Michelle M. Hervey

She | Her | Hers

Partner

Cleveland
T +1.216.861.7290
F +1.216.696.0740

“Michelle Hervey is an esteemed practitioner who works with clients on federal tax controversy [matters], including handling IRS and Tax Court proceedings. She is also adept at providing tax planning counsel in the context of corporate transactions.”

— Chambers USA 2021

Overview

Michelle Hervey’s practice is focused on the tax aspects of planning and structuring complex business transactions, including mergers and acquisitions, debt and equity issuances, private equity and venture capital investments, and restructurings.

She has extensive experience advising clients in connection with all facets of federal tax controversies, including IRS audits, IRS appeals, and litigation. Michelle serves as co-leader of both the national Transactional Tax and national Tax Controversy and Litigation teams, leader of the Cleveland Office Tax Group, and is a member of the Hiring and Recruitment Committee for the Cleveland Office.

Select Experience

  • Advised a U.S. aerospace manufacturing company as a tax counsel in connection with the sale of one of its European-based subsidiaries in a cross-border carve-out sale.

  • Advised an international technology sales, marketing and support services group as outside counsel on its acquisition of two closely held U.S.-based companies.

  • Assisted private equity and direct investment clients in designing merger and acquisition structures to obtain and preserve Section 1202 qualified small business stock treatment.

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Experience

  • Advised a U.S. aerospace manufacturing company as a tax counsel in connection with the sale of one of its European-based subsidiaries in a cross-border carve-out sale.

  • Advised an international technology sales, marketing and support services group as outside counsel on its acquisition of two closely held U.S.-based companies.

  • Assisted private equity and direct investment clients in designing merger and acquisition structures to obtain and preserve Section 1202 qualified small business stock treatment.

  • Represented numerous clients with IRS examinations of Bipartisan Budget Act centralized partnership audit regime and Tax Equity and Fiscal Responsibility Act (TEFRA) procedural issues involving historic tax credit, conservation easement and other partnerships. Advised clients regarding open space and historic preservation easement valuation and qualification matters, including substantiation, perpetuity and conservation purpose. Negotiated numerous taxpayer-favorable settlements during examination and at IRS Appeals, utilizing measures such as mediation, the Rapid Appeals Process and requests for technical advice.

  • Assisted clients in obtaining private letter rulings regarding diverse transactional and planning matters.

  • Advised clients in distinguishing real estate inventory/dealer property from property held for investment purposes. Negotiated several settlements with IRS Appeals preserving the capital gain treatment on bulk sales of real estate.

  • Obtained favorable settlements in several Global High Wealth examinations and Tax Court proceedings, including matters relating to private aircraft ownership and usage.

Recognitions and Memberships

Recognitions

  • Chambers USA: Tax in Ohio (2020 to 2023)
    • Band 1 (2020 to 2023)
  • The Legal 500 United States (2019, 2021 to 2023)
    • Recommended in U.S. Taxes: Non-contentious (2021 to 2023)
    • Recommended in U.S. Taxes: Contentious (2019, 2022 to 2023)
  • The Best Lawyers in America® (2020 to Present)
    • Ohio: Tax Law
      • Lawyer of the Year (2023)
  • Cleveland YWCA Woman of Professional Excellence Award (2019)

Memberships

  • Tax Club of Cleveland: Vice President - Membership
  • American Bar Association
  • Ohio State Bar Association
  • Cleveland Metropolitan Bar Association

Featured Video

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Hear an analysis of the $2 trillion CARES Act, which was signed by President Trump on March 27, 2020.

Prior Positions

  • Ernst and Young: Senior Tax Consultant

Admissions

  • U.S. Tax Court
  • U.S. District Court, Northern District of Ohio
  • Ohio

Education

  • J.D., Case Western Reserve University School of Law, 2000, summa cum laude, Order of the Coif
  • B.S., Case Western Reserve University, 1994, magna cum laude