Bloomberg Tax
Jan. 22, 2019, 6:23 PM UTC

Spinoff Deals May Be on Hold as Shutdown Drags On

Lydia O'Neal
Lydia O'Neal
Reporter

Merger and acquisition activity hit record-breaking levels in 2018. The government shutdown is holding up some of that activity in the early weeks of 2019, and those delays could continue after the government reopens.

Companies entering into tax-free spinoffs and other byzantine transactions often seek Internal Revenue Service statements providing certainty of the deal’s tax treatment in the form of private letter rulings. But because the agency isn’t fully operational due to the shutdown, some deals could be delayed as companies wait to get private letter rulings.

The IRS’s current staffing includes workers deemed necessary for the tax filing season, ...

Learn more about Bloomberg Tax or Log In to keep reading:

Learn About Bloomberg Tax

From research to software to news, find what you need to stay ahead.

Already a subscriber?

Log in to keep reading or access research tools.