New York’s highest court dismissed taxpayers’ appeal of an Appellate Division ruling that the payment of tax on intangible income to New York as statutory residents, without a credit for tax paid to Connecticut as domiciliaries, determining that the appeal did not raise a “substantial constitutional question.” Edelman v. New York State Dep’t of Taxation
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.
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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).
New York Disregards Taxpayer’s Reliance on Disregarded Entity Rules
The New York Division of Tax Appeals denied a refund claim to a taxpayer that sought to apply the income sourcing rules for registered broker-dealers to receipts from its separate investment advisory business. The taxpayer structured its broker-dealer operations and investment advisory operations into two separate single-member limited liability companies (LLCs). The taxpayer claimed that
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,
Podcast: New York apportionment of GILTI
In this podcast, our state tax team discusses New York guidance regarding the apportionment treatment of GILTI income.
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