STATE TAX LITIGATION

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 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 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 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 Div. of Tax Appeals, Admin. Law Judge

Won a major victory for an online lending marketplace company in a sales tax bundled transaction dispute. The Department alleged that the transaction was taxable because it was a taxable information service. We proved that the information was a means of effectuating the service but the primary purpose of the transaction was facilitating the lending transaction.   

In the Matter of LendingTree, Inc., 829714 (Dec. 9, 2021)

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 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)

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.  

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)

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.