News & Analysis as of

Administrative Law Judge (ALJ) Tax Appeals

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 | NY Sales Tax on Cloud-Based Document Management Services

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On May 20th, Kilpatrick tax partner Jeff Reed presented during a New York City Bar SALT Committee meeting. Jeff discussed the recent NetVoyage New York Division of Tax Appeals sales tax determination....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

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

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

McDermott Will & Emery

ALJ Rules That a Taxpayer Is a Qualified New York Manufacturer Even Though Qualifying Property Was Operated by a Third Party

The New York State Division of Tax Appeals determined that E. & J. Gallo Winery is a qualified New York manufacturer (QNYM) even though its only property in New York that could allow it to qualify for QNYM classification – a...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

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

Push-Back On New York’s Mission to Tax Non-New Yorkers?

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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

Rivkin Radler LLP

New York to Taxpayer: “Forget What the Feds Said, You’re a ‘Responsible Person"

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Where is the Economy Heading? According to the data released Friday by the Department of Labor, the U.S. economy added approximately 528,000 jobs in July, reducing the unemployment rate to 3.5 percent. Although this...more

Rivkin Radler LLP

Statutory Residence in New York: Time to Rethink the “Permanent Place of Abode” Test?

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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

Rivkin Radler LLP

Will New York Be Looking At Your Federal Tax Return? Probably

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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

Blank Rome LLP

Service Excluded from New York Sales Tax Since It Was Not Furnished to Others

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The New York State Tax Appeals Tribunal held that an information service was not subject to sales tax because although the service provider had the right to provide the information to others, it did not have the technical...more

Farrell Fritz, P.C.

Statutory Residence For The “Former” New Yorker

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“Tax the Rich” in N.Y.- Over the last few months, we’ve considered on several occasions how Albany may respond to the fiscal crisis arising from the pandemic and the ensuing reduction in economic activity. These...more

Akerman LLP - SALT Insights

New York Broadly Applies Information Service Tax to Marketing Analytic Services

A year and a half following the New York Court of Appeals’ significant 2019 decision in Matter of Wegmans Food Markets, Inc. v. Tax Appeals Tribunal of State of New York, 33 NY3d 587 (2019), New York continues to grapple with...more

Morrison & Foerster LLP

MoFo New York Tax Insights - Volume 10, Issue 9

TRIBUNAL AFFIRMS DECISION SOURCING “OTHER BUSINESS RECEIPTS” TO WHERE THE WORK WAS PERFORMED - After three non-precedential Administrative Law Judge decisions—and well after the statute in question has been replaced by new...more

Eversheds Sutherland (US) LLP

Third time’s not the charm - New York Tribunal rejects market-based sourcing

The New York State Tax Appeals Tribunal held that a taxpayer was required, for years before 2015, to apportion its receipts based on the location of the work that generated its receipts, and not based on the location of its...more

Akerman LLP - SALT Insights

You Can’t Touch This: Sale Of Partnership Interest By Nonresident Corporate Partner Deemed Subject To NYC Tax Despite Lack Of...

The decision by the New York City Tax Appeals Tribunal in Goldman Sachs Petershill Fund Offshore Holdings Corp (“Petershill Fund“), unfortunately, does not involve parachute pants or any reference to the “Running Man” dance....more

Morrison & Foerster LLP

MoFo New York Tax Insights - Volume 8, Issue 12

Appellate Court Holds That Furnishing of Pricing Information Is Not a Taxable Information Service - The Appellate Division has issued a potentially important decision regarding the sales tax exclusion for information...more

Morrison & Foerster LLP

MoFo New York Tax Insights - Volume 8, Issue 8

Our August 2017 issue of New York Tax Insights covers these recent developments: Sale of Security Services to Property Manager for NYC Housing Authority Held Exempt from Sales Tax - The sale of security services by a...more

Morrison & Foerster LLP

MoFo New York Tax Insights - Volume 8, Issue 7

ALJ Holds that Executive Changed His Domicile to Paris and Was Not a New York Resident - A New York State Administrative Law Judge has held that an individual who retired as chief financial officer of Colgate-Palmolive...more

Morrison & Foerster LLP

MoFo New York Tax Insights - Volume 7, Issue 12

NYC ALJ Holds That Consulting Firm May Source Receipts Based on Location of Independent Contractors - The nature of the services performed by a corporation, and how that corporation should source its receipts from those...more

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