Tax

While tax simplification and fairness are concepts with universal appeal, the undeniable fact is that our tax system has grown increasingly complex and probably will continue to do so. It remains the case that similarly situated taxpayers may face vastly different tax liabilities depending upon their ability to fit within available exceptions, exemptions and safe harbors provided by a complicated and constantly changing structure of statutory, regulatory and judicial guidelines.

We counsel clients regarding:

• tax-free corporate reorganizations and taxable mergers and acquisitions
• like-kind exchanges of real estate and other assets
• issuance of tax-exempt bonds
• tax consequences of partnerships and joint ventures
• tax aspects of U.S. clients' international operations
• foreign-based clients' taxation of their U.S. businesses or investments

To assist companies in their resolution of tax problems, we deal regularly with the Internal Revenue Service and the Pennsylvania and Philadelphia Departments of Revenue. Through our association with the State Tax Committee of the United States Law Firm Group, we are able to assist clients with multi-state tax issues in a comprehensive and efficient manner.

Our tax attorneys share a strong foundation of technical tax knowledge and a broad understanding of current business practices.  To that end, we are able to help our clients achieve their business and personal goals and objectives at the least possible tax cost consistent with the applicable law.

Representative clients include:      

• Wachovia Bank, National Association
• Qwest Corporation
• Alliance Exchange, Inc.
• major hospitals, universities, and other non-profits
• major oil and gas companies

In recent years we have achieved significant victories for our tax clients.  Representative engagements include:

• working with several major telecommunications and major oil and gas companies to structure several billion dollars of tax-deferred like-kind exchange transactions through our representation of Wachovia Bank, National Association in its capacity as an exchange intermediary or accommodation party;
  
• obtaining a substantial Pennsylvania income tax refund for a New York City based real estate investor by persuading the State Board of Finance that our client was entitled to a credit for taxes paid to New York on dividends distributed by his New York "S" Corporation;
  
• structuring the conversion of a substantial Delaware-based investment holding company from a "C" Corporation to an "S" Corporation and minimizing taxes on the conversion by taking advantage of certain highly technical provisions of new legislation creating "Electing Small Business Trusts";
  
• creating the first national bank subsidiary for a 501(c)(3) non-profit corporation; and
  
• working with a major local real estate developer to structure a new multiple-building corporate center project to minimize both federal income taxes and Pennsylvania realty transfer taxes upon anticipated investments by various for profit and not-for-profit partners.

Partners in the Tax Practice frequently speak and write on tax issues.  Within the past year our tax attorneys have made presentations at the NYU National Real Estate Tax Conference, a series of Pennsylvania Law Institution programs on taxation of tax-exempt organizations, the Fifth Annual Institute on Like-Kind Exchanges, and numerous continuing legal education programs sponsored by the Philadelphia Bar Association.

Montgomery McCracken has a well-established reputation as a firm with the resources and talent to provide clients with outstanding service in all areas of federal, state, local and international taxation.

For details on how the Tax practice can help you minimize your total tax burden, please contact one of our Tax attorneys listed above.