Joseph Lipari

September 06, 2018 | New York Law Journal

It is common for groups of affiliate companies to record transactions within the group by "book entry" rather than actual transfers of cash. It is also common for one member of an affiliate group to undertake an activity that benefits all of the members of the group without necessarily passing on the cost of such activity.

By Joseph Lipari and Aaron S. Gaynor

8 minute read

June 08, 2018 | New York Law Journal

Many people are familiar with the "resale exception" under which, for example, a sale by a clothing manufacturer of shirts to a clothing store is exempt from sales tax because the sales of the shirts by the store are taxable, see N.Y. Tax Law Sections 1101(b)(4)(i), 1105(a).

By Joseph Lipari and Aaron S. Gaynor

1 minute read

March 08, 2018 | New York Law Journal

In this Tax Appeals Tribunal article, Joseph Lipari and Aaron S. Gaynor celebrate the case of a man who was able both to reunite with his high school sweetheart in Paris and also to prevail over the claims of the New York State Department of Taxation and Finance.

By Joseph Lipari and Aaron S. Gaynor

9 minute read

December 07, 2017 | New York Law Journal

Tax Appeals Tribunal columnist Joseph Lipari discusses '1018 Morris Park Avenue Realty', in which the New York City Tax Appeals Tribunal ruled that a corporation must recognize all gain derived from an installment sale in the year in which the corporation ceased doing business in the City.

By Joseph Lipari

18 minute read

September 07, 2017 | New York Law Journal

Tax Appeals Tribunal columnist Joseph Lipari writes that a recent decision that deals with the sales tax of "yellow pages" phone books, an industry with few participants, may seem irrelevant. But the particular issue in the case, whether certain commercial delivery services qualified as "common carriers," is of high importance to sellers and buyers of art. The narrow definition of the term advanced by the Tax Department and accepted by the ALJ is likely to dictate how art shipments will be arranged for the foreseeable future.

By Joseph Lipari

17 minute read

June 08, 2017 | New York Law Journal

In his Tax Appeals Tribunal column, Joseph Lipari writes: One of the topics often addressed in this column (and not coincidently the subject of much litigation) is residency. Statutory residence is largely mechanical—a taxpayer has a "permanent place of abode" in the state and is physically present here for at least 183 days per year. In contrast, since where one is domiciled is largely a reflection of the individual's intent, that determination requires a broader analysis of the facts and circumstances concerning his or her life.

By Joseph Lipari

18 minute read

March 09, 2017 | New York Law Journal

Tax Appeals Tribunal columnist Joseph Lipari writes that the location to which a "receipt" should properly be attributed for apportioning income of corporations is subject to interpretation, particularly with regard to services. New York moved to establish customer-based sourcing when it enacted in 2014 comprehensive corporate tax reform, but cases under previous law, like the recent determination from the state Division of Tax Appeals in 'CheckFree Services', still offer guidance for issues of classification and location of "receipts" earned by a business.

By Joseph Lipari

20 minute read

December 08, 2016 | New York Law Journal

In his Tax Appeals Tribunal column, Joseph Lipari discusses the innocent spouse rule, and circumstances when requiring both spouses to be liable for tax manifests injustice. When spouses file joint New York Personal Income Tax Returns, they are jointly and severally liable for the entire tax due, regardless of which spouse earned the income. As a remedial measure, the "innocent spouse" rule (incorporating an analogous federal provision) is meant to relieve certain taxpayers from their spouse's adverse tax consequences. The recent administrative law judge determination in 'Peter Gerace, Sr.' is a demonstration of the utility of this rule for the equitable administration of tax.

By Joseph Lipari

19 minute read

September 08, 2016 | New York Law Journal

In his Tax Appeals Tribunal column, Joseph Lipari writes that from an income tax perspective, providing additional goods to customers usually does not raise any meaningful issues, but the impact of the sales tax is more complex, particularly when a company may be selling or giving away some items subject to sales tax and other items that are exempt. Two recent cases highlight the complexities of offering "free" items as an add-on to those services for which the seller is charging a fee.

By Joseph Lipari

20 minute read

June 10, 2016 | New York Law Journal

In his Tax Appeals Tribunal column, Joseph Lipari writes: An owner of real property is not charged sales or use tax on "capital improvements," but contractors must pay use tax on the materials purchased by it to construct such improvements. For many taxpayers, the nuanced set of rules on this exemption leads to confusion, and a failure to understand the peculiarities can result in unexpected liabilities, as two recent decisions highlight.

By Joseph Lipari

22 minute read