Kyle O. Sollie

On the income tax side, Kyle is working with his clients on cutting edge issues such as:

• Extending the NOL carryover periods in California and New Jersey by four years – no matter what
• Avoiding “absorption” of NOLs in New Jersey on account of the receipt of dividends
• Avoiding NOL “silos” for California unitary taxpayers
• Getting factor representation for foreign dividends received by California water’s edge taxpayers
• Avoiding any California “foreign investment interest offset”
• For the franchise industry and the mutual fund industry, avoiding the market-based sales-factor sourcing rules
• Reducing gains reported on form 4797 in California, New Jersey, and Pennsylvania
• Increasing basis on stock sales in California, New Jersey, and elsewhere
• Recalculating historical NOLs using single sales factor instead of historical three-factor apportionment in force in those years

On the transaction tax side, Kyle is active with the Institute for Professionals in Taxation. He is a Certified Member of the Institute (CMI) for sales tax. He is working with his clients on issues such as:

• Avoiding the characterization of non-taxable services as taxable telecommunications in Pennsylvania and elsewhere
• Aggressively pursuing the resale exemption for purchases of goods and services in Pennsylvania, New Jersey, and elsewhere
• Challenging bad sampling methodologies used by Pennsylvania and New Jersey sales tax audits

To make sure Reed Smith’s clients get the best results and understand the policies and practices of the agencies, Kyle and his colleagues have successfully obtained thousands of unpublished policy documents through state-law FOIA claims in Delaware, Pennsylvania, New Jersey, and California. Access to Reed Smith’s “library” of documents through a Reed Smith lawyer is an essential advantage of being a Reed Smith client.

Kyle usually gets results for his clients through the administrative process. But when litigation is necessary, he fights for his clients in court. He has brought scores of cases in courts in New Jersey, Pennsylvania, Delaware, and California. His published cases include Verisign, Inc. v. Director of Revenue, Del. Super. No. N19C-08-093; General Motors Corp. v. Commonwealth, 222 A.3d 454 (Pa. Commw. 2019); Ford Motor Credit Company v. Director, Division of Taxation, Docket No. 015751-2009; Nextel Communications of the Mid-Atlantic, Inc. v. Commonwealth, Pa., No. 6 EAP 2016; Mission Funding Alpha v. Commonwealth, 129 A.3d 614 (2015); Toyota Motor Credit Corp. v. Director, N.J. Tax Court No. 002021-2010 (2014); McNeil-PPC, Inc. v. Commonwealth of Pennsylvania, 834 A.2d 515; First Union National Bank v. Commonwealth, 867 A.2d 711, aff’d, 901 A.2d 981; and Dial Corp. v. Delaware Director of Revenue, C.A. No. 06C-05-014 (Del. Super. 2008).