McGrath North is a pioneer among Midwest law firms in the field of creative tax planning. Our tax attorneys have assisted and advised clients on taxation and estate planning matters for over forty years. We regularly advise on all tax-related areas, including individual, corporate, pass-though entities, employee benefits, estate and gift tax matters and charitable planning. The firm has substantial experience and expertise in the various fields of taxation, including federal, state and local income tax, sales and use tax, estate and gift tax, employment tax, unclaimed property, and economic development and tax incentives. We are experienced in providing multi-disciplinary teams of attorneys for the successful completion of business planning and work with our other practice groups in achieving our clients' business, investment and personal objectives in a tax-efficient way.

McGrath North has assisted all types of taxpayers, including individuals, closely held businesses and multi-national Fortune 500 companies.

Transactional Tax Planning Services  McGrath North tax attorneys work on nearly every type of business transaction imaginable. Whether it be starting a new business, choosing the optimum legal form for conducting a new or existing business, buying or selling a business, restructuring or reorganizing a business, or providing tax-efficient solutions for recurring business transactions, the firm has the knowledge and expertise to give our clients sound and practical tax and legal advice on such matters. We regularly advise our clients on developing strategies to minimize the tax consequences of their business activities. We regularly counsel clients in finding their way through the maze of alternatives to select the most tax-efficient structure for their various transactions.

Employee Benefits and Retirement Planning Services   Our tax practice group takes a practical and solutions oriented approach to ERISA and employee benefits programs. We have substantial and long-term experience in deferred compensation, stock-based compensation, ESOPs, pension, 401(k) and welfare benefits plans. The firm's experience ranges the full spectrum of employee benefits: design, problem solving, compliance and litigation, and for businesses ranging from one-person professional practices to international corporations. The ERISA and employee benefits arena is full of potentially costly problems and human relations problems. We have the experience and knowledge to provide sensible solutions to an employer's employee benefit needs.

Tax Audit Representation and Litigation  Our tax practice group also has extensive experience in representing clients before the Internal Revenue Service and state and local tax authorities. The work includes representing clients during tax audits and appellate administrative tax proceedings. McGrath North regularly negotiates tax disputes and settlements with the Internal Revenue Service. We have handled tax disputes in the United States Tax Court, the United States Court of Federal Claims, and other federal trial and appellate courts. The firm's tax administrative practice includes working with Congressional representatives and their staff on national tax legislative issues affecting our clients. We have extensive experience in obtaining favorable letter rulings from the Internal Revenue Service's National Office and state tax authorities for our clients.

Tax Planning and Dispute Resolution: Representative Projects

• Represented companies in connection with requests for private letter rulings and technical advice memoranda before the Internal Revenue Service that resulted in favorable rulings for such diverse topics as divisive reorganizations, recognition of exempt status for nonprofit organizations, determinations regarding self-dealing and approvals of leasing and grant programs of trade associations, among other transactions.
• Assisted family-owned corporations and family owned pass-through entities to reorganize or recapitalize into voting/non-voting and related governance structures to ease business succession without adversely affecting operational control of the business by family members who are active in the business.
• Represented a public real estate investment trust in the tax structuring of its operations and acquisitions.
• Currently represent multiple corporations that generate annual revenue in excess of $50 to $100 million.
• Consulted with multiple regular corporations in switching to status as an S corporation, including advice regarding the 10-year recognition period, built-in-gains, and the use of QSUBs and single member limited liability companies to isolate discrete business or functions in limited liability entities while preserving pass-through income tax treatment.
• Consulted with clients to set up a multi-entity legal structure to optimize the pass-through and self-employment tax advantages of an S corporation with the tax flexibility of limited partnerships and limited liability companies.
• Successfully represented both buyers and sellers of S corporations and subsidiaries in consolidated return groups, including providing tax advice on the use and application of so-called "Section 338(h)(10)" tax elections to treat the sale of the target's stock as if the target's assets were sold.  These tax elections often serve as a "win-win" for both sides, allowing the buyer to achieve a step-up in income tax basis in the target's assets and the sellers to substantially preserve long-term capital gain treatment.
• Assisted many clients in tax structuring and closing hundreds of mergers and acquisitions totaling in the billions of dollars.  These transactions ranged from complex mergers to simple asset deals and involved regular corporations, S corporations, joint ventures and other forms of business organizations and owners.
• Negotiated a favorable resolution of income tax audits with IRS Regional Office of Appeals involving proposed deficiencies totaling hundreds of millions of dollars.