NYTaxArt
NYTAX LITIGATION
We zealously advocate for clients in tax matters before state courts and administrative bodies across the country with a proven track record of winning results. We strategically develop a case plan to maximize our ability to secure a win for our client. We litigate tax matters from hearing or trial through appeal. Our lawyers conduct all aspects of litigation including discovery, depositions, examination, briefing, and oral argument. We take advantage of all available discovery and motion practice to crystalize the issues in dispute. We proceed in a deliberate manner to narrow the dispute putting our clients in the best position to win. We often resolve matters by entertaining settlement without compromising our progress to a decision on the merits.
INCOME TAX CASES
NY Sourcing Receipts from Services
NY Div. of Tax Appeals, Admin. Law Judge
We won litigation for a leading Internet-based travel company regarding the proper corporate tax sourcing of receipts from services provided over the Internet. The Department assessed the taxpayer by rejecting Costs of Performance sourcing and contorting the statute to arrive at a market sourcing method. We proved that the Department's interpretation was erroneous.
In the Matter of Expedia, Inc. DTA Nos. 825025 and 825026 (Feb. 2, 2015)
NJ Application of Public Law 86-272
NJ Tax Court
We won litigation for a leading agricultural company defending against a Corporation Business Tax assessment. The Division of Taxation denied the taxpayers claim of P.L. 86-272, asserting the taxpayer exceeded protected activities. We proved at trial that taxation of the business was preempted by the federal statutory limitation on state taxation, P.L. 86-272.
Procacci Bros. Sales Corp. v. Div. of Taxation, N.J. Tax Ct. Dkt. No. 015626-2014 (May 25, 2021)
NJ Taxation of Non-Resident Partners
NJ Tax Court
Won litigation for a leading provider of vehicle remarketing services in a Corporation Business Tax dispute. Challenged the Division's regulation narrowing the definition of an "investment company." The Court held that the regulation was invalid because the Division exceeded its authority under the law.
Manheim N.J. Inv. Inc. v. Div. of Taxation, N.J. Tax Ct. Docket No. 015083-2014 (Feb. 27, 2017)
NY Information Service - Bundled Transaction
NY Div. of Tax Appeals, Admin. Law Judge
Won litigation for an online casting service provider in a sales tax case pertaining to a bundled transaction. The Department assessed tax by alleging the bundled transaction was a taxable information service. We proved that the primary purpose of the bundled transaction was not taxable, eliminating the Department's assessment.
In the Matter of Breakdown Services Ltd., 829396 (Jan. 27, 2022)
NY Software - Bundled Transaction
NY Div. of Tax Appeals, Admin. Law Judge
Won an important victory for a large healthcare service company in a sales tax case related to the taxpayer's annual membership fee. The Department alleged that the provision of a software application for mobile devices tainted an otherwise nontaxable transaction. We proved that the transaction was not taxable because the software was not the primary purpose of the transaction
In the Matter of 1Life Healthcare Inc., 829434 (Nov. 10, 2021)
NYC Utility Tax - Telecommunications
NYC Tax Appeals Tribunal, Admin. Law Judge
Won litigation for a large telecommunications company against a utility tax assessment. The Department asserted that the local utility tax applied to long-distance and data services. We proved that the non-local telecom services were not subject to the utility tax, eliminating the Department's assessment.
In the Matter of U.S. Sprint Comm. Co., LP. (TAT(H)14-12(UT) (Dec. 29, 2016)
NM Gross Receipts Tax
Represented a client in a New Mexico Gross Receipts Tax matter. The Department assessed the taxpayer for tax on receipts that did not belong to our client. We defended our client against the assessment. We successfully resolved the matter.
IL Sales Tax False Claims Act Case
We successfully litigated an Illinois tax false claims act matter through trial and appeal. A relator alleged that our client was required to collect and remit sales tax in Illinois. We developed the facts and witnesses to substantiate the lack of attributional nexus. We successfully defended our client at trial and on appeal to the Illinois Appellate Court.
State v. Lush Internet, Inc., 2017 Ill. App. 161601 (Ill. App. Ct. 2017)
NY Income Tax False Claims Act Case
We represented a retail client in a New York State false claims act matter against the New York State Attorney General's Office. We defended our client's tax filings and worked to prove that the relator's allegations were unsupported. We successfully resolved the matter for the client without litigation.