Kyle and his colleagues in Reed Smith's offices throughout the country use the right tools at the right time to help their clients pay no more state tax than legally due. Kyle's practice includes state tax return positions, audits, appeals, and litigation, focusing on Pennsylvania, New Jersey, Delaware, and California.
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
- Untrapping California EZ credits by aggregating all unitary group members and aggregating all zones into a single zone
- 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 (instead, use cost of performance)
- For the financial services industry, avoiding the Pennsylvania Department of Revenue’s illegal “market based” sourcing efforts
- Avoiding interest addback in New Jersey
- Reducing gains reported on form 4797 in California, New Jersey, and Pennsylvania
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
- Recovering refunds of tax paid on software in Pennsylvania—despite the Dechert decision
- Getting actual refunds of tax paid on software under Nortel in California
- 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understand the policies and practices of the agencies, Kyle and his colleagues have successfully obtained thousands of unpublished policy documents through state-law FOIA claims in Delaware, Pennsylvania, New Jersey, and California.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 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 affirmed, 901 A.2d 981; and Dial Corp. v. Delaware Director of Revenue, C.A. No. 06C-05-014 (Del. Super. 2008).