Tax Consequences; Consistent Reporting Sample Clauses
The "Tax Consequences; Consistent Reporting" clause establishes the parties' agreement on how the tax aspects of a transaction will be treated and reported to tax authorities. It typically requires both parties to file their tax returns and other relevant documents in a manner consistent with the agreed-upon tax treatment of the transaction, such as classifying a payment as a purchase price rather than income. This clause helps prevent disputes or audits arising from inconsistent tax reporting and ensures that both parties align their tax positions, thereby reducing the risk of penalties or additional tax liabilities.
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Tax Consequences; Consistent Reporting. The Members are aware of the income tax consequences of the allocations made by this Article and by the Regulatory Allocations and hereby agree to be bound by those allocations as reflected on the information returns of the Company in reporting their shares of Company income and loss for income tax purposes. Each Member agrees to report its distributive share of Company items of income, gain, loss, deduction and credit on its separate return in a manner consistent with the reporting of such items to it by the Company. Any Member failing to report consistently, and who notifies the Internal Revenue Service of the inconsistency as required by law, shall reimburse the Company for any legal and accounting fees incurred by the Company in connection with any examination of the Company by federal or state taxing authorities with respect to the year for which the Member failed to report consistently.
Tax Consequences; Consistent Reporting. The Partners are aware of the income tax consequences of the allocations made by this Article and by the Regulatory Allocations and hereby agree to be bound by those allocations as reflected on the information returns of the Partnership in reporting their shares of Partnership income and loss for income tax purposes. Each Partner agrees to report its distributive share of Partnership items of income, gain, loss, deduction and credit on its separate return in a manner consistent with the reporting of such items to it by the Partnership. Any Partner failing to report consistently, and who notifies the Internal Revenue Service of the inconsistency as required by law, shall reimburse the Partnership for any legal and accounting fees incurred by the Partnership in connection with any examination of the Partnership by federal or state taxing authorities with respect to the year for which the Partner failed to report consistently.
Tax Consequences; Consistent Reporting. The Members are aware of the income tax consequences of the allocations made by this Article and by the Regulatory Allocations and hereby agree to be bound by those allocations as reflected on the information returns of the LLC in reporting their shares of LLC income and loss for income tax purposes. Each Member agrees to report his distributive share of LLC items of income, gain, loss, deduction and credit on his separate return in a manner consistent with the reporting of such items to it by the LLC. Any Member failing to report consistently shall notify the Internal Revenue Service of the inconsistency as required by law and shall reimburse the LLC for any legal and accounting fees incurred by the LLC in connection with any examination of the LLC by federal or state taxing authorities with respect to the year for which the Member failed to report consistently.
Tax Consequences; Consistent Reporting. The Partners understand the income tax consequences of the allocations made by this Article and by the Regulatory Allocations Exhibit and hereby agree to report for income tax purposes their share of Partnership income and loss in accordance with those allocations as reflected on the information returns of the Partnership.
Tax Consequences; Consistent Reporting. The Members are aware of the income tax consequences of the allocations made by this Article IV and by the Regulatory Allocations and hereby agree to be bound by those allocations as reflected on the information returns of the LLC in reporting their shares of LLC income and loss for income tax purposes. Each Member agrees to report its distributive share of LLC items of income, gain, loss, deduction and credit on its separate return in a manner consistent with the reporting of such items to it by the LLC.
Tax Consequences; Consistent Reporting. The Members are aware of the income tax consequences of the allocations made by this Article V and by the Regulatory Allocations and hereby agree to be bound by and utilize those allocations as reflected on the information returns of the LLC in reporting their shares of LLC income and loss for income tax purposes, except as otherwise required by applicable law. Each Member agrees to consult in good faith with the Board prior to reporting its distributive share of LLC items of income, gain, loss, deduction and credit on its separate return in a manner inconsistent with the reporting of such items to it by the LLC. Any Member failing to report consistently shall notify the IRS of the inconsistency as required by law and shall reimburse the LLC for any legal and accounting fees incurred by the LLC in connection with any examination of the LLC by U.S. federal, state, local or non-U.S. taxing authorities with respect to the year for which the Member failed to report consistently.
Tax Consequences; Consistent Reporting. The Members are aware of the income tax consequences of the allocations made by this Article V and by the Regulatory Allocations and hereby agree to be bound by and utilize those allocations as reflected on the information returns of the LLC in reporting their shares of LLC income and loss for income tax purposes, except as otherwise required by applicable law. Each Member agrees to consult in good faith with the Board prior to reporting its distributive share of LLC items of income, gain, loss, deduction and credit on its separate return in a manner inconsistent with the reporting of such items to it by the LLC. Any Member failing to report consistently shall notify the IRS of the inconsistency as required by law and shall reimburse the LLC for any legal and accounting fees incurred by the LLC in connection with any examination of the LLC by U.S. federal, state, local or non-U.S. taxing authorities with respect to the year for which the Member failed to report consistently.