On July 1, 2022, the New York State Department of Taxation and Finance issued the third set of “final draft” regulations relating to the corporation franchise tax reform that took effect for tax years beginning on or after January 1, 2015. The third set of draft regulations relate to apportionment, and contain revisions to the
corporation franchise tax
The Ink is Finally Dry: New York Tax Preparers No Longer Need “Wet Signatures” for E-filing
On August 24, 2020, New York Governor Andrew Cuomo signed New York S.8832, a bill authorizing tax return preparers to accept electronic signatures on e-file authorizations for purposes of filing tax documents electronically with the New York Department of Taxation and Finance. The Bill applies in the context of New York State corporation, personal income,…
It’s Electric: New York Tax Appeals Tribunal Holds Electricity Generator is Qualified New York Manufacturer
The New York State Tax Appeals Tribunal held that an electricity generation company was a qualified New York manufacturer for purposes of calculating New York State franchise tax on a corporation’s capital base, even though the company did not qualify for purposes of the entire net income base.
During the period at issue, a New…
Minnesota Supreme Court Upholds Commissioner’s Use of Alternative Apportionment for Financial Institution
The Minnesota Supreme Court held that the state’s standard apportionment method did not fairly reflect the taxpayer’s net income allocable to the state, reversing the Tax Court’s ruling. The taxpayer, a national financial institution, transferred its loan portfolios to two newly formed partnerships. For apportionment purposes, Minnesota requires financial institutions to include loan interest in…
New York State Tax Appeals Tribunal: Payments to Captive Insurance Company Did Not Qualify as Deductible Insurance Premiums
By Andrew Appleby and Dmitrii Gabrielov
The New York State Tax Appeals Tribunal released its precedential decision in Stewart’s Shops, affirming an Administrative Law Judge’s determination that payments by a corporation to its captive insurance company did not qualify as deductible insurance premiums because the arrangement did not constitute insurance for federal income tax…
Texas Comptroller Issues “Strong” Decision, Companies’ Single Shared Administrator Not Sufficient to Require Unitary Combined Filing
By Evan Hamme and Marc Simonetti
The Texas Comptroller upheld a taxpayer’s separate Franchise Tax return filing position, rejecting an Administrative Law Judge’s finding that the taxpayer and its affiliate shared a strong centralized management structure that required a unitary combined report. Although the companies were commonly owned and shared an administrator, the Comptroller found…
Running on Empty: New York State ALJ Denies Deduction for Payments Made to Captive Insurance Company
By Charles Capouet and Andrew Appleby
A New York State Division of Tax Appeals ALJ determined that payments by a corporation to its captive insurance company did not qualify as deductible insurance premiums because the arrangement lacked risk shifting and risk distribution. The taxpayer primarily owned and operated convenience stores and gas stations, and insured…
It Takes One to Know One: Occasional California Ruling Determines Disposition of Entire Line of Business Is an “Occasional Sale”
By Evan Hamme and Tim Gustafson
In a rare Chief Counsel Ruling (the first of 2015), the California Franchise Tax Board (FTB) held that the sale of an entire line of business qualified as an “occasional sale” for corporate franchise tax purposes, thus requiring the selling taxpayer to exclude the resulting gross receipts from its…
In a New York Minute: A Complete Guide to New York’s New Manufacturer Incentives plus an addendum regarding New York City’s Manufacturer Rules
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New York City Legislation Enacts General Corporation Tax Reform
On April 13, 2015, Governor Andrew Cuomo signed New York’s 2015-2016 budget legislation, which, among other changes, conforms the New York City general corporation tax to the most significant changes from last year’s New York State corporation franchise tax reform.
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