How WIP Reporting Impacts Construction Business Valuation in M&A
During mergers and acquisitions in the construction industry, numerous factors can influence valuation outcomes. Among these, Work-in-Progress (WIP)...
March 17, 2021 – Acknowledging pressure from both Congress and tax and accounting groups, the IRS announced today that it plans to extend this year’s tax deadline from April 15 to May 17. While the IRS has not yet provided formal guidance, the delay will apply to individual income tax returns and payments related to the 2020 tax year due April 15. Estimated tax payments for the 2021 tax year due on April 15, 2021 are not impacted by the delay.
Once official guidance from the IRS is received, guidance from Minnesota and the other states regarding their deadlines will be needed. Last year, Minnesota opted to delay individual tax filing and payment deadlines to match the Federal deadline extension to July 15, with the caveat that Minnesota estimated taxes for 2020 were not included.
Redpath and Company will follow up with our clients on appropriate strategies once we have additional guidance.
During mergers and acquisitions in the construction industry, numerous factors can influence valuation outcomes. Among these, Work-in-Progress (WIP)...
This article was originally written in October 2020. It has been updated with new references and information.
Editor's note: this blog was updated in 2025 with additional resources for business owners.