In an opinion issued on May 15, 2025, the State of New York Tax Appeals Tribunal, the highest administrative forum for state tax appeals, upheld the application of the state’s income tax “convenience rule” imposing New York tax on wages earned by a New York City law school professor while he worked from his Connecticut residence before and during the COVID pandemic. The petitions had been filed by taxpayers Edward A. and Doris Zelinksy. An appeal of this decision to a New York appellate court is expected.
The opinion affirms the November 30, 2023 determination of an Administrative Law Judge (“ALJ”) in the case. It accepts most of the ALJ’s reasoning while providing its own rationale on the constitutional and state law issues that will serve as guidance to the New York Department of Taxation and Finance and to New York-based employers with remote or hybrid nonresident employees working all or part-time in other states. The Department’s current administrative position on the convenience rule and the strict “home office” exemption can be found here. Please refer to this link for a discussion of the facts of the case and the 2023 ALJ determination…