NY Regs Seek Narrow Protections from Tax on E-Commerce

The department's proposed adoption of the MTC's updated statement of information in P.L. 86-272, which remains in the formal regulations published Wednesday, drew swift reaction from tax professionals when it was originally proposed in New York. The tax agency addressed that Wednesday, noted Jeffrey Reed, a tax partner at Kilpatrick Townsend & Stockton LLP.

"They explicitly state the areas on which they disagree with commentators — for example, deciding to include the additional rules for internet-based activities [losing] P.L. 86-272 protection despite commentators reasonably pointing out that those rules overreach," Reed said.