New York City – Issuer of publicly available financial information entitled to discretionary allocation method

March 2014


In a New York City Tax Appeals Tribunal Administrative Law Judge decision, a financial information publisher providing credit ratings to the public received discretionary authority to use an alternative allocation method calculated on an audience-based measure. Because First Amendment protections generally afforded to members of the press extend to providing certain financial information to the public, the taxpayer was entitled to use an allocation method similar to what is used by other members of the press.
This decision serves as a reminder that taxpayers should evaluate the possibility of requesting alternative apportionment methodologies in any state when the statutory formula does not appropriately reflect their in-state activity. Taxpayers should recognize, however, that they could bear a heavy burden of proof in establishing the right to depart from the statutory formula.

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