H.R. 3684, known as the Infrastructure Investment and Jobs Act, passed the Senate on August 18th by a vote of 69–30 and now goes to the House of Representatives for consideration. To become law, the House must pass a companion bill and then the differences between the two must be worked out in committee prior…
The Limited Liability Company (or LLC) is a popular form of organization for new businesses in the United States. LLCs generally provide the same personal liability protection as a corporation, but without the additional layer of taxation or burensome administrative requirements. These requirements, commonly referred to collectively as “the corporate formalities,” generally include naming a…
We are often asked for guidance on how long clients should retain personal income tax records. You may have to produce those records if IRS (or a state or local taxing authority) audits your return or seeks to assess or collect a tax. In addition, lenders, co-op boards, or other private parties may require that…
Equity based compensation such as options or restricted stock has grown tremendously in popularity in recent years. For startups and small businesses, equity can be a valuable and effective means of compensating key employees (and incentivizing retention) during early growth periods when cash flow is tight. We are frequently asked by clients to help determine…
One of the major ambiguities in virtual currency reporting in recent years has been the question of whether non-US exchanges should be considered “foreign financial accounts” for the purpose of reporting on FinCEN Form 114 (commonly known as the FBAR). Generally, a U.S. person who has a financial interest in, or signature or other authority…
Here is an overview of key provisions in the recent COVID relief legislation that affect individuals. The legislation is the COVID-related Tax Relief Act of 2020 (the “Act” or COVIDTRA) and the Taxpayer Certainty and Disaster Tax Relief Act of 2020 (TCDTR), both of which are part of the Consolidated Appropriations Act, 2021. RECOVERY REBATE/ECONOMIC…
At the end of 2020, Congress passed a new law that provides for additional relief related to the coronavirus (COVID-19) pandemic. This law, the Consolidated Appropriations Act, 2021 (CAA, 2021), includes a second draw of Paycheck Protection Program (PPP) loans (PPP Second Draw Loans). It also allows businesses to deduct ordinary and necessary expenses paid…
Think again. On December 11, 2020, the US Congress passed the Corporate Transparency Act by a veto-proof majority in both houses. The Act prohibits the formation of so-called “anonymous” companies by requiring corporations and limited liability companies to disclose their true owners (by name, date of birth, and identification number) to the Department of the…
The US Securities and Exchange Commission (SEC) recently announced changes to Regulation Crowdfunding (Reg CF) meant to increase the usefulness of crowdfunding as a fundraising medium for small businesses. The changes, expected to go into effect in early 2021, include: Increasing the maximum amount companies can raise from $1.07M to $5M (inflation adjusted). Amending the…
Edit 12/21/20- The relief bill passed by the Congress in late December 2020 explicitly allows expenses covered by PPP funds to be deductible in the year incurred, whether or not the associated loan is forgiven. The information provided below is no longer correct under current law. Section 1102 and 1106 of the Coronavirus Aid, Relief,…
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