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:
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 refund claims 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 a change to filing methodology.
Data Processing, Software, Information Services and Telecommunications Issues
New York auditors are raising telecommunications excise tax issues in connection with audits of taxpayers that are not regulated telecommunications service providers. We routinely handle and resolve these telecommunications excise tax issues.
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.
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 for 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.