Reed Smith’s State Tax Group has significant experience handling Texas tax matters, with a special focus on Texas sales and use tax and franchise tax issues. We assist clients across a range of industries with a variety of Texas tax matters, including tax planning, identification of refund opportunities, audit defense and appeals, and letter ruling guidance and voluntary disclosure agreements.
We understand that Texas is a proactive and often aggressive audit jurisdiction, and we recognize the significant financial and operational impact that an unexpected, costly assessment can have on our clients. This – and our in-depth knowledge of and experience in litigating Texas tax issues – is why our team is well equipped to provide front-end advice that will help to minimize our clients’ chances of adverse audit assessments. In addition to our knowledge and experience, our relationships with the various divisions of the Texas Comptroller’s office allow us to efficiently take our creative solutions straight to the decision-makers for our clients. While we strive to achieve favorable settlements whenever possible, we are equipped to litigate on behalf of our clients – from the State Office of Administrative Hearings to the Texas Supreme Court.
Franchise tax
Apportionment remains a key area of focus in Texas. From navigating the Comptroller’s nuanced rules on the sourcing of service receipts to sourcing based on where our clients’ customers’ customers are located, our team continues to implement creative strategies on our clients’ behalf. We closely monitor Texas Comptroller policy developments and evolving case law to help clients proactively manage audit exposure and uncover potential refund opportunities.
As the Texas Comptroller continues to search for new ways to increase our clients’ Texas apportionment, it has never been more important for taxpayers to take a fresh look at their tax base. Our team’s deep understanding of these statutes and rules allows us to employ novel strategies, both during an audit and as a refund, for our clients in a wide array of industries, such as those with lending operations.
