Five Things You Need to Know About the New York State Draft Combined Reporting Regulations
Beginning in October 2015, the New York State Department of Taxation and Finance has been releasing draft regulations that will implement New York’s extensive corporate franchise tax reform. Currently, the draft regulations address the following topics: nexus; sourcing of other services and other business receipts; sourcing of receipts from sales of digital products; discretionary adjustments; and combined reports.
The combined reporting regulations address certain questions on indirect ownership or control; discuss the unitary business requirement; address instant unity and passive holding companies; and contain a curious grant of discretionary authority from the Department to itself to disregard certain commonly owned group elections. Maria Eberle and Lindsay LaCava examine these important aspects of the combined reporting regulations in their article, Five Things You Need to Know About the New York State Draft Combined Reporting Regulations, originally appearing in the 29 April 2016 issue of Bloomberg BNA's Tax Management Weekly State Tax Report.