Alston & Bird Tax Blog

Check Your Timing: Tax Traps for the Unwary in Acquisition Agreements

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Even one day of unanticipated tax liabilities can have meaningful consequences. Our Federal Tax Group turns your attention to the little-regarded – but still important – straddle-period provisions in acquisition agreements.

  • The “interim closing of the books” vs. “proration” approaches
  • Avoiding a one-day disparity between straddle-period accruals for taxes and everything else
  • Special rules for S corporation terminations

Read the full advisory here.

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About John Baron

John Baron leads Alston & Bird's Federal & International Tax Group and is the former chair of the firm’s Partners Committee. His practice is principally transactional in nature, and his clients include both domestic and foreign companies and financial institutions, as well as private equity firms, CDOs, and hedge funds.

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About Daniel Reach

Danny Reach is an associate in the Federal and International Tax Group. His practice includes federal and international tax planning, and he has particular experience with the tax aspects of derivative financial instruments.

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About Eli McCrain

Eli McCrain is an associate in the Federal & International Tax group. He focuses on transactional and international tax matters, primarily the tax consequences of domestic and cross-border mergers and acquisitions, private equity investments, private equity fund formation, restructuring transactions, and financing transactions.

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