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🔥 Act as a lead M&A tax consultant. Generate a 200-word prompt for conducting a tax due diligence review of a mid-market technology firm being acquired by a private equity group. The prompt should detail the investigation into historical tax liabilities, including federal, state, and local income taxes, as well as sales and use tax exposure. It must address the impact of Section 382 on net operating loss carryforwards and the potential for successor liability. Furthermore, include a request for a detailed analysis of the target's payroll tax compliance, particularly regarding misclassified independent contractors and nexus issues. The analysis should also cover the tax implications of the deal structure—whether an asset purchase or a stock purchase—and the availability of a Section 338(h)(10) election. Provide a template for a tax indemnity and escrow arrangement based on the identified risks, and specify the documentation needed to verify the target's R&D tax credit claims and international withholding tax obligations.
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