Diann Smith is a member of Sutherland's Tax Practice Group concentrating on state and local tax matters. She focuses her practice on the full range of situations in which state and local tax challenges arise: compliance, controversy, planning and legislative activity. Diann's work for clients addresses nexus, tax base, business/non-business income classification, apportionment and FIN 48 compliance issues, among others. She also counsels clients on unclaimed property law matters such as multi-state unclaimed property compliance and voluntary disclosure opportunities. Additionally, Diann advises clients on state and local tax policy issues, such as the impact of new legislative tax and budget proposals and draft administrative regulations. She has experience working with clients operating in many different markets and industries including insurance and communications services.
Diann is heavily involved in representing client interests before the Multistate Tax Commission (MTC). Recently, she prepared and presented comments to various committees of the MTC, as well as to the entire Commission, on the Uniform Law Commission's project to review and revise the Uniform Division of Income for Tax Purposes Act, as well as the MTC's Proposed Model Regulation for Apportionment of Income from the Sale of Telecommunications and Ancillary Services.
Before joining Sutherland, Diann served as General Counsel for the Council On State Taxation (COST). While at COST, she worked on nearly every major state and local tax issue confronting multi-state businesses. Her specific responsibilities at COST included writing amicus briefs, drafting legislation, commenting on proposed legislation and regulations, and serving as a resource for COST members with state tax, legal and procedural questions.
Diann was an adjunct professor at Georgetown University Law Center for the LL.M. in Taxation program from 1998 to 2005. She served as a law clerk to the Honorable Alan E. Norris of the U.S. Court of Appeals for the Sixth Circuit in 1991 and 1992.
Diann is admitted to the District of Columbia Bar and New York and Ohio State Bars.
Representative Experience
Diann's recent representative experience includes:
· Litigating in several states regarding classification of gains as nonbusiness income.
· Responding to Multistate Freedom of Information Act (FOIA) requests.
· Providing analysis of a proper combined group under New York's revised franchise tax law.
· Writing an amicus brief for U.S. Bancorp in support of a petition for certiorari at the U.S. Supreme Court in Lehman Brothers Bank, FSB v. State Bank Commissioner.
While serving as General Counsel for COST, Diann's accomplishments included:
· Spearheading the Unclaimed Property Task Force.
· Drafting the Mobile Workforce State Income Tax Fairness and Simplification Act of 2006 (H.R. 6167) concerning state income tax withholding.
· Negotiating language for the Economic Development Act (S. 1066; H.R. 2471) concerning the availability of credits and incentives in the wake of Cuno.
· Submitting the only state and local tax-specific comments on, and request for delay to implementation of, the Financial Accounting Standards Board's FIN 48.
Professional and Community Involvement
· Chair of the Income and Net-Worth-Based Taxes Subcommittee, State and Local Taxes Committee, Tax Section, American Bar Association
Recent Publications and Speaking Engagements
· Co-author, "To Be or Not to Be... the MTC," State Tax Notes (January 2, 2012)
· Co-author, "Missing Something? The Other Side of Unclaimed Property," Corporate Counsel (June 21, 2011)
· Co-author, "Unclaimed Property Audits: Another Headache for Healthcare Providers," Beckers Hospital Review (May 18, 2011)
· Co-author, "Prepaid Discount Vouchers: The Not-So-Final Frontier," UPwords, State Tax Notes (May 16, 2011)
· Co-author, "Unclaimed Property Compliance and Health Care," Compliance Today (April 2011)
· Co-author, "Should New Jersey cash in Aunt Betty's gift to you?" The Star-Ledger (January 26, 2011)
· Co-author, "Card Issuers Trapped Between New Jersey and Delaware," UPwords, State Tax Notes (November 8, 2010)
· Co-author, "New Jersey Unclaimed Property Stored Value Cards," New Jersey Law Journal (October 26, 2010)
· Co-author, "What's UP in the Digital World?" UPwords, State Tax Notes (July 12, 2010)
· Co-author, "Colorado's End Run-Clever, Coercive, and Unconstitutional," A Pinch of SALT, State Tax Notes (April 5, 2010)
· Co-author, "Where We've Been and Where We're Going-Taking Stock," UPwords, State Tax Notes (March 15, 2010)
· Co-author, "Unclaimed Property Administration-Taking Advantage of Uncertainty," UPwords, State Tax Notes (December 21, 2009)
· Co-author, "The Fight For Unclaimed Property: Current Battles Shaping Future Law," Partnering Perspectives (Fall 2009)
· Co-author, "States Attempt to Seize Class Action Settlements as Unclaimed Property," UPwords, State Tax Notes (September 21, 2009)
· Co-author, "Sogg v. Zurz: Unclaimed Property-Do You Own Your Income?" UPWords, State Tax Notes (June 22, 2009)
· Co-author, "No Hedging on Gross Receipts Inclusion in Sales Factor," A Pinch of SALT, State Tax Notes (May 7, 2009)
· Co-author, "MTC Section 18 Regulations: Recurring Challenges to the Nonrecurring Rule," A Pinch of SALT, State Tax Notes (April 8, 2009)
· Co-author, "California Restructures Its Corporate Income Tax," Practical U.S./Domestic Tax Strategies (February 2009)
· Author, "Letting Ohio's CAT Out of the Bag," A Pinch of SALT, State Tax Notes (October 6, 2008)
· Author, "New York Reduces Franchise Tax Rate, Accelerates Single Sales Factor and Clarifies Combined Reporting Rules," Practical U.S./Domestic Tax Strategies (July 2007)
· Speaker, "Federal Preemption: When Do Federal Laws Trump the States?" UPPO Annual Conference (March 11-14, 2012)
· Speaker, "Abandoned & Unclaimed Property - Including a Special Report on the Latest A&UP Legislation, Audit Defenses and Litigation Matters," COST 2012 Sales Tax Conference and Audit Session (March 5-7, 2012)
· Speaker, "Due Process - Significant Current Issues," NYU Institute on State and Local Taxation (December 12-13, 2011)
· Speaker, "State/Local Withholding and Information Reporting Obligations for the Mobile Workforce," NYU Institute on Federal Taxation (November 17-18, 2011)
· Speaker, "Federal Limits on State Taxation" and "Click-Through Nexus and the Main Street Fairness Act," Chicago Tax Club Annual Fall Seminar (October 26-27, 2011)
· Speaker, "The Economic Substance and Business Purpose Doctrines in State and Local Tax," Paul J. Hartman State and Local Tax Forum (October 25-27, 2011)
· Speaker, "State/Local Withholding and Information Reporting Obligations for the Mobile Workforce," NYU Institute on Federal Taxation (October 23-28, 2011)
· Speaker, "Major Trends and Multistate Tax Issues and on Developments in Nexus," Manufacturers' Education Council 2011 Ohio Tax Course (August 12, 2011)
· Speaker, NCSL Executive Committee Task Force on State and Local Taxation of Communications and Electronic Commerce (August 7, 2011)
· Speaker, "Transparency of State Tax Administration," Georgetown Law Advanced State and Local Tax Institute 2011 (May 18-19, 2011)
· Speaker, "State and Local Income Tax: Intermediate to Advanced," TEI Houston Chapter 23rd Annual Tax School (May 2, 2011)
· Speaker, "Federal Preemption: When Do Federal Laws Trump the States?" 2011 UPPO Annual Conference (March 6-9, 2011)
· Speaker, "Due Process - Are Pay-to-Play and Internal Hearings the End of the Line? Retained Refunds, Retroactive Laws and Regulations, Harsh Penalties," New York University's 29th Institute on State and Local Taxation (December 13-14, 2010)
· Speaker, "Emerging Issues Associated with Abandoned & Unclaimed Property: It's Not a Tax, But You Own the Audit," Council on State Taxation 41st Annual Meeting (October 19-22, 2010)
· Speaker, "Major Trends and Multistate Tax Issues including Aggressive State Tax Actions," Manufacturers' Education Council 2010 Annual Ohio Tax Course (August 13, 2010)
· Speaker, "The Protests" and "Mock State Appellate Hearing," TEI State and Local Tax Course (July 12-16, 2010)
· Speaker, "Section 7701(o) - The Newly Codified Economic Substance Doctrine," Tax Education Series VIII (June 16, 2010)
· Speaker, TEI Cincinnati Chapter Meeting (April 26, 2010)
· Speaker, "State Tax Treatment of Bad Debts and Limitation of Remedies," ABA and IPT Advanced Sales and Use Tax Seminar (March 24, 2010)
· Speaker, "Determining When You Need Counsel or Other Experts," Unclaimed Property Professionals Organization (UPPO) 2010 Annual Conference (March 8-10, 2010)
· Speaker, New York University's 28th Institute on State and Local Taxation (December 14-15, 2009)
· Speaker, COST 40th Annual Meeting (October 20-23, 2009)
· Speaker, Tax Education Series VII (April 29, 2009)
· Speaker, New York University's 27th Institute on State and Local Taxation (December 15-16, 2008)
· Speaker, 15th Annual Paul J. Hartman State and Local Tax Forum (October 28-30, 2008)
· Speaker, COST 39th Annual Meeting (October 22-24, 2008)
· Speaker, Tax Executives Institute (TEI) 58th Midyear Conference (April 6-9, 2008)
· Speaker, Institute for Professionals in Taxation (IPT) Income Tax Symposium (November 14, 2007)
· Speaker, State Tax Roundtable for Utilities and Power (November 8, 2007)
· Speaker, Federation of Tax Administrators (June 11, 2007)
News
A Pinch of SALT: To Be or Not to Be... the MTC
January 2, 2012
SALT Attorneys Quoted in Article "NCSL Task Force to Oppose Certain Contingent-Fee Audits"
August 15, 2011
"Missing Something? The Other Side of Unclaimed Property"
July 11, 2011
"Who Are the Most Influential People in State Tax?"
May 6, 2008 Reprinted with permission Tax Analysts
Legal Alerts
Legal Alert: Where's the "Beef"? Sublicensing Qualifies for Virginia Addback Exception
April 18, 2012
Legal Alert: Colorado's Use Tax Reporting Regime Declared Unconstitutional
April 3, 2012
Legal Alert: Single Sales Factor Election May Create Exposure to Large Corporate Understatement Penalty in California
March 28, 2012
Legal Alert: South Carolina Court Places Dual Burden on Department of Revenue in Alternative Apportionment Cases
March 22, 2012
Legal Alert: U.S. Court of Appeals Holds New Jersey's Retroactive Escheatment of Gift Card Abandoned Funds Unconstitutional and its Priority Rules Preempted by Federal Law
January 18, 2012
Legal Alert: Be Ready to Pounce on a Texas Margins Tax Challenge
August 26, 2011
Legal Alert: The Top 10 Ways Unclaimed Property Audits Differ From Insurance Market Conduct Exams
August 18, 2011
Legal Alert: Tax Injunction Act Does Not Bar a Levy Imposed on a Single Entity
August 9, 2011
Legal Alert: New Jersey Supreme Court Holds Throwout Rule Is Facially Constitutional, But Unconstitutionally Applied
August 8, 2011
Legal Alert: Applying Costs of Performance to Apportion Service Income: Massachusetts and Oregon Courts Reach Differing Conclusions
July 8, 2011
Legal Alert: Unpaid Insurance Benefits Issues Continue to Intensify
May 11, 2011
Legal Alert: No Sale! MTC Proposes to Limit Receipts Included in the Sales Factor
May 5, 2011
Legal Alert: BATSA Up: Congress Once Again Considers Nexus Legislation
April 22, 2011
Legal Alert: Shades of Gray: District of Columbia Combined Reporting Unveiled
April 14, 2011
Legal Alert: The Multistate Tax Commission Takes Action on Proposal to Tax Pass-Through Entities Owned by Affiliates Not Subject to Corporate Income Tax
March 11, 2011
Legal Alert: The Multistate Tax Commission Considers Changes to Its Model Financial Institution Apportionment Rule
March 3, 2011
Legal Alert: Love is in the Air in New Jersey...at least for the Retailers
February 10, 2011
Legal Alert: Drama in New Jersey: Retailers Breathe a Temporary(?) Sigh of Relief
February 1, 2011
Legal Alert: Federal Court Grants Preliminary Injunction Against Colorado's Reporting Regime
January 27, 2011
Legal Alert: North Carolina Court Strikes Down 25% Penalty for Failure to File Combined Return
January 24, 2011
Legal Alert: California's Proposed Budget Includes Significant Tax Changes
January 21, 2011
Legal Alert: Georgia Special Council on Tax Reform and Fairness Releases Report: Proposes Broader Consumption Taxes and the Elimination of Tax Credits in Lieu of Lower Income Tax Rates
January 10, 2011
Legal Alert: Sandy Springs Restructures Its Business and Occupation Tax
December 22, 2010
Legal Alert: Maryland Tax Court Conflates Tax Principles; Rules Holding Companies Taxable
November 15, 2010
Legal Alert: Litigation Challenging New York's Controversial Nexus Statute Continues
November 8, 2010
Legal Alert: North Carolina's Audit Practice Violates the First Amendment
October 27, 2010
Legal Alert: They're Back...Unclaimed Property Audits: A Case Study of the New Reality for Insurance Companies
October 15, 2010
Legal Alert: Taxpayer's Addback Exception Upheld
September 13, 2010
Legal Alert: New Jersey Extends Time for Unclaimed Property Data Collection
August 31, 2010
Legal Alert: DC Launches Tax Amnesty Program Today
August 2, 2010
Legal Alert: New York and New Jersey Propose Significant Unclaimed Property Amendments
July 7, 2010
Legal Alert: Federal Framework for Digital Taxation Introduced - Don't (Unfairly) Tax My Download
July 1, 2010
Legal Alert: ACLU Sues North Carolina Over Its Sales/Use Tax Audit Practice
June 28, 2010
Legal Alert: U.S. Supreme Court Raises the Bar For State Tax Cases in Federal Court
June 4, 2010
Legal Alert: House Judiciary Committee Holds Hearing on State Taxation and the Role of Congress in Developing Apportionment Standards
May 7, 2010
Legal Alert: Alabama's Pulp Fiction: Paper Company's Sale of Paper Assets Constituted Non-Business Income
March 4, 2010
Legal Alert: Tennessee Add-Back Assessments - Taxpayers May Need to Act Soon to Preserve Appeal Rights
January 19, 2010
Legal Alert: Chaos: The District of Columbia Enacts Combined Reporting and "Fixes" Expense Disallowance Provisions
September 15, 2009
Legal Alert: Application for North Carolina's Resolution Initiative Ends Tomorrow
September 14, 2009
Legal Alert: What Is DISA All About? California Extends Time to Report DISA Balances
July 21, 2009
Will Unclaimed Property Prove an Irresistible Well?
June 4, 2009
Legal Alert: Georgia Adopts Sales Tax Refund and Preparer Penalties and Freezes Property Tax Assessments
May 13, 2009
Legal Alert: NCCUSL UDITPA Project Still On Hold
March 30, 2009
Legal Alert: Polar Tankers Oral Argument Forthcoming and California Dividends Received Deduction Denied
March 25, 2009
Legal Alert: Illinois Supreme Court Ruling Raises Questions Regarding Sourcing Regulations and Sales Tax Rules
February 27, 2009
Legal Alert: California Restructures Its Corporate Income Tax
February 24, 2008
Legal Alert: Adding Insult to Injury: California Delays Tax Refunds, Taxpayers Accelerate Tax Payments
January 20, 2009
Legal Alert: New York Governor's 2009-2010 Budget Bill: Desperate Times Call for Desperate Measures
December 22, 2008
Legal Alert: Don't Tax You, Don't Tax Me, Tax Anything Delivered Electronically
December 19, 2008
Legal Alert: California FTB Comments on New 20% Underreporting Penalty
December 9, 2008
Legal Alert: MTC Committee Fall Meetings Update: UDITPA (Again), Dissecting Section 18, and Inviting Localities to the MTC Fold
November 24, 2008
Legal Alert: Maryland Extends Corporate Information Reporting Requirement Due Date and Softens Penalty Provisions
October 15, 2008
Legal Alert: California Enacts a New Round of Onerous Penalties
September 29, 2008
Legal Alert: Maryland Combined Reporting Requirements - New Regulations and Substantial Penalties
September 15, 2008
Legal Alert: Massachusetts Enacts Expansive Combined Reporting Legislation
July 16, 2008
Legal Alert: Big Hat, No Cattle: NCCUSL's First Meeting to Consider Revisions to UDITPA
June 2, 2008
Legal Alert: U.S. Supreme Court Reverses and Remands Davis Case
May 21, 2008
Legal Alert: MTC Executive Committee Meeting - One Short Day, One Tall Agenda
May 14, 2008
Legal Alert: Maryland Computer Services Tax ... Dead Massachusetts (Unitary), New York (Nexus) ... Alive and Kicking
April 7, 2008
Legal Alert: Maryland Corporate Reporting Requirements Mitigated
March 26, 2008
Legal Alert: California Legislation Introduced That Would Impose a New Tax on Digital Property
February 18, 2008
Legal Alert: Alabama Court Holds Taxpayer Cannot Claim Expense Disallowance Unreasonable Exception
February 13, 2008
Legal Alert: The Business Council of New York State Elicits Explanations on Important Business Tax Proposals in the Governor's Budget from New Commissioner
February 7, 2008
Legal Alert: United States Supreme Court Dissects Dys-Functional Apportionment in MeadWestvaco Corp. v. Illinois Department of Revenue
January 17, 2008
Legal Alert: California Franchise Tax Board's New Year's Resolution - Revisit (Revise? Expand?) Special Industry and Sales Factor Apportionment Regulations
January 10, 2008
Legal Alert: MTC Executive Committee - Part I NCCUSL's Review of UDITPA and the MTC's Anticipated Role
January 8, 2008
Legal Alert: MTC Executive Committee Meetings - Part 2 NCCUSL's Review of UDITPA, Uniformity Projects and "Who's the Man?"
January 8, 2008
Legal Alert: SSTP Adopts Controversial Origin Sourcing Regime
December 13, 2007
Legal Alert: Maryland Enacts Unprecedented Corporate Tax Reporting Requirements and Broad Tax Increases
November 20, 2007
Legal Alert: United States Supreme Court Grants Certiorari in MeadWestvaco Corp. v. Illinois Department of Revenue
September 26, 2007
Legal Alert: The Multistate Tax Commission's 40th Annual Meeting Highlights The MTC's Continuing Focus on Apportionment
August 6, 2007
Legal Alert: United States Supreme Court Denies Review in Lanco and MBNA
June 18, 2007
Publications
February 2012 SALT Shaker Newsletter
February 2012
A Pinch of SALT: To Be or Not to Be... the MTC
January 2, 2012 Reprinted with permission from State Tax Notes
November 2011 SALT Shaker Newsletter
November 2011
September 2011 SALT Shaker Newsletter
September 2011
September 2011 Golden State Edition SALT Shaker Newsletter
September 2011
August 2011 SALT Shaker Newsletter
August 2011
June/July 2011 SALT Shaker Newsletter
June/July 2011
Missing Something? The Other Side of Unclaimed Property
June 2011 Reprinted with permission Corporate Counsel
May 2011 SALT Shaker Newsletter
May 2011
Unclaimed Property Audits: Another Headache for Healthcare Providers
May 18, 2011 Beckers Hospital Review
UPwords - Prepaid Discount Vouchers: The Not-So-Final Frontier
May 16, 2011 Reprinted with permission State Tax Notes
Unclaimed Property Compliance and Health Care
April 2011 Compliance Today
April 2011 SALT Shaker Newsletter
April 2011
March 2011 SALT Shaker
March 2011
February 2011 SALT Shaker Newsletter
February 2011
Should New Jersey cash in Aunt Betty's gift to you?
January 26, 2011 Reprinted with permission The Star-Ledger
January 2011 SALT Shaker Newsletter
January 2011
December 2010 SALT Shaker Newsletter
December 2010
November 2010 SALT Shaker Newsletter
November 2010
UPwords - Card Issuers Trapped Between New Jersey and Delaware
November 8, 2010 Reprinted with permission State Tax Notes
New Jersey Unclaimed Property Stored Value Cards
October 26, 2010 New Jersey Law Journal
October 2010 SALT Shaker Newsletter
October 2010
September 2010 SALT Shaker Newsletter
September 2010
August 2010 SALT Shaker Newsletter
August 2010
July 2010 SALT Shaker Newsletter
July 2010
UPwords - What's UP in the Digital World?
July 12, 2010 Reprinted with permission State Tax Notes
June SALT Shaker Newsletter
June 2010
May SALT Shaker Newsletter
May 2010
April SALT Shaker Newsletter
April 2010
A Pinch of SALT: Colorado's End Run - Clever, Coercive, and Unconstitutional
April 5, 2010 Reprinted with permission State Tax Notes
UPwords - Where We've Been and Where We're Going - Taking Stock
March 15, 2010 Reprinted with permission State Tax Notes
March SALT Shaker Newsletter
March 2010
February SALT Shaker Newsletter
February 2010
January SALT Shaker Newsletter
January 2010
UPwords - Unclaimed Property Administration - Taking Advantage of Uncertainty
December 21, 2009 Reprinted with permission State Tax Notes
The Fight For Unclaimed Property: Current Battles Shaping Future Law
Fall 2009 Partnering Perspectives
UPwords - States Attempt to Seize Class Action Settlements as Unclaimed Property
September 21, 2009 Reprinted with permission State Tax Notes
UPwords - Sogg v. Zurz: Unclaimed Property - Do You Own Your Income?
June 23, 2009 Reprinted with permission State Tax Notes
A Pinch of SALT: No Hedging on Gross Receipts Inclusion in Sales Factor
May 7, 2009 Reprinted with permission State Tax Notes
A Pinch of SALT: MTC Section 18 Regulations: Recurring Challenges to the Nonrecurring Rule
April 8, 2009 Reprinted with permission State Tax Notes
California Restructures Its Corporate Income Tax
February 2009 Reprinted with permission Practical U.S./Domestic Tax Strategies
A Pinch of SALT: Letting Ohio's CAT Out of the Bag
October 6, 2008 Reprinted with Permission State Tax Notes
New York Reduces Franchise Tax Rate, Accelerates Single Sales Factor and Clarifies Combined Reporting Rules
July 2007 Reprinted with permission, Practical U.S./Domestic Tax Strategies
Events
COST 2012 Sales Tax Conference and Audit Session
March 5-7, 2012
30th New York University Institute on State and Local Taxation
December 12-13, 2011
70th NYU Institute on Federal Taxation
November 17, 2011
The Chicago Tax Club's 2011 Fall Seminar
October 26-27, 2011
18th Annual Paul J. Hartman State and Local Tax Forum
October 25-27, 2011
2011 Annual Ohio Tax Course
August 11-12, 2011
National Conference of State Legislatures
August 7, 2011
Georgetown Law Advanced State and Local Tax Institute 2011
May 18-19, 2011
TEI Houston Chapter 23rd Annual Tax School
May 2, 2011
2011 UPPO Annual Conference
March 6-9, 2011
New York University's 29th Institute on State and Local Taxation
December 13-14, 2010
Council on State Taxation 41st Annual Meeting
October 19-22, 2010
Manufacturers' Education Council 2010 Annual Ohio Tax Course
August 13, 2010
TEI State and Local Tax Course
July 12-16, 2010
Sutherland Tax Education Series VIII
June 16, 2010
TEI Cincinnati Chapter Meeting
April 26, 2010
ABA and IPT Advanced Sales and Use Tax Seminar
March 24, 2010
Unclaimed Property Professionals Organization (UPPO) 2010 Annual Conference
March 8-10, 2010
New York University School of Continuing and Professional Studies' 28th Institute on State and Local Taxation
December 14-15, 2009
Council on State Taxation (COST) 40th Annual Meeting
October 20-23, 2009
Tax Education Series VII
April 29, 2009
NYU Institute on State and Local Taxation
December 15-16, 2008
15th Annual Paul J. Hartman State and Local Tax Forum
October 28-30, 2008
COST 39th Annual Meeting
October 22-24, 2008
TEI's 58th Midyear Conference
April 6-9, 2008
IPT Income Tax Symposium
November 14, 2007
State Tax Roundtable for Utilities and Power
November 8, 2007
Federation of Tax Administrators
June 11, 2007
TEI's 59th Midyear Conference