MARINA VISHNEPOLSKAYA, ESQ., P.C.

Providing sophisticated legal solutions
to address your corporate and tax
business needs.

Providing sophisticated legal solutions 
to address your corporate and tax 
business needs

Tax & Benefits Blog

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Excluding High-Taxed Foreign Income Under Final GILTI HTE Regulations and Proposed Section 954(b)(4) Regulations

Posted on August 24, 2020 at 4:05 PM

Background


On July 20, 2020, Treasury and the IRS issued proposed regulations (“Proposed Regulations”) under section (“Section”) 954(b)(4) of the Internal Revenue Code of 1986, as amended (“Code”) conforming the rules for electing into a high-tax exception (“HTE”) for “subpart F” income and a high-tax exclusion from global intangible low-taxed income (“GILTI”) (“GILTI HTE”). As part ...

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Overview of Proposed Carried Interest Regulations Under Code Section 1061

Posted on August 4, 2020 at 8:20 PM

Background


On July 31, 2020, Treasury and the IRS issued proposed regulations, REG-107213-18 ("Proposed Regulations") under section (“Section”) 1061 of the Internal Revenue Code of 1986, as amended (“Code”) regarding taxing gain from certain carried interests held less than three years as short term capital gain (“STCG”). Section 1061 was enacted under section 13309 of Pub. L. No. 115-97, 131 Stat. 2054 (2017) (the "Tax ...

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Covid-19 Leave-Based Donation Program Necessitates Strict Compliance With Safe Harbor

Posted on July 27, 2020 at 11:45 AM

On June 11, 2020, the IRS issued Notice 2020-46 (the “Notice”) permitting employers to claim a charitable contribution deduction under Section 170(c) of the Internal Revenue Code of 1986, as amended, for cash payments to charities amounting to paid leave donated by employees. Alternatively, even if the requirements for a Section 170(c) deduction are met, an employer may deduct the payment as an ordinary and necessary business expense under Section 162(a). ...
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Extension of PPP, Discontinued EIDL Advances Offer Limited Tax Planning Opportunities for Employers in Financing Payroll

Posted on July 12, 2020 at 2:45 PM

On July 4, 2020, legislation introduced in the Senate on June 30, 2020, initially the last date for submitting an application under the Paycheck Protection Program (PPP), was signed into law.  The bill, S. 4116, titled, "A bill to extend the authority for commitments for the paycheck protection program and separate amounts authorized for other loans under section 7(a) of the Small Business Act, and for other purposes" extended the covered period for the federal relief p...
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PPP Flexibility Act Approaches Tax Parity Between Loan Forgiveness and Employee Retention Credits

Posted on June 28, 2020 at 2:50 PM

Section 1102 of the Coronavirus Aid, Relief, and Economic Security Act, Pub. L. No. 116-136 (2020) (CARES Act) sets forth requirements for loans issued to small business employers, including nonprofit organizations under the Paycheck Protection Program (PPP) administered by the United States Small Business Administration (SBA).  Under CARES Act section 1106, a PPP loan amount for costs and payments incurred during the covered period beginning on the originati...
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SBA Clarifies Inclusion of Foreign Affiliates in Employee Limit for PPP Loan Eligibility

Posted on May 19, 2020 at 1:45 AM

Employees of foreign affiliate of a small business based in the United States count toward the 500-employee limit under SBA guidance issued on May 18, 2020 (SBA-2020-0030) for loan eligibility under the Paycheck Protection Program (“PPP”), economic assistance for employers affected by COVID-19, authorized in section 1102 of the CARES Act, Pub. L. No. 116-136. SBA published on its website an overview on April 3, 2020, which provided criteria for determining affiliates of an employ...

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Tax Credits and PPP Loans for Eligible Employer Payroll Costs

Posted on May 6, 2020 at 7:20 PM

On May 5, 2020, three senators who are leaders of their respective congressional tax-writing committees asked Treasury in a letter to reverse Notice 2020-32 issued last week denying deductions for certain small business expenses that are subject to loan forgiveness. Section 1102(a) of the Coronavirus Aid, Relief, and Economic Security Act, Pub. L. No. 116-127 (2020) (“CARES Act”) sets forth rules for forgiveness of certain covered loans to small business employers under the...

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Bill Passed by Senate Provides Further Allocations for PPP Loans

Posted on April 21, 2020 at 11:55 PM

Today, the Senate passed the bill, Paycheck Protection Program and Health Care Enhancement Act (“PPP and HCE Act”), which provides generally $484 billion in new coronavirus aid to small businesses and hospitals. The PPP and HCE Act includes a further allocation for the PPP administered by the Small Business Association (“SBA”), following initial $349 billion funding under the Coronavirus Aid, Relief, and Economic Security Act (“CARES Act”). The PPP funds,...

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Federal Paid Leave Tax Credits for Religious Employees Affected by Coronavirus

Posted on April 5, 2020 at 1:35 PM

Paid Leave requirements and tax credits under the Families First Coronavirus Response Act (the "Act"), as amended by the CARES Act, apply generally to private sector and not-for-profit employers, including religious organizations, that are under 500 employees, and to self-employed individuals. MInisterial workers employed by religious organizations generally are subject to self-employment tax on their earnings under section ("Section") 1402(a)(8) of the Internal Revenue...
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IRS Notice 2020-22 Offers Guidance on Retaining Withheld Taxes in Anticipation of Payroll or Employee Retention Tax Credits

Posted on April 1, 2020 at 5:35 PM

IRS Notice 2020-22, issued on March 31, 2020, offers guidance with respect to the payroll credits under the Families First Coronavirus Response Act sections 7001 or 7003, or the employee retention credit under the Coronavirus Aid, Relief, and Economic Security ("CARES") Act section 2301 for avoiding a failure to deposit penalty under section 6656 ("Section 6656") of the Internal Revenue Code of 1986, as amended ("Code").  The refundable tax credits, respectively, w...
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