Cannabis (or marijuana) dispensaries have long stated that they are subjected to harsher tax consequences under the Internal Revenue Code (“IRC” or “Code”) than their “legal” counterparts. Specifically, they have argued, in and out of court, that their businesses pay tax on what may otherwise be losses for other businesses but are considered income due to IRC § 280E. At the end of May, however, Harborside Health Center (“Harborside”) filed its appeal brief to the Ninth Circuit Court of Appeals with the hopes of ending this disparate treatment.
Harborside’s ...
By Jennifer L. Rath, Enrolled Agent
If a taxpayer owes federal taxes, but does not have the financial ability to pay these taxes in full, the taxpayer can apply for a payment plan with the IRS to pay these taxes, and usually on a monthly basis. However, depending on the amount of taxes owed, the IRS may require the taxpayer to submit detailed financial information in order for the IRS to evaluate a suitable monthly payment. For this purpose, the IRS requires a taxpayer to prepare and submit a Collection Information Statement (CIS), typically through a Form 433, and with supporting financial ...
On May 15, 2020 the Small Business Administration (SBA) released a Paycheck Protection Program Loan Forgiveness Application with related instructions. The application and instructions help answer some of the questions surrounding a business’s eligibility for forgiveness (see our prior blog for an overview of forgiveness issues). A detailed overview of the application and instructions is available here. Some of the key issues addressed in the application and instructions include:
- The 8 week covered period during which qualifying expenses are measured begins on the date a ...
The South Carolina General Assembly passed the Workforce and Senior Affordable Housing Act on May 12, 2020, and the Act was signed into law by the Governor on May 14, 2020. The Act is effective for qualified projects placed in service after January 1, 2020 and before December 31, 2030.
The Act provides a state tax credit against income taxes, bank taxes, corporate license fees, and insurance premium taxes in an amount equal to the federal low income housing tax credit allowed with respect to a qualified project. The broad array of creditable taxes should make the credits attractive to ...
The Payroll Protection Program (PPP) under the CARES Act can provide eligible businesses with a forgivable loan from the government to be used to keep and pay employees, and for certain other purposes, and to help businesses, their owners, and their employees get through this difficult COVID-19 pandemic. However, the amount of a PPP loan – and the amount that potentially can be forgiven - may depend on the type of legal entity under which a business operates.
For example, partnerships/limited liability companies and self-employed individuals (including an individual operating ...
Presently, many human resource departments are scrambling to address issues raised by the passage of the Families First Coronavirus Response Act (the “FFCRA”) and the Coronavirus Aid, Relief and Economic Security Act (the “CARES Act” collectively with the FFCRA hereinafter referred to as the “COVID-19 Legislation”). While many of the provisions of the COVID-19 Legislation are straightforward, the COVID-19 Legislation contains provisions that implicate a number of employee benefit requirements that could get overlooked. This article reviews two disclosure ...
In response to the COVID-19 pandemic, the Internal Revenue Service and the Pension Benefit Guaranty Corporation extended many deadlines for retirement plans, discussed below.
Remedial Amendment Period Extensions
In the first set of extensions, on March 27, 2020 the IRS announced an extension of the remedial amendment period for 403(b) plans from March 31, 2020 to June 30, 2020, and also extended the remedial amendment period for preapproved defined benefit plans from April 30, 2020 to July 31, 2020. These extensions provide welcome relief to employers trying to amend plans in a new ...
One of the key benefits of a Paycheck Protection Program (PPP) loan is the ability to have all or a portion of the loan forgiven. The amount of a PPP loan that will be forgiven is based initially on the qualifying costs an employer incurs during the 8 week period following loan funding (at least 75% of which must be used for payroll costs to qualify for 100% loan forgiveness). The initial forgiveness amount is then subject to reduction under a headcount test and a salary test. The headcount test and salary test reductions, however, do not apply in certain instances when headcount and salary are ...
Payroll Protection Program (PPP) loans under the CARES Act are available not only to small business but to self-employed individuals, too. Banks began accepting PPP loan applications for self-employed individuals beginning April 10th. The Small Business Administration (SBA) has now issued helpful guidance to self-employed individuals who may apply for these PPP loans. More information about the CARES Act and PPP loans can be found at www.burr.com.
Under the new SBA guidance, an individual is eligible for a PPP loan if: (i) you were in operation on February 15, 2020; (ii) you are an ...
Due to the COVID-19 pandemic, many employers have furloughed some or all of their workforce in South Carolina. Furloughed employees may now be entitled to receive unemployment benefits, and enhanced by $600 per week by the federal government through the CARES Act.
In South Carolina, unemployment benefits paid to unemployed workers are funded by the South Carolina Unemployment Insurance Tax (UI Tax). The UI Tax – also known as South Carolina’s version of “SUTA” – is imposed on employers and paid to the South Carolina Department of Employment and Workforce (SCDEW) and which ...