New York Judges Grill Partnership, NYC Over Business Tax Break

Three New York appellate judges jumped into the weeds in a lightning-fast oral argument Thursday about whether a federal business tax deduction also applies to New York City’s unincorporated business tax.

Architectural, urban planning, and engineering firm Skidmore, Owings & Merrill LLP wants the court to overturn a 2023 city tax tribunal decision upholding the city’s assessment of more than $720,000 in UBT for tax years 2011 and 2012. The tribunal held that payments Skidmore made to a special related entity were payments to the LLP’s partners for their services and therefore weren’t deductible.

The city ties its rules to …