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Tax Opinions

Experienced Tax Law Opinion Lawyer Offers Unbiased Appraisals

Clarifying the cost-benefit analysis of your company’s complex transactions

If you went to a doctor with a complaint about chest pains, and he told you not to worry because it’s only indigestion, you might want a second opinion. After all, if he’s wrong, you’ve got a great deal to lose, especially if you plan to run a 5K next week. The same logic applies to taxation. If your company is mulling over a development strategy, you need to know if your taxation plan can survive scrutiny from the Internal Revenue Service, or if an alternative tax structure could reduce your exposure further without raising red flags. At Spizzirri Law Offices Company Limited, tax opinion letters constitute a significant part of our business law practice. Client businesses rely on our analysis when making strategic decisions that depend on favorable tax consequences.

Reliable tax opinions facilitate complex transactions

The first purpose of a tax opinion letter is to eliminate risk from an upcoming transaction. Suppose your company was considering a merger or acquisition. Because a complex transaction can succeed or fail based on how favorably the IRS treats your tax strategy, there are many stakeholders — from your board to your shareholders to the lender who might extend a line of credit — who want to be certain of the tax implications.

We thoroughly examine the details of a proposed transaction, scrutinize the tax plan, and draft a detailed opinion letter, affirming or denying the legal and factual bases for the tax assumptions in the plan. When our letter declares why we, as a disinterested party, believe the corporation’s proposed tax strategy is meretricious, this result sets shareholder minds at ease, and insulates board members from potential allegations they breached their fiduciary duty in approving the transaction. The company can structure the transaction with confidence and will generally find it much easier to raise capital and at a lower cost. Our clients can often secure prior IRS approval that removes any shadow of controversy from the transaction.

On the other hand, when our tax opinion raises red flags about potential conflicts with the U.S. Tax Code, your company now has actionable intelligence to help you rework the deal on a sounder basis.

Tax opinions to protect your company from IRS audits and penalties

An audit by the IRS is costly, time-consuming, and distracting for your business. When there are questions about the company’s compliance with applicable tax law, we draft tax opinion letters expressing our basis, in law and in fact, for believing your company is likely to prevail on the merits with respect to any significant tax issues. In some cases, this may be enough to obviate the need for an audit. In other cases, it can form the basis for a defense against certain penalties.

The importance of impartiality in a tax opinion letter

There are many other reasons your company might want an opinion letter from an Atlanta tax lawyer. It could be a necessary precursor to a contract or a means of determining whether circumstances have triggered certain contractual provisions. However, for this service to have any meaning at all, two conditions must be met.

First, we must preserve our impartiality. We can only draft tax opinions for companies we have not been closely involved with already on tax matters. Second, we must go where the facts lead us. On occasion, our opinions can be contrary to the clients’ desires. Even so, our opinion can supply a basis for remedying the tax controversy.

Let a proactive corporate tax lawyer provide a reliable opinion

A mistaken assumption in your company’s tax strategy can destroy the value of a complex transaction. Before you move forward on your development strategy or engage in a tax dispute with the IRS, let Spizzirri Law Offices Company Limited provide an unbiased opinion of your tax exposure. To schedule a consultation, call 404-458-8311 or contact our Atlanta office online.