Case Study — Minimizing Client’s State Sales Tax Liability

The company retained leading New York state and local tax attorneys to challenge the assessment. However, these efforts yielded limited results despite significant investment.

Drawing on our deep understanding of New York sales tax laws and regulations, we crafted a tailored strategy to protect the client’s financial interests and minimize its tax liability. Specifically, our efforts concentrated on the primary purpose of the transactions at issue. Once we determined the primary purpose of the transactions, we were able to sufficiently convince the New York State audit department that the transactions constituted nontaxable professional services. For the services that remained taxable, we provided auditors with data demonstrating that significant portions of those services should not be sourced to New York, further reducing the assessment.