Reed Smith’s State Tax Group has extensive experience handling state tax matters in our nation’s capital region, which comprises the District of Columbia, Maryland, and Virginia.
District of Columbia
Our team’s experience in District of Columbia tax matters runs deep. We have assisted in drafting tax legislation, handled high-profile audits, and litigated major cases. Our relationships at the Office of Tax and Revenue (“OTR”) give us insight into issues as they happen and before the information hits the trade press.
Currently, we are helping clients with a variety of issues, including a challenge to the OTR’s unsupported position limiting the payroll included in the apportionment factor denominator of financial institutions included in a combined group, and advising on the OTR’s application of the District’s market-based sourcing and marketplace seller legislation and the OTR’s extensive use of the Treasury Offset Program to collect unpaid liabilities.
Reed Smith’s State Tax Group advises clients on all areas of Maryland taxes, most often on sales and use tax, and income taxes. We have handled multimillion-dollar tax disputes for clients and obtained client-favorable results through litigation, negotiations, and private letter rulings.
We are actively advising clients on Maryland’s positions regarding economic nexus and P.L. 86-272 protection and Maryland’s marketplace facilitator law, as well as legal challenges and compliance issues in connection with Maryland’s first-in-the-nation gross receipts tax on digital advertising services.
Maryland State Tax Intelligence
We have a regular practice of obtaining unpublished and otherwise unavailable information – including through Maryland Freedom of Information Act requests – so that we can deliver accurate and timely information to clients. For example, when clients are audited, we advise them, based in part on the Comptroller’s unpublished audit manual, and we make sure they are aware of any litigation pending in the Tax Court on similar issues before they decide on a strategy for their matter.
Our team advises clients regarding all areas of Virginia taxes, including income, bank franchise, sales and use, communications, and the various local business, professional, and occupational license taxes. Our lawyers have handled multimillion-dollar tax disputes in Virginia, involving issues like sales factor sourcing and exceptions to the Commonwealth’s add-back for intangible expenses paid to related entities. We have also obtained numerous client-favorable results through negotiations and private letter rulings. Our broad experience allows us to craft the right solutions for our clients, whether through legislative, regulatory, or other administrative representation – or, as a last resort, through litigation. Our lawyers comment on proposed regulations and know the right person to contact to address client concerns. Our primary goal is to achieve successful, efficient, and low-profile results for clients.
We are currently advising clients on refund opportunities related to apportionment for service providers and banks subject to Virginia’s bank franchise tax, and Virginia’s minimum tax on telecommunications companies.
Virginia Tax Intelligence
Our team regularly obtains unpublished and otherwise unavailable information on Virginia tax law and policy, particularly through Virginia Freedom of Information Act requests, so that we can deliver accurate and timely information to our clients. We monitor ongoing litigation, proposed legislation, and other regulatory and legislative developments that may impact the Virginia tax landscape. Consequently, we are able to anticipate the effects of certain legislative changes and legal opinions, which helps us to advise our clients.