Patricia Anne Rexford is a tax controversy and litigation partner in the Firm’s Chicago office. She has over 20 years of experience representing taxpayers at all stages of tax controversies, including audit, IRS administrative appeals, trial, and appellate court review, including the US Supreme Court. Ms. Rexford has been recognized repeatedly by Legal 500 for her appellate, Supreme Court, and transfer pricing experience. She served as a special intern with the Foreign Affairs Department of the Kanagawa Prefectural Government in Yokohama, Japan from 1989-1990.
Ms. Rexford’s experience encompasses a broad range of issues, including: transfer pricing and cost sharing; DISC, FSC, and ETI; section 199; tonnage tax; foreign base company sales and services income; section 956 investments in US property; hedging transactions; R&D credit issues; substance-over-form issues; tax-free reorganizations; allocation of basis for partnership indebtedness; foreign tax credits; foreign-source income on export sales; proper treatment of construction allowances; deductibility of stock options; deductibility of transaction-related investment bank fees; summons enforcement; and penalties.
Representative Legal Matters
- Represented companies in various Fast Track and Appeals cases, including transfer pricing, cost sharing, Subpart F (manufacturing exception, services income, active royalty income), hedging, Foreign Sales Corporation (FSC), extraterritorial income (ETI), "busted 351" transactions, Section 956 indebtedness, Section 752 partnership basis allocation, tonnage tax, stock option deductibility, and penalty issues.
- Represented multiple Fortune 500 companies, including exam-level settlements involving complex transfer pricing, Subpart F foreign base company sales income, and penalty issues, among others.
- Represented companies in planning and structuring work involving the rationalization of their global transfer pricing structures and policies, and the application of the manufacturing exception to the foreign base company sales income provisions of Subpart F, particularly in the context of contract manufacturing and substantial contribution.
- Represented Tribune Company in a case holding that the divestiture of Matthew Bender was a taxable sale and not a tax-free reorganization; settled pending appeal in the Seventh Circuit.
- Represented The Boeing Company in its Supreme Court appeal regarding the allocation of R&D costs in the determination DISC and FSC sales income.
- Obtained a favorable judgment for The Limited Inc. in a Sixth Circuit holding that a CFC's purchase of certificates of deposit from an affiliated credit card bank qualified as §956(c)(2)(A) deposits with persons carrying on the banking business.
- Successfully represented Intel Corp. in a Ninth Circuit case involving the allocation of income partly from sources within a foreign country under Treas. Reg. §1.863-3(b)(2).
- Obtained a successful holding for Riggs National Corp. that official tax receipts of the Brazilian government were entitled to evidentiary presumption.
- Successfully represented Nissei Sangyo America, Ltd. in a section 6038A summons case; IRS motion denied.
Professional Associations and Memberships
- Chicago Finance Exchange - Member
- U.S. Court of Appeals, Seventh Circuit~United States (2006)
- U.S. Supreme Court~United States (2002)
- U.S. District Court, Northern District of Illinois~United States (1994)
- U.S. Tax Court~United States (1993)
- Illinois~United States (1993)
- University of Chicago Law School (J.D. Honors, Order of the Coif) (1993)
- Harvard University (B.A. cum laude, Dean's List; John Harvard Scholarship) (1989)