The Legal 500

Baker & McKenzie’s North American tax controversy group handles large tax controversies at audit, appeal, and trial court level, with several of the partners having former US government experience. Headed by Thomas Linguanti, the group achieves national penetration with over 40 lawyers and other staff across its US offices, with concentrations in Chicago, Palo Alto and Washington DC. The firm’s worldwide presence and the experience of its global tax dispute resolution practice give it an edge on international and cross-border instructions. This is particularly evident in the firm’s market-leading transfer pricing practice, which draws on the expertise of a number of economists as well as lawyers. Recent work in this area includes a successful settlement for Broadcom Corporation in its defense against proposed transfer pricing adjustments totalling more than $5bn; Andrew Crousore in the Palo Alto office, a former member of the IRS’ District Counsel Office, handled the case. Patricia Rexford, who recently joined from Mayer Brown, has considerable tax controversy experience, particularly in transfer pricing and tax credit matters. Other recommended lawyers include Mark Oates in Chicago, and Washington DC’s Duane Webber, who focuses on the resolution of federal income tax controversies with the IRS, including alternative dispute resolution techniques. Major clients include Altera Corporation, Microsoft, Symantec and The Boeing Company.

The tax controversy and transfer pricing practice at Mayer Brown is ‘at the absolute top of the profession in this area’, with ‘a deep bench when it comes to controversy work’. The team is one of the largest in the US, with approximately 40 lawyers dedicated primarily to tax disputes. The majority of the team is based in Chicago, with smaller groups in Palo Alto and Washington DC. While the practice supports other departments when required, it prides itself on the fact that clients often engage the firm solely for the controversy expertise on offer. The ‘excellent’ Joel Williamson in Chicago and the highly regarded Larry Langdon in Palo Alto co-chair the practice. David Abbott in New York and Thomas Durham in Chicago are representing Pepco Holdings in potential litigation along with Brian Kittle and Andrew Steigleder, who were both promoted to partner at the beginning of 2011. The practice also recently represented Flextronics in litigation concerning the acquisition of a North Carolina manufacturing facility by a subsidiary. In Chicago, Scott Stewart is ‘outstanding in terms of both technical skills and communication skills’, and Thomas Kittle-Kamp is also recommended.

The Washington-DC based tax practice at Skadden, Arps, Slate, Meagher & Flom LLP offers a broad array of experience to clients, with expert lawyers who regularly play a leading role in the development of creative controversy resolution strategies. The firm has recently been involved in a number of controversies relating to cross-border financing, representing both foreign and domestic companies. One such client was The Bank of New York Mellon, in an ongoing case concerning an IRS challenge to foreign tax credits; former chief counsel for the IRS B John Williams and Alan Swirski, who are both ‘exceptional in their responsiveness and creativity’, represented the client along with the ‘very intelligent, organized and thorough’ Julia Kazaks. Williams and Swirski are also representing CIGNA in the United States Tax Court concerning an IRS challenge to taxpayers’ adoption of specific life insurance reserving methodology, a case which has industry-wide implications. The group is ‘very strong in government connections’, and former IRS commissioner and practice co-head Fred Goldberg is ‘the best at what he does’. The Chicago office was strengthened by the addition of Nate Carden from Mayer Brown in 2010, and most recently Diane Ryan, who has built a noteworthy tax controversy team. Ryan is former national appeals chief at the IRS and Carden’s practice focuses on transfer pricing matters, international operational tax planning and all related tax controversies. Kenneth Gideon is also highly recommended.

More than half of the lawyers in Bingham McCutchen LLP’s 60-strong tax team, co-chaired by Washington DC based William Nelson and Boston-based Donald-Bruce Abrams, focus their practice on controversy and transfer pricing matters, and the firm maintains an excellent reputation in these areas, representing US and foreign clients across a variety of industries. It recently expanded its tax practice in California with the addition of three partners: Robert Kirschenbaum from Miller & Chevalier Chartered, Beth Williams from Baker & McKenzie, and John Ryan from McDermott Will & Emery LLP; with expertise in transfer pricing and controversy issues and particular knowledge of the needs and expectations of businesses in Northern California, the three add significant depth to the practice. In an indication of the firm’s investment in the transfer pricing arena, Craig Sharon, former director of the Advance Pricing Agreement Program at the Internal Revenue Service, joined the Washington DC office in early 2011. John Magee has a very strong reputation, and recently represented The Dow Chemical Company in a case involving the use of a partnership structure to monetize patent and chemical plant assets and raise minority equity financing from investors. Other key litigators include Raj Madan and Chris Bowers.

The majority of the tax controversy lawyers at Latham & Watkins LLP are based in Washington DC, where Gerald Kafka heads the ‘excellent’ practice. The firm represents a number of large corporate clients across a multitude of industries including real estate, healthcare, finance and communications. Recent litigation handled by Rita Cavanagh before the Federal Claims Court gained the firm additional attention from a number of corporations; the case, for Magma Power Company, involved an interest-netting claim based on the interplay between the consolidated return filing rules and the interest computation rules, and the client was granted summary judgement in the matter. ‘Strong tax litigator’ Roger Jones, based in the Chicago office, is also recommended. In the international arena, the team has been increasingly involved in cases involving foreign tax credits. Clients include Manor Care, Shea Homes and Wells Fargo.

McDermott Will & Emery LLP has a truly national practice, active in the major US centers and on both coasts, with the largest concentrations of lawyers in Chicago and Washington DC. Jean Pawlow, an ‘especially talented individual’, heads the ‘very responsive and highly competent’ team. The California office is particularly active currently, and the firm continues to expand in this area. Frederick Chilton, in Silicon Valley, represented Cisco in a matter involving transfer pricing and domestic manufacturing issues. Another major practice strength is private client work, and trusts and estates disputes, as indicated by a major Tax Court victory in the Estate of Duncan case; Thomas Borders led in representing the executors in the case, which dealt with an estate’s ability to deduct the interest on borrowed funds used to pay estate taxes upfront, where the interest might not be paid for many years. As well as a strong federal tax controversy team, the firm is acknowledged for its market-leading SALT litigation practice, led by Chicago-based Jane Wells May. The practice is the preferred SALT advisor to leading investment banks such as Goldman Sachs and Morgan Stanley, with Peter Faber a key lawyer in the area. Elizabeth Erickson in the Washington DC office is considered a rising star in tax controversy. Other clients of the firm include Diageo, Securitas and Cooper Industries.

The area of voluntary disclosure and continuing IRS investigations into US offshore bank accounts has created a substantial amount of work for Caplin & Drysdale, and criminal and civil examinations involving foreign accounts remain an important area of practice for the firm. Scott Michel, Cono Namorato and Niles Elber all have particular expertise in these matters. On the international side, David Rosenbloom is praised for his ‘encyclopaedic’ knowledge of tax law, and has advised a range of multinational corporations and financial institutions on tax planning and controversy matters. New partner Lucy Lee’s practice focuses on Korean clients, and Patricia Lewis remains a key figure in the transfer pricing arena. A significant development for the firm has been the addition of Mark Allison from Dewey & LeBoeuf LLP, and the establishment of a tax controversy practice in New York; Allison has considerable experience in the controversy arena and brought with him clients including two global financial institutions, one of which he advised on a large-scale transfer pricing project. The development has improved the firm’s credibility as a national practice, and has led to a greater number of instructions from New York-based clients.

Chamberlain, Hrdlicka, White, Williams & Martin’s tax controversy group, headed by George Connelly, comprises some 30 attorneys spread across offices in Atlanta, Philadelphia and Houston. Connelly’s practice focuses on IRS audit, collection and criminal matters. Larry Campagna, in Houston, is highly regarded in the market, with an excellent reputation for business litigation and white-collar criminal defense, and ‘standout trial lawyer’ David Aughtry, based in Atlanta, has a strong civil and criminal tax litigation practice. In the Philadelphia office, Jonathan Prokup specializes in international tax planning and controversies, with expertise in transfer pricing and cross-border financial transactions.

Fulbright & Jaworski LLP’s tax controversy team is based predominantly in Houston, with attorneys in other areas of Texas and New York. As well as its dedicated tax litigators, the firm’s transactional tax lawyers also handle controversy matters. The firm is international in scope and focuses on federal tax controversies, although it does handle SALT controversy work in New York, California and Texas. In New York, Kathryn Keneally has extensive experience representing clients in tax controversies, white-collar criminal defense and commercial litigation. John (Jack) Allender in Houston chairs the firm’s tax practice.

Kirkland & Ellis LLP’s Chicago-based tax controversy practice has gained a reputation for its success in obtaining positive results for clients in administrative controversies that have not yet reached litigation. The team attracts a growing flow of international work, in particular transfer pricing matters, and the practice is now split fairly equally between federal, SALT and transfer pricing matters. It has also witnessed an increase in litigation relating to bankruptcy cases, such as the representation of Majestic Star Casino in contesting the real property assessment of two of the company’s riverboat casinos; the client was granted a total victory, in a case which otherwise would have jeopardized its emergence from bankruptcy. Natalie Hoyer Keller, who ‘exudes confidence and knowledge of the subject matter’ and has an ‘irrefutable presence’ in court, led the case. The firm also works with a number of major airlines, and has represented several of them in controversy matters. Todd Maynes is also recommended.

Washington DC firm Miller & Chevalier Chartered represents a number of high-profile corporate clients headquartered throughout the world, including more than a quarter of the Fortune 50, 25% of the Fortune 500, and 15% of the Global 100. Kevin Kenworthy is a key figure in the group, and his practice focuses on federal income taxation with an emphasis on litigation. He continues to represent a global petrochemicals giant in connection with high-value disputes, and also a major land developer in relation to its ‘completed contract’ method of accounting. Stephen Gertzman has a strong reputation in the area of tax accounting and considerable experience handling administrative appeals. Patricia Sweeney is chair of the tax department, practising in the area of federal income taxation and with extensive experience resolving federal income tax controversies before the IRS and in court. The tax department includes many lawyers who have worked at the IRS, Treasury, Department of Justice and US Tax Court. David Blair worked as a trial attorney for the tax division of the Department of Justice, bringing a depth of insight to his broad controversy practice. Rocco Femia is recommended for international tax disputes and transfer pricing matters.

Morrison & Foerster LLP’s tax controversy attorneys are spread across several of the firm’s offices, with the greatest concentration in New York. Craig Fields is co-chair of the firm’s tax department and chair of the SALT group, an area in which the firm maintains an excellent reputation. Paul Frankel is ‘an expert’ in the field. Outside of New York, Thomas Steele and Andres Vallejo represented Nextel Boost of California in its challenge against the City of Los Angeles’ telephone user tax (TUT). The firm also has considerable federal expertise. Washington DC-based Edward Froelich, a former trial attorney for the tax division of the Department of Justice, represents clients on all aspects of federal tax controversy. Froelich was joined by Thomas Humphreys, from the New York office, who has particular expertise regarding tax elements of financial products, in representing the official creditors’ committee for Ambac Financial Group in connection with its proceedings against the IRS regarding tax refunds. Washington DC- based James Merritt and Robert Cudd in San Francisco are also recommended. Practice clients include Hair Club, Reynolds Metal Company and General Mills.

Reed Smith LLP’s state tax practice represents clients nationwide with attorneys based in several offices across the country, and advises on multi-state issues arising in all US jurisdictions. Lee Zoeller heads the practice from Philadelphia, where the largest number of attorneys dedicated to the practice area are situated. The ‘extremely knowledgeable’ attorneys also assist clients in developing state tax compliance programs, and the firm is considered the ‘go-to’ firm for SALT controversy work. In the Washington DC office, Walter Nagel ‘has a knack for making extremely complex issues simple and understandable’, and ‘uses creativity to develop alternative approaches’, and ‘few practitioners can match the enthusiasm’ of Donald Griswold, who has ‘intellectual curiosity and passion for tax’. Practice clients include Johnson & Johnson, General Motors, Wells Fargo and Hewlett-Packard.

Laura Barzilai, based in New York, and Jay Zimbler, in Chicago, co-chair Sidley Austin LLP’s federal and state tax controversy practice. The firm represents clients throughout the administrative processes and at the judicial level, and is particularly active in the banking, food processing, hedge fund, insurance, telecoms and transportation sectors. Zimbler and Barzilai have represented numerous public and private companies in multimillion-dollar disputes along with Chicago-based Kevin Pryor. The firm’s SALT practice has a good reputation in the market. Tracy Williams in Chicago is strong in the field, and represents AIG in state litigation in various states. Other recommended SALT lawyers include Richard Leavy in New York, and Scott Heyman. Key clients include First Data Corporation and Tyson Foods.

Steptoe & Johnson LLP’s Washington DC- based practice is headed by Philip West, who is noted for his ‘sound professional judgment and technical skill’, and who previously served for nearly four years as the Treasury Department’s international tax counsel. Other litigators in the practice have served as Justice Department trial and appellate attorneys, judicial law clerks and IRS officials. A team led by the ‘excellent’ and ‘creative’ Matthew Lerner recently gained a positive ruling for Quellos Financial Advisors in a test case that will have much wider implications; the Superior Court of California for the County of San Francisco ruled that the California Franchise Tax Board might not retroactively apply an increased penalty for the promotion of tax shelters. The firm also represented John Hancock Financial Services in a dispute with the IRS regarding the treatment of certain leveraged leases and whether the leases will be respected as such for income tax purposes. Arthur Bailey led the team alongside J Walker Johnson, and both are credited with ‘a great depth of knowledge’. Other recommended lawyers include Mark Silverman, whose ‘negotiation and influencing skills are superb’. The firm also has a thriving SALT practice, headed by Pat Derdenger in the Phoenix office. (Lawyers named are based in the Washington DC office unless otherwise stated.)

The ‘very strong team’ at Sullivan & Cromwell LLP has ‘world-class knowledge, experience, and professional skills, and a huge resource base’, and has continued to expand. The ‘excellent’ Donald Korb, in Washington DC, heads the firm’s tax controversy practice; a former chief counsel of the IRS, Korb ‘brings outstanding views on US taxes’. The firm prides itself on getting ahead of the curve and discreetly resolving cases for clients. Focusing on international issues, it has witnessed a rise in debt/equity and transfer pricing matters, and continues to focus on UK and French multinationals in need of representation. In the New York office, Andrew Solomon, managing partner of the firm’s tax group, has ‘deep knowledge of international tax’, and has represented a number of European companies in IRS examinations alongside Korb. Other recommended lawyers include Diana Wollman and associate James Gadwood, a ‘young rising star’ in the New York office.

Jerome Libin in Washington DC, heads the tax controversy group at Sutherland Asbill & Brennan LLP. With ‘excellent response times and business acumen’, the firm’s comprehensive SALT practice has seen considerable growth. The largest complement of attorneys is in Washington DC, but the practice is also represented in Atlanta and has a smaller presence in Sacramento. With 22 partners spending the majority of their time on controversy work, the firm represents clients in almost every state in the country. Jeffrey Friedman and Pilar Mata represented GenOn Mid-Atlantic in a successful challenge against the constitutionality of an excise tax on greenhouse gas emissions enacted by Montgomery County, Maryland, leading to a refund of almost $10m. Other work highlights included the representation of AIG in a refund suit; Kent Jones worked with Libin and the up-and-coming Thomas Cullinan, from the Atlanta office, and Daniel Schlueter in Washington DC on the case, which related to a range of cross-border financing transactions. In the Atlanta office, Jerold Cohen is also very highly regarded.

Baker Botts L.L.P.’s ‘excellent’ practice focuses primarily on the representation of large corporate taxpayers under the IRS’ Large Case, Coordinated Examination, Industry Specialization and Market Segment Specialization programs. The firm has particular depth of expertise in income tax and SALT controversies, and has witnessed a rise in fast-track proceedings that looks set to continue. The ‘extremely smart’ and ‘very personable’ Richard Husseini has ‘intuitive skills that are rare in this type of attorney’, and recently teamed up with Jon Nelsen in the representation of CenterPoint Energy Houston Electric in proceedings before the Texas Public Utility Commission. John Porter and Keri Brown are also recommended.

New York-based Stephen Gardner chairs Cooley LLP’s tax controversy practice. It handles significant federal, state and international tax controversies and appeals, and earned considerable recognition for its work on Entergy Corporation v Commissioner; in the case, the US Tax Court ruled in favor of Entergy, entitling the company to a foreign tax credit for taxes paid by a subsidiary in the UK, yielding $250m in tax savings. Other key clients include American Express, Kerr-McGee Corporation, Shell Oil, Walter Energy and Websense. Kathleen Pakenham in New York and David Fischer in Washington DC are both highly regarded.

Barbara Kaplan chairs the ‘excellent’ tax audits and litigation practice at Greenberg Traurig LLP. Based in the New York office, Kaplan’s broad practice includes administrative and grand jury criminal tax investigations. The group includes former IRS litigator Phillip Pillar, who has worked in the tax controversy practice of a major international accounting firm and whose practice focuses on advising Fortune 500 companies, from the firm’s Washington and Philadelphia offices. The firm also has a solid SALT practice; Michelle Ferreira, in the San Francisco office, is particularly strong in this area, as is the ‘highly responsive’, David Bunning in New York. Tax collection issues and related government actions have proved a source of ongoing work for the firm, which prides itself on tackling an area left alone by many other firms. Charles Simmons is also recommended.

Morgan Lewis's team includes former IRS deputy chief counsel Gary Wilcox, who heads the tax group. He is joined by Brian McManus, from the Boston office, in one of the year’s largest tax cases, representing Iberdrola SA, with nearly £1bn of tax and interest at stake. The firm concentrates on large corporate tax controversies, and has been busy in the debt/equity arena. International tax controversy is also an area of growth; Roderick Donnelly who joined the firm in July 2011 from McDermott Will & Emery LLP, is focused on this area, with an emphasis on cross-border transfer pricing. Margaret Wilson, also from McDermott Will & Emery LLP, joined the firm in November 2011, and focuses on SALT matters.

Shearman & Sterling LLP’s tax group is co-headed by Laurence Bambino in New York and Michael Shulman in Washington DC, where the majority of the controversy team are based. Thomas Johnston’s practice, like several others in the team, is devoted entirely to tax controversy issues. Johnston represented Ford Motor Company in a case involving $100m in tax and interest, in relation to whether bonuses paid to UAW members to secure ratification of a collective bargaining agreement are wages for FICA and FUTA withholding purposes. Other attorneys in the team, such as Kristen Garry, divide their time between controversy and corporate tax matters. Garry has broad experience in the taxation of financial products, and – alongside Thomas Martin, head of the complex commercial litigation group, Robert Rudnick, and Jeffrey Quinn – represented Freddie Mac in a case involving a $2.5bn dispute with the IRS; the case dealt with the tax treatment of derivatives used to hedge financial risk. In May 2012, Lawrence Hill joined from Dewey & LeBoeuf LLP.

Thompson & Knight LLP’s tax controversy offering is part of a broader tax practice. Headed by Sharon Fountain in Dallas, the team represents clients in civil and criminal, SALT and federal tax controversies. The ‘terrific’ Emily Parker handles SALT and federal tax disputes, with particular expertise in the taxation of natural resources and partnership/corporate transactions involving the petroleum industry. Parker successfully represented Container Corp in a case of first impression exempting guarantee fees paid to the foreign parent of a US subsidiary from US withholding tax. Mary McNulty specializes in federal tax procedural issues, and Robert Probasco is another key lawyer in the area. Practice clients include Apache, Chevron and Noble Energy.

With a national practice, Winston & Strawn LLP has continued to work on strengthening its tax controversy practice since hiring group head Daniel Dumezich and Gary Colton from Mayer Brown in 2010; senior tax counsel Denton Thomas joined the Houston office, and focuses on income, gift, and estate tax controversies; tax litigation; and securing advance IRS rulings. The group represents major financial institutions and public accounting firms, and supports the firm’s strong financial practice. Individuals include tax practice co-chairs James Lynch and Lou Weber in Chicago and Charles Moll in San Francisco, whose practice concentrates on SALT matters within California, while other notable offices include Washington DC and New York. Moll, along with Troy Van Dongen, represented Canandaigua Wine Company in a challenge brought by the County of Madera regarding the lower court’s award of attorneys’ fees in a property tax dispute. Colton and Dumezich represented Thrifty Oil Company in a case regarding the deductibility of certain environmental expenses The firm is also lead counsel for AT&T in ongoing tax refund litigation. In May 2012, Seth Farber joined from Dewey & LeBoeuf LLP.

The ‘outstanding’ Covington & Burling LLP handles significant tax controversy work for a number of major multinational companies. Of the 20-strong tax team, seven partners have substantial controversy practices. Reeves Westbrook, who has ‘extensive experience in administrative appeals and tax litigation’ and is a ‘tireless and most effective advocate’, co-chairs the firm’s tax practice. He handles controversies across a broad spectrum of subject matters and clients include IBM, UTC and Vivendi. Michael Levy is another name to note and has experience in transfer pricing, an area which has proved an ongoing source of work for the firm. The firm also gains controversy work from its sports practice, which Jeremy Spector leads. Spector is lead outside tax counsel to the National Football League, Major League Baseball, the US Olympic Committee and the Boston Red Sox, among others. Emin Toro and the ‘technically excellent’ Dirk Suringa are also recommended.

Tax controversy is an area of increasing importance and growth for Hogan Lovells US LLP. The majority of the tax practice remains non-controversial, but the controversy team, headed by Cristina Arumi, represents clients in both SALT and federal tax matters including a growing number of transfer pricing adjustments. The group is ‘responsive and brings a tremendous amount of knowledge and experience to the table’. The ‘exceptional’ Todd Miller is praised for his ‘experience and practical application of the law’, and Melvin Lefkowitz handles tax controversy issues at the examination level, before the Appeals Office of the Internal Revenue Service, and in state tax proceedings. International highlights include advising German ‘bad banks’ on both European and US tax issues.

Pillsbury Winthrop Shaw Pittman LLP is considered ‘among the best for state income tax controversy and California SALT issues’. ‘Technically very strong’, Jeffrey Vesely has ‘fantastic state/local tax litigation skills’ and heads up the ‘outstanding’ SALT team. He was joined by Richard Nielsen in a successful challenge on behalf of Chevron Corporation against a new city tax that would have raised its business licence tax to over £20m. The team also represented Apple in a California franchise/income tax case, with Vesely working alongside Annie Huang and the ‘extremely knowledgeable’ Kerne Matsubara. On the federal side, the controversy team is led by Eileen O’Connor in Washington DC, and includes experienced litigators and advisors from the IRS Chief Counsel’s Office and the Department of Justice tax division. Lawrence Hoenig, in the Palo Alto office, is noted for his ‘great property tax knowledge and experience’. The ‘highly intelligent’ William Bonano in San Francisco, a former international special trial attorney with the Office of Chief Counsel at the IRS, is praised for his ‘thoughtful and sensible approach’.

The ‘extremely responsive’ team at Vinson & Elkins L.L.P. is headed by George Gerachis in the Houston office. Credited as being ‘professional, personable, realistic, innovative, practical and a great negotiator’, Gerachis ‘provides the highest quality of service with the appropriate level of advice’. He recently represented BMC Software in a case regarding Foreign Earnings Repatriation. The team handles some SALT work in Texas, but the practice centers around international and domestic federal tax controversies. The team has seen a rise in work representing global high-net-worth individuals, and has a great deal of experience in transfer pricing matters. The highly recommended Donald Wood, in the Austin office, represented the executors of the Estate of James A Elkins Jr, in a significant case in the US Tax Court, with over $15m at stake; the case presented the issue of whether and to what extent undivided interests in fine art should be discounted for estate tax valuation purposes.

Michael Quigley heads White & Case LLP’s tax controversy and litigation team, which is based predominantly in the New York and Washington DC offices. The firm is particularly strong on cross-border matters, and William Dantzler, head of the global tax practice, is ‘clearly in a class all his own’ and ‘practical in his approach and advice’. The firm also has significant experience in transfer pricing issues, with Brian Gleicher focusing his practice on this area. The practice was strengthened in 2011 with the addition of Kim Marie Boylan from Latham & Watkins LLP. Boylan brings extensive tax experience and a broad practice that includes transfer pricing.