New York: New York City Tax Appeals Tribunal Cancels Verizon’s Deficiency Notice Under ITFA Protection

The New York City Tax Appeals Tribunal issued a decision canceling the notice of deficiency against Verizon New York Inc. The dispute centered on whether Verizon’s receipts from asymmetric digital subscriber line (ADSL) and fiber broadband services sold to Internet Service Providers (ISPs) were subject to tax under Tax Law § 184. The Tribunal found that while these services did not qualify for the statutory exclusion from gross earnings under Tax Law § 184, the taxation of these services was preempted by the federal Internet Tax Freedom Act (ITFA). ITFA included telecommunications services used to provide Internet access within its ...