Dwight N. Mersereau is a trusted adviser to large multinational corporate clients in high-stakes tax policy, planning, and controversy matters. These projects involve financially significant, complex, highly technical tax issues.
Dwight represents clients involved in tax controversy with the IRS at all levels of the proceedings, including during examination, at appeals, and in litigation before the U.S. Tax Court, U.S. Court of Federal Claims, and U.S. District Courts. Dwight is adept at using various settlement tools, including Fast Track settlement, Industry Issue Resolution, and alternative timing settlements. He achieves impressive results for his clients because of his depth of understanding of complex tax issues gained through his more than 25 years of experience dealing with all aspects of the law, starting with his drafting of tax accounting guidance while serving in the IRS Office of Chief Counsel. The IRS chief counsel awarded Dwight the Technical Guidance Award for his publication of comprehensive guidance for accounting method changes.
Dwight’s recent cases involved leading telecommunications companies, health care companies, insurance companies, financial institutions, retailers, and trade associations. The cases included issues involving tax accounting for bonus payments, original issue discount, incentive payments, research and development expenses, capitalization and amortization of intangibles, income deferral, depreciation, the “domestic production deduction” under Section 199 of the Internal Revenue Code, and last-in, first-out (LIFO) inventory accounting.
Dwight is also involved in shaping tax policy through legislation, U.S. Department of the Treasury regulation projects, revenue rulings, and private letter rulings. He has represented individual clients, industry associations, and client coalitions before Congress, the Treasury, and the IRS.
Representative Matters
Litigation
- Represent Express Scripts as lead trial counsel in Express Scripts, Inc. v. United States, Nos. 4:21-CV-00737-HEA and 4:21-CV-00740-HEA, a tax litigation in the U.S. District Court for the Eastern District of Missouri involving whether the company disposed of its online software such that it qualifies for the domestic production activities deduction. The matter is significant because many companies’ domestic production activities deduction issues, particularly those involving software, have been challenged by the IRS.
- Represented AT&T as lead trial counsel in AT&T Advertising, LLP v. United States, No. 16-272 T, a tax litigation in the U.S. Court of Federal Claims that involved whether the company had the benefits and burdens of ownership during the printing of its telephone directories such that it qualified for the domestic production activities deduction.
- Represented Vesta as lead trial counsel in Vesta Corporation v. Commissioner, Nos. 26503-17 and 26847-16, a tax litigation in the U.S. Tax Court that involved whether the company’s software production activities qualified for the domestic production activities deduction.
- Represented a large telecommunications company during an IRS Fast Track appeal that involved whether a $100 million government incentive qualified as a non-shareholder contribution to capital.
- Represented a large bank during an IRS appeal of proposed audit adjustments of over $1 billion involving a variety of tax accounting issues.
- Represented a large financial institution during an IRS appeal of proposed audit adjustments of over $855 million regarding whether certain payments were capitalizable facilitative payments of an intangible asset.
Administrative Proceedings
- Represented a large telecommunications company during an IRS Fast Track appeal that involved whether a $100 million government incentive qualified as a non-shareholder contribution to capital.
- Represented a large bank during an IRS appeal of proposed audit adjustments of over $1 billion involving a variety of tax accounting issues.
- Represented a large financial institution during an IRS appeal of proposed audit adjustments of over $855 million regarding whether certain payments were capitalizable facilitative payments of an intangible asset.
Insights
Speeches & Presentations
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"Recent Tax Accounting Cases Answer Important Questions," Managing Tax Audits and Appeals Seminar 2022, Washington, D.C.
(October 6, 2022).
Speakers: Dwight N. Mersereau and Samantha Skabelund.
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"Specific Audit Issues: Income Tax Accounting," Crowell & Moring's Managing Tax Audits and Appeals Seminar 2021
(October 4, 2021).
Speakers: Dwight N. Mersereau and Eric Homsi.
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"Tax Accounting: Basics Refresher and Recent Developments," Crowell & Moring's Managing Tax Audits and Appeals Seminar 2020
(October 6, 2020).
Presenters: Dwight N. Mersereau and Teresa Abney.
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"Specific Audit Issues: Income Tax Accounting," Crowell & Moring's Managing Tax Audits and Appeals Seminar 2019, Washington, D.C.
(September 12, 2019).
Presenter: Dwight N. Mersereau.
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"Developments in Tax Accounting," Crowell & Moring's Managing Tax Audits and Appeals Seminar 2017, Washington, D.C.
(October 6, 2017).
Presenter: Dwight N. Mersereau.
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"Ethics for Tax Professionals," Tax Executives Institute (TEI), Northeast Chapter Meeting, Needham, MA
(April 7, 2017).
Presenters: Jeremy Abrams, Teresa Abney and Dwight N. Mersereau.
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"Section 199 Regulations," TEI's 71st Annual Conference, Philadelphia, PA
(October 18, 2016).
Speaker: Dwight N. Mersereau.
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"Recent Developments in Tax Accounting," Crowell & Moring’s Managing Tax Audits and Appeals Seminar 2016, Washington, D.C.
(September 30, 2016).
Presenter: Dwight N. Mersereau.
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"Managing & Resolving R&D & 199 Issues," TEI 2016 Audits & Appeals Seminar – East, Boston, MA
(June 14, 2016).
Presenter: Dwight N. Mersereau.
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"Recent Developments in Tax Accounting," Crowell & Moring's Managing Tax Audits and Appeals Seminar 2015, San Francisco, CA
(October 8, 2015).
Presenter: Dwight N. Mersereau.
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"Recent Developments in Tax Accounting," Crowell & Moring's Managing Tax Audits and Appeals Seminar 2015, Washington, D.C.
(October 2, 2015).
Presenter: Dwight N. Mersereau.
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"Tax Accounting Periods and Methods,” Tax Executive Institute Region II Annual Tax Forum, Atlantic City, NJ
(June 16, 2015).
Presenter: Dwight N. Mersereau.
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"Tax Accounting Issues,” Tax Executive Institute San Francisco Chapter, San Francisco, CA
(May 20, 2015).
Presenter: Dwight N. Mersereau.
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"Federal/Multi-State Tax – All Day Session," Tax Executives Institute, Detroit Chapter, Troy, MI
(December 9, 2014).
Presenter: Dwight N. Mersereau.
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"Tax Accounting Issues: Basis, Methods, Periods, Hot Topics," Tax Executive Institute San Francisco Chapter, San Francisco, CA
(October 3, 2014).
Presenter: Dwight N. Mersereau.
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"The Much Anticipated Final Repair Regulations and Best Practices for Controversy with the IRS," Lorman Webinar
Presenter: Dwight N. Mersereau.
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"IRS Repair and Maintenance Regulation Update," Webinar
(November 20, 2013).
Presenter: Dwight N. Mersereau.
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"IRS Repair and Maintenance Regulation Update," Webinar
(November 6, 2013).
Presenter: Dwight N. Mersereau.
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"IRS Repair and Maintenance Regulations," Elk Grover, IL
(August 28, 2013).
Presenter: Dwight N. Mersereau.
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"IRS Repair and Maintenance Regulation Update," Webinar
(May 22, 2013).
Presenter: Dwight N. Mersereau.
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Tax Executive Institute Philadelphia Chapter Meeting, Philadelphia, PA
(April 25, 2013).
Presenter: Dwight N. Mersereau.
Publications
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"Tax – Got Tax Questions? Be a Squeaky Wheel," Crowell & Moring's Regulatory Forecast 2019
(February 27, 2019).
Contributors: Dwight N. Mersereau and Charles C. Hwang.
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"Accounting For Partnership Changes In Accounting Methods," Tax Analysts
(June 13, 2018).
Authors: Jennifer A. Ray, and Dwight N. Mersereau.
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"Tax – What Congress Giveth, the IRS Taketh Away," Crowell & Moring's Litigation Forecast 2018
(January 2018).
Contributor: Dwight Mersereau.
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"New IRS Regulations Affect Brewers," The New Brewer
(July – August 2014).
Author: Dwight N. Mersereau.
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"IRS Addresses Whether Publisher Is 'Producer' Under §199," Bloomberg BNA
(April 2013).
Author: Dwight N. Mersereau.
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"The New Repair Regulations - Some Things to Consider," The Tax Executive
(March - April 2012).
Author: Dwight N. Mersereau.
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"Navigating the Accounting Method Change Landscape - The New §381 Regulations and Other Developments," Tax Management Memorandum
(December 19, 2011).
Author: Dwight N. Mersereau.
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"IRS Audits of Gift Card Sales: Practical Tips and Strategies," Tax Management Memorandum
(December 21, 2009).
Author: Dwight N. Mersereau.
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"Changing Times: IRS Updates 'Automatic' Method Change Program," The Tax Executive
(January – February 2009).
Author: Dwight N. Mersereau.
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"The IRS Takes Aim at Gift Card Sales," Tax Notes
(September 10, 2007).
Author: Dwight N. Mersereau.
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"Chief Counsel Revamps Case-Specific Advice Procedures to Match LMSB's New Enforcement Paradigms," The Tax Executive
(July - August 2006).
Author: Dwight N. Mersereau.
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"So Much for Simplification - IRS Discourages Taxpayers From Using the IPIC Pooling Method," Journal of Taxation
(March 2006).
Author: Dwight N. Mersereau.
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"IRS Further Expands Capitalization Requirement for Environmental Cleanup Costs," BNA Daily Report for Executives
(November 2005).
Author: Dwight N. Mersereau.
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"Whatever, Whenever: Treasury Further Expands Capitalization Requirement of Environmental Cleanup," Tax Management Weekly Report
(October 17, 2005).
Author: Dwight N. Mersereau.
Client Alerts & Newsletters
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"Is the IRS’s Discretion on Clear Reflection of Income Not So Robust After All?,"
Tax Alert
(June 1, 2022).
Contacts: Dwight N. Mersereau, Eric Homsi
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"Contractor vs. Client: Research Tax Credit Update,"
Tax Alert
(January 20, 2021).
Contacts: Dwight N. Mersereau, Eleanor Moran McWaters
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"Deductions for Charitable Contributions during the Pandemic: Five Things to Know,"
Tax Alert
(May 7, 2020).
Contacts: Dwight N. Mersereau, Eleanor Moran McWaters
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"Possible Controversy Ahead on the AFS Income Inclusion Rule,"
Tax Alert
(March 11, 2020).
Contact: Dwight N. Mersereau
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"Treasury to IRS: LB&I Campaigns Are Not Meeting Expectations,"
Tax Alert
(October 30, 2019).
Contacts: David J. Fischer, Dwight N. Mersereau
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"IRS Remains Focused on Domestic Production Deduction,"
Tax Alert
(December 10, 2018).
Contact: Dwight N. Mersereau
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"House Tax Bill Proposes to Make Five-Year Amortization of Research and Experimental Expenditures Mandatory,"
Tax Alert
(November 13, 2017).
Contacts: Charles C. Hwang, Dwight N. Mersereau
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"IRS Expands Audit Campaigns to Include Economic Development Incentives,"
Tax Alert
(November 8, 2017).
Contacts: David B. Blair, Dwight N. Mersereau
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"IRS Expands Letter Ruling Opportunities: Pre-Filing Agreements and Automatic Accounting Method Changes,"
Tax Alert
(June 8, 2016).
Contact: Dwight N. Mersereau
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"IRS Publishes Safe Harbor Permitting Retailers and Restaurateurs to Deduct Remodeling Costs,"
Tax Alert
(November 23, 2015).
Contact: Dwight N. Mersereau
Firm News & Announcements