Michael Giovannini

About Michael Giovannini

Michael is a senior associate in the firm's State & Local Tax Group, focusing his practice on advising clients and providing practical planning services with respect to various state and local tax and unclaimed property issues.

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Pushing Beyond the Limit: Examining the Scope of Subpoenas Issued During Unclaimed Property Audits

July 28, 2020 By Josh Labat, Matt Hedstrom, Kendall Houghton, Michael Giovannini, Kathleen Cornett, Maryann Luongo and Ethan Millar

A Delaware court quashed a subpoena aimed at an unclaimed property holder, but the victory may be short-lived. Our Unclaimed Property Team explores the latest court decision addressing a subpoena for records dating back to the 1990s. The subpoena asked for every check issued from 27 accounts over 20 years, including cleared and voided checks and checks issued to payees in other statesThe court found the subpoena too expansive and unreasonableThe third-party auditor’s incentives and motives were called into question Read the full advisory here. [...]Read more

Colorado’s New Revised Uniform Unclaimed Property Act Should Prompt Holder Action

April 17, 2019 By Michael Giovannini and Kathleen Cornett

Our Unclaimed Property Team examines the potential adverse impacts on holders as Colorado joins the list of states updating their unclaimed property laws by adopting a version of RUUPA that repeals its existing $25 reporting deduction but preserves the state’s existing treatment of gift cards.

Impacted holders should consider redomestication
Will the state apply the repeal retroactively and attempt to claw back deducted funds?
Gift cards and gift certificates – maintaining the status quo

Read the fill advisory here. [...]Read more

IRS Withholding Rule for IRAs “Pardoned” at the Last Minute

November 21, 2018 By Michael Giovannini

Our Unclaimed Property Group takes stock of the reprieve granted by the IRS in delaying new withholding and reporting requirements on IRAs remitted to states as unclaimed property.

Effective date delayed until January 2020
Logistical and practical compliance issues
A holiday treat for the financial services sector

Read the full advisory here. [...]Read more

Thanks for the Memories, Quill: The Supreme Court Adopts a New Nexus Standard for Use Tax Collection

June 25, 2018 By Michael Giovannini and Matt Hedstrom

The U.S. Supreme Court’s Wayfair decision overturns decades-old precedent and fundamentally changes the use tax collection landscape while leaving a number of questions unanswered. Our State & Local Tax Group explains how this decision has huge implications for online retailers, states’ coffers, and consumers’ wallets.

The physical-presence standard under Quill is no more
What is the new standard?
Retroactivity and a host of other unresolved issues

Read the full advisory here. [...]Read more

IRS Ruling on IRAs Raises Numerous Unclaimed Property Issues for Holders, Owners, and States Alike

June 5, 2018 By Kendall Houghton, Michael Giovannini and Kathleen Cornett

Many states have begun to treat IRAs as unclaimed property even before the owner can take a tax-free distribution. But now the IRS has ruled that escheatment is equivalent to a distribution and subject to federal income tax withholding and reporting requirements. Our Unclaimed Property Group dives into this dilemma for holders, owners, and states alike.

Revenue Ruling 2018-17 concludes that escheatment of an IRA is a designated distribution
Holders must honor federal tax withholding and reporting rules upon escheat
States are aggressively auditing IRAs
Potential negative impact on [...]Read more