Ellen McElroy is a partner with Pepper Hamilton LLP, resident in the Washington D.C. office. She focuses on a broad variety of corporate tax issues, primarily accounting method considerations. She regularly advises clients on the proper tax treatment of costs associated with tangible property, (including the treatment of repair costs), intangible property (including acquisition costs and recovery), and corporate transaction costs. With respect to corporate transaction costs, she advises clients regarding various corporate transactions, including both acquisitive and divisive transactions, both strategic and private equity transactions. She further advises clients on income recognition matters as well as inventory issues.
Ms. McElroy regularly represents clients before IRS, including representation at the IRS National Office with private letter rulings and technical advice. She also has represented a number of clients in controversy matters, including IRS Exam, Appeals, including matters involving Pre-Filing Agreements, Fast Track Appeals, and the Compliance Audit Program.
Before joining Pepper, Ms. McElroy was a partner with Ernst & Young LLP, where she led the firm’s transaction cost review practice and worked on accounting methods and inventory matters for Fortune 500 companies as part of her role in the firm’s National Tax Department.
Prior to Ernst & Young LLP, Ms. McElroy was legislation counsel for the IRS Office of Special Counsel (Legislation), where she developed and drafted legislative proposals, supervised congressional investigations, and GAO audits involving IRS. She also was a senior attorney with the Income Tax and Accounting Division. In this position, Ms. McElroy was principal author of final regulations under the uniform capitalization rules and temporary regulations involving the deductibility of lobbying expenses. She also wrote revenue rulings, technical advice memoranda, and private letter rulings involving income tax accounting issues including, deductibility of severance payments, environmental cleanup, advance payments and the tax treatment of takeover costs.
Ms. McElroy is past chair of the ABA Tax Accounting Committee and she has served as chair of the Tax Accounting Committee’s Capitalization Sub Committee. She served as the tax accounting chair for the 2013 and also the 2014 Federal Bar Association’s Section on Taxation Tax Law Conference. She also participates in AICPA’s Tax Methods and Periods Technical Resource Panel. She has served as an adjunct professor at Georgetown University Law Center. She speaks regularly before corporate groups, including Tax Executive Institute, Philadelphia Tax Conference, Federal Bar and ABA meetings.
Ms. McElroy is a regular contributor to national and regional tax and accounting journals. Her recent publications include:
Ms. McElroy is a member of the Colorado and American Bar Associations.
- “Final Regulations Released Revising the Tax Treatment of Sales-Based Royalties and Vendor Allowances,” Pepper Hamilton LLP Tax Update (March 31, 2014)
- “New IRS Guidance Offers Insight Regarding Covered Transactions Under the Transaction Cost Regulations,” Pepper Hamilton LLP Tax Update (March 31, 2014)
- “Complying with the Tangible Property Regulations – Procedural Guidance Provides Favorable Rules that Require Immediate Consideration,” Pepper Hamilton LLP Tax Update (March 28, 2014)
- “Construction Is Complete on Much of the Repair Regulations” (co-author), BNA Tax and Accounting Center (September 26, 2013)
- “IRS Issues Clarification as to the Taxability of Gift Card Sales,” Pepper Hamilton LLP Tax Update (September 4, 2013)
- “IRS Rules That a Partially Tax-Free Transaction Qualifies as ‘Covered Transaction’ for Purposes of the Transaction Cost Regulations,” Pepper Hamilton LLP Tax Update (July 16, 2013)
- “Does a Target or Acquiring Corporation Claim Significant Transaction Related Deductions? IRS Wades into Murky Waters” (co-author), BNA Tax Management Memorandum, Vol. 54, No. 8 (April 22, 2013).