction with the grant of a software license, were subject to sales tax as the sale of...more

Freeman Law

Texas Tax Roundup | January 2023

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Hiya, folks and welcome back to a whole new edition (in a whole new year) of the Texas Tax Roundup! January started the year off with a blast! Let’s see what happened!   Sales and Use Tax  Governmental Exemption...more

Blank Rome LLP

New York State ALJ Determines Individual Member of LLC Personally Liable for Sales Tax

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An Administrative Law Judge (“ALJ”) recently determined that an individual member of a limited liability company (“LLC”) was personally liable for an LLC’s sales tax deficiency, both because he was a member of the LLC, and...more

Freeman Law

Texas Tax Roundup | December 2022: Sweepstakes, Medical Records, and More!

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December was a bit of a slow month on the Texas tax front. Hopefully everyone was out of their respective offices and enjoying the holidays/resting up for the upcoming legislative session. Still, we got an interesting opinion...more

Freeman Law

Texas Tax Roundup | November 2022: What’s a Franchise Tax?

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Hey everybody! Welcome back to another for another edition of Texas Tax Roundup! Hope y’all had a happy Thanksgiving! We got some franchise tax apportionment, some sales and use tax in the oil and gas industry, and some...more

Blank Rome LLP

ALJ Determines E-Mail Tracking and Analytics Services Not Subject to New York Sales Tax

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An Administrative Law Judge (“ALJ”) recently issued a determination cancelling the notices of determination issues by the New York State Department of Taxation and Finance and finding that the taxpayer’s e-mail tracking and...more

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