Court Denies Summary Judgment in $1.37 Million Wegmans Dispute with Tax Firm

The dispute between supermarket chain Wegmans and a tax-consulting firm, Tax Matrix Technologies, has temporarily stalled after a federal judge in Pennsylvania denied summary judgment to both sides.

U.S. District Judge Eduardo C. Robreno ruled in early January that the contract dispute, which is estimated at around $1.37 million, required further litigation due to the ambiguous language in the agreement. Tax Matrix had previously been brought on to defend Wegmans in a Maryland state audit – something the tax-consulting company maintains it did successfully. 

According to the opinion, Tax Matrix maintains that it successfully performed work that drastically reduced the grocery chain’s tax liability owed to the state, bringing it down from $4.6 million to $1 million. However, Wegmans has counter-argued that Tax Matrix’s performance did not meet the scope of the agreement, defending their decision to not pay the company’s previously invoiced contingency fee. 

Though Tax Matrix has argued that the agreement specified a 25 percent contingency fee for all refunds, including the reduction of taxes paid, Robreno’s decision specified that both parties offered reasonable interpretations of the agreement itself, thus declaring the terms too ambiguous.

Tax Issues in Texas

When it comes to tax litigation, there are two important things to keep in mind – no two cases are quite the same, and no case is hopeless. Whether you are dealing with IRS issues, like back or unpaid taxes, or are dealing with tax liability issues, as was the case with Wegmans, each case is unique.

Tax liability, sometimes known as “tax obligation”, refers specifically to the amount of money legally owed to something known as a “taxing authority”. Taxing authorities may come in the form of local, state or even federal government, and are put in place to impose taxes at the individual, organizational, and corporate levels for taxable events, such as issuing payroll or earning taxable income.

Because taxes are integral to maintaining government and other ruling systems, it is not uncommon for those who do not follow through on tax obligations to be fined, have assets liquidated or even face jail time. That’s why many companies attempt to minimize tax liability on an annual basis. This is most commonly done through tax credits, tax shelters or donations. In the case of Wegmans, a tax consultant was employed to drastically reduce the company’s tax liability in the state of Maryland.

How Can I Get Help with My Tax Liability?

If you have been contacted by the IRS, or if you are looking to reduce your individual or organization’s tax liability, it is in your best interests to contact a qualified attorney, like Scott Scammahorn and the tax law professionals at the Scammahorn Law Firm, P.C. 

Our attorneys are not just subject matter experts when it comes to tax litigation and IRS issues – we also have a proven success in handling these types of cases. No matter what your tax issue is, our attorneys are on hand now to help you find and achieve a solution.

We encourage you to call our office today to get started. To schedule an initial consultation, call us at (903) 595-1000.