Personal Injury Firm Loses NYC Business Tax Dispute

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A personal injury law firm in New York City, Morrison & Wagner LLP, was unable to reduce its city business tax bill after failing to provide sufficient evidence that it conducted work outside of the city. An administrative law judge rejected the firm's argument that its former representative, an accountant, was "duped" into signing a stipulation of facts that barred the parties from presenting additional evidence at a hearing.

Why it matters

This case highlights the challenges small businesses can face when navigating complex local tax regulations and the importance of thoroughly documenting business activities to support tax deductions or exemptions. The ruling also underscores the potential risks of relying on non-legal professionals to handle tax matters.

The details

The New York City Tax Appeals Tribunal ruled against Morrison & Wagner LLP, finding the firm did not provide enough proof that it conducted work outside the city to reduce its city business tax bill. The firm's former representative, an accountant, had previously signed a stipulation of facts with the city's Department of Finance that prevented the parties from presenting additional evidence at a hearing. The firm argued the accountant was "duped" into the agreement, but the administrative law judge rejected this claim.

• The ruling was released on January 28, 2026.