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Jeffry J. Erney

Jeff Erney’s practice focuses on tax controversy and litigation. Jeff has had significant experience with handling taxpayer audits, administrative appeals, litigating tax cases, advising clients on prospective transactions and obtaining rulings and other technical guidance from the national office of the IRS. Jeff spent the first nine years of his legal career as a Senior Tax Attorney for Chief Counsel, Internal Revenue Service. For seven of those years, he was also counsel for the Utilities Industry Specialization Program. Jeff practiced for eight years as a tax controversy litigation partner with another major law firm. He also spent two years managing the IRS Practice & Procedure Group in the Cleveland, Akron/Canton and Toledo offices for one of the largest national accounting firms.

Jeff is a member of the American, Cleveland Metropolitan and Cleveland Tax Bar Associations, as well as the Cleveland Tax Institute (Vice Chairman, 2008) and Tax Club of Cleveland (President, 2008-2009). Mr. Erney has been listed in The Best Lawyers in America, named an Ohio Super Lawyer by Law & Politics and the publishers of Ohio Super Lawyer magazine, received the National Award for Advisory Opinions from the Chief Counsel’s Office in 1995, was named Attorney of the Year by the Chief Counsel’s Office - Central Region in 1993 and received the Internal Revenue Service Performance Award in 1989, 1990, 1994 and 1996.

Illustrative representations during Jeff’s career include:

• Lead counsel in obtaining favorable ruling from IRS National Office, saving FORTUNE 500 utility $76 million in income tax.
• Tax Counsel with respect to negotiation and preparation of three tax opinions with respect to placement of $1.5 billion of Bank Owned Life Insurance for FORTUNE 100 financial institution.
• Lead counsel for FORTUNE 1000 retailer in docketed Tax Court case concerning loss on sale of subsidiary; obtained full concession ($3.5 million) from IRS counsel.
• Lead counsel for FORTUNE 15 corporation in docketed Ohio Board of Tax Appeals case concerning refund of sales tax.
• Co-counsel representing FORTUNE 500 manufacturer in Court of Federal Claims regarding refund suit for interest netting ($3.7 million).
• Lead counsel in obtaining favorable ruling from IRS National Office concerning $144 million deduction allowance.
• Lead counsel in issuing tax opinion to large electric utility concerning personal property tax assessment and true value determination.
• Member of litigation team that recovered $57 million in tax and interest for FORTUNE 50 telecom with respect to 1986 Tax Act transition investment tax credit.
• Obtained over a $1 million concession from the Appeals Division of the IRS for a case involving incentive stock options.
• Obtained a $1.2 million concession from IRS for a docketed case involving research credit for internal use software.
• Successfully defended a refund claim in the amount of $500,000 for a research credit.
• Obtained a $7 million concession from IRS counsel for a docketed case involving the valuation of an estate.
• Successfully defended tax-exempt status for non-profit organization.
• Successfully defended allocation of unrelated business taxable income for several tax-exempt organizations.
• Obtained a favorable ruling from IRS relating to a VEBA plan.
• Obtained “no change” letters for three separate clients in cases that involved substantial corporate issues.
• Obtained a $7 million concession from the Examination Division of the IRS for an estate case involving the valuation of a family limited partnership.
• Filed numerous protests in Appeals, involving the following topics: specified liability loss pursuant to IRC § 172(f) Foreign Sales Corporation: Captive Life Insurance; Mark to Market - IRC § 475; repairs vs. maintenance; and the “one year rule.”

Governmental Experience:

• Obtained a favorable decision from the United States Tax Court in the case of Southwestern Energy Co. v. Commissioner, 100 T.C. 500 (1993), involving the deductibility for repayment of overrecoveries, and the accrual of interest on convertible bonds.
• Received a favorable opinion from the United States Tax Court regarding built-in gains - IRC § 1374. Argo Sales v. Commissioner, 105 T.C. 86 (1995).
• Established precedential law in the area of discharge of indebtedness income. Babin v. Commissioner, T.C. Memo 1992-673 (1992), aff’d, 23 F.3d 1032 (6th Cir. 1994), reh’g denied, 1994 U.S. App. Lexis (6th Cir. 1994), cert. denied, 513 U.S. 961 (1994).
• Obtained a favorable decision from the United States Tax Court regarding the determination of debt vs. equity. Ginsberg v. Commissioner, T.C.M. 1992-372 (1992), aff’d in part, rev’d in part, 1993 U.S. App. Lexis 21519 (6th Cir.1993).
• Obtained a favorable decision from the United States Tax Court in a case involving the determination of transferee liability. Staffilino v. Commissioner, T.C.M. 1992-706 (1992).
• Member of litigation team that successfully defended the IRS position relating to contributions in aid of construction - IRC § 118. Florida Progress Corp. v. United States, 82 A.F.T.R. 2d 5363 (1998).
• Member of legal team that developed IRS Coordinated Issue Paper-Utilities Specialization Program for the following issues: ITC for Transitional Property; IRC § 1341-Excess Deferred Taxes; and Decommissioning and Decontamination Costs.
• Specialization Program for the following issues: ITC for Transitional Property; IRC § 1341-Excess Deferred Taxes; and Decommissioning and Decontamination Costs.

Publications and Presentations:

• Co-author, Representation Before the United States Tax Court, Thomson West
• Co-Author, “Tax Accrual Workpapers: IRS Efforts to Obtain Them, Corporate Strategies to Protect Them,” The Tax Executive, September - October 2003
• Co-Author, “Rethinking Refund Review: Understanding the Joint Committee on Taxation,” Corporate Business Taxation Monthly, November 2002
• Co-Author, “Unified Audit Procedures for Partnership & Passthrough Entities,” Warren, Gorham & Lamont, 2000 Edition
• “The Changing Atmosphere of Tax Controversy,” TEI Tri Chapter, May 2007
• “Ethical Concerns for Tax Attorneys,” American Bar Association, October 2006
• Panel chair for Practice and Procedure, Cleveland Tax Institute, October 2006
• “Research Credit Issues,” American Intellectual Property Law Association, January 2005
• “Tax Accrual Workpapers,” Cleveland Tax Institute, October 2005
• “Joint Committee Review,” Cleveland Tax Institute, October 2004
• “Joint Committee on Taxation,” American Bar Association, May 2004
• “Tax Accrual Workpapers,” Edison Electric Institute, November 2003
• “Partnership and Limited Liability Company Developments,” Cleveland Tax Institute, October 2003
• “How to Research a Federal Income Tax Issue,” Ohio State Legal Services Association Tax Task Force, April 2003
• American Bar Association, Regulated Public Utilities Section, 1992, 1994, 1996