Tax Controversies
The Tax Group has extensive experience in all areas of civil and criminal tax controversies. Group attorneys regularly handle both state and federal civil tax examinations, including handling the matter through the administrative appellate process and trial, if necessary. These attorneys also deal with matters involving standards of practice and preparer penalties; employment taxes, including employee/independent contractor status and responsible officer liability; sales and use taxes; and ad valorem taxes.
Recent experience in representing clients in tax controversies includes:
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Successful representation of a publicly traded bakery company in connection with an Internal Revenue Service examination of the employment tax status of several thousand independent distributors (truck drivers).
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Successful representation of a publicly traded company in a highly publicized and lengthy federal grand jury investigation involving tax and ERISA issues.
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Successful defense of several publicly traded companies in connection with the valuation and ad valorem taxes of special purpose buildings.
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Obtaining favorable resolution for a bank in a dispute involving the proper tax treatment of bad debt reserves. This litigation was won on summary judgment before the United States Tax Court; subsequently the matter was settled in a manner favorable to the client.
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Successful representation of a publicly traded company before the United States Tax Court in a civil tax case involving proposed tax deficiencies of approximately $20 million and potential refund claims of more than $100 million. The matter included issues of "form over substance," application of the "claim of right" doctrine, interpretation of the investment tax credit transition rules, and other issues.
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Successful representation of AT&T in the reported case of AT&T v. Collins, where the Georgia Supreme Court, in a case of first expression, sanctioned the unitary method of apportionment for AT&T. As a result of this victory, the Georgia Legislature amended the governing statute to specifically permit a taxpayer to choose the unitary method of apportionment.
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Counsel to localities in Virginia and Tennessee in negotiating lead settlements with Internal Revenue Service in nationally prominent "black box" bond transactions.
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Representation of state banking industry in structuring settlement with state tax authorities on issues arising under bank franchise tax statutes and related amendments to state bank tax laws.
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Representation of cellular telephone company in challenging application of state and local tax scheme to cellular telephone services, including successful litigation of pertinent tax issues.
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Representation of several national cable television providers in disputes involving state sales and income tax and local business taxes.