THE TOP 10 NEW YORK TAX HIGHLIGHTS OF 2017 -

As we look forward to an exciting new year, here is our annual list of what we viewed as the Top 10 New York Tax Highlights of 2017.

1. Appellate Division finds error in denial of sales tax refunds to wireless carrier, and holds that the record should have been reopened to allow proof that sales tax was deposited in escrow account. The Appellate Division held that the Tribunal abused its discretion in not reopening the evidentiary record to admit evidence that a wireless carrier funded a pre-refund escrow account established to facilitate repayment to customers of improperly collected sales tax. New Cingular Wireless PCS, LLC v. Tax Appeals Trib., 153 A.D.3d 476 (3d Dep’t, Aug. 3, 2017). The Tribunal had upheld the denial of more than $100 million in claimed sales tax refunds because the carrier had not established that it first refunded the sales tax to customers, as required under the sales tax law. The Third Department remitted the case back to the Tribunal in light of the evidence that an escrow account had been funded, and clearly indicated that in its view the denial of refunds would result in a “windfall” to New York State.