The Reed Smith State Tax team has a strong hub of knowledge and skill in handling New York state tax matters.
Below are some highlights of the team's experience, as well as some opportunities and "words to the wise" that could benefit your company.
Appeal Procedures
Our lawyers have a detailed understanding of New York State and New York City audit and tax appeal procedures, including handling appeals at the Conciliation Bureau, the Division of Tax Appeals, the Tax Appeals Tribunal, and in state court. There are several strategic issues to consider, including which appeal path to follow, responding to Information Document Requests, and meeting with senior Department of Taxation officials.
State Franchise Tax and New York City Business Corporation Tax
Our New York lawyers routinely handle State and City audits and refund claims for large companies. Common issues include, but are not limited to:
- A review of the filing methodology to determine the combination of the inclusion or removal of entities from a filing group.
- The ability to qualify for reduced tax rates available to qualified New York manufacturers. Specifically, whether (i) software, medical devices, and other items qualify as “goods,” and (ii) contract manufacturing activities are permitted. Our lawyers are also actively engaged in the issue of whether the rate unconstitutionally discriminates against interstate commerce, and should therefore be utilized by out-of-state manufacturers.
- Sales factor adjustments relating to services, software, and other e-commerce and data processing services receipts.
- Sales factor adjustments relating to qualified financial instruments, and other financial products and services.
- Telecommunications excise tax issues in connection with audits of taxpayers that are not regulated telecommunications service providers.
New York Sales Tax Issues
The New York tax authorities are notoriously aggressive in the application of their sales and use tax laws. Our lawyers are in the thick of things, and often advise our clients on the following topics:
- Taxation of remotely accessed software, advertising services, and other electronically delivered services
- Compliance with economic and marketplace nexus laws
- Application of telecommunication rules to new-age technologies
- Proper sourcing of goods and services
New York Personal Income Tax and Withholding Tax
Our New York lawyers are particularly skilled in deftly handling and resolving personal income tax and withholding tax audits and issues. Their experience includes:
- Mindful and effective planning to reduce personal income tax liabilities
- Resolving residency and apportionment audits at confidential levels for favorable results
- Effective document management of “big data” utilized in withholding tax audits
