Taxation

  • Cuomo Budget: Proposed Changes Could Affect CPAs and Their Clients

    By:
    RICHARD J. KORETO
    |
    Jan 28, 2014
    In his budget speech on Feb. 21, Governor Cuomo pointed out that under his administration, the state has passed three on-time budgets in a row—something that hadn't happened in more than 30 years. Now, he said, he's going for four in a row, which  New York hasn't achieved since Nelson Rockefeller was governor and many current legislators were still learning how to walk.  His talk was upbeat, with Cuomo saying "we are swinging for the fences in the fourth year." In fact, he had already mapped much of his tax strategy, so there wasn't much in the way of surprise in that area, but that doesn't mean there won't be any push-back as the state's fiscal year draws to a close on March 31.
  • State Makes Tough Tax Decision on Cap Improvements

    By:
    RICHARD J. KORETO
    |
    Jan 21, 2014
    The New York State Department of Taxation and Finance moves seamlessly from the sublime to the ridiculous. Last week, we described how the tax department applied the U.S. Constitution to a seemingly simple tax nexus case. This week, we show how the department turns its attention to the taxation of amusement park water slides. But as odd and trivial as this may seem—most NYSSCPA members will go their entire careers without accounting for a water slide—the ruling actually has important implications for any CPA who works with real estate and has concerns about capital improvements.
  • Check-Off Funds May Languish, According to Comptroller Report

    By:
    RICHARD J. KORETO
    |
    Jan 21, 2014
    On New York state tax returns, filers can check one or more boxes to donate money for wildlife management, breast cancer research, volunteer firefighters or five other causes. Did you ever wonder where that money actually went? State Comptroller Thomas P. DiNapoli did, and as noted in a recent report, he wasn't entirely happy with what he found.
  • Tax Department's Five-Year Rule Review Plan Starts Again

    By:
    RICHARD J. KORETO
    |
    Jan 14, 2014
    Don't like a tax rule? The state is going to give you a chance to change it. The State Administrative Procedure Act (SAPA) generally requires agencies to review existing rules at five-year intervals. To that end, the state tax department is putting up for review a series of 2009 (or older) rules and inviting comments. These rules have already been in effect for at least five years, and the department is not saying it will change all of them—or even any of them. But if you want them left alone, expanded or rolled back, now is the time to put in your two cents.
  • Revised Forms and Credits: NYSDTF Opens New Year with a Bang

    By:
    RICHARD J. KORETO
    |
    Jan 14, 2014
    The staff at the New York State Department of Taxation and Finance apparently spent the holiday season gearing up for the upcoming tax season, releasing a variety of notices to correct and clarify key filing issues. All of the notices cover issues that tax practitioners should address in the near future.
  • Sales Tax and the Repeal of Prohibition

    By:
    RICHARD J. KORETO
    |
    Jan 14, 2014
    The 21st amendment, which repealed Prohibition back in 1933, would hardly seem to be news. But it actually came into play in what initially appeared to be a very ordinary query before the state tax department. The Office of Counsel usually can resolve sales tax confusion by consulting state laws and regulations, with occasional references to court cases and IRS rules. But in Advisory Opinion TSB-A-13(35)S, the state based its decision—almost entirely—on one of the U.S. Constitution's most famous amendments. 
  • With Taxation, It's About Timing

    By:
    RICHARD J. KORETO
    |
    Jan 8, 2014
    As a recent case shows, sometimes the state has to rule on tax issues that aren't really about tax at all. In Advisory Opinion TSB-A-13(8)I, the provisions of the law weren't in question; rather, the petitioner wanted to know what the state thought a plain English phrase meant. As a result, the state tax department had to step in and make a ruling because the state legislature had been vague.
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