Tag Archives: irs

Client Alert: Employers Liable for Deferred Payroll Taxes

The Internal Revenue Service has issued guidance for employers who, in response to the President’s Executive Memorandum dated August 8, 2020, choose to defer payroll taxes for employees from September 1, 2020, through December 31, 2020. In Notice 2020-65, issued August 28, 2020, the IRS specified that the deferred payroll taxes are due to the IRS prior to ... Read More

Client Alert: Payment Protection Program Grants May Result in Unexpected Taxable Income

The Paycheck Protection Program (“PPP”) enacted through the Coronavirus Aid, Relief, and Economic Security (CARES) Act (P.L. 116-136) is the government relief program that provided loans to small businesses to cover payroll, rent or mortgage payments and utilities. The loan may be forgiven under certain prescribed circumstances. The issue for recipients now is how to account for the funds. There ... Read More

Client Alert: Economic Impact Payments & The IRS’ Return Policy

In the past several weeks the IRS has issued millions of checks to certain individuals, compliments of a Congress which is desperately trying to keep our economy running. On May 6, 2020, the IRS issued several new Q&A’s on its website addressing what recipients should do if an Economic Impact Payment (“EIP”) is received and the name on the check is ... 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

Client Alert: Internal Revenue Service Suspends Certain Collection Actions

On March 25, 2020, the Internal Revenue Service (“IRS”) introduced its “People First Initiative” in which it will suspend certain tax collection activities currently ongoing and limit the number of new collection actions.  These limitations will run initially from April 1, 2020, through July 15, 2020.  The implication from the IRS is that the July 15th end date ... Read More

Conservation Easements: Saving Our Green Spaces or Illegal Tax Shelters?

A property owner who donates an easement of his or her property to a charitable organization for conservation or historical purposes is permitted to take a charitable deduction for the value of that donated property easement. The statutory requirements are set forth in Internal Revenue Code §170(h). There are many conservation easements that are fulfilling the intent of the legislation ... Read More

Tax Treaty Interpretation: Nonjusticiable Political Question?

The U.S. Court of Appeals for the District of Columbia reversed and remanded the lower court’s decision in a case involving the interpretation of the US-Switzerland tax treaty. In Starr International Company, Inc. v. United States, No. 1:14-cv-01593  (D.C. Cir. Dec. 7, 2019), Starr sought a tax refund for a portion of the 30 percent withholding taxes automatically ... Read More

Forgiven Debt – Taxable to the Borrower?

Generally, if a borrower is required to pay a sum certain at a specific time, the obligation is considered “debt” under the Internal Revenue Code.  If the lender forgives a portion, it has “cancelled” the debt and the borrower must declare and take into income the dollar amount cancelled.  A lender may unilaterally decide that a debt is not collectable ... Read More