US federal tax laws and policies, like political and social winds, change frequently and quickly. As a result, federal tax compliance requires effective planning, ongoing management, and a strong dose of creativity and flexibility. McDermott’s highly skilled and experienced tax team advises clients on the full spectrum of federal tax laws, from addressing the tax ramifications of day-to-day operational and business decisions, to managing hotly debated tax questions arising from the Patient Protection and Affordable Care Act, ongoing tax-reform efforts, e-commerce and cloud-based services, privacy and data protection, and inter-company pricing.
Our lawyers advise on all federal tax-related aspects of acquisitions and dispositions, mergers and financial structures and products, as well as new business operations. We develop cutting-edge planning solutions for clients by analyzing and comparing alternatives to achieve business objectives while minimizing tax liabilities.
Our team includes former US Department of Justice Tax Division and IRS litigators and administrators, who now represent clients before the IRS. This “inside” experience maximizes our effectiveness and helps in obtaining private letter rulings and informal expressions of opinion. With access to the full resources of our leading national tax practice and experienced lawyers in each of the Firm’s offices and practice groups, we advise on highly focused and complex tax matters involving capital markets, closely held businesses, cooperatives, financial products and derivatives, pass-throughs and transfer pricing. We also provide industry-focused counsel to clients operating in the aviation, e-commerce, energy, insurance and real estate sectors, among others.
Our Firm has an established practice advising clients with respect to accounting methods issues. Many of our lawyers are certified public accountants, whose financial accounting backgrounds, experience and perspective are invaluable when handling tax accounting matters. We advise taxpayers on the adoption of accounting methods, including inventory, depreciation and amortization methods, as well as on the proper time to accrue income and deductions. We provide guidance on the advantages, disadvantages and ramifications of changing accounting methods, and also represent clients in audits and controversy situations, including those that arise in response to IRS efforts to force taxpayers to accrue income as quickly as possible and delay accruing deductions.
Administrative & Judicial Proceedings
Resolving tax disputes as early as possible is desirable for all taxpayers. We work with clients at all levels, starting with the IRS Exam level. When issues cannot be resolved at this level, we regularly represent clients at the next administrative level, where IRS Appeals has the authority to consider the “hazards” of litigation in considering a settlement. When resolution remains out of reach, we draw on our highly experienced tax litigation team, which includes several former IRS and US Department of Justice federal tax litigators and Tax Court clerks. This team has been extremely successful, achieving several recent noteworthy victories for taxpayers in the trial courts, courts of appeal, and the US Supreme Court. We have an excellent reputation within the IRS for advocating for our clients’ interests forcefully, but professionally.
With international tax lawyers based in the United States, United Kingdom, France, Germany and Italy, and our strategic alliance with MWE China Law Offices, we provide coordinated, multi-jurisdictional counsel to multinational clients on complex tax issues relating to cross-border investments and transactions, including acquisitions, dispositions and internal restructurings. We advise on a wide variety of issues, including anti-deferral rules, such as controlled foreign company regimes, foreign tax credit and dividend exemption systems, transfer pricing regimes, bilateral tax treaties, EU directives and law, thin capitalization rules, and rules governing cross-border asset transfers and reorganizations. Our international tax practice is also geographically enhanced through our International Tax Panel, which includes local tax specialists in nearly 40 countries.
Lawyers in our US and European offices have significant experience helping shape the future of tax legislation to the benefit of our clients. Our Washington, DC, team includes several former legislative assistants who have served with members of Congress and whose longstanding and continuing relationships with lawmakers provide the necessary access to Congress and the ability to potentially impact future legislation. We also regularly provide comments to the IRS in connection with new and proposed tax regulations. In London, we are actively involved through the membership of representative bodies (Law Society, International Chamber of Commerce and Chartered Institute of Taxation) in making presentations to the Inland Revenue and Treasury Ministers on legislative reforms. Experienced tax lawyers in our German offices likewise provide a broad range of legislative advocacy in the German market.