New York Towns Gearing Up to Fight IRS Ruling on Local Taxes

By Anonymous

New federal code capped state and local tax deductions at $10,000, hurting some residents in the high-tax suburbs

An emerging coalition of New York municipalities is preparing to challenge proposed Internal Revenue Service regulations that clouded the ability of cities and towns to set up funds that allow residents to pay their local taxes as charitable contributions.

The group of municipalities—which includes Westchester County—will file public comments with the IRS and is considering a lawsuit, according to Assemblywoman Amy Paulin, a Democrat who lives in Scarsdale.