Blank Rome Represents RadioShack Bankruptcy Trustee in Favorable Settlement
A member of Blank Rome’s State + Local Tax team represented the Bankruptcy Trustee for RadioShack and a subsidiary in connection with two cases before the New Jersey Tax Court spanning 10 years. The team successfully negotiated a favorable settlement stipulation under which the Division of Taxation walked away from its assessment seeking over $10 million. The primary issue arose from New Jersey’s assertion that embedded royalties subject the owner of trademarks to income tax nexus with New Jersey by purported receipt of royalties from a related retailer-payor that conducted business in New Jersey and purchased goods from a related-party goods-buyer that had the right to affix trademarks to the goods under a license agreement.
The settlement was finalized on December 7, 2023.
Mitchell A. Newmark represented the client in these disputes.