Welcome to the latest issue of New York Tax Insights. In this issue we cover:
- A New York State Tax Appeals Tribunal decision reversing the determination of an Administrative Law Judge and holding that a bond-rating agency was entitled to a refund of sales tax. In ruling for the rating agency, the Tribunal concluded that the agency had established that it, and not its customers, had paid the sales tax for which a refund was sought (on page 1).
- The New York State Tax Appeals Tribunal denial of motions for re-argument made by the State Tax Department seeking reconsideration of two Tribunal decisions. Those decisions held that the Department's use of an alternative apportionment formula for State insurance franchise tax purposes discriminated against two German insurance companies, in violation of the U.S.-Germany Tax Treaty. The Tribunal noted that the Department was attempting to make new legal arguments not made in the initial proceedings (on page 3).
- A New York State Tax Appeals Tribunal decision reversing the determination of an Administrative Law Judge and finding that Qualified Empire Zone Enterprise (QEZE) credits for real property taxes were not available. The Tribunal relied on the form of the entities to deny QEZE credits and stated that the QEZE had failed to demonstrate that it, rather than an affiliate, was the employer of a manager overseeing the development project (on page 4).
- The New York State Department of Taxation and Finance recently released draft corporate tax regulation amendments addressing several technical issues regarding estimated taxes and mandatory first installments of estimated tax, as well as tax collection (on page 6).
- A New York State Department of Taxation and Finance Advisory Opinion finding that taxpayers can be required to forfeit losses as a condition of an Offer in Compromise (on page 7).
- And more (on page 8).
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Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations.
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