Tax Law

Recent Posts

For the Record – Corporate Record Storage Service Provided in New Jersey not Subject to New York Sales Tax
Posted on 3 Sep 2020 by Eversheds Sutherland LLP

On August 18, 2020, the New York Supreme Court, Albany County, held that there was no rational basis for New York’s imposition of sales tax on storage services performed in New Jersey that occurred subsequent to the initial sale and pickup of items in... Read More

The Ink is Finally Dry: New York Tax Preparers No Longer Need “Wet Signatures” for E-filing
Posted on 3 Sep 2020 by Eversheds Sutherland LLP

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... Read More

Lost in customs: New York Tax Appeals Tribunal disallows deduction for royalties paid by foreign nontaxpayer affiliates
Posted on 31 Aug 2020 by Eversheds Sutherland LLP

On Aug. 6, the New York Tax Appeals Tribunal held that royalties received from a foreign affiliate are taxable and are not subject to New York’s royalty income exclusion provision under former Tax Law § 208(9)(o)(3). Prior to its amendment, Tax Law... Read More

California’s Flawed Proposal to Expand False Claims Act to Tax
Posted on 7 Aug 2020 by Eversheds Sutherland LLP

In a forthcoming article in State Tax Notes , Eversheds Sutherland SALT partner Jeff Friedman and associate Dennis Jansen explore the issues with A.B. 2570 – California’s latest attempt to extend the state’s whistleblower statute to tax claims. The... Read More

New York Considers Requiring Rental Platforms to Collect Tax
Posted on 10 Jul 2020 by Eversheds Sutherland LLP

The recently introduced SB 8627 would require short-term rental platforms to collect and remit sales taxes on behalf of the hosts on rental units leased outside of New York City. A similar measure was introduced last year but died in committee. Read More

New York Proposes 10% Digital Advertising Tax
Posted on 8 Jul 2020 by Eversheds Sutherland LLP

The New York State Assembly will consider AB 10706 , the Digital Ad Tax Act or DATA, which would impose a sliding scale of taxes on digital advertising services that use personal information about the people the advertisements are targeting. The tax starts... Read More

There’s No Turning Back: New York State Tax Appeals Tribunal Holds Retroactive Application of Statutory Amendments Violates Due Process
Posted on 11 Jun 2020 by Eversheds Sutherland LLP

The New York State Tax Appeals Tribunal struck down the retroactive application of legislative amendments to a taxpayer who reasonably relied on a precedential decision of the Tribunal that was final and irrevocable at the time the taxpayer sold his shares... Read More

Keeping it Convenient? Bill Introduced in NY Senate that Would Allow Employers to Withhold Based on “Normal Work Location.”
Posted on 26 May 2020 by Eversheds Sutherland LLP

New York S. 8386 , introduced and referred to the Budget and Revenue Committee on May 21, 2020, provides that employers “may designate” remote work by employees who have been required to telework during the Covid-19 pandemic state of emergency “as having... Read More

It’s Electric: New York Tax Appeals Tribunal Holds Electricity Generator is Qualified New York Manufacturer
Posted on 22 May 2020 by Eversheds Sutherland LLP

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... Read More

Principally Engaged: New York Looks to 50% of Gross Receipts for Determining Filing Status
Posted on 14 May 2020 by Eversheds Sutherland LLP

The New York Department of Taxation and Finance recently published an advisory opinion stating that a taxpayer’s New York corporate income tax filing status should be determined by “what activity [a taxpayer] is principally engaged in” and by whether... Read More

Try As They Might, Telco’s Electricity Purchases Still Do Not Qualify for New York’s Resale Exemption
Posted on 24 Apr 2020 by Eversheds Sutherland LLP

A New York appellate court affirmed the Division of Tax Appeals (DTA) denial of a telecommunications company’s refund request on sales tax paid on its purchases of electricity. The telecommunications company argued that its electricity purchases were... Read More

A Cup of Coffee with Duncan Riley: Friday, April 24 – 2:00 PM ET
Posted on 23 Apr 2020 by Eversheds Sutherland LLP

Join us on Friday, April 24 at 2:00 pm ET for a casual conversation with Duncan Riley, Director of the Conciliation Bureau at the New York City Department of Finance. Duncan has been the Director of the Conciliation Bureau since the Bureau’s inception... Read More

New York Continues to Disregard Taxpayer’s Reliance on Disregarded Entity Rules
Posted on 17 Apr 2020 by Eversheds Sutherland LLP

The New York State Tax Appeals Tribunal affirmed a New York State Division of Tax Appeals determination denying a refund claim to a taxpayer that sought to apply the income sourcing rules for registered broker-dealers to receipts from its separate investment... Read More

SOL Situation: New York State, New York City Administrative Tax Tribunals Differ on Tolling Statutes of Limitations
Posted on 17 Apr 2020 by Eversheds Sutherland LLP

New York State and City taxpayers should be aware that, at least publicly, State and City administrative bodies have taken different approaches regarding the applicability of Executive Orders tolling statutes of limitations. Almost one month ago, New... Read More

New York Bill Would Expand Sales Tax Base to Digital Advertising Services
Posted on 15 Apr 2020 by Eversheds Sutherland LLP

On April 13, 2020, legislation ( S.8166 ) was introduced in the New York State Senate that would expand the sales tax base to digital advertising services. “Digital advertising services” is defined as “advertisement services on a digital interface, including... Read More