Acquisitions and S Corporations: Tax Advisory Expertise Featured in Thomson Reuters Practical Tax Strategies
“Common Tax Diligence Issues When Acquiring an S Corporation” by Riveron contributors David Anders and Lauren Pozna has appeared in the December 2021 issue of Thomson Reuters Practical Tax Strategies. The article explores the acquisitions of S corporations, advising buyers to conduct thorough tax diligence or risk being responsible for tax liabilities.
Despite the various benefits of S corporations, acquiring parties may face possible adverse tax implications. In addition, events such as a sale of a business might be scrutinized by tax authorities, causing an S corporation and its owners to face a first-time audit or detailed questioning. To guide diligence, buyers should be aware of tax issues that commonly arise, and they can proactively address these issues by:
- ensuring the proper status of the S corporation and watching out for possible impacts driven by the deal structure
- examining matters related to compensation, employees, and accounting methods
- looking out for other property-related liabilities, and understanding that insurance does not offset the need for proper diligence
Learn more in the December 2021 issue of Practical Tax Strategies (gated for subscribers).
 Practical Tax Strategies, Copyright 2021 Thomson Reuters