Careful planning for optimal results
Strategic structuring is the foundation for success.
Buchanan Ingersoll & Rooney's Business and International Tax Group specializes in ensuring clients' tax structures are appropriately established to realize the best financial outcomes. We counsel clients on how to determine the form their business entity should take, how to structure acquisitions and dispositions, and how to capitalize corporations and partnerships. Everything we do is geared toward preserving and maximizing tax benefits while minimizing the financial consequences to corporations, shareholders and partners.
For more than three decades, our legal work has influenced the development of federal tax legislation, Treasury Department regulations, and IRS administrative rulings. Attorneys in our group have worked at high levels in the Treasury Department and the IRS, and many of us have congressional staff experience.
Our clients seek our help in managing the tax status of distressed businesses, structuring the liquidation and dissolution of business enterprises, and restructuring corporate and partnership groups by way of taxable and tax-free mergers, spinoffs, distributions and intercompany sales. We're known for our ability to structure our clients' operations in ways that maximize the benefits and minimize the burdens of the rules governing the tax treatment of financial instruments and insurance products, specialized accounting and inventory identification methods, passive loss activities, and consolidated return items.
Practical advice for investments
Our clients include private equity funds, venture capital funds, and REMICs, which we've advised on the tax consequences of public and private offerings of debt instruments and other financial products, notional principal contracts, short sales, straddles and products targeted to specific investors. We've structured both the underlying transactions and the ownership entities to minimize worldwide taxation. We also structure real estate investments—we're experienced in investor vs. dealer issues, like-kind exchanges, real estate financing, and the treatment of various types of U.S. real estate investment by foreign individuals and businesses to avoid or minimize the effect of the FIRPTA rules.
Experience-based foreign tax insight
Our group excels at structuring the U.S. operations of foreign businesses and individuals to minimize tax consequences worldwide. We can minimize the effects of the FIRPTA, branch profits tax, and earnings stripping provisions of U.S. law. We also structure the foreign operations of U.S. businesses and individuals, which includes developing strategies to minimize the effects of the controlled foreign corporation and passive foreign investment company rules and to maximize the benefits of the foreign tax credit and domestic production activity income rules. We also structure multinational business groups and their transactions to minimize worldwide taxes.
Our group provides advice about income tax to U.S. residents who work for companies abroad and foreign residents who work for companies in the United States. We advise multinational corporations on how to structure retirement and pension plans to maximize worldwide tax benefits, and we perform estate planning and administration for U.S. residents with foreign holdings and foreign residents with property here. Our group has advised foreign governments on how to structure their tax systems to encourage investment and development, and we've advised them on U.S. tax changes that could affect their economic policies.
The breadth of our services is remarkable. Here are several of our recent accomplishments:
- We structured the U.S. operations of a European fabric manufacturer and distributor to minimize U.S., Swiss and French taxes.
- On behalf of one of the largest banks in the United States, we obtained an abatement of IRS penalties arising from the late filing of a foreign national's federal estate.
- We assisted a U.S. franchisor of business systems to obtain, through the mutual assistance provision of the U.S./Japanese income tax treaty, a refund of Japanese withholding taxes imposed on franchise payments.
- We represented several corporations with more than $25 million at issue, contending that the gain they realized from the sale of a limited liability corporation or as the result of an election under Section 338 of the Internal Revenue Code was not subject to Pennsylvania state corporate net income tax.
- On behalf of a global pharmaceutical company, we secured a Pennsylvania state tax refund after convincing the Board of Finance & Revenue that a tax assessment against the company violated the U.S. Constitution.