Complex Cross-Border Tax Claim Rejected
When a foreign corporation hired a U.S. CPA firm to prepare domestic, federal, and state tax returns, the CPAs never bargained to provide tax consulting on the client’s international operations. After the client was hit with tax in another country, it sued the U.S. accounting firm for failing to advise on ways to avoid the foreign tax. Moss & Barnett used vigorous discovery (including detailed requests for the tax advisory records and files of the client’s foreign-based CPA firm) to demonstrate the baseless nature of the claim.
Bottom line: The claim was dropped without any payment.