Cases
Representative Work: Designed a tax-neutral reorganization structure for an S corporation with multiple operating
asset holding subsidiaries. The reorganization is timed to take advantage of the current economic depression in asset values, particularly real estate values. The resulting structure aligned like subsidiaries, in terms of asset classes
operations, enabled the protection of certain assets from future creditors,
avoided or deferred potentially applicable state
federal taxes. In addition, the restructuring, which relied in part on distribution of assets to asset protection trusts, has laid the groundwork for estate
legacy planning for the senior members of the ownership group.
Assisted a large resort hotel in challenging a meals
rooms tax assessment. The resort is a condominium hotel with hundreds of owners. The resort includes a resort fee in its room charges. The New Hampshire Department of Revenue Administration decided that the resort improperly failed to collect tax on the resort fees. Shortly prior to the administrative hearing on the appeal of the assessment, but after filing of a pre-hearing memo of law, the Department proposed a very favorable settlement, essentially conceding the case.
Assisted a local manufacturing company during a federal section 263A Uniform capitalization of costs audit
subsequent appeal. The company is a contract manufacturer located in New Hampshire that purchases product as needed to assemble customer products. Despite the company's unique product flow, on audit the Internal Revenue Service proposed imposition of the Uniform Capitalization rules. We worked with the company to determine the actual flow of product through its facility to accurately assign costs to inventory
appealed the proposed adjustments. The case was resolved upon approval from the Appeals Office of a capitalization proposal from the company.
Represented multiple related companies in a state tax audit. A group of real estate rental
operating companies sharing common ownership were the targets of a state tax audit. Most of the companies are located in New Hampshire, with the remainder in Massachusetts. Issues included appropriate filing method, whether the entities constituted a unitary group, treatment of certain management fees
treatment of large payments to buy out rights under a contract. Most of the issues were resolved in favor of the taxpayer. The remainder were settled.
McLane represented a medical doctor during a state tax audit of his companies. The doctor owns
operates several facilities providing various medical services throughout the state. A portion of the business is operated through an S Corporation,
the remainder through a proprietorship. The State of New Hampshire challenged both the doctor's salary
the compensation deductions claimed on the proprietorship returns. By providing detailed information on the doctor's many activities
substantial involvement in all aspects of the business operations, we were able to negotiate an acceptable resolution to the dispute.
Represented a medical practice to merge its existing pension plans into a new 401(k) pension plan. A medical practice located in Massachusetts sponsored a defined contribution pension plan for its employees funded solely by the employer. The practice decided to switch to a traditional 401(k) plan
to merge the existing plan into the new 401(k) plan. We prepared a 401(k) plan, with provisions compatible with the existing plan,
prepared all of the corporate documentation necessary to adopt the new plan
complete the plan merger.
Assisted a construction company in implementing an Employee Stock Ownership Plan. A closely held firm, they decided to implement an Employee Stock Ownership Plan
to purchase shares from its major shareholder. After discussing potential plan provisions with the company, we drafted an Employee Stock Ownership Plan document incorporating the desired attributes. We also prepared corporate documentation for the entire Plan adoption
funding transation from recapitalization through adoption of the Plan
purchase of the stock.
