New York’s Department of Taxation and Finance amended its draft corporate tax regulations that would provide for revised Public Law 86-272 guidance, modeled after the Multistate Tax Commission (MTC) model statute, which addresses activities conducted via the Internet. The Department is accepting public comments on these proposed amendments until 30 June 2022.
The takeaway: This development is one part of an overall process to draft new corporate income tax regulations, which taxpayers should consider before the formal adoption commences. The revised P.L. 86-272 proposals come on the heels of nearly identical guidance issued by California’s Franchise Tax Board in the form of a Technical Advice Memorandum. Companies that historically have relied on P.L. 86-272 protection in New York should analyze their operations to evaluate whether their immunity would remain intact.