Mylotte David Ends Tax Fight With City Today

The suit filed by the City of Philadelphia against boutique firm Mylotte David & Fitzpatrick that alleged the firm failed to pay $2.3 million in taxes has been resolved. According to attorneys involved with the case, the matter was settled this morning.

Neither side would disclose the details, however.

The firm's attorney, solo practitioner Paul Winterhalter, said both parties are pleased with the result and all tax liabilities against firm have been resolved.

The two sides were scheduled for oral arguments today in front of Philadelphia Common Pleas Judge Gary S. Glazer but stepped out of the courtroom when the arguments were set to begin.

The case stemmed from the city's suit that alleged the firm owed $826,315 in unpaid business privilege taxes, $57,755 in net profits taxes, and $15,734 in wage withholding taxes.

In addition to the unpaid taxes, the suit alleged that the firm owed $578,855 in interest and $910,665 in penalties.

The suit originally included more than 60 other attorneys who had worked at the firm during the periods in question. All the attorneys were later dropped with the exception of Edward David and Charles and John Fitzpatrick.

The firm said last year that it had a dispute with the city about how taxes are calculated, adding at the time that "we don't believe we owe anything near what they say we do."

— Gina Passarella, Staff Reporter

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