The Role of a Tax Attorney in Business Transactions

Recently, I had a client ask me to draft a vendor agreement.  I drafted the agreement and sent it on to the vendor to review. When we received back the vendor’s revised agreement they had included a provision that would create a tax problem for my client. The provision essentially created a situation where my clients would bear a disproportionate tax burden from the proposed structure of the arrangement.  In concept alone the structure was fine, but because we considered the tax consequences of the structure my client was able to avoid a tax burden that was not necessarily intended by the vendor. However, if we had not caught the tax this could have strained the relationship down the road when a tax bill came due to my client. This is just one example, but the tax burdens or benefits of business transactions is very important to consider. If you would like Paul to assist you with your business transaction contact Paul by clicking here.

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