State Tax Talks with Joe Tantillo

Joe, Mark Klein, and Andrew Wright continue their discussion about common tax residency errors, and the panel delves into topics that frequently create unnecessary difficulty in New York State audits. Everything from “country club advice” to errors in the tax return, this episode is a must listen for anyone considering making a move out of state.

Joe is joined by Mark Klein and Andrew Wright to discuss some of the most common errors in the world of tax residency. The panel discussed misconceptions related to changing your residency, such as misunderstanding surrounding the six months and a day test and failing to move near and dear items to your new home. These common mistakes can derail and otherwise carefully planned move for taxpayers who are not careful.

Joe and Dan continue their discussion on California’s tax residency rules, and they delve into the complexity and ambiguity of California’s temporary/transitory purpose test. They highlight the unique rules associated with the test, and they discuss how California leans on the objective factors in its “closest connections test” when the temporary/transitory analysis doesn’t result in a firm domicile determination.

In this episode of State Tax Talks, Joe brings in California tax professional and Hodgson Russ Partner, Daniel Kelly for a nuts and bolts overview of California’s rules on changing your residency for tax purposes. The two start at the top with a discussion on California’s law surrounding domicile as well as a few safe harbor provisions included in the California tax law. California, much like New York, utilizes a complex analysis for making a determination as to whether someone has successfully abandoned their California residency. Dan and Joe look to peel back the layers of the primary test for our listeners.

Changing your domicile can be a challenge. Changing your domicile to a foreign country is an even bigger challenge. Joe is joined by Tim Noonan and Diana Mathis for an in-depth discussion of the rules governing changes of residency out of New York to a foreign country. The panel also discusses the 548-Day Rule safe harbor within the New York tax law, which allows people to escape taxation as a resident if they spend enough time abroad and meet other requirements.

In part two of our pass-through entity tax discussion, Joe, Liz, and Chris discuss the nuts and bolts of calculating PTET income for partnerships and S-corporations. The panel also discusses the complexities surrounding the credit and the addback of taxes paid at the individual level in New York. The panel also dives into some of the nuances of the New York City pass-through entity tax as well as some frequently asked questions that arise in the world of PTET.

Joe is joined by Hodgson Russ partners Liz Pascal and Chris Doyle to discuss the nuts and bolts of the pass-through entity tax. The panel begins its discussion with an overview of what exactly a pass-through entity tax is, and how it’s tied to the Tax Cuts and Jobs Act of 2017. The panel also discusses some of the basics of making the PTET election, including who can make the election and when the deadline is in New York State.

The administrative law judge in the Zelinsky case issued a determination in favor of the tax department. Andrew Wright and Brandon Bourg join Joe Tantillo to discuss the analysis in the determination and break down what this means for the case moving forward. For now, the convenience rule remains good law, but will the analysis hold on appeal? Tune in to hear our thoughts.

Have you ever really looked into some of the distinctions between what makes an item taxable or nontaxable in New York? Well, we have, and some of the rules are just plain outrageous. Joe is joined by Mark Klein, Joe Endres, and Josh Lawrence to discuss some of New York State’s silliest sales tax rules. You’ll be shocked at how the tiniest difference can result in a hefty sales tax bill. The panel shares stories about some of the niche sales tax issues that have come up on audit.

Joe continues his conversation with Hodgson Russ partners Michael Hecker and Joseph Endres, as the trio discusses the dynamic Brownfield Program. The conversation shifts to the sizeable tax credits available to developers looking to take advantage of the Brownfield Program. Joe Endres highlights how these credits are calculated, claimed, and what scrutiny the tax department may use when reviewing Brownfield credit claims.

Joe is joined by Hodgson Russ LLP partners Michael Hecker and Joseph Endres to discuss the ins and outs of New York State’s Brownfield Program. Federal and State Brownfield Cleanup Programs (BCPs) present unique opportunities for revival of contaminated properties in economically blighted communities and turning barriers to development into productive commercial or industrial sites. These programs also serve as one of the tools that may be used alongside a wide array of other economic development programs to leverage dollars and investment for various types of redevelopments, while providing essential protections against long-term risk. Brownfield projects require a step-by-step understanding of the process in order to ensure those undertaking the project receive the maximum benefits available. Mike shares his expertise on the regulatory and operational compliance required to undertake a Brownfield Project, and the steps to be completed long before the benefit of the Brownfield tax credit can be received.

In the final part of our allocation and apportionment series, Joe, Chris, and Andrew discuss the nuts and bolts of apportioning business income. The apportionment and allocation of business income often varies based on the type of business entity, which can create confusion for business owners. The panel tries to simplify this process by taking a look at New York’s rules for corporate and partnership apportionment.

Joe, Chris, and Drew continue their series on allocation and apportionment. In this episode, the panel breaks down the nuts and bolts of nonresident wage allocation, and the impacts of telecommuting on the workday allocation fraction. The trio also discuss the difference between allocating salary and bonus income.

Joe is joined by esteemed legal scholar, Professor Edward Zelinsky of the Benjamin N. Cardozo School of Law, and Hodgson Russ colleagues Elizabeth Pascal and Timothy Noonan to discuss Professor Zelinsky’s ongoing legal battle against New York State’s Convenience of the Employer Rule. Professor Zelinsky shares stories about his original convenience rule court case and provides insight into how his legal theory evolved for his newest court case in opposition of the convenience rule.

Joe is joined by Hodgson Russ Attorneys Andrew Wright and Chris Doyle to begin his series on nonresident allocation and apportionment. The group dives into the very basics of the topic, and answers the all-important question of what distinguishes allocation from apportionment.

Our introduction to sales tax series comes to a close with an in depth discussion on the audit process. Have you ever wondered what happens in a New York State sales tax audit? Joe Tantillo and Joe Endres break down the ins and outs of the audit process. They discuss the rights of the taxpayer, audit procedure, and potential outcomes.

The two Joes continue their sales tax discussion by venturing into the topic of taxability. They discuss the basics of the taxation of sales of tangible personal property versus sales of services. And Joe Endres poses some interesting hypotheticals about the applicability of the New York State sales tax.

Joe sits down with SALT attorneys Chris Doyle and Mario Caito to discuss some highlights from the New York State Legislature’s proposed Revenue portions of the State’s 2023-24 Budget (Assembly Bill 3009/Senate Bill 4009)(the “Budget”). The group also highlights some of the proposed tax rate increases and wealth tax proposals that have been floated by state legislators.

Joe is joined by sales tax expert and SALT attorney, Joe Endres, for the first part of our Introduction to Sales Tax Series. The pair discuss one of the most important issues in the world of sales tax: nexus. Often a threshold issue for companies trying to determine the taxability of their sales, nexus is the connection between a seller and a state that requires the seller to register then collect and remit sales tax in the state. Whether a seller has nexus with a given state can be a complicated matter even for the most experienced tax professionals. The two Joes break down the law of nexus and analyze the complexities of the law.

A major win for taxpayers, the decision in Matter of Obus v. New York State Tax Appeals Tribunal is final! Joe is joined by guests Tim Noonan, Andrew Wright, and Emma Savino to discuss this landmark tax case, which will dramatically shift the rules for New York’s statutory residency test. We break down the cases that led up to this point, what actually happened in Obus, why the impact of the case is significant, and what the future may hold for legal interpretation of what constitutes a permanent place of abode in New York. A once purely mechanical test, the statutory residency test now looks to have a major subjective component as part of the analysis, as a result of the Obus decision. Joe and his guests also give their thoughts on whether the State will take action in response to this major change.

Joe and guests Chris and Dan continue their conversation about New York State’s Convenience of the Employer Rule. They focus their discussion on one of the most famous court cases to ever challenge the Convenience Rule, Matter of Zelinsky v. Tax Appeals Tribunal of the State of New York. They also discuss Professor Zelinsky’s renewed challenge to the Convenience Rule, the challenge’s chances of success, and the best arguments against upholding the rule as constitutional.

Welcome to the first edition of the Happy Minute: a laid back, round-table style discussion of contemporary tax issues that pique our interest. Joe is joined by guests, Chris Doyle and Dan Kelly, to discuss the Convenience of the Employer Rule used by New York and a handful of other states to tax the wage income of remote employees. This is a nonresident allocation rule that can be confusing to many taxpayers, especially those working remotely for New York employers. Joe, Chris, and Dan talk about how the rule works, why it negatively impacts remote employees, and whether it is fair for states to use a convenience rule.

In a continuation of their discussion on tax residency, Tim and Joe dive into the ins and outs of tax residency audits, including a high level discussion of audit procedure. The pair talk about what taxpayers can expect if they get an audit notice, and highlight some of the realities of a New York tax audit.

In this episode, Joe sites down with Tim Noonan in the first part of our discussion on tax residency. Changing your tax residency is not as simple as spending six months and a day in a new state. Tim and Joe discuss the ins and outs of New York State’s tax residency tests, and share thoughts on what factors tend to trip up taxpayers looking to make a move out of state.

In Episode Two of “State Tax Talks with Joe Tantillo,” Joe and the "Tax Titans", Paul Comeau and Mark Klein, continue their discussion of the development of SALT legal practice.

In Episode One of “State Tax Talks with Joe Tantillo,” Joe provides an overview of the development of SALT legal practice, as told by experts, Paul Comeau and Mark Klein (or as we call them, the “Tax Titans”).

You won’t want to miss this!

You’ve probably heard the saying, “Knowledge is power.” When it comes to taxes in New York State, we couldn’t agree more!