State & Local Tax

Overview


Today’s businesses are being assailed on every front, as state and local tax authorities attempt to increase revenues and reduce budget cuts. Third-party attacks are also on the rise, with the plaintiffs’ bar increasing its use of class actions and whistleblower cases to reap potential windfalls in the tax arena.

McDermott has one of the largest and most diversified state and local tax (SALT) legal practices in the United States. Our lawyers possess in-depth knowledge of the constantly changing tax laws and have the experience and judgment necessary to provide advice and advocacy of the highest caliber. We identify and develop coordinated, cross-jurisdictional solutions for businesses wherever they are subject to existing or potential taxes and work closely with our many state and local contacts in various departments of revenue and with legislators to resolve tax issues.

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Results


Administrative & Judicial Proceedings

  • Exxon Mobil Corporation v District of Columbia Office of Tax and Revenue, District of Columbia Office of Administrative Hearings, Case No.: 201-OTR-00049; Hess Corporation v District of Columbia Office of Tax and Revenue, District of Columbia Office of Administrative Hearings, Case No.: 201-OTR-00049; Shell Oil Company v District of Columbia Office of Tax and Revenue, District of Columbia Office of Administrative Hearings, Case No.: 201-OTR-00049. Three unaffiliated oil companies were involved in separate but similar cases. In a case of first impression, the administrative law judge ruled in favor of all taxpayers that non-mutual collateral estoppel precluded the government from litigating a matter that had already been decided against the government in another case involving another taxpayer. This case involved the use of a third-party IRC section 482 audit methodology that had previously been ruled invalid. The case is currently on appeal to the US Court of Appeals for the DC Circuit.
  • In the Matter of TD Holdings II, Inc., N.Y. Div. of Tax App, DTA No. 825329. The administrative law judge determined that the taxpayer, a bank subject to a state tax base different from its federal base, was not required to hypothetically use its NOL carryover in years when its New York tax was based on its assets rather than on its income.
  • In the Matter of the Petition of Gordon R. and Jennifer L. Cooke, N.Y. Div. of Tax App, DTA No. 823591. This determination captures the notion that appears to be at the essence of determining an individual’s “domicile”—that an individual’s domicile is the place to which one returns when he or she does not have a specific reason to be anywhere else. The determination also represents a continued recognition that the maintenance of a dwelling in New York City alone is insufficient. Simply because an individual can afford to maintain several residences does not change the fact that someone can have only one domicile “as his grounding place among many possibilities.”

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People


A diverse, global network of industry-leading talent committed to you and your vision.

Key Contacts


Jane Wells May

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Catherine A. Battin

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Peter L. Faber

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Stephen P. Kranz

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Alysse McLoughlin

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Tax Management Multistate Tax Report

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Wynne, Cloud Computing, and a State's Deference to Another

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District Of Columbia's Transfer Pricing Enforcement Program and Combined Reporting Regime: Taking ...

May 1, 2015

Inside the New York Budget Bill: 2015-2016 Budget Enacted

April 27, 2015

If Congress Doesn't Address Remote Sales Taxation, States Will

April 13, 2015

How to Halve Your Potential State Tax Burdens

April 6, 2015

Expedia: New York and Nationwide Implications

March 18, 2015

Logic vs. the Statute: When Federal Conformity Makes No Sense

February 23, 2015

Decoding Combination: What Is a Unitary Business

February, 2015

The Frustrations of Fixtures: The Impact of Real Property/Tangible Personal Property ...

January 19, 2015

Taxation Vexation

January 5, 2015

CFOs Face Liability for Business Taxes

December 8, 2014

Texas Comptroller Defies the Laws of Physics

December 1, 2014

Lame-Duck Congress Mulls Laws to Ease State Tax Headaches

December 1, 2014

Demystifying the Sales Factor: Conduit Receipts

November 24, 2014

Market Sourcing: Increasing the Burden on Taxpayers?

November 10, 2014

The Role of Trade Associations and Coalitions in Forming State Tax Policy

November 7, 2014

Alternative Apportionment: Who Bears the Burden of Proof and What Standard of ...

October 2014

Damned if You Collect, Damned if You Don't: Retailers Caught Between Consumer ...

September 22, 2014

Demystifying the Sales Factor: Foreign Receipts

September 22, 2014

Defending an Equitable Apportionment Case, Redux

July 21, 2014

Who Pays Your Lawyer? A Scorecard of SALT Attorney Fee Provisions

July 21, 2014

Demystifying the Sales Factor: Passthrough Receipts

May 12, 2014

Alenia Offers Refund Opportunities for D.C. Corporate Taxpayers

April 22, 2014

Good News, Bad News: Sanctioning the D.C. Office of Tax and ...

April 14, 2014

D.C. Court Gives Taxpayers Another Path to Fight OTR

March 24, 2014

IPT Urges U.S. Supreme Court to Review Equifax Case

March 17, 2014

Demystifying the Sales Factor: Classifying Receipts

March 4, 2014

Locking In Economic Development Incentives To Minimize Risks

February 25, 2014

Just Say No to the Standard Voluntary Disclosure Agreement

February 18, 2014

Fix It or Go Home: Revising the Uniform Unclaimed Property Act

February 10, 2014

What’s In and What’s Out for SALT in 2014

February 2014

How the U.S. Supreme Court's Denial of Certiorari in Overstock.com ...

January 22, 2014

Defending an Equitable Apportionment Case

January 21, 2014

Demystifying the Sales Factor: Costs of Performance

October 14, 2013

A Decade of Lessons From Litigating State Tax False Claims Act Cases

October 1, 2012

Illinois's New Independent Tax Tribunal

January 31, 2011

Illinois Bill Would Expand Attributional Nexus Concept to Untested Lengths

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