Tax, Audit and Consulting Teams Eliminate Retail Client’s $10 Million Tax Burden

Client:

Retail client

Challenge:

Our client underwent a restructuring in order to bring in an investor, but they later discovered the due diligence was inadequate and the restructuring was done incorrectly. This complex problem turned into a potential tremendous tax implication in excess of $10 million and put the entire business in jeopardy. The client turned to Fineman West for guidance on resolving this tax crisis while maintaining their relationships with investors and lenders.

Strategy:

With such a significant and time-sensitive challenge, our tax, audit and consulting departments collaborated to investigate the client’s tax history and restructuring agreements, discovering small details that had been originally missed. Crucially, we found key evidence that allowed the client to rescind the restructuring agreement and offer an alternative that eliminated their potentially devastating tax burden. By breaking down the silos that caused the problem in the first place, we were able to brainstorm and find a holistic solution together.

Result:

Fineman West resolved the issue in a way that benefitted every party involved. Between minimizing the client’s tax burden and wiping out owed back taxes, the client saved more than $10 million and will continue to save money on taxes in the future.

Ready to avoid huge tax burdens? Contact us today at (213) 688-9898 or info@fwllp.com.