[UPDATED 6.5.20] Guidance & New Legislation on Forgiveness for PPP Loans
Since our original post on May 20 (text below), new legislation has addressed some matters regarding the SBA’s guidance on PPP Loan Forgiveness. Some take-aways from the new legislation are: Instead of an 8-week covered period for distribution of funds, the period is now 24 weeks or December 31, 2020, whichever is earlier. However, borrowers with existing loans can elect to keep the...
read moreWhat You Need to Know about Your Retirement Accounts as a Result of the Pandemic
Federal legislation was recently enacted which affects your retirement accounts–such as IRAs, 401ks, 403(a)s, 403(b)s, and governmental 457(b) plans. This post is a summary of important changes. I. Changes for All Individuals All Required Minimum Distributions (RMDs) are waived for the calendar year 2020. If you have already received a RMD for 2020, you may either roll it over into a...
read moreApril 15 is NOT Tax Day. Here are 5 Things You Need to Know about Taxes This Year
Today we’re talking about important changes to state and federal tax deadlines, relaxed rules on hardship withdrawals from 401(k)s, and a deduction that can help employers and at-home workers. Here are five things to know about tax matters in 2020: 1. IRS Extension for Filing and Paying TaxesThe April 15 deadline for the filing of federal income tax returns and payment of the taxes has...
read moreAddressing COVID-19: What Employers Need to Know
The COVID-19 pandemic has placed employers in the difficult position of trying to navigate financial losses while addressing employee matters and health concerns. This fact sheet is intended to provide some critical information that employers need to know during this uncertain time, including highlights of the federal legislation enacted in recent weeks in response to the COVID-19 pandemic....
read moreTennessee Supreme Court Tackles Liquor Tax, School Funding, & Judicial Canons of Construction in Five Related Opinions
Understanding Tennessee’s liquor laws is not for the faint of heart. Some counties are “bone dry.” Some are “dry” but sell beer. Some have “liquor by the drink,” but only if a local referendum has approved that type of sale. Wine in grocery stores is a saga unto itself. The collection and distribution of liquor taxes is no less confusing, as a...
read moreAs Tax Day Approaches, a Reminder about Withholdings
The 2017 federal tax reform legislation is just now beginning to show its impact for many filers. As April 15 approaches, many individual taxpayers may begin to see different totals than they have been used to on their tax returns. The change in the standard deduction has gotten lots of attention, but the new limits on deductibility are also having an effect on the bottom line. Last year, the...
read moreHave you had your “Paycheck Checkup”?
The most recent tax reform laws could have a significant impact on filers who have itemized their deductions in the past. (Many people have historically itemized their deductions to take advantage of mortgage interest deductions and deductions for donations to charity.) People who’ve itemized deductions on past tax returns should consider doing a “paycheck checkup.” You can use the updated IRS...
read moreState Judicial Reformation of Trust Sufficient to Prevent Asset Inclusion for Federal Tax Purposes
A state law provision that enables a court to reform errors in a trust document was sufficient for IRS purposes under I.R.C. § 2041 to prevent the inclusion of the trust assets in the estate. While letter rulings are, of course, limited to their facts, this is generally good news for the correction of errors and the implementation of tax-planning in Tennessee. In this case, a Grantor created an...
read moreAvoiding Private Foundation 507(c) Termination Tax Means Less Pain for the Gain
Becky Farr Seidel of the Leaffer Law Group wrote a great piece recently for Bloomberg BNA’s Estates, Gifts and Trusts Journal addressing issues in terminating private foundations. Here are some salient points, and you can read the entire article here. Unlike other 501(c)(3) entities, private foundations are subject to additional stringent regulations under Chapter 42 of the Code. For that...
read moreGuidance Issued for Private Foundations with Foreign Grantees
New guidance for private foundations from the IRS addresses treatment of foreign grantees. The groups may wish to treat grants to foreign grantees as qualifying distributions that satisfy the minimum distribution requirements rather than as expenditures requiring expenditure responsibility. If a private foundation makes a “good faith determination” that a foreign grantee qualifies as a...
read moreNo Medical Deduction for IVF Expenses; I.R.C. § 213 Doesn’t Apply for All Surrogacy Situations
Under I.R.C. § 213, a deduction is available for medical services provided to a taxpayer, his/her spouse, and dependents. But this doesn’t mean that all IVF procedures and other pregnancy-related costs are covered simply because the taxpayer’s dependent is ultimately conceived by virtue of the procedures… Joseph Morrissey and his partner decided to try to have children...
read moreHow Trump’s Tax Proposal Affects You
Trump’s new tax proposal makes some changes that could affect your estate planning. Both the estate and generation-skipping taxes get the boot. What about stepped up basis under I.R.C. § 1014? R.C. § 1014 provides that, for most property, a decedent’s beneficiaries receive a step up in basis to fair market value at the decedent’s date of death. Thus far, the proposed changes don’t affect...
read moreProposed Minority Discount Regulations Bite the Dust
Practitioners had been worried that the Section 2704 proposed regulations were going to affect minority discount valuations for gift and estate tax purposes. Worry no more.The U.S. Department of the Treasury’s Second Report to the President on Identifying and Reducing Tax Regulatory Burdens, Executive Order 13789, October 2, 2017, notes that the main difficulty with the proposed...
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