The Sham Entity Doctrine & MSO Compliance: What You Need to Know
Key Questions on MSO Compliance and the Sham Entity Doctrine Understanding the IRS’s Approach to MSO Compliance A Management Services Organization (MSO) can be a valuable tool for businesses when structured correctly. However, the IRS has scrutinized MSOs that exist solely for tax avoidance. Below, we explore the key factors that distinguish a legitimate MSO […]
Protecting Privately Held Companies: The Critical Importance of Tax Opinions by Experienced Attorneys
Protecting Privately Held Companies: The Critical Importance of Tax Opinions by Experienced Attorneys The Problems Businesses Face Without Tax Opinions For business owners, particularly those managing privately held companies, the stakes of not obtaining a proper tax opinion can be devastating. Without the guidance of an experienced tax attorney, businesses face numerous risks: Exposure to […]
Why MSOs Aren’t Classified as Personal Service Corporations
Introduction When structuring a business, especially in industries involving professional services, understanding the tax classification of your entity is crucial. A common area of confusion is whether a Management Services Organization (MSO) qualifies as a Personal Service Corporation (PSC) under the Internal Revenue Code. Generally, an MSO is not considered a PSC; however, there are […]