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| Federal Tax Litigation | | We have the skills to represent clients at all levels, from the audit stage, through the administrative appeals process, and in court. Our lawyers are licensed to practice in all of the Texas state courts, the United States Tax Court, the United States District Courts, and the Fifth Circuit Court of Appeals. | | More Info | Archives |
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| Welcome to the Martens, Todd & Leonard website. Our firm represents clients in Texas tax and federal tax controversies and litigation. We are centrally located in downtown Austin, Texas. |
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| Upcoming Seminars | | All of our attorneys are frequent lecturers and speakers at symposiums and seminars throughout Texas and the nation, not just for lawyers, but also for CPAs, corporate controllers, and individual taxpayers. | | More Info | Archives |
| Federal Tax Matters | | For our federal tax clients, we handle cases involving income taxes, estate and gift taxes, excise taxes, and payroll taxes. We have significant experience handling cases involving international tax issues, domestic tax issues, employee vs. independent contractor status issues, and other complex tax issues. | | More Info | Archives |
| State Tax Clients | | Our state tax clients include Fortune 500 companies involved in numerous industries, including tobacco and agriculture, steel, heavy equiptment manufacturing, oil and gas, high technology, petrochemical refining, equiptment leasing, defense contracting, insurance wholesale, retail, cable television, manufacturing, and service industries. | | More Info | Archives |
| Texas Tax Controversies | | We handle tax disputes at all levels, beginning with assisting clients' tax professionals and in-house accountants with the audit. We routinely defend our clients through the Comptroller's administrative court process and in the Travis County district courts. When necessary, we prosecute cases through the Third Court of Appeals. | | More Info | Archives |
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Taxpayer Wins First Texas Margin Tax Case
A Texas taxpayer recently prevailed in the first Texas franchise tax case tried under the new statute (the so-called "Texas Margin Tax".) Specifically, the court ruled that Taylor & Hill, the plaintiff, was entitled to a revenue exclusion for its on-site engineers and to claim the compensation deduction for wages and benefits paid to its in-house engineers.
Taylor & Hill provides engineers to refineries and chemical plants. It also provides in-house engineering services. Taylor & Hill's franchise tax report had originally reported based upon Cost of Goods Sold method.
The Texas Comptroller audited Taylor & Hill and denied its eligibility for the Cost of Goods sold deduction. The Comptroller further argued that Taylor & Hill could not amend its Texas franchise tax report to claim the compensation deduction. Instead, the Comptroller attempted, unsuccessfully, to force Taylor & Hill to report its Texas margin tax based upon the statutory minimum deduction equal to thirty percent (30%) of revenue.
For more information, contact Jimmy Martens or Lacy Leonard with Martens, Todd & Leonard, the attorneys litigating this case. Click Here to view a copy of the judge's letter issued on July 7, 2011 in Taylor & Hill, Inc. v. Combs, Travis County District Court Cause No. D1GN100044-1.
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