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Tax matters (among others, subject to IRS and state regulation)

Home Tax matters (among others, subject to IRS and state regulation)
Mergers, Acquisitions, Divestitures

Tax matters (among others, subject to IRS and state regulation)

Tax ramifications must be contemplated when structuring a business, in acquisitions, mergers, divestitures, and obviously during audits and disputes. Matters concerning income tax, sales tax, real estate tax, capital gains tax, to name a few, are common place. Without careful tax planning (and sometimes even after tax planning) the IRS or a state department of revenue may claim a business failed to pay the actual taxes owed based on a variety of reasons, despite good faith efforts. For example, the IRS may allege that a company or its owners reported losses based on a claimed basis which it believes has not been substantiated. Rules governing basis vary on a variety of factors such as the type of entity your own. In other situations, a state department of revenue may claim a business underpaid sales taxes despite always having used an accountant for its reporting.

Such cases can even give way to potential claims against an accountant. In some cases, a department of revenue can claim that business owners failed to report proper taxes based on the idea that a ‘common enterprise’ exists among a number of their separate business entities. Therefore, both the planning and, if necessary, the audit stage of tax matters require detailed analysis, precision and strategy.

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