Macaluso v. New York State Department of Taxation & Finance

Proceeding pursuant to CPLR article 78 (initiated in this Court pursuant to Tax Law § 2016) to review a determination of respondent Tax Appeals Tribunal which, inter alia, sustained a deficiency of personal income tax imposed under Tax Law article 22.

Petitioner Sipam Corporation, of which petitioner Joseph Macaluso (hereinafter Macaluso) was president and a 50% shareholder, owned and operated a motel in Staten Island. The motel, whose clientele consisted primarily of recipients of public assistance, was sold in 1985 to an unrelated party. Thereafter, following an audit by respondent…