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Tax Assessment Defeated, Client Obtains Attorneys’ Fees from State

After a protracted litigation and multiple unfavorable rulings for the state, the New York State Department of Taxation and Finance capitulated in its attempt to impose approximately $85,000 in sales tax on the services of a Hodgson Russ client. Moreover, after reviewing the merits of the case, the New York State Supreme Court judge ordered the Tax Department to pay our client approximately $159,000 in attorneys’ fees under the Equal Access to Justice Act, which permits the award of fees in cases where government action is not substantially justified.