The Reed Smith State Tax Group’s Delaware tax practice has extensive experience in corporate income tax and gross receipts tax matters. Our group represents clients before the Tax Appeal Board, the Delaware Superior Court, and the Delaware Supreme Court.
Delaware is often thought of as a safe haven from state taxes. While that’s often true, it's not always the case.
Consider the following:
- Delaware has a quirky corporate income tax statute that has traps for the unwary, especially companies with significant swings between income and loss, and companies that recognize large allocable gains. We have approaches to address these issues. Also, we have litigated corporate income tax matters with successful outcomes for our clients.
- Delaware has gross receipts taxes on manufacturing, wholesaling, and other industries that can cause tax headaches. We have significant experience with Delaware’s gross receipts taxes.
- Delaware has a unique bank franchise tax. We have experience representing clients in bank franchise tax matters, including successful settlement before the bank commissioner.
- Delaware is infamous for the aggressive application of its unclaimed property law. Our lawyers understand this system, from audit technique through litigation and settlement. Our firm's office in Wilmington and our state tax lawyers in Philadelphia and New York make us especially well-suited to handle intensive Delaware tax litigation. (We believe, after all, that unclaimed property statutes have evolved into just another form of tax.) Our group has litigated unclaimed property matters with successful outcomes for our clients. We are also involved in voluntary disclosure and verified report projects. It is important to handle these projects carefully – Delaware recently settled a voluntary disclosure matter that "went bad." In this regard, our lawyers have extensive exposure to the audit methods of Delaware’s principal contract auditor, Kelmar, and have conducted intense investigations into their methods, including attending the training courses they provide for their auditors. Our state tax team is in a unique position to actively manage your Delaware unclaimed property audit and appeal.
Delaware state tax intelligence
As part of our full service for clients with Delaware tax problems, we have a unique, fully searchable database of unpublished authority, including decisions of the Tax Appeals Board going back to the early 1970s, unpublished trial court decisions, and unpublished legal briefs. We also maintain regular and direct lines of communication with high-level state officials involved in all areas of Delaware taxation.
We combine our experience, unique collection of information, and close working relationships with the state to serve our clients' Delaware tax needs.
