- State and Local Tax Snafus in "No Tax" Deals
- Amendment to German Securites Trading Act Introduced by Federal
Ministry of Finance
State and Local Tax Snafus in "No Tax"
Deals
By Leah Robinson and Margaret C. Wilson
Even when a transaction is "tax free" for federal
income tax purposes, state and local taxes can surprise the unwary
and cause expenses that could have been avoided with careful
planning. State tax concerns are often an afterthought because many
assume that the state tax treatment will mirror the federal tax
treatment; therefore, if the federal tax implications were
thoroughly reviewed, then the state tax concerns were covered as
well. However, this is not necessarily true. Another common
misperception is that state and local taxes cannot be significant
and can be ignored. Unfortunately, this too is often wrong.
Considering possible state and local tax ramifications early in the
process is critical to avoiding hidden tax costs that cause
companies
