New York Broker-Dealer Tax Stance Likely to Spark Pushback

Alysse McLoughlin said taxpayers are likely to resist New York State’s new stance on taxation of a disregarded entity because it represents a shift in the prior position that a disregarded entity will be treated as disregarded for all purposes. The new position “signifies an attempt by the state to deny broker-dealer status to the sole member of a disregarded broker-dealer,” Ms. McLoughlin said, making it “a switch” from long-standing policy.