Risks and Rewards of Accessing Government Financial Assistance During COVID-19
April 29, 2020
This article summarizes the most recent government efforts to assist businesses during the COVID-19 emergency, and the benefits and pitfalls of each. This is a very fluid situation with new guidance coming out weekly, and sometimes daily. The government’s stated goal is to keep workforces connected with their employers so that economic recovery will be easier. This can place a heavy burden on businesses that are trying to understand how to get through the economic problems related to COVID-19, while taking care of their employees
ISSUES RELATED TO APPLICATIONS FOR COVID-19 PAYCHECK PROTECTION PROGRAM LOANS
April 7, 2020
This series of questions highlights the issues we have encountered in helping clients complete the application process. For official guidance please refer to 13 C.F.R. 120 (the final interim rule) and Section 1102 et. seq. of the Coronavirus Aid, Relief, and Economic Security Act (CARES Act). This summary is not legal advice and only addresses Paycheck Protection Loans. Prospective borrowers should coordinate all relief they seek through the U.S. Small Business Administration (SBA) whether or not under the CARES Act, and should consult with counsel
Following a weekend announcement of expanded tax relief in response to the COVID-19 crisis, the Internal Revenue Service (“IRS”) has now clarified and expanded relief regarding tax payments and return due dates.
IRS Notice 2020-18 postpones until July 15, 2020, the date for filing any federal income tax return or federal income tax payment that would otherwise be due on April 15th. This includes individual, business entity and trust returns. There is no requirement to file a request for an extension. The IRS emphasizes that the relief is available
Internal Revenue Service and Department of Labor Announce Quick, Comprehensive Reimbursement for Paid Sick Leave Costs; Non-Enforcement Policy
March 21, 2020
The Internal Revenue Service (“IRS”) and the U.S. Department of Labor (“DOL”) have announced that they will provide guidance next week concerning the details of the requirement for employers having fewer than 500 employees to provide paid sick leave in response to COVID-19 related issues. The primary message of the announcement is that employers will be reimbursed fully and promptly for providing the required sick leave benefits.
The announcement provides that under the coming guidance, eligible employers
Tax and Employee Benefits Aspects of the U.S. Government’s Initial Pandemic Response
March 21, 2020
This week has been filled with updates on the progress of Coronavirus (COVID-19) moving across the globe. Predictions of the severity of the disease’s impact have sent financial markets spinning, causing widespread stockpiling of food and essentials, and sent America’s workforce home to quell the spread of disease. Businesses everywhere are trying to stay afloat while ensuring that employees also have the necessary resources. Meanwhile, Congress continues to work on economic stimulus measures, several of which passed and were signed in to law
The Internal Revenue Service Waives Requirements in Response to Coronavirus
March 11, 2020
Today, March 11, 2020, the Internal Revenue Service (“Service”) has provided temporary guidance for High Deductible Health Plans in response to the rapid spread of the Coronavirus (COVID-19). Employers are asking daily for guidance regarding how to manage their workforces to minimize the spread of the disease while complying with applicable employment laws. Testing and treatment for the disease is a top priority for many.
In response, the Service has issued Notice 2020-15 allowing High Deductible Health Plans to offer emergency response to the current
The Tax Cuts and Jobs Act of 2017 prohibits tax deductions for settlement payments and attorney’s fees related to sexual harassment settlement agreements when the agreement contains a confidentiality provision.
In my previous blog on the subject, I indicated that, although some commentators raised concerns that the deductions of both employers and employees were at risk, the provision likely only penalizes employers who insist on confidentiality provisions.
Now, the Internal Revenue Service (IRS) has confirmed in newly-issued frequently
Arizona Proposes to Reduce Tax Rates to Give More Time to Address Federal Tax Law Changes
January 25, 2019
One of the first orders of business in each new session of the Arizona legislature is to adopt a comprehensive statute that conforms Arizona’s tax law to federal tax law so that items of income and expense are treated the same under both. Now, the Arizona legislature is in the process of considering how to adjust Arizona tax laws in light of federal tax law changes that decreased federal taxes for most taxpayers but would cause an increase in
The Tax Cuts and Jobs Act of 2017 (the “2017 Act”) purports to bring broadly lower tax rates to most U.S. individuals and companies; however, it does so at the expense of clear tax policy objectives in many areas. That lack of a comprehensive, policy-based approach will now have consequences related to the deductibility of costs associated with controversies for both businesses and individuals. Business defendants in sexual harassment suits will not be allowed to deduct the cost of settlements
The Tax Cuts and Jobs Act of 2017 (the “2017 Act”) purports to bring broadly lower tax rates to most U.S. individuals and companies; however, it does so at the expense of clear tax policy objectives in many areas. That lack of a comprehensive, policy-based approach will now have consequences related to the deductibility of costs associated with controversies for both businesses and individuals. Business defendants in sexual harassment suits will not be allowed to deduct the cost of settlements
As we approach the end of 2017, many uncertainties prevail in the United States tax system. Late last week, Congressional leaders proposed extensive tax reform legislation that has sparked sharp debates about rates, deductions, eliminating some taxes, and frankly, whether any of it can be actually passed into law. There is, however, prior legislation that goes into effect in just 8 weeks that may require the prompt attention of certain businesses and individuals. Effective January 1, 2018,
