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Sam Maruca has practiced exclusively in the area of federal income tax since 1983, focusing in recent years on large-case controversies, including complex transfer pricing disputes. He has represented both U.S. and foreign-based multinational companies in the biopharmaceutical, information technology, internet commerce, communications and media, consulting services, heavy manufacturing, and retail sectors, in matters at the audit level, in IRS Appeals, in mediation, in competent authority, and in the courts.
His expertise includes the preparation of opinion letters and compliance advice relating to cross-border financing transactions and transfer pricing matters; interpretation of tax treaties; treatment of controlled foreign corporations under subpart F; taxation of inbound transactions; and the applicability of penalty regimes. In advising clients, he often collaborates with foreign legal advisers and works regularly with leading transfer pricing economists and industry experts.
Government Experience
From 2011-2014, Mr. Maruca served as the first Director of Transfer Pricing Operations in the Large Business & International Division of the Internal Revenue Service, where he had national responsibility for transfer pricing compliance and double tax cases under US tax treaties. Mr. Maruca also represented the IRS in connection with the Base Erosion and Profit Shifting (“BEPS”) initiative of the Organization for Economic Cooperation and Development (“OECD”).
- Advising both U.S. and foreign-based multinationals in designing and implementing appropriate structural and operational responses to the OECD’s BEPS initiative.
- Assisting a major foreign-based business consulting firm in an internal corporate restructuring and in designing and implementing cross-border financing arrangements.
- Assisting a foreign-based pharmaceutical company in preparing its defense of an outbound transfer of patent rights.
- Advised senior executives of a U.S.-based biotechnology company on the transfer pricing and related tax consequences of a cross-border restructuring of the company’s intangible property holdings and manufacturing operations.
- Represented a foreign-based telecommunications company in a dispute involving transfer pricing for products, services and intangible property, among other complex cross-border transactions and financings, in which the IRS asserted over $300 million in adjustments, and which resulted in refunds of tax.
- For a U.S.-based pharmaceutical company, negotiated bilateral advanced pricing agreements and competent authority proceedings covering multiple transaction flows.
- Represented the taxpayers in Robinson v. United States, 335 F.3d 1365 (2003), rev’g and remanding, 52 Fed. Cl. 725 (2002), in which the taxpayers successfully challenged a Treasury regulation under Internal Revenue Code section 83.
- For a foreign-based specialty materials manufacturer, negotiated one of the first-ever bilateral Advance Pricing Agreements and a “roll-back” covering 14 taxable years, and resulting in no income adjustments.
- Represented a U.S.-based retailer in a multi-billion dollar transfer pricing dispute involving the valuation of trademarks, trade dress and technology, which was resolved successfully at the audit level.
- Represented a foreign-based pharmaceutical company in a multi-billion dollar transfer pricing dispute involving the valuation of U.S. marketing and distribution functions.
- Represented a major U.S.-based homebuilder in the successful resolution in a “fast track” procedure of a dispute involving the application of the completed contract method of accounting for profits from the development of planned communities.
Memberships and Affiliations
- American Bar Association’s Section of Taxation
- International Fiscal Association
- Treasurer, The Fred Abramson Foundation
April 9, 2021, Covington Alert
In a slide presentation for the OECD Steering Group of the Inclusive Framework circulated late Thursday, April 8th, the Biden Administration outlined its negotiating position on the OECD’s BEPS 2.0 project. The OECD’s project involves two “pillars”: Pillar 1 would create new income apportionment and nexus rules to allow jurisdictions to tax certain multinational ...
February 27, 2020, Bloomberg
Samuel Maruca spoke with Bloomberg about the possibility of a digital tax on tech companies doing business internationally. The U.S. and 130 other countries are currently negotiating at the Organization for Economic Co-operation and Development about a new international tax system that would redefine which countries can tax which corporate profits. There’s ...
August 14, 2018, Covington Alert
New restrictions on the deductibility of certain payments will require companies facing government investigations to pay close attention to the tax treatment of any settlement or court judgment, and to address this treatment in their negotiations with regulatory agencies. There is a risk under new tax rules that the amount paid to resolve these disputes may be ...
December 1, 2017, Law360
Samuel Maruca participated in a panel at the annual Institute on Current Issues in International Taxation event, and is quoted in a Law360 article regarding the current state of transfer pricing rules. According to Maruca, specific rules have a place, but it’s important to remember that “there obviously are principles underlying these rules.” Courts, he said, ...
November 16, 2015, Bloomberg BNA Tax Management Memorandum
The IRS's intensifying fight over income taxes
November 1, 2015, Philadelphia Inquirer
Former Director of Transfer Pricing Operations in the Large Business & International Division of the IRS Samuel Maruca is quoted by the Philadelphia Inquirer in an article about taxes being paid by large companies, and the IRS’ attempt to settle “transfer-pricing” cases to ensure they are paying the correct amount. According to Maruca, "The IRS has become a lot ...
Recent Developments in LB&I Strategy
November 2015, Bloomberg BNA Energy Tax Conference
Transfer Pricing at the Federal Level
October 2015, AICPA National Tax Conference
Global Tax Issues
September 2015, 14th Annual IRS/Financial Services Industry Conference - Tax Executives Institute, NY Chapter
August 21, 2015, Global Policy Watch
On 17 June 2015, the European Commission launched a public consultation on further corporate tax transparency, which suggests a variety of tax transparency measures including country-by-country reporting (see here). The consultation is intended to gather feedback on which companies should offer more tax transparency and to whom. The deadline for the consultation ...
The Transfer Pricing Economist’s Role in a Post-BEPS World
July 2015, National Association of Business Economists -Transfer Pricing Symposium
Taxation of the Digital Economy
June 2015, American Bar Association Section on Taxation 2015 US-Latin America Conference
Advance Pricing and Mutual Agreement Procedures - An Update
May 2015, American Bar Association Section on Taxation Annual Meeting
Selected Transfer Pricing Developments
May 2015, Tax Executives Institute, Atlanta Chapter
The Present and Future of Audits and LB&I
February 2015, International Fiscal Association (USA Branch) Annual Conference
Transfer Pricing: Current Developments and the Road Ahead
February 2015, Tax Council Policy Institute
Recent Developments in LB&I
January 2015, Tax Executives Institute, Westchester County Chapter
November 14, 2014, Bloomberg BNA's Tax Management Portfolio
Country-By-Country Reporting and Transfer Pricing Documentation
November 2014, International Fiscal Association, New England Region Annual Fall Conference
Transfer Pricing Compliance - Past, Present and Future
November 2014, Tax Executives Institute 2014 Annual Conference
October 22, 2014, Global Policy Watch
In June, the European Commission (“EC”) announced the opening of three investigations into tax rulings in Ireland, Luxembourg and the Netherlands and, in particular, into tax rulings applied by Ireland to Apple, by Luxembourg to Fiat Finance and, last, by the Netherlands to Starbucks. In October 2014, the EC announced the opening of a fourth...… Continue Reading
October 2, 2014, Covington E-Alert
Practical Implications of Country By Country Reporting
October 2014, National Foreign Trade Council Tax Committee Meeting
Life After BEPS - Is There Anything Left In International Tax Planning?
October 2014, Annual Conference of the International Bar Association
June 16, 2010
WASHINGTON, DC, June 16, 2010 — Covington & Burling LLP received 112 individual mentions and 44 practice mentions in Chambers USA 2010. The guidebook, which ranks lawyers by state and national practice area, is designed to identify the most skilled legal practitioners based on the qualities most valued by clients. Here are the Covington lawyers and practices ...
June 12, 2009
WASHINGTON, DC, June 12, 2009 — Covington & Burling LLP received 100 individual mentions and 40 practice mentions in Chambers USA 2009. The guidebook, which ranks lawyers by state and national practice area, is designed to identify the most skilled legal practitioners based on the qualities most valued by clients. Here are the Covington lawyers and practices ...
Covington Adds Two Partners to Washington Tax Group
7/15/2008
WASHINGTON, DC, July 15, 2008 — Covington & Burling LLP is pleased to announce that Sam Maruca and Dan Luchsinger have joined the firm as tax partners. Both will reside in the firm’s Washington office. Reeves Westbrook, chair of Covington’s tax practice, commented: “Sam and Dan are top-flight international tax lawyers. Sam’s exceptional experience in managing ...
- Chambers USA, America's Leading Business Lawyers, Tax (2010; 2016-2019)
- Legal 500 US, Tax (2015-2016)
- Best Lawyers in America, Tax Law (2016-2019)