Breaking the Ice: Advocating against R&D tax credit filing changes

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Michelle DiVita is advocating against proposed changes to filing requirements for the federal research and development tax credit that the Winthrop & Weinstine associate said would make domestic investment more expensive for companies.

DiVita co-authored and submitted comments on the proposed changes to the Internal Revenue Service as part a “proactive approach for our clients.”

“This tax credit essentially makes it more advantageous to invest in the United States in terms of research and development,” DiVita said. “These changes … could not come at a worse time. We’re still recovering here. That’s a large part of what this comment addresses.”

DiVita, part of Winthrop’s tax and incentives group, previously worked at a large accounting firm.

“Knowing how large companies work has very much benefited me in more of that advisory role, where I can advise clients on the legal side but also understand the practical implications of what the law can do to your business,” DiVita said.

Name: Michelle DiVita

Title: Associate, Winthrop & Weinstine

Education: B.S, finance, Northern Illinois University; J.D., Loyola University Chicago School of Law

Q: Best way to start a conversation with you?

A: I’m a tax nerd at heart. New developments, problems, I love to talk about. I’m also a Chicago girl at heart, so anyone traveling there — food, lakefront, bars, anything like that. Any crazy ideas anyone has, I feel like I’m always the sounding board. What’s the weirdest idea you’ve had, and let’s make it happen.

Q: Why law school?

A: Not to sound cheesy, I always knew I wanted to go. I just felt like that is where the universe decided I needed to go.

Q: What are you reading?

A: “The New Professional Service Firm: How Consultants, Accountants, and Lawyers Need to Reinvent Themselves.” “The Collected Writings of Jeff Bezos,” which has been interesting. And Paris Hilton’s memoir.

Q: Pet peeve?

A: Apathy, in the profession. You have to care about your client’s problems. You have to be intellectually curious enough to go into the depths of the tax code, or depths of whatever crazy thing Congress has passed, or not passed, wants to pass but will never pass. When you don’t care, it can just bring down the team. You’re not serving your clients. So that can be really frustrating.

Q: Best part of your work?

A: Part of what we do, especially on the R&D tax credit side, but also on our incentives side, is travel to clients and interview them about what they do. When you meet people who are passionate about what they’re doing, that’s really rewarding.

Q: Most challenging?

A: The IRS. I don’t sense that a lot of people at the IRS have seen both sides of the table based on some of their recent guidance. That’s why I’ve taken such an advocacy role in terms of what’s reasonable from a compliance standpoint.

Q: Favorite activity away from work?

A: Reading. Travel. Cooking. I’m half Italian, but my dad’s side is all Italian. My grandma left her pasta sauce recipe, Bolognese, and I cannot get it to taste like hers. I’m very close. But the secret ingredients went with her.

Q: Where would you take someone visiting your hometown?

A: The Erie Cafe, an old Italian haunt, on the river. The architecture tour, because that’s breathtaking. Zebra Lounge in Gold Coast, this hole-in-the-wall piano bar. Butch McGuire’s, with its old Irish Chicago vibe.

Q: Legal figure you admire?

A: My torts professor, Nina Appel, went to school with Ruth Bader Ginsburg at Columbia. Hearing about them being the only women in their class was really powerful.

Q: Misconception about your work?

A: That tax in many law firms is viewed as a support function of a deal or another group. Public accounting firms are maybe ahead of law firms in the regard that tax lawyers are a strategic partner in making business decisions.

Q: Favorite book, movie or TV show about lawyers?

A: “On the Basis of Sex” shows how tax can be a meaningful policy driver. Tax lawyers were finally vindicated in this movie!”