Taxation

Ball Janik LLP's tax practice may be divided into three areas:  (1) representing clients in tax controversies before the IRS and in the federal courts; (2) structuring corporate, partnership, and real estate transactions; and (3) providing guidance to clients (including other law firms) on technical tax issues.

Tax controversy and litigation have accounted for about half of the firm’s tax practice during the last several years.  The firm has represented clients before the United States Tax Court, the Court of Federal Claims, several federal district courts and courts of appeals, and the examination and appellate divisions of the IRS.  The firm’s tax cases have covered a wide variety of issues, including the passive activity loss limitation, the corporate minimum tax, S corporation elections, employment taxes on separation payments, the taxation of personal injury damages, purchase price allocation, accounting for real estate development costs, and the U.S. Virgin Islands’ mirror system of taxation.

The transactional aspect of the firm’s tax practice is closely integrated with the firm’s business, corporate, and real estate practices, as tax planning is a significant element of most transactions.  The firm has assisted clients with the tax aspects of such transactions as the formation of partnerships, corporations, and limited liability companies, the purchase, sale, exchange, and development of real estate assets, mergers and other corporate reorganizations, workouts and equity reorganizations of financially troubled companies, and the establishment of United States manufacturing operations by foreign companies.

The "technical" aspect of the firm’s tax practice is varied and unpredictable.  Clients (including trade associations and non-profit corporations) frequently seek technical assistance with issues relating to such matters as executive compensation, fringe benefits, licensing arrangements, transactions between related parties, accounting for production costs, excise taxes, damage awards and settlements, attorneys’ fees, and permissible activities for tax-exempt organizations.