Our client, a global specialty materials company, faced a significant federal tax compliance challenge after selling a business unit. The divestiture required precise tax basis assignment across assets and raised complex questions about ordinary vs. capital gain treatment. This characterization was especially critical because the company had significant capital losses. Complicating matters, the company was simultaneously managing its annual tax return process and responding to a federal audit.
We provided a tax consultant with deep compliance and provision experience who quickly adapted to the client’s systems and workflows. The consultant assumed responsibility for multiple workstreams and played a key role in the company’s basis and fair value study, collaborating with internal stakeholders and Big Four advisors to navigate complex tax reporting requirements. We also supported the year-end tax return process and managed audit-related documentation requests.
The client successfully filed their federal return and resolved audit inquiries with confidence. Our work ensured that the tax implications of the divestiture were accurately documented and compliant. By adapting quickly to the client’s systems and proactively resolving inconsistencies in prior workpapers, we provided peace of mind and continuity through a high-risk transaction and audit cycle.