New York Restaurant Can Challenge Sales Tax Allocation Payments

A Bronx restaurant has the right to challenge how the state’s tax agency allocated the business’ payments for its tax bill, a New York state appeals court said Thursday.

Under state law, the Dumpling Cove LLC may challenge any tax deficiency notice—and information on the New York Department of Taxation and Finance’s website, where the tax agency posted the tax bill—counts as that notice, Justice L. Michael Mackey said. The company signed an agreement with the department that it owed about $506,000 in sales and use tax and interest, but Dumpling Cove contested the allocation of those payments toward ...