Once again, a borrower who argued his debt was cancelled when he received an IRS Form 1099-C was told by the court that it was merely discharged. The court says “discharge” is not “actual discharge.” While acknowledging that...more
Before enactment of the 2021 Consolidated Appropriations Act on December 27, 2020, the Internal Revenue Service took the position that taxpayers could not deduct expenses paid with proceeds of a forgiven PPP loan. By passage...more
COVID-19 Updates April 9, 2021 *The SBA opened the application process on Thursday, April 8, but has temporarily suspended the SVOG application portal due to technical difficulties. Applicants may continue to register for a...more
4/9/2021
/ Agents ,
Business Losses ,
Coronavirus/COVID-19 ,
Entertainment Industry ,
Entertainment Venues ,
Federal Grants ,
Loss of Income ,
Managers ,
Paycheck Protection Program (PPP) ,
Registration ,
SBA ,
Talent Management
Join us on Thursday, March 18 for the second installment in our 3-Part webinar series on the Paycheck Protection Program and formulate your game-plan before you apply for forgiveness.
McGlinchey attorneys Richard Aguilar,...more
3/5/2021
/ Borrowers ,
Economic Injury Disaster Loans ,
Employee Retention ,
Lenders ,
Loan Applications ,
Loan Forgiveness ,
Nonprofits ,
Paycheck Protection Program (PPP) ,
Relief Measures ,
Small Business ,
Small Business Loans ,
Tax Credits ,
Tax Planning ,
Webinars
When debt is forgiven, as much of the funding lent through the CARES Act’s PPP may be, a lender may be required to file IRS Form 1099-C with the IRS and to furnish a copy to the borrower. As a lender, do I need to file the...more
Do I have to report to the IRS a payment I make to a lawyer?
If you make payments to a lawyer, you may be required to file an IRS form to report that payment. For a payment to a lawyer to be reportable to the IRS, it...more
In a previous alert we reported that the Consolidated Appropriations Act, 2021, which contains The COVID-related Tax Relief Act of 2020, specifically provides that “no deduction shall be denied, no tax attribute shall be...more
The Treasury Department and the IRS received 21 written comments in response to the like-kind exchange proposed regulations (see our earlier alert). The recently issued final IRS like-kind exchange regulations adopt some...more
Unless you are an exempt entity, the Corporate Transparency Act will require you to disclose the beneficial owners of your company to the government. You will not be required to do so, however, until Treasury issues...more
Congress has overridden the IRS position that expenses paid with PPP loan proceeds cannot be deducted if the PPP loan is forgiven.
In our November 20, 2020, alert captioned “Can I Deduct Expenses Paid with a PPP Loan?” we...more
The Internal Revenue Service is often a significant creditor in a bankruptcy proceeding, frequently taking priority over other creditors. In this episode, McGlinchey Tax attorney Douglas Charnas (Washington, DC) and Financial...more
12/8/2020
/ Bankruptcy Court ,
Chapter 11 ,
Chapter 7 ,
Commercial Bankruptcy ,
Creditors ,
Debtors ,
Federal Taxes ,
Income Taxes ,
IRS ,
Tax Debt ,
Tax Liability
In recently released Revenue Ruling 2020-27, the IRS addressed the following two fact patterns:
•First, Maria received a PPP loan in 2020 that she used to pay “Covered Expenses.” Maria meets the requirements for...more
The Internal Revenue Service has announced that it will be issuing proposed regulations clarifying that certain state or local income taxes imposed on and paid by a partnership and/or an S corporation will not be subject to...more
IRS Announcement 2020-12 notifies lenders that they should not file IRS Form 1099-C with the IRS or furnish it to borrowers to report the amount of qualifying forgiveness with respect to covered loans made under the Paycheck...more
The U.S. District Court for the District of Delaware held that corporate income tax liability attributable to transactions before the filing of a bankruptcy petition are nevertheless administrative expenses because the...more
The Internal Revenue Service has issued a temporary regulation and a proposed regulation (pursuant to authority granted in the Families First Act and the CARES Act) to allow the agency to administratively recapture any excess...more
On July 6, 2020, the IRS issued Tax Tip 2020-80 to remind business taxpayers that, commencing with payments made in 2020, they must report any payments of over $600 per year for services by non-employees on Form 1099-NEC (for...more
7/7/2020
/ 1099s ,
Attorney's Fees ,
Barter ,
Compensation ,
Fees ,
Non-Employees ,
Penalties ,
Popular ,
Protecting Americans from Tax Hikes (PATH) Act ,
Reporting Requirements ,
Self Employed ,
Taxpayer Identification Number
The 2017 Tax Cut and Jobs Act (TCJA) limited like-kind exchanges occurring after 2017 to “real property held for productive use in a trade or business or investment if such real property is exchanged for real property of a...more
To address the adverse economic consequences to businesses and employees caused by the coronavirus, the Coronavirus Aid, Relief, and Economic Security Act (the CARES Act) was enacted. It amends Section 7 of the Small Business...more
Before the enactment of the 2017 Tax Cuts and Jobs Act (TCJA), qualified leasehold improvement property, qualified restaurant property, and qualified retail improvement property had a 15-year recovery period for depreciation...more
6/16/2020
/ Bipartisan Budget Act ,
CARES Act ,
Coronavirus/COVID-19 ,
Depreciation ,
Filing Deadlines ,
IRS ,
K-1 ,
Partnerships ,
Property Improvements ,
Revenue Procedures ,
Tax Cuts and Jobs Act ,
Tax Returns
The CARES Act temporarily suspends retroactively changes made to the treatment of net operating losses by the 2017 Tax Cuts and Jobs Act (the “2017 Tax Act”). It also suspends retroactively the limitation on excess business...more
Treasury and IRS announced earlier this week that the time for paying taxes will be extended 90-days. See “IRS Does Not Extend Time to File Tax Returns, But Does Extend Time to Pay Taxes.” Today, Treasury Secretary Mnuchin...more
On Wednesday, March 18, 2020, the IRS issued Notice 2020-17, which grants taxpayers a 90-day extension to pay the taxes due on their 2019 tax returns. The Notice does not extend the time to file tax returns. Of course, as is...more