On May 30, 2013, a federal judge in Virginia dismissed a tax consultant’s trade secrets misappropriation claim against its telecomm customers, ruling that the consultant’s alleged relationships with tax authorities, tax-law ‘accounting system,’ and its ability to negotiate property tax discounts do not constitute statutory trade secrets. Cablecom Tax Services, Inc. v. Shenandoah Telecomms. Co…. Continue Reading
I recently ran across this newsletter article regarding taxation of non-compete clauses in the sale of closely held businesses and thought it worth passing along for those who find themselves negotiating non-compete agreements in the context of the sale of a closely held business.
The First Circuit recently rejected a taxpayer’s claim for a refund based on recharacterization of a payment for a noncompetition agreement. Muskat v. United States, 2009 WL 211067 (1st Cir. 2009). Irwin Muskat was the CEO and largest shareholder of his company, Jac Pac Foods. He entered into an agreement with Corporate Brand Foods America… Continue Reading