"With tax reform on the horizon, many companies are actively considering how the various proposals could impact their business and how they should structure their operations. However, many companies do not want to go all in and pull the trigger on a transaction based on what may amount to an educated guess about where tax law will ultimately lie. To address some of those concerns, companies should be aware of the rescission doctrine and its potential uses. Generally viewed as a last resort, the rescission doctrine may allow companies to retroactively unwind a transaction they have entered into, as long as they are aware of the open questions and potential limitations attached to this course of action."

A&M's Kevin M. Jacobs and Lee G. Zimet share their perspectives with Tax Executive on the recession doctrine's potential uses and why companies should be aware of it. The AIRA Journal republished this article in March 2022.