Direct Taxes

Planning for your income and other direct taxes requires a holistic picture of your business. We assist you nationally and locally with corporate income taxes, including planning, tax-exempt status and nonprofit formation, tax compliance matters, and franchise and partnership taxes. Our experience covers the full range of business entity types including C Corps, closely-held businesses, nonprofits and other tax-exempt organizations.

When necessary, we will represent you in court and before state and local taxing authorities during tax audits, protests, appeals and litigation.

 Areas of Focus:

Income Tax

Nexus

• Analysis of the safe harbor provisions of P.L. 86-272, including the analysis of the use of independent contractors; third party representatives; limitations of protected activities and the definition of delivery
• Constitutional protections, including economic nexus and factor presence nexus; flash nexus
• Individual residency issues
• Trust residency issues

Apportionment

• Analyzing the complex issues that result from the sourcing of services and intangible income including the application of cost of performance methods and market-based sourcing
• Developing alternative methods of apportionment to address distortive results statutory formulas
• Unitary business issues, including defining the composition of the group; instant unity; worldwide combination issues
• Addressing the application of throwback including the Joyce v. Finnigan rules

Tax Base

• Application of expense add-back statutes to both domestic and foreign operations
• Addressing transfer pricing adjustments and forced combination issues
• Challenging the issues surrounding the characterization of income that arise as a result of liquidation of line of business; gains on sale of appreciated securities or flow through interests; sale of non-unitary divisions or investments
• Treatment of corporate owned flow-through entities;
• Taxation of captive insurance companies
• Taxation of captive REITS
• Utilization of net operating losses and capital losses
• Characterization of foreign taxes
• Taxation of foreign source income and tax havens

Procedure

• Statute of limitation issues
• Reporting of federal audit adjustments
• Voluntary disclosure agreements
• Penalty issues