Client Services / Tax / State & Local Tax

State & Local Tax

We provide our clients with solutions to both broad issues, such as nexus and apportionment, and issues that arise in specialized financial, insurance, telecommunications and utility industries.   Our lawyers are especially skilled in the myriad state and local tax issues presented by the expansion of the segment of the U.S. economy that is driven by the internet and e-commerce transactions. 

Our resources are available in either a principal or supplemental capacity.  We are prepared to work closely with client staff, general or business lawyers, accountants and other advisors in resolving problems or in planning to minimize future state tax problems and liabilities.  We are also able to draw upon our many state contacts to assist clients effectively and efficiently.

Planning & Transactions

Our SALT practice provides planning services related to existing business relationships and practices (structural planning) as well as to specific contemplated transactions (transactional planning).

Working with the client’s staff, our lawyers review business operations, legal entity structures and reporting methods to determine where proactive changes can be made to improve the client’s state and local tax situation.   We assist clients in developing and implementing strategies to minimize their state and local taxes, and help anticipate and navigate the more nuanced challenges that those structures ultimately may face.

One set of tax costs that is often overlooked when planning transactions, especially mergers and acquisitions that are tax free for federal income tax purposes, is the imposition of state and local taxes (such as sales and real estate transfer taxes) on the transaction.  Our lawyers can often suggest ways of restructuring transactions to minimize the state and local tax consequences without altering the intended federal income tax result or business goals underlying the transaction.  We not only assist clients in avoiding these hidden pitfalls, but also help them achieve greater tax efficiency in their post-transaction operations.

Controversy

Our lawyers bring skilled advocacy to every controversy scenario, including defending against improper assessments; prosecuting refund claims; and vindicating rights to classifications, elections and filing statuses.   We efficiently develop the critical facts, construct the most effective arguments and work closely with our clients in charting the best course for resolving any matter.  No matter whether that course is to resolve the controversy at the audit or administrative review level or to litigate the case to the highest court, we have the experience, skill, passion and relationships to accomplish the goal. 

Our lawyers have litigated unitary and worldwide combined reporting questions, constitutional limitations on state taxation of interstate commerce, the constitutionality of services taxes, the application of sales taxes, the constitutionality of state tax incentives, the handling of net operating losses and the proper treatment of foreign income.  We are just as proud to have represented the taxpayers in the landmark ASARCO, Woolworth and Quill cases before the Supreme Court of the United States as we are to have achieved victories and favorable settlements in the lower courts and administrative agencies of every state.

Legislative Initiatives & Lobbying

Although traditional legal avenues such as planning, settlement and litigation are often the best courses of action to achieve the desired results for our clients, in some instances these avenues are either unavailable or foreclosed under existing laws or regulations.  In those instances, we offer legislative and lobbying initiatives to help achieve the desired results.  Our services include monitoring specific issues and legislative initiatives, building consensus with other interested parties, preparing legislative proposals, drafting legislation and communicating proposals to the legislative decision-makers.

We draw on our technical skills, political acumen and contacts to represent the interests of our clients in the legislative process.  Occasionally, the desired legislative result is the status quo, and we provide our clients with timely information on new legislative developments as well as the highest level of advocacy to prevent hostile legislative initiatives from being passed.

Contacts

Tax Client Services

McDermott Will & Emery

McDermott Will and Emery