Section 368 of the Internal Revenue Code allows companies to complete a tax-free reorganization if it meets certain requirements and conditions. There are seven different types of corporate reorganizations/restructurings allowed under Section 368. Each type of reorganization transaction or event has specific reporting requirements, which tax advisors must understand through each stage of the transaction.
Corporate tax professionals serve a vital role in advising management as to the optimal type of reorganization, whether a full tax-free reorganization, asset or stock under 368, and available post-transaction elections and required filings.
Tax managers must understand tax attributes that will carry forward in a reorganization and advise all stakeholders of the potential consequences. Guidance by an informed tax professional can provide real value to the transaction by protecting shareholders, the acquirer and target from critical tax errors.
Listen as our experienced panel of tax professionals provides a deep exploration of the tax and accounting impacts of Section 368 reorganizations.