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Tax StrategiesTax Strategies
“Without warning, our successful paving business was in jeopardy. The two principals of the company (with 96% ownership) were both diagnosed with terminal cancer.
They had in place a comprehensive buy-sell agreement, life insurance on each principal (for stock redemption in the event of death), a succession plan (to bring the sons into the business) and a current stock valuation (to meet IRS guidelines for a valid buy-sell). The planned for–but unexpected– One principal died. The life insurance proceeds were collected and the stock was redeemed—everything working according to plan. But then, the second principal died. Again the life insurance was collected and the stock redeemed. Unfortunately, the IRS audits of the two estates resulted in a huge tax bill—greater than the estate's entire value. How were we to survive? Enter our BKD experts. They were sure the IRS had assessed the tax incorrectly, but to get into federal court to prove our case, we had to pay the tax first. Thanks to help from BKD, we were able to get continued support from our bank and bonding company. After exhaustive work, we won the case of Rudolph vs. IRS Commissioner. We celebrated with a champagne toast in BKD's office! Today, BKD continues to be a partner in our company's success. Recently they were instrumental in completing the buy-out of a large stockholder and major acquisition and in drafting a new succession plan. From our perspective, BKD is the construction industry expert.” —J. Steven Rudolph, President Reducing your tax exposure makes good business sense. Our tax consultants are experienced in delivering creative tax strategies designed to proactively take full advantage of the law. Our goal is to provide comprehensive tax planning while identifying refund opportunities from potential overpayments. We can help you:
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