Tax Group

State and Local Tax

Our tax attorneys represent the interests of multi-state taxpayers against state and local taxing authorities by defending against improper assessments and asserting refund claims.  We strive to resolve such tax disputes through negotiated settlements at the administrative appeals level to minimize the cost to the client and the time necessary to resolve the conflict.  However, we have significant experience litigating SALT disputes as well. 

This firm's tax attorneys have handled SALT disputes involving corporate income and franchise taxes, sales and use taxes, personal property taxes, real property taxes, telecommunications taxes and gaming taxes.

We also routinely represent taxpayers in the preparation and submission of requests for rulings from the Mississippi Department of Revenue on various SALT issues.  These ruling requests often involve issues of first impression. 

Our SALT attorneys frequently are asked to assist in structuring transactions to achieve the most efficient state tax result.  In addition, we also assist non-filers in negotiating acceptable terms for voluntary disclosure with the Department of Revenue.

Representative Experience
  • Complete Auto Transit v. Brady, 430 U.S. 274 (1977), affg. 330 So. 2d 268 (Miss. 1976). Representation of national motor carrier in contesting a Miss. privilege tax applied to the taxpayer’s income earned by transporting automobiles in interstate commerce.  

     
  • Weeks Dredging & Contracting, Inc. v. MS State Tax Commission,  521 So. 2d 884 (Miss. 1988).Representation of multi-state corporation seeking refund of Miss. use taxes pursuant to application of credit for sales tax paid to another state on the same transaction.  

     
  • Gencorp v. MS State Tax Commission, 543 So. 2d 657 (1989). Representation of multi-state corporate taxpayer in contesting the inclusion in taxable capital for Miss. franchise tax purposes of reserve accounts representing estimated future liabilities. 
     
  • H. J. Wilson v. MS State Tax Commission, 737 So. 2d 981 (1998). Representation of non-resident mail order company to contest use tax assessments on the value of mail order catalogs delivered to Miss. residents.  Court ordered a refund of use tax assessed on the postage component of the catalogs. 

     
  • Representation of national credit reporting company in Miss. Chancery Court involving the issue of how to apportion income earned from electronic commerce.

     
  • Representation of non-resident individual taxpayers in multi-million dollar Miss. income tax assessment.  Taxpayers could not post jurisdictional bond.  Relief was secured in TRO action in Miss. Chancery Court resulting in favorable settlement for taxpayers of approximately 25% of original assessment.

     
  • Successfully represented Miss. based multi-state corporation that had out-of-state operations operating at a loss that the Tax Commission contended were not part of taxpayer’s unitary business.

     
  • Settled litigation - Representation of Fortune 100 company in multi-million dollar income tax assessment and refund action in Miss. Chancery Court resulting in $4,000,000 refund.  Issue was whether gain on sale of business was business income or nonbusiness income under UDITPA.

     
  • Administrative appeals - Representation of multi-state corporation in Miss. Chancery Court contesting the disallowance of deductions for premiums paid to captive insurance company.
     
  • Administrative appeals - Representation of various corporate taxpayers to defend against the reclassification of loans to affiliates as taxable capital for franchise tax purposes.

     
  • Administrative appeals - Representation of various corporate taxpayers to defend against the disallowance of royalty expense or interest expense paid to non-resident intangible holding company.

     
  • Administrative appeals - Representation of corporate taxpayers to defend against the disallowance of administrative fees paid to an affiliate.

For additional information on State and Local Tax, please contact J. Paul Varner

 

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