A new ruling by the U.S. Bankruptcy Court for the District of Delaware reinforces the importance of specificity in tax-sharing agreements (TSAs). In “Delaware Court Provides Guidance Regarding Tax-Sharing Agreements,” Simon Fraser, of Cozen O'Connor's Bankruptcy, Insolvency & Restructuring practice group, discusses the details. Tax-sharing agreements provide that the parent entity will act on the others’ behalves by filing consolidated returns, remitting aggregate payments from the group, and receiving refunds on behalf of one or more members of the group. The ruling by the Delaware bankruptcy court shows the importance of using very specific language in drafting TSAs. Read more here. (login required)