Bond Successful in Defending Application of Retroactive Tax Law as Unconstitutional

May 29, 2020

(Albany, NY): Bond, Schoeneck & King attorney Jennifer M. Boll successfully overturned a New York administrative law judge’s retroactive application of amended tax law, with the state tax tribunal deciding this was unconstitutional under the Due Process Clause of the United States and New York Constitutions in a decision released Thursday. 

An article on Law360 Thursday stated that the “administrative law judge’s application of 2010 amendments to New York state law (N.Y. Tax Law 632(a)(2)) to Franklin Lewis’ gain from the 2009 sale of his stake in an energy services company violated due process, the New York State Tax Appeals Tribunal said in a decision originally issued May 21. The tribunal canceled the state Division of Taxation’s $810,000 assessment for the years 2009, 2010 and 2011.”

Boll represented Lewis in appealing the initial decision arguing that the sale was conducted as a stock sale, based on a tribunal decision which held that the sale would be considered a stock sale for New York tax purposes, which meant that Lewis, a nonresident of the state, would not be taxed on the gain. According to Boll, the “case turned on the timing of the transaction at issue here and was a welcome affirmation that taxpayers can rely on tribunal decisions as binding precedent.”

Bond, Schoeneck & King PLLC is a law firm with 250 lawyers serving individuals, companies and public sector entities in a broad range of practice areas. Bond has eight offices in New York State and offices in Boston, Kansas City and Naples, Florida.