Tax MonitorBusiness PlanningCharging Orders – Not so ExclusiveFebruary 19, 2025 In many states, members of multi-member limited liability companies (“MLLC’s”) find comfort under applicable state law providing a charging order[1] as the sole and exclusive remedy available to creditors of a debtor-member in an MLLC with respect to the debtor-member’s ownership interest in such entity. Despite this common state law limitation, the recent decision in United States v. Driscoll, … Time to Check Your Organizational Chart For Dormant Tax-Exempt EntitiesJanuary 13, 2025 Does your company have any dormant tax-exempt entities in your organizational chart? If so, read on. In recent Private Letter Ruling (PLR) 202437007[1], the Internal Revenue Service (IRS) revoked the tax-exempt status of an organization. The organization had qualified as a tax-exempt supporting organization under Section 501(c)(3) and Section 509(a)(3) of the Internal Revenue Code (Code), and… RELIEF FOR ERC DEFRAUDED TAXPAYERSDecember 27, 2023 Amid its review of thousands of fraudulent Employee Retention Credit (“ERC”) applications, the Internal Revenue Service (“IRS”) has instituted multiple programs to provide relief to unsuspecting taxpayers victimized by the cottage industry of specialist ERC firms born of the COVID-19 pandemic. Many of these applications aggressively interpret the “business operations suspension test” and rely on… Service Businesses Should Brace for New Kentucky Taxes in 2023April 27, 2022 The Kentucky General Assembly recently voted to override Governor Andy Beshear’s veto of House Bill 8 (HB 8) which expands the scope of services subject to the Kentucky sales and use tax to a broad range of additional services provided to businesses and consumers in the state. In 2018, the Kentucky General Assembly passed legislation expanding the scope of the Kentucky sales tax to certain… PPP Loans and Change of OwnershipOctober 6, 2020 Transactions involving changing the ownership of borrowers with outstanding Paycheck Protection Program (PPP) loans will be subject to new requirements under a procedural notice (Notice) issued by the Small Business Administration (SBA) on October 2, 2020.1 The Notice addresses the circumstances under which lenders may approve a change of ownership, when and how SBA approval must be obtained, and… Proposed Regulations Provide Guidance on Entities That Can Use Small Business AccountingAugust 31, 2020 Recent IRS proposed regulations outline new accounting method procedures for businesses who want to use the cash method for accounting and how they can qualify to do so under expanded statutory requirements. The IRS recently issued proposed regulations to implement changes made to the permissible accounting method used by small businesses under the Tax Cuts and Jobs Act of 2017 (“TCJA”). While… Electric Cooperatives May Be Eligible For PPP LoansMay 15, 2020 Electric cooperatives that are tax exempt under 501(c)(12) of the Internal Revenue Code (Code) are considered business entities organized for profit and therefore eligible for loans under the Paycheck Protection Program (PPP) as long as other eligibility requirements are met. The Treasury Department published its Eleventh interim final rule: “Business Loan Program Temporary Changes; Paycheck… One Big Question Answered – Unfortunately with a No.May 1, 2020 The IRS released Notice 2020-32 addressing expenses paid with PPP loan proceeds which are subsequently forgiven. The CARES Act exempts the forgiveness of the PPP loan proceeds from federal taxable income. There had been some question as to whether the expenses paid which gave rise to the forgiveness would be allowable as deductions for federal income tax purposes. The question arose from IRC… PPP New FundingApril 21, 2020 The Senate approved $483 billion for the Paycheck Protection Program offered through the SBA, and the House is expected to vote later this week. Any application denied because of lack of funds or not submitted, should be resubmitted immediately. Note, some banks are still processing first round loan applications, so if you had not heard anything from your bank, you should confirm your application… Additional Guidance on Paycheck Protection Program LoansApril 7, 2020 The Treasury Department has just issued additional guidance on the Paycheck Protection Program (PPP) loans. The entire FAQs are available here. The inclusion of benefits in the $100,000 compensation cap has been the source of many questions. The Q&A on this issue appears below for ease of reference. Question: The CARES Act excludes from the definition of payroll costs any employee compensation in… Late Breaking Updates About the CARES Act Paycheck Protection ProgramApril 3, 2020 The Treasury Department and Small Business Administration last night issued an interim final rule on the Paycheck Protection Program. The new rule includes updates on the applicable interest rate and documentation and due diligence requirements. The SBA released an updated application. Here is the final SBA Form 2483, which will be completed by the borrower and retained by the lender with the… The Ins and Outs of the CARE Act Paycheck Protection Program – What Lenders and Borrowers Need to KnowApril 1, 2020 The Paycheck Protection Program(“PPP”) in the CARE Act authorizes up to $349 billion dollars in forgivable loans. What do you really need to know to be a lender or a successful borrower under the PPP? Jackson Kelly’s lawyers have been sorting through the guidelines and available information and layering on years of experience in representing business to help guide our clients through the CARE… |
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