Analyzed payment terms to determine if ordinary and necessary

Analyzed payment terms to determine if ordinary and necessary

Stout was engaged by outside counsel to analyze the payment terms between a related-party vendor and customer to determine whether the trade payable and payment terms between the parties were ordinary and necessary. Stout analyzed various company financial metrics as well as those metrics from other industry comparables. Stout also researched the standard payment terms observed in other international trade relationships. Stout’s work was relied upon by counsel and the client to support the client’s tax position.