ALJ Rules Nonresident’s Severance Pay Is New York Income
Quoted
TaxNotes
Severance pay received by a nonresident from a New York employer was properly allocated to the state, a New York administrative law judge ruled.
New York Division of Tax Appeals ALJ Jennifer L. Baldwin determined on October 31 in Matter of Vora that income related to employment previously carried on in the state is New York-source income under N.Y. Tax Law § 631(b)(1)(F).
Hodgson Russ Partner K. Craig Reilly told TaxNotes that § 631(b)(1)(F) was enacted almost explicitly to deal with this type of post-employment compensation.
