The BR State + Local Tax Spotlight: July 2022
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Note from the Editors
Welcome to the July 2022 edition of The BR State + Local Tax Spotlight. We understand the unique demands of staying on top of important State + Local Tax developments, which happen frequently and across numerous jurisdictions. Staying updated on significant legislative developments and judicial decisions helps tax departments function more efficiently and improves strategy and planning. That is where The BR State + Local Tax Spotlight can help. In each edition, we will highlight for you important State + Local Tax developments that could impact your business. In this issue, we will be covering:
- The New Jersey Division of Taxation Audit Branch’s recent initiative to resolve state transfer pricing issues;
- A New York Appellate Division decision that a New Jersey resident’s vacation home in upstate New York was not sufficient to establish statutory residency in New York; and
- The New York State Department of Taxation and Finance’s final draft of corporate tax apportionment regulations that updates guidance on the state’s Corporation Franchise Tax.
We invite you to share The BR State + Local Tax Spotlight with your colleagues and visit Blank Rome’s State + Local Tax webpage for more information about our team. Click here to add State + Local Tax to your subscription preferences.
Eugene J. Gibilaro and Anna Uger
ARTICLES
New Jersey’s Unconstitutional Penalties for Transfer Prices Should Fail!
By Mitchell A. Newmark
New Jersey, in advance of examining the facts and the issues, has said it refuses to do its job of auditing and resolving tax disputes involving transfer pricing without imposing penalties unless you do the job for them, do it fast, and do it their way—and all appeal rights are waived. This creates clear violations of State and Federal Due Process, the Manifest Injustice doctrine, and the mandate that government turn “Square Corners” when dealing with taxpayers. Read More »
Appellate Division Holds That Existence of Vacation Home Not Enough to Establish Statutory Residency in New York
By Kara M. Kraman
The Appellate Division recently granted taxpayers an important victory when it overturned the decision of the Tax Appeals Tribunal and held that a New Jersey resident’s vacation home in upstate New York was not enough to establish his statutory residency in New York. Read More »
New York State Tax Department Releases Final Draft Corporate Tax Apportionment Regulations
By Irwin M. Slomka
Since the enactment of New York State corporate tax reform beginning in 2015, the New York State Department of Taxation and Finance (the “Department”) has been periodically posting for comment draft regulation sections interpreting the law. Things took a decidedly more accelerated turn when, this past April, the Department posted two sets of revised “final drafts” covering all topics except apportionment, and announced that it would be posting a final draft of the apportionment regulation sections by this summer. On July 1, 2022, the Department posted the revised apportionment regulations, combining into one final draft what had been three separate sets of regulation sections, which were last updated in 2019. Read More »
WHAT’S SHAKING: BLANK ROME STATE + LOCAL TAX ROUNDUP
Blank Rome’s nationally prominent State + Local Tax attorneys are thought leaders in the community as frequent guest speakers at various local and national conferences throughout the year. Our State + Local Tax attorneys believe it is necessary to educate and inform their clients and contacts about topics that will impact their businesses. We invite you to attend, listen, and learn as our State + Local Tax attorneys interpret and discuss key legal issues companies are facing and how you can put together a plan of action to mitigate risk and advance your business in accordance with state and local tax laws. Read More»