State Tax Practice

Overview

Reed Smith’s State Tax Team, recognized as one of the United States’ leading state and local tax practices, advises major corporate clients in all jurisdictions on multi-state tax controversies, tax planning, and the tax aspects of mergers and acquisitions. Because our lawyers focus exclusively on state tax and are not generalists, our clients benefit from our ability to navigate and resolve multi-state tax issues successfully. We have experience handling state tax matters before administrative appeal boards, tax tribunals, and courts in virtually every state.

Our experience extends to the trial and all appellate levels, including the U.S. Supreme Court, as well as matters before administrative appeal boards and tax tribunals. Clients have retained us to represent them in some of the most significant state tax matters arising in recent times, including cases involving intangible holding companies, taxation of software, and constitutional limitations on states’ power to tax.

Whether prevailing in litigation, negotiating favorable settlements, or pursuing opportunities for immediate and future tax savings, we approach each state tax challenge with the resources of a global law firm and the focus of a boutique.

Meet The Team

Experience

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Represented Union Bank of California (UBOC) in a matter against the FTB involving the methodology which UBOC could use to compute its bad debt reserve deductions and deductions for securities losses for franchise (income) tax purposes in California.  On behalf of UBOC, he asserted that the methodology originally applied by the FTB did not afford proper treatment to the losses suffered by the parent corporation of the group of corporations included in UBOC's California filing.  The case  involved technical issues regarding appropriate deductions under the California Revenue and Taxation Code, as well as constitutional issues.  The case was settled with the FTB's agreement to refund tax and interest to UBOC in an amount in excess of $113 million.
Represented Microsoft Corporation in a California corporation income tax dispute over the formula used to apportion Microsoft's income to the state for the purpose of determining how much of Microsoft's worldwide income can be taxed by California.
Represented numerous corporations before state administrative agencies involving assessments of sales and use, income and franchise taxes
Provided state sales tax planning advice for a multinational entity engaged in online retail/e-commerce and cloud computing
Represented Union Bank of California (UBOC) in a matter against the California Franchise Tax Board (FTB) involving the methodology that UBOC could use to compute its bad debt reserve deductions and deductions for securities losses for franchise (income) tax purposes in California.  The case involved technical issues regarding appropriate deductions under the California Revenue and Taxation Code, as well as constitutional issues. The case was settled with the FTB's agreement to refund tax and interest to UBOC in an amount in excess of $113 million.
Advised a leading high tech equipment manufacturer concerning the income and sales tax implications of a series of complex domestic and international restructuring transactions.
Samland Investment Company Limited v Inland Revenue Department, 2002 (acting for taxpayer seeking a review of the decision of the Commissioner of Inland Revenue in relation to tax assessed on a luxury residential property redevelopment project)
Challenge to California employment insurance audit adjustments
Constitutional challenge to the Illinois discriminatory alcoholic beverage tax provisions
Successfully represented Federal Express in apportionment litigation in which the court agreed that the apportionment statue had to be interpreted in a manner that recognizes that only in-state activity should increase a taxpayers apportionment proportion.  FedEx Ground Package System, Inc.  v. Commonwealth, 303 F.R. 2003 (April 27, 2007). 
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Events

26 April 2013
National Press Club, Holeman Lounge
Washington, DC
Seminar
17 April 2013
H.J. Heinz Company
Pittsburgh, PA
Seminar
February 2013
C.O.S.T. Annual Sales Tax Conference
"Class Actions and Qui Tam Actions"
Seminar
February 2013
Chicago Tax Club
"The Myth of Full Apportionment"
Seminar
8 January 2013
29 November 2012
October 2012
Chicago Tax Club
"Gillette & The Future of the Multistate Tax Compact"
Seminar
September 2012
Taxpayers Federation of Illinois, 13th Annual State and Local Tax Conference, 2013 Illinois Independent Tax Tribunal
Seminar
24 May 2012
24 May 2012
Results: 1 - 10 of 64