Category Archives: Business and Tax Law

COVID-19: District of Columbia Emergency Legislation Providing for Payment Plan Application Process and Rental Increase Restrictions Under Retail Leases

On May 13, 2020, the “Coronavirus Omnibus Emergency Amendment Act of 2020” was approved by District of Columbia Mayor Muriel Bowser which imposed new requirements upon landlords and tenants under residential and commercial retail leases, as well as touching upon many other areas of District of Columbia law including, but not limited to, alcohol beverage regulation, cooperative association remote meetings, ... Read More

Client Alert: Sorting Through The Various COVID-19 Relief Programs and Conflicting Guidance on Loan Forgiveness

Small businesses and charities may be sorting through the various programs recently enacted and signed into law, trying to figure out which one is best. While each business or charity is unique and no one option is best for all, bets can be hedged and more than one program may be utilized. The Paycheck Protection Program (“PPP”) enacted through the ... Read More

Families First Coronavirus Response Act

On March 18, 2020, the 118th Congress of the United States signed into law the Families First Coronavirus Response Act, which will go into effect on April 2, 2020. The primary details of this newly enacted law are as follows: EMERGENCY FAMILY AND MEDICAL LEAVE EXPANSION ACT (Section 3101) Applies to employers with fewer than 500 employees, but more than 25 ... Read More

SCOTUS Opinion: Court Strikes Down The “Bob Richards Rule”

The IRS allows affiliated corporations to file a group tax return. When the IRS issues a tax return to the group as a whole, federal law does not describe how to allocate the funds. The Ninth Circuit created a rule for that when it decided In re Bob Richards Chrysler-Plymouth Corp., 473 F.2d 262 (1973). The "Bob Richards Rule" mandated ... Read More

SCOTUS Opinion: Court Enforces Removal Jurisdiction In Vacating Orders Against The Catholic Church

The case of Roman Catholic Archdiocese of San Yuan, Puerto Rico v. Feliciano concerned complaints filed by employees of Catholic schools in Puerto Rico alleging wrongful termination of their pension plan. Initially, the Puerto Rico trial court determined that the Roman Catholic and Apostolic Church in Puerto Rico was the proper entity that owed obligations to the plan, and ... Read More

Employers Receive Additional Guidance with the New Department of Labor Rule, Making It Easier to Avoid Classification as a Joint-Employer

The Department of Labor issued a final rule on January 12, 2020 regarding the interpretation of joint employer status under the Fair Labor Standards Act (FLSA). The FLSA requires employers to pay employees the federal minimum wage for every hour worked and to pay overtime for every additional hour worked over 40 during a workweek. Liability for making such payments falls ... Read More

End of the Calendar Year: A Good Time to Confirm Compliance Issues for Businesses

Corporations, limited liability companies (LLCs), and other business entities are certainly aware of the need to make certain end of year decisions for income tax purposes, but it also is a good time to perform a business audit for possible state, local, and personal property tax return deadlines. It is also advisable for businesses to review other corporate compliance issues, such ... Read More

Tax Filing Deadlines – A Good Time to Confirm Other Compliance Issues for Businesses

Corporations, limited liability companies (LLCs), and other business entities are certainly aware of tax filing deadlines in the month of April, but tax season is also a good time to perform a business audit for other important dates, including applicable state and local requirements and personal property return deadlines. It is also advisable to review other corporate compliance issues, such as ... Read More

Department of Labor Proposes New Overtime Rules

Employers will recall during the Obama administration that the salary threshold for determining overtime eligibility under the Fair Labor Standards Act was changed from $23,660 per year to $47,476.00 per year. Many employers modified their own employment policies to meet the new standard despite the federal regulations never being implemented due to a successful court challenge. The Trump administration has ... Read More

Are Business Lunches Entertainment?

The new tax legislation, called the Tax Cuts and Jobs Act (TCJA) eliminated most deductions for client entertainment expenses. Prior law allowed a 50 percent deduction for both meals and entertainment expenses, and so there was no need for businesses to differentiate between the two categories. The newly enacted TCJA eliminated deductions for entertainment, amusement, and recreation expenses, but ... Read More

Pending Emergency Legislation to Affect Tax Sales and Recordation Tax on Leases

The Washington, D.C. Council is considering B22-922: Fiscal Year 2019 Budget Support Congressional Review Emergency Act of 2018 which, among many provisions, contains a few changes of interest to real estate practitioners which are found here. Recordation Tax: On leases in excess of 30 years, the Washington, D.C. government may determine the fair market value of the leasehold interest ... Read More

D.C. Tax Rate Changes Effective October 1, 2018

The District of Columbia’s Office of Tax and Revenue has issued a notification of changes in various tax rates that will become effective on Monday, October 1, 2018. The real property tax for Class 2 properties will increase to $1.65 per $100 of value for properties worth less than $5,000,000; $1.77 from $5 million to $10 million; and $1.89 for ... Read More

Conservation Easements: Congress Giveth and the IRS & Tax Court Taketh Away

By: Nancy Ortmeyer Kuhn, Esq. Charitable conservation easements have long been controversial, and there was some concern that the new tax legislation enacted in December 2017[1] would limit the conservation easement charitable deduction.  However, there were no limits placed upon conservation easements, and even the syndicated easements[2] were left alone.  This particular area of the law is ... Read More

Key Provisions of the Tax Cuts and Jobs Acts

By:  Nancy Ortmeyer Kuhn, Esq. The “Tax Cuts and Jobs Act” or “TCJA” is the new tax law effective for tax years beginning January 1, 2018 or later.  TCJA has many interconnected parts and it is not yet completely clear how some of these parts will co-exist to impact certain taxpayers.  Already, many questions have arisen regarding interpretation of terms and ... Read More

Exempt Organizations: Tax Reform Provisions to Watch

Part II:  Senate and House proposals By Nancy Ortmeyer Kuhn, Chair of Jackson & Campbell's Tax Group The Joint Committee on Taxation released the Senate’s “Description of the Chairman’s Mark of the ‘Tax Cuts and Jobs Act’” on November 9, 2017.  The Ways and Means Committee of the U.S. House of Representatives previously released its long-awaited tax bill on November 2, ... Read More