In February 2026, Law360 and the Daily Tax Report shared that Venable LLP helped members of a West Coast LLC triumph in a recent, high-profile tax suit. The Venable team, led by Norman Lencz, nimbly helped their clients avoid owing a very significant amount of additional California state income tax on escrow funds in connection with a like-kind exchange of property located in Pasadena, California.
The California Office of Tax Appeals ruled in favor of Venable’s client in an opinion released earlier this month. “The office said in the pending precedential opinion that the escrow funds were not considered taxable under Internal Revenue Code Section 1031,” wrote Law360. “However, the OTA said the prepayment fees and legal fees were taxable, as they were related to financing the exchange”
The publication also noted that “the matter is related to consolidated appeals from the LLC, EWV LLC, regarding assessments from the California Franchise Tax Board for tax years 2016-2018.”
To access the articles highlighting the Venable team’s client win, please follow the hyperlinks above.