Marashlian & Donahue, PLLC’s tax attorneys provide clients with experienced counsel on a wide-variety of federal, state and local taxes, including sales, use, excise and transaction taxes applicable to E-Commerce vendors and online sellers of goods, communications services and products, and hosted and downloadable software applications. With the U.S. Supreme Court’s recent South Dakota v. Wayfair decision, where the Court overturned the Quill v. North Dakota decision and eviscerated the “physical presence” test in the process.  Quill’s physical presence test had precluded State Tax Authorities from imposing sales taxes on many online and E-Commerce retailers (and otherwise limited the extension of such taxes to software vendors) for the better part of the past 25 years. The Wayfair decision will have far-reaching and long-lasting implications for online retailers and State Tax Authorities for generations to come.  Our firm anticipates an exponential increase in the number of state jurisdictions seeking to impose sales taxes on countless Internet and Web-based businesses in the coming months and years.  We are here to help clients evaluate the decision and its implications while working towards optimized, sustainable and affordable compliance, all delivered our team of experienced Tax Attorneys.

Our firm’s experience covers:

  • Assisting with tax planning
  • Consulting on tax software procurement, implementation and management
  • Conducting compliance reviews
  • Providing alerts of proposed and adopted changes in tax laws by the states and the Multistate Tax Commission
  • Advocating before taxing and regulatory bodies
  • Interpreting statutory provisions and administrative rulings
  • Assisting clients with the different aspects of audits ranging from:
    • Developing audit avoidance strategies
    • Conducting risk analysis and mitigation techniques
    • Providing audit defense
    • Assisting with reverse audits and appeals
    • Litigation – both prosecution of claims and defense of assessments

Our firm’s E-Commerce Taxation practice group helps guide clients to reach optimal solutions and offers professional assistance with regard to a wide variety of complex tax issues, including:

  • Sales, Use and Telecom transaction taxes; excise taxes – federal and state
  • Supply chain enforcement and tax exemptions – strategies, planning, development and implementation of compliance programs
  • Strategic advice on apportionment methodologies
  • Billing audits to verify accuracy of pass-through taxes and fees to establish eligibility for refunds and credits, and to reduce or avoid certain taxes
  • Audit defense before state Departments of Revenue and local tax
  • Guidance on initiatives by States and the Multistate Tax Commission to tax out-of-state retailers and proposed Streamlined Sales and Use Tax Agreement
  • Tax Amnesty programs
  • Taxation of software, Internet access, web-based and value-added services, sales and transactions

Analysis & Strategic Planning

Marashlian & Donahue, PLLC’s tax analysis and planning services can be used by clients to adjust existing business relationships and/or operations, marketing, sales, billing and accounting practices, and organizational structures, in order to minimize or eliminate federal, state and local tax and regulatory impositions without adversely affecting the client’s core business goals and plans.

Audit Defense

Marashlian & Donahue, PLLC can comprehensively manage the audit process from beginning to end, providing focused assistance on any aspect of an audit’s different phases, such as the process of producing records, identifying the information required to establish a best-case position, advocating and negotiating with authorities to accept that position and build a solid record should an appeal be warranted, and assisting with settlement and payment plan negotiations. We will control and manage the day-to-day information flow between our client and the taxing or regulatory authority ensuring timely, complete, and accurate responses. When possible, we will invoke accelerated dispute resolution processes that are available to reduce the costs and time burdens associated with resolving complicated tax and fee assessments, audits, or alleged deficiencies.

We represent our clients’ interests during audits to ensure they pay only their lawfully required share. Our audit representation provides a comprehensive range of services, including:

  • Audit coordination
  • Audit review and opportunity assessment
  • Controversies and appeals
  • Responses for information and document requests
  • Risk assessments
  • Tax audit representation
  • Compliance and reporting evaluation
  • Taxability determinations
  • Voluntary disclosure and registration (in association with our affiliates)
  • Negotiated settlements