Thinking of selling your business – Cash basis reporting is generally a less desirable tax reporting methodology in the context of M&A transaction planning. Currently, there are many potential traps and uncertainties in the tax code that prevent symmetry tax treatment; creating in many instances, a tax whipsaw effect with respect to cash basis taxpayers involved in a sales transaction.
The good news is with proper tax planning, there are numerous opportunities and applicable strategies to avoid asymmetrical tax results. For example, a taxpayer contemplating a change of control transaction as discussed above, should consider changing its cash basis tax method …read more
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