State Tax - New York

The Reed Smith State Tax team has a strong hub of knowledge and skill in handling New York state tax matters.  Here are highlights of some 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 IDRs, and meeting with senior Department of Taxation officials.

State Franchise Tax and New York City General Corporation Tax

  • Our New York attorneys routinely handle state and City audits and refunds regarding forced combination and forced de-combination (forced separate company) reporting matters, especially involving substantial intercompany transactions and distortion issues. 
  • Corporate taxpayers should consider whether they could save significant state and/or City corporate tax based solely on filing methodology.
  • The New York state and City taxing departments are aggressively pursuing sales factor adjustments regarding sourcing service receipts, especially e-commerce and data processing service receipts.

Data Processing, Software, Information Services and Telecommunications Issues

  • New York auditors are raising telecommunications excise tax Article 186-e issues in connection with audits of taxpayers that are not regulated telecommunications service providers.  We routinely handle and resolve these Article 186-e telecommunications excise tax issues. 
  • We have often successfully defended clients in sales and use tax audits involving electronic services, embedded software, information services and telecommunications charges.

New York Corporate and Sales Tax Nexus Issues

  • The New York tax authorities are leading the charge among the states regarding novel theories with respect to state tax nexus, including taxing online retailers, affiliate nexus and corporate tax economic nexus provisions.  Our lawyers are in the thick of things and often advise our clients on the evolving state of the law. 

New York Article 33 Insurance Taxes

  • Our New York lawyers are capable of deftly handling and resolving Article 33 insurance tax audits and issues.

Please contact Lee Zoeller, Aaron Young, or Jack Trachtenberg to discuss our New York State Tax practice.