The New York Division of Tax Appeals (DTA) held that the retroactive application of an amended statute did not violate a non-resident individual’s due process rights. In 2009, the individual entered into an agreement to sell his shares in an S corporation and made an IRC 338(h)(10) election, pursuant to which the transaction was treated
Sticker Shock! New York Court of Appeals Holds Price Comparison Services Are Subject To Sale Tax
On June 26, 2019, the New York Court of Appeals held that a price comparison service was taxable as an information service because the information was not personal or individual in nature, which would exclude the service from sales tax.
The taxpayer operated a chain of grocery stores. As part of its pricing strategy, the
INSIGHT: Single Member of Broker-Dealer Not Entitled to Use Broker-Dealer Sourcing in N.Y.
In a case of first impression, a New York administrative law judge (ALJ) ruled that a corporate member of a disregarded limited liability company was not permitted to use a special apportionment rule for broker-dealers even though the disregarded entity was a registered broker-dealer.
Read the full article here.
California, meet New York
Eversheds Sutherland welcomed local guests into our New York office to meet Sacramento lawyers Tim Gustafson and Eric Coffill and learn about developments in California state tax. The group then went to see the Padres meet the Yankees (where the visiting team eked out a win).
I’ve Been Wrong Before: The New York Department of Taxation and Finance Imposes Sales Tax on a Marketplace Operator
On March 8, 2019, the New York Department of Taxation and Finance released an Advisory Opinion ruling that an online marketplace operator that facilitates taxable software sales is a “vendor” liable to collect sales tax. The Department relied on a rarely-used portion of the definition of “vendor,” which states that “when in the opinion of
New York City Tax Tribunal finds that ownership of a flow-through interest can create nexus.
The New York City Tax Tribunal held that an out-of-state corporate taxpayer, with an indirect interest in a limited liability company investment fund engaged in business in New York City, had nexus with the City and was subject to tax on capital gain from its sale of the fund. The taxpayer had no property, employees,
New York Sustains Retroactive Application of Statutory Amendments to the Empire Zones Act
A New York State Administrative Law Judge ruled that the retroactive application of amendments to the state’s Empire Zones statute—disqualifying a taxpayer from the tax reduction credits—did not violate the taxpayer’s constitutional due process rights. Acknowledging that the stated public purposes of curtailing perceived abuses and raising revenue were better accomplished in prospective legislation, the
Legal Alert: New York Governor proposes significant tax changes
New York State Governor Andrew Cuomo released his Fiscal Year 2020 budget and accompanying legislation on January 15, 2019 (the Budget Bill). Among other things, the Budget Bill proposes statutory revisions to respond to the Tax Cut and Jobs Act of 2017 (TCJA) and to impose a sales tax collection obligation on “marketplace providers.”
Legal Alert: New York instructs taxpayers on GILTI apportionment
The New York State Department of Taxation and Finance released guidance in the form of tax return instructions addressing how it will account for global intangible low-taxed income (referred to as GILTI) for apportionment purposes. These instructions allow a taxpayer to include its net GILTI amount (rather than the total receipts related to the generation
Eversheds Sutherland SALT Scoreboard Publication–Second Quarter 2018
This is the tenth edition of the Eversheds Sutherland SALT Scoreboard, and the second edition of 2018. Each quarter, we tally the results of what we deem to be significant taxpayer wins and losses and analyze those results. This edition of the SALT Scoreboard includes a discussion of the United States Supreme Court’s decision in