In this issue: Taxpayer May Subpoena State’s E-mails Interpreting Tax Law; Tribunal Finds Sufficient Business Purpose and Allows QEZE Credit; Tribunal Holds Interest Payable Only from Date of Amended Returns; Production Qualifies as “Dramatic or Musical Arts Performance” for Sales Tax Purposes; Commissioner Jenkins Retires from Tribunal; Leaf Collection Bags Subject to Sales Tax, Municipally Mandated Garbage Bags Are Not; Potential Disruption of Mail Service Prevents Dismissal for Untimely Petition; and Procedure Specified for Store Loyalty Cards.

Excerpt from 'Taxpayer May Subpoena State’s E-mails Interpreting Tax Law':

A New York State Administrative Law Judge has issued an order rejecting a motion by the Department of Taxation and Finance seeking to modify or withdraw a subpoena duces tecum issued for the production of certain departmental e-mails. Matter of Glenna Michaels, DTA No. 823370 (N.Y.S. Div. of Tax App., June 23, 2011). As a result, the Department must turn over to the taxpayer various intradepartmental e-mails.

The substantive case involved the issue of when gain from the sale of real property accrues to an individual who becomes a resident of New York State prior to disposing of the real property. The outcome of the case hinged in part upon the application of the so-called “accrual rule.”