In Matter of Murphy & O’Connell, TAT(E)06-18(UB) (N.Y.C. Tax App. Trib., July 26, 2011), the New York City Tax Appeals Tribunal affirmed the decision of the Deputy Chief Administrative Law Judge that payments made to a pension plan for the benefit of partners in an unincorporated business are nondeductible payments to partners under Section 11-507(3) of the Administrative Code. In reliance on Matter of Horowitz v. New York City Tax Appeals Tribunal, 41 A.D.3d 101 (1st Dep’t 2007), lv. denied, 859 N.Y.S.2d 395 (2008), and Matter of Proskauer Rose, LLP v. New York City Tax Appeals Tribunal, 57 A.D.3d 287 (1st Dep’t 2008), the City Tribunal held that payments to a pension plan on behalf of partners are treated, for UBT purposes, the same as compensation paid directly to partners, and may not be deducted, whether or not the payments were included in the individual partners’ federal taxable income. The City Tribunal also rejected the argument that the Department of Finance was required to promulgate a rule before applying the statute to these specific facts, finding that the Department was entitled to rely on previous court decisions as precedent when interpreting the statute.