A New York Administrative Law Judge recently determined that a taxpayer was liable for income tax as a statutory resident of New York State and New York City for the entire 2014 tax year, as he maintained a permanent place of abode in New York City and was physically present in New York State and
New York
Electronic transfer of photographs not taxable in New York
By Jonathan Feldman, Jeremy Gove & Alla Raykin on
Posted in Digital Economy, New York
The New York Department of Taxation and Finance recently published advisory opinion TSB-A-20(66)S regarding the taxability of photographs provided to purchasers either digitally or through a tangible medium for less than permanent use. The Department held that the electronic transfer of photographs is not taxable in New York because a digital photograph is not considered…
Legal Alert: Department of Taxation and Finance releases long awaited guidance addressing pass-through entity tax
Posted in Legal Alert, New York
On August 25, 2021, the New York State Department of Taxation and Finance released guidance (Technical Memorandum, TSB-M-21(1)C, (1)I) addressing the recently enacted optional pass-through entity tax (PTET) that partnerships and New York S corporations may elect to pay for tax years beginning on or after January 1, 2021.
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Consulting service not taxable even if it provides access to software in New York
By Jonathan Feldman, Jeremy Gove & Chris Lee on
Posted in Digital Economy, New York
The Department of Taxation and Finance recently issued advisory opinion numbered TSB-A-20(63)S (dated November 17, 2020) in which it concluded that the primary purpose of a marketing-consulting service was a nontaxable service, even though the taxpayer’s customers had access to software. The taxpayer assists automotive industry clients in designing and launching effective marketing campaigns and…
New York Slice: Executive orders create continued administrative tax appeals deadline confusion
By Michael Hilkin & Jeremy Gove on
Posted in In the News, New York
New York Governor Andrew Cuomo issued a series of executive orders beginning on March 20, 2020, tolling statewide legal filing deadlines from March 20, 2020, to Nov. 3, 2020.
In their column for Bloomberg Tax, Eversheds Sutherland attorneys Michael Hilkin and Jeremy Gove note there is confusion over whether the executive orders apply to…
Application of the Pension Source Law to excess benefit plans
By Charlie Kearns on
In the latest SALT@Work column for the Journal of Multistate Taxation and Incentives, Eversheds Sutherland Partner Charlie Kearns provides an overview of the Pension Source Law, specifically its treatment of excess benefit plans, as well as recent guidance from New York that applies those provisions.
New York Tax Appeals Tribunal rules mandatory S corporation election triggered based on IRC definition of income
By Eric Coffill & Elizabeth Cha on
Posted in Income Tax, New York
On May 17, 2021, the New York Tax Appeals Tribunal (Tribunal) held that when determining whether a New York C corporation must mandatorily elect to be treated as an S corporation as a result of the investment ratio test provided by New York Tax Law § 660(i), such test requires that “federal gross income” adopt…
Actions speak louder than words when determining New York domicile
By Michael Hilkin & Jeremy Gove on
Posted in New York, State Domicile and Residency
A New York Administrative Law Judge recently determined that a married couple who purchased a home in Florida in 2013 with the intention of retiring in the state, but retained ties to New York, could not prove that they abandoned their New York domicile in 2014. In arriving at her conclusion the ALJ focused on…
A real SOL situation: New York Tax Appeals Tribunal dismisses case for untimely filing
By Ted Friedman & Elizabeth Cha on
Posted in New York
On April 15, 2021, the New York Tax Appeals Tribunal (“Tribunal”) dismissed a taxpayer’s exception to an order of an Administrative Law Judge (“ALJ”) on the grounds that the exception was not timely filed. The Tribunal determined that the ALJ’s order was properly mailed to the taxpayer on June 11, 2020, that an exception to…
New York State Advisory Opinion Finds IT Support Services Not Subject to Sales Tax
By Eric Coffill & Annie Rothschild on
Posted in New York
The New York State Department of Taxation and Finance released an advisory opinion finding the Petitioner’s fee paid for IT support services was not subject to sales and use tax because the only taxable component of the services was delivered to the Petitioner outside of New York. The Petitioner hired a New York-based company to…