Help finding your best tax position

Are you confident that your tax advisors have the knowledge and expertise to provide the optimal level of strategic planning and compliance services to put you in the best position within this complicated tax environment? Knowing your business, understanding your expectations, anticipating problems, and proposing solutions to help you achieve your goals, while effectively addressing your tax-related issues, is a priority for our tax advisors. History has taught us that integrated tax services provide greater efficiency and effectiveness for our clients. Our tax advisors routinely combine their collective industry knowledge and experience so we can offer you exceptional ideas, problem solving, and developments related to your particular areas of interest.

Our federal services include:

Planning: For many, income tax planning and preparation means making sure their accountants have their returns out before April 15. For you, it should mean proper planning not only for April, but also throughout the year. Our tax planning experts can help minimize your personal and business tax liabilities.

Compliance: We are your source for a complete range of tax compliance services and tax experts specializing in S Corporations, C Corporations, partnerships, and consolidated returns. You can expect our tax experts to be on top of legislative requirements and changes.

Inventory: When considering potential LIFO changes, turn to our experts to ensure key items are taken into consideration so you understand exposures and risks.

Not-for-profit: There will be many interested parties scrutinizing the way not-for-profits respond to the revised Form 990. Washington wants to see a higher level of accountability and transparency. Your community, the media and others including donors will be very interested in the story your Form 990 tells about your commitment to your mission. Our tax specialists can help ensure your Form 990 story accurately reflects your dedication.

Tax Accounting:

• Accounting Methods: We assist you in identifying tax saving opportunities by adopting or changing to specific accounting methods. Let us review your tax accounting methods to ensure that tax deductions are being maximized.
• FAS 109: FAS 109 accounting for income taxes is one of the leading causes of financial statement restatements and has created a variety of issues for audit service providers with the introduction of FIN 48 (discussed below). Historically, many companies have sought the efficiency of having a same service provider for both audit and tax services. However, due to the increased emphasis of financial statement disclosure related to tax positions, a number of larger companies have sought the advice of a second service provider in order to reduce the potential for financial statement restatement. We have compiled a team comprised of audit and tax professionals who specialize on accounting for tax positions. We have found that a number of efficiencies can be achieved by having an independent FAS 109 consulting and tax return service provider working with your audit service provider.
• FIN48: FIN 48, effective for fiscal years ending on December 31, 2007 and thereafter, prescribes a revised approach for the recognition, measurement, presentation, and disclosure of uncertain tax positions. The implementation of FIN 48 presents significant challenges to many organizations because it requires a multi-disciplinary approach to addressing the issues. An early start to identifying areas of “uncertainty” and managing the overall process will be keys to successful implementation.

 

Bankruptcy Issues: If you are considering Chapter 11 filing and are in need tax consultation services, our team can help. We are a firm that:

• Walks you through the tax events in a bankruptcy to forearm you and minimize unpleasant surprises in the process
• Provides immediate tax assistance helping liquidate in an orderly fashion under Chapter 11 in a way to minimize the pain by:
  • Preparing tax returns that you have historically filed
  • Informing you of elections available to you such as the election to shorten the statute of limitations on federal and state taxes
  • Informing you of “trouble spots” in the process, such as final year alternative minimum tax, terminating filing responsibility, reduction of favorable tax attributes (net operating losses), state payroll tax matching, ID numbers, intercompany tax assets and liabilities especially where not all entities are in bankruptcy, etc.
  • Planning for timing of sales and distributions
  • Coordinating the transfer to the liquidating trust
• Responds to any audit by a government tax authority in which you would like us to represent you

 

We are also experienced in handling the tax issues involved in all phases of bankruptcy administration and liquidation including:

• Debtor Phase:
  • Consulting on tax provisions of key bankruptcy documents: Disclosure Statement and Plan of Reorganization (liquidation)
  • Recognition of priorities of tax claims based on date of petition, due dates of returns, type of tax, etc.
  • Preparation and filing of tax returns during period of administration
  • Special bankruptcy tax election to shorten statute of limitations on federal and state tax authorities
  • Filing “final tax returns” as circumstances permit
  • Dealing with intercompany tax receivables and liabilities in consolidated groups, particularly where some subsidiaries are not in bankruptcy
  • Handling federal and state tax audits and dealing with IRS Central Insolvency Operations in Philadelphia
  • Dealing with payroll tax issues such as “successor employer” which are common in bankruptcies
  • Maximizing tax advantage of exemption for cancellation of debt income during bankruptcy administration
  • Working with attorneys to get favorable rulings from the bankruptcy court on tax controversies, if needed
  • Tax planning for Section 363 sales of assets and timing of liquidation
  • Tax planning for alternative minimum tax which often plagues year of liquidation
  • Planning to minimize loss of net operating loss carryovers and other favorable tax attributes due to cancellation of debt income
  • Coordinating transfer of remaining assets to liquidating trust which is a deemed sale for tax purposes and interplay with liquidating trust opening balance sheet
• Liquidating Trust Phase:
  • Planning to meet the IRS definition of a liquidating trust
  • Setting up trust accounts, initial notices to creditor-beneficiaries
  • Dealing with disputed claims reserve under new regulations
  • Dealing with valuation issues on preferences and causes of action
  • Annual reporting for trusts
  • Dealing with state and local issues which are different than those of the debtor phase
  • Special bankruptcy tax election to shorten statute of limitations on federal and state tax authorities
  • Dealing with tax basis issues of creditors