Reed Smith's State Tax Group will simulcast a teleseminar from its offices in the high-technology hubs of Silicon Valley and Princeton, N.J.  The focus is on pending litigation, unknown to most of the tax community, involving software licensing and other technology licensing arrangements.  The seminar will discuss assessment risks as well as refund opportunities. 

• New Jersey software nexus litigation.  New Jersey has assessed income tax on software companies with no physical presence in the state simply because they license software to unaffiliated customers in the state.  Any company that licenses software to companies or individuals in New Jersey may be affected.  Combined with throwout, the results could be huge for many software companies, imposing a high effective rate of tax on their New Jersey receipts.  This litigation foreshadows further aggressive nexus positions by the Division, which has targeted out-of-state and foreign licensors of trademarks, patents and other technologies.
• California software litigation.  Software developers and other technology companies should be aware of the unpublicized litigation over whether all canned software, and other high-tech items, are exempt from sales tax.  And on the income tax side, high-tech companies should be aware of the developing Microsoft II litigation, which may allow them to significantly reduce their income tax liability. 

The speakers will be Kyle Sollie and Jim Kleier, speaking from our Silicon Valley and San Francisco offices, and David Gutowski, speaking from our Princeton office. 

For more information, please contact Andrea Gula.

Please click below to view teleseminar materials.  If you would like to listen to a recording of the teleseminar, please log in below.