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Tax Law

New York Slice: New York’s Minimalist Approach to Discovery in Tax Matters

The New York Division of Tax Appeals (DTA) recently issued order that highlights the unique discovery rules that apply in the litigation of New York tax matters. These rules differ substantially from other states that offer more expansive discovery options when taxpayers appeal state tax assessments or denials of refund claims.

On Sept. 3, 2020, the DTA issued an order addressing an ‘‘attorney-issued’’ subpoena in In Matter of West 20th Street Enterprises Corp. The order concluded that the DTA lacked jurisdiction to modify or quash the subpoena. But the administrative law judge (ALJ) explained that if he had jurisdiction, he would have quashed the subpoena on the basis that the petitioning taxpayer’s attorney did not have the authority to issue the subpoena under the applicable judicial and administrative procedural rules.

In their new column for Bloomberg Tax, Eversheds Sutherland Partner Open Weaver Banks and Counsel Ted Friedman and Michael Hilkin discuss the unique rules for discovery in New York Tax matters in relation to the DTA’s recent order, highlighting the advantages and disadvantages.

Read the full article here.