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
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 Bill Introduced to Exempt GILTI
On June 11, 2018, Senate Bill 8991 was introduced by New York Senate Majority Leader John Flanagan. The Bill would decouple from the federal treatment of Global Intangible Low-Taxed Income (GILTI).
View the full legal alert.
IRS to Crackdown on SALT Deduction Cap Workarounds
The IRS intends to issue regulations pertaining to states’ attempts to subvert the state and local tax deduction cap.
- The Tax Cuts and Jobs Act imposed a $10,000 ($5,000 for married individuals filing separately) limit on state and local tax deductions for federal income tax purposes.
- Certain states, including New York, New Jersey, and Connecticut,
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New York City: Penalty Relief Available for Certain Section 965 Underpayments
By Dennis Jansen on
Posted in Tax Reform
The New York City Department of Finance recently announced the availability of penalty abatements for certain taxpayers that have underpaid business taxes due to the inclusion of Section 965 income.
NYC Finance Memorandum No. 18-4 (PDF) describes tax considerations and late payment penalty relief for NYC taxpayers affected by Section 965 and subject…
New York State Budget Adopts Substantial Changes in Response to Federal TCJA
The New York Legislature passed its 2018-2019 Fiscal Year budget on March 30, 2018, which is expected to be signed into law by Governor Cuomo. The Legislature responded to the Tax Cuts and Jobs Act (TCJA) passed by the United States Congress late last year by excluding IRC § 965 repatriated income from New York…
New York State Advisory Opinion: Non-US Unauthorized Life Insurance Companies’ Premiums Excluded from Apportionment Factor
Posted in New York, Noteworthy Cases
By Dmitrii Gabrielov and Andrew Appleby
The New York State Department of Taxation and Finance issued an advisory opinion determining that non-US unauthorized life insurance companies’ premiums were not includable in the New York State insurance franchise tax apportionment factor. The Department reasoned that the apportionment statute requires a life insurance company to report its …
Watch Your Step: New York City Real Property Transfer Tax Imposed Under Step Transaction Doctrine
Posted in New York, Noteworthy Cases
By Dmitrii Gabrielov and Tim Gustafson
The New York State Supreme Court, Appellate Division, affirmed the New York City Tax Appeals Tribunal’s (Tribunal) determination that certain real estate transactions were subject to the New York City Real Property Transfer Tax (RPTT) under the step transaction doctrine.
The taxpayer and a nonparty owned, respectively, 45% and …
New York State Appellate Division Affirms that HMOs Were Subject to New York City General Corporation Tax
Posted in New York, Noteworthy Cases
By Dmitrii Gabrielov and Andrew Appleby
The New York State Supreme Court, Appellate Division, affirmed the New York City Tax Appeals Tribunal’s (Tribunal) decision that Aetna’s subsidiary health maintenance organizations (HMOs) were subject to the New York City General Corporation Tax (GCT) for 2005 and 2006. The Appellate Division determined that the Tribunal’s reasoning …
New York State Tax Appeals Tribunal: Assessment of Non-Admitted Alien Insurance Companies Violated Tax Treaty and Foreign Commerce Clause
Posted in New York, Noteworthy Cases
By Huy “Mike” Le and Andrew Appleby
The New York State Tax Appeals Tribunal (Tribunal) held that the Department’s assessment of two non-admitted German insurance companies violated the United States-Germany Tax Treaty’s anti-discrimination clause and the US Constitution’s Foreign Commerce Clause.
The alien non-admitted non-life insurance companies had no premiums from sources in the United …