Paychex’s Case Over Protracted NY Corporate Tax Overhaul Tossed

Paychex Inc. failed to convince a New York trial court Wednesday to nix state tax regulations on how to apportion its income, which it argued intentionally targeted its operations.

The payroll services provider had sufficient notice of the regulations, Justice Sherri Brooks-Morton of the New York Supreme Court, Albany County, ruled, rejecting the company’s argument that retroactive application violated its due process rights. She also dismissed Paychex’s equal protection argument, finding the company didn’t prove it was treated differently than other taxpayers.

The payroll services provider argued in a July complaint that the New York Department of Taxation and ...