Kyle O. Sollie

Kyle O. Sollie


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understand the policies and practices of the agencies, Kyle and his colleagues have successfully obtained thousands of unpublished policy documents through state-law FOIA claims in Delaware, Pennsylvania, New Jersey, and California.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).

Employment History

  • 2007 - Reed Smith
  • 1996 - Dechert

Honors & Awards

  • Recognized as a Best Lawyer in America
  • Ranked as a “top ten” tax lawyer by State Tax Notes in 2011

Professional Affiliations

  • Certified member of the Institute for Professionals in Taxation, serving as Vice-Chair of its Legal Committee - Sales Tax
    • Chair of the institute's 2006 Sales & Use Tax Symposium Committee
  • Member of the editorial board of RIA's Journal of MultiState Taxation and Incentives Focuses on editing articles for that publication related to New Jersey developments

Notable Quotes

  • 12 March 2015 "Settlement in New Jersey Nexus Case Leaves Unanswered Questions" Tax Analysts
  • 4 March 2015 "Pennsylvania Governor Proposes Corporate Tax Cuts and Combined Reporting" Tax Analysts
  • 19 November 2008 "New Jersey's 'Throwout Rule' Faces Repeal as Governor, Legislature Ramp Up Efforts to Stimulate State's Economy" BNA Daily Tax Report
  • 15 July 2008 "N.J. Tax Court Rules on Apportionment Issues" CCH State Income Tax Alert, Vol. XVII, No. 12
  • 24 June 2008 "Pennsylvania Court Case Could Change the tax rules for Bank M&A" American Banker
  • 23 May 2008 "U.S. Supreme Court Upholds Kentucky Tax Law Giving Interest Exemption to In-State Bonds" BNA Daily Tax Report
  • 20 May 2008 "U.S. Supreme Court Upholds Kentucky Municipal Bond Tax Exemption" State Tax Notes
  • 20 May 2008 "Supreme Court Upholds State Municipal Bond Exemption"
  • 16 May 2008 "New Jersey's Throwout Rule: The Division of Taxation Singles Out General Engines for Full Summary Judgment" BNA Daily Tax Report
  • 2 April 2008 "New Jersey Tax Court Oral Arguments in Throwout Case" State Tax Notes
  • 1 April 2008 "Oral Argument Held in New Jersey Throwout Litigation" CCH State Income Tax Alert, Vol. XVII, No. 6
  • May 2006 "Supreme Court Rebuffs Ohio Tax Break Challenge" The Wall Street Journal
  • June 2006 "PA Business Privilege Tax Penalizes Manufacturers" The Philadelphia Inquirer
  • "Federally Chartered Banks Protected by Commerce Clause" CCH State Income Tax Alert, Vol. XVI, No. 20
  • 1 September 2007 "New Jersey Tax Court Finds IRC § 338(h)(10) Transaction Creates Non-Operational Income" CCH State Income Tax Alert, Vol. XVI, No. 15
  • 1 June 2007 "New Jersey Throwout Cases Progress" CCH State Income Tax Alert, Vol. XVI, No. 10
  • 1 April 2007 "Lanco and MBNA File Petitions for Certiorari With U.S. Supreme Court" CCH State Income Tax Alert, Vol. XVI No. 6
  • 1 April 2007 "Deadline for New Jersey Refund Claims Nears" CCH State Income Tax Alert, Vol. XVI No. 6
  • 13 February 2007 "New Jersey Plaintiffs Attempt to Throw Out Throwout" State Tax Notes