- Montclair State University, B.A., 2005, graduated Magna Cum Laude
- Georgia State University College of Law, J.D., 2008, graduated Magna Cum Laude
- U.S. Tax Court
- U.S. Court of Federal Claims
- Supreme Court of Pennsylvania
300 Conshohocken State Road
West Conshohocken, PA 19428
Dustin Covello's practice focuses on tax controversy and tax planning.
On the controversy side, Mr. Covello has represented taxpayers in audit and litigation matters with hundreds of millions of dollars at stake. His recent litigation cases have examined some of the most prominent tax issues being litigated today, including rehabilitation tax credits, the economic substance doctrine, TEFRA partnership audit and litigation procedures, and judicial deference owed to Treasury regulations.
On the transactional side, Mr. Covello has advised start-ups and multinationals alike on all facets of international and domestic tax planning. Mr. Covello's international planning practice focuses on inbound portfolio investments, outbound expansion, transfer pricing, and withholding issues. His industry experience primarily includes advising technology companies and manufacturers.
Prior to joining the firm, Mr. Covello worked in the tax department of King & Spalding, LLP, an international law firm. He has also provided pro bono assistance to low-income taxpayers by representing them in tax controversies and preparing tax returns on their behalf as part of the Volunteer Income Tax Assistance program.
Mr. Covello discusses many of the issues currently affecting taxpayers and tax administration as a contributor to Chamberlain Hrdlicka's taxblawg.net.
Representative Controversy Experience
- Colorcon, Inc. v. United States, Docket No. 09-594T (Fed. Cl., filed 2009). Won complete summary judgment in $18 million case regarding whether any of a $191 million settlement payment made by client to former shareholder included deductible interest. Judge issued summary judgment opinion in client's favor only four weeks after Mr. Covello argued the motion.
- Kohler Co. v. Commissioner, Docket No. 17477-12 (U.S. Tax Court, filed 2012). IRS completely conceded case in transfer pricing dispute involving intercompany sales by client's Thai subsidiary.
- Frontier Oil Corporation v. Commissioner, Docket No. 21151-10 (U.S. Tax Court, filed 2010). Counsel for taxpayer in case involving treatment of stock options issued under section 162(m)(4)(C) performance-based compensation rule. After negotiation with IRS counsel, IRS conceded over 50% of case; before this case, similarly situated taxpayers had conceded 75% of the issue to the IRS.
- Gateway Hotel Partners, LLC v. Commissioner, Docket No. 19182-07 (U.S. Tax Court, filed 2007). Second-chair trial counsel in case examining the federal tax consequences of distributing Missouri Historic Preservation Tax Credits. We tried the case in October 2012, and we are currently awaiting the Tax Court's decision.
- Advised privately held food-manufacturing company in its voluntary disclosure of over $10 million in omitted subpart F income. The IRS accepted the disclosure without asserting penalties.
- Represented publicly held, foreign company in IRS audit focused on transfer pricing issues. IRS proposed to disallow over $1 billion in deductions for U.S. subsidiaries’ royalty, insurance, and derivative payments to foreign subsidiaries. We favorably resolved the matter at exam level and carried forward the settlement into subsequent audit cycle under Accelerated Issued Resolution program.
Representative Tax Planning
- Advised foreign software company in its formation of U.S. subsidiary.
- Counseled foreign company on tax implications of factoring activities by U.S. subsidiary.
- Advised foreign professional services firm in its establishment of office in first U.S. office.
Articles & Publications
- Rethinking the Tax Treatment of Government Assistance to Financial Institutions in Light of Treasury’s 2008 Capital Purchase Program, Journal of Taxation and Regulation of Financial Institution (Jan. 2012) (with Jonathan Prokup)
- Transfer Pricing Dispute Resolution, United States, BNA Transfer Pricing Forum Vol. 2, No. 4 (Sept. 2011) (with Jonathan Prokup)
- Federal Tax Law, 60 Mercer Law Review 1235 (2009) (with Svet Minkov and Jacquelyn Griffin) (surveying significant federal tax decisions decided in the 11th Circuit during 2008)
- Federal Tax Law, 61 Mercer Law Review 1133 (2010) (with Gus Makris) (surverying significant federal tax decisions decided in the 11th Circuit during 2009)
- Speaker, 2013 Tax Changes (focusing on impact of tax changes on the real estate industry) at Federation of Exchange Accommodators 2013 Northeast Regional Meeting (April 2013)
- Presenter, What's Next For Offshore Bank Account Holders? at Hot Topics in Federal, State, and Local Taxation (May 2012)
- Panelist, Financial Statements 101, An Accounting Primer for Tax Attorneys at ABA Tax Section 2011 Joint Fall CLE Meeting (October 2011)
- Panelist, Find a Career in Tax at ABA Tax Section 2010 May Meeting (May 2010)
Taxblawg.net Blog Posts
- To Minimize Taxes For Years To Come, Consider Incorporating Your Business In 2013 (Apr. 22, 2013)
- By Appeasing the United Kingdom, Starbucks May Have Relocated Its Tax Problems Into The United States (Dec. 12, 2012)
- Detection Risk Continues To Grow As The IRS Expands Its Offshore Account Investigation Into Liechtenstein (June 12, 2012)
- Sporadic FBAR Notices Should Be Replaced By Clear Rules (Feb. 27, 2012)
- IRS Reopens Offshore Voluntary Disclosure Initiative (OVDI) For Delinquent FBAR Filers: 27.5 Percent Penalty (Jan. 10. 2012)
- The Tax Story Behind The Big Story: The Taxation Of Carried Interests In 'Buyout Profits Keep Flowing To Romney' (Dec. 20, 2011)
- If MF Global Lost My Money, Do I At Least Get A Tax Deduction? (Dec. 14, 2011)
- Tax Court May Be The Forum Of Choice For Taxpayers Seeking To Challenge Treasury Regulations (June 23, 2011)
- Even After Mayo, Fourth Circuit's Home Concrete Opinion May Have Paved The Way For Invalidating The 6501(e) Regs (Feb. 10, 2011)
- Will IRS Limit Exam's Assertion of the Economic Substance Penalty? TIGTA Report Suggests Not (Dec. 31, 2010)
- Senate Fixes An Onerous Reporting Requirement With An Onerous Reporting Requirement? (Sept. 16, 2010)
- Deconstructing Canal Corp. v. Commissioner - Part III (Sept. 8, 2010)
- Deconstructing Canal Corp. v. Commissioner - Part II (Aug. 27, 2010)
- Deconstructing Canal Corp. v. Commissioner - Part I (Aug. 19, 2010)