HMOs Not Exempt From NYC General Corporation Tax, City Tax Tribunal Holds

Peter Faber criticized and said he would appeal a decision by the New York City Tax Appeals Tribunal that his insurance holding company client’s HMO did not qualify as an insurance company exempt from inclusion on a consolidated tax return. Mr. Faber said it was clear that the HMO did not provide medical services and that “the tribunal’s decision misread the legislative history and drew incorrect conclusions [about] what constituted an insurance business.”