State and Local Tax and SALT Litigation
We believe state and local taxation is a critical area of tax law that provides opportunities for sound tax planning not commonly noticed by other law firms. Many provisions of state tax codes change annually. In addition, constitutional issues which have an impact on a government’s ability to tax certain transactions. Income taxation and sales taxation are in constant flux as tax jurisdictions look for additional sources of revenue and take increasingly aggressive positions with respect to taxation of transactions or including out-of-state revenues in their tax bases.
With today’s tax complexities, businesses need sound tax advice if they are to survive and prosper. Many law firms that provide tax advice focus on the federal tax aspects of a planning effort or a potential transaction. If they consider state and local taxation at all, it is an afterthought. This is not the case at McGuireWoods. The business tax attorneys in our State and Local Tax Group are finely attuned to the intricacies of state and local tax matters.
McGuireWoods routinely advises businesses on issues such as constitutional restrictions on state taxation affecting interstate commerce, constitutional uniformity and equality safeguards. We also advise on myriad other tax-related matters, including corporate franchise, net income and capital stock taxes, sales and use taxes, taxable sales of tangible personal property as applied to various businesses, trades and occupations, taxable services and mixed transactions, and asset classification issues.
Our state and local tax attorneys are highly versed in all aspects of state and local tax planning, as well as all aspects of tax compliance, including civil audit and general and procedural matters before local and state tax authorities. We regularly represent clients in the preparation of private letter ruling requests, administrative tax protests, preparation of offers in compromise for outstanding tax assessments, and offer the complete range of trial and appellate state and local tax litigation services frequently demanded by cutting edge businesses.
We are intimately involved in the administrative and legislative processes of state and local tax matters. Our attorneys assist in drafting tax legislation, work closely with lobbyists who assist by advising legislators who provide input to the various state legislatures and departments of taxation and revenue on proposed tax legislation and regulation projects, and participate in various legislative and department of taxation revenue study committees that review and recommend changes to various areas of state and local taxation in jurisdictions where McGuireWoods maintains offices.