Paychex v. New York: Procedure before substance

In this episode of the SALT Shaker Podcast, hosts and Partners Jeremy Gove and Chelsea Marmor discuss the New York Appellate Division's recent decision in Paychex v. Department of Taxation and Finance. Although the underlying dispute concerns whether certain reimbursement receipts should be included in New York's business apportionment factor, neither the trial court nor the Appellate Division reached that issue. Instead, both courts dismissed the case on procedural grounds. Jeremy and Chelsea walk through the distinction between the two courts' ripeness and exhaustion of administrative remedies analysis, explaining the Appellate Division's basis for concluding Paychex's challenge was not ripe for review, and explore how both courts analyzed the retroactive application of New York's corporate tax reform regulations to Paychex. They also discuss what the decision means for taxpayers considering challenges to New York tax regulations and why the substantive fight still lies ahead. Plus, Jeremy and Chelsea debate whether Fridays are overrated or underrated. For questions or comments, email [email protected]. Subscribe to receive regular updates hosted on the SALT Shaker blog.