Picture this – you’re looking to sell your company, and as a result, are visited by a due diligence team on a cold Monday winter morning. They’ve been hired by a private equity firm that is seriously considering acquiring your mid-sized corporation, and they’ve been sent to carry out a simple task – find every risk, every liability, and every hidden exposure that could reduce the purchase price or simply give the private equity firm cause to walk away entirely from the deal. While you may have prepared for questions that touch on supplier contracts, pending litigation, customer concentration and so on, you never prepared for a bombshell question that is posed later that afternoon by a principal accountant: “What is the status of your IEEPA refund claim, and why isn’t it reflected in your financial statements?”
You were under the assumption that the refund was actually a good thing, and not a liability. However, an unsolved contingent asset can be as deleterious to a sale as an unresolved contingent liability. The logic from the due diligence team was simple – a company that’s owed a material refund by the government can have a claim that may either be a risk or as an asset depending on whether it was properly documented and is recoverable. However, if the refund is undocumented and unprotected, it transforms into a risk that the buyer must take on, which can then impact the final sale price of your corporation. If you’re the CEO of an import corporation thinking that the IEEPA refund is a good thing as you head into sales talks, listen up and read on because what we are about to reveal may shock you.
Are you looking for a best IEEPA tariffs refunds attorney? Please call us NOW at (314) 481-63338 to learn more about your legal options for justice and compensation as they relate to IEEPA refunds and the process. McCready Law is proud to announce that we have joined forces with Frost Law Arizona to help corporations and businesses that were unlawfully levied duties against during the February 2025 to February 2026 period, and thanks to the Supreme Court ruling, the government was ordered to pay back all these duties to over 300,000 affected businesses across the country. Our strategic partnership means we are able to assess your claim, consolidate your entries via an in-depth forensic audit to discover just how much the government owes you, file protective orders on your behalf, and even litigate your claim in front of the Court of International Trade should the government become recalcitrant about processing your IEEPA refunds. We offer the forensic audit at NO CHARGE as well as a 100% FREE initial consultation phone-call, and we work efficiently and ensure all your valid entries are presented as a complete dossier to CBP and relevant authorities, leaving you to focus on more pressing business matters. Need assistance with IEEPA refund rejections or processing? Call us NOW at (314) 481-63338 to speak with an experienced attorney and tax experts at no cost to you.
Why Your IEEPA Refund May Be a Deal Maker or Breaker
When a buyer is looking to acquire a company, they take stock of every asset and every liability. A contingent asset such as an IEEPA refund claim isn’t a simple one; it is a variable that can swing the purchase price by millions of dollars depending on its structuring and documentation.
Here’s what a buyer will want to know as it relates to an IEEPA refund claim:
- Whether or not you have filed protective protests thereby making you eligible for a refund in the future. If you haven’t filed, the buyer will assume that the refund is at risk and may discount the purchase price in relation to the refund amount.
- They will also want to know if you have properly accounted the IEEPA refund in your financial statements. If you haven’t accrued the refund as a receivable, the buyer will call into question your accounting practices and ask for a statement prior to closing. If the refund was accrued, the buyer will need to verify that said accrual is properly documented
- The buyer will also want to know if the refund may lead to tax liabilities or other financial obligations that may fall on them. If the refund is taxable, this liability may need to be factored into the purchase price. If the refund could potentially attract an offset or Clawback, the buyer may ask that they be indemnified.
Why an Unresolved Refund Can Harm Your Deal
If you’re looking to sell your corporation, and your refund claim remains unresolved, it can delay the closing as there shall need to be negotiations regarding risk and reward allocation. In addition, it may reduce the purchase price since they may state the refund may be unrecoverable and they want to prepare themselves for that. Lastly, some of the funds may be held back in an escrow as an attempt to cover any future losses associated with the refund.
Best IEEPA Tariff Refund Lawyers – Call Us Today!
If you’re looking for the exit door with regard to the sale of your corporation but are not done with resolving or receiving your IEEPA tariff refunds, we’re here for you: McCready Law has joined hands with Frost Law Arizona and we’re helping mid-sized corporations document their refund claim, file protective protests and even prepare for due diligence so you can properly account for the refund and are able to make a clean break. Need more information? Please call us NOW at (314) 481-63338 to learn more about how we can help. Thanks for choosing us, and we look forward to helping you.