In recognition of the difficulties faced by retirement plan sponsors, participants and beneficiaries due to the COVID-19 pandemic, the Department of Labour, in conjunction with the Internal Revenue Service and the Department of the Treasury, recently issued guidance extending a number of retirement plan deadlines, including deadlines for many participant notices and benefit plan claims.
With rapid developments in local, state and federal guidance and law, the appropriate approach for each employer in relation to COVID-19 will vary depending on the nature of their work, the industries served and their location and size, among other considerations. This article outlines the practical considerations linked to working from home and privacy that employers need to know.
With rapid developments in local, state and federal guidance and law, the appropriate approach for each employer in relation to COVID-19 will vary depending on the nature of their work, the industries served and their location and size, among other considerations. This article outlines what employers need to know about furlough and the financial help that is available for employers.
With rapid developments in local, state and federal guidance and law, the appropriate approach for each employer in relation to COVID-19 will vary depending on the nature of their work, the industries served and their location and size, among other considerations. This article outlines what employers need to know about employees experiencing symptoms and employee absences.
Most states have issued some form of 'shelter in place' or 'stay at home' order to flatten the curve of COVID-19. As a result, many business operations have been temporarily suspended, unless the business is engaged in essential or critical infrastructure functions or supports businesses engaged in such functions. For businesses that are considered 'essential' and have employees still reporting to work, what steps can employers take to keep their workplace healthy and safe?
The Coronavirus Aid, Relief and Economic Security Act (CARES Act) provides relief to taxpayers in certain situations. Some of these provisions may generate refunds for prior years, such as the relaxation of restrictions on the use of net operating losses and interest deductions, as well as the retroactive availability of additional depreciation relating to qualified improvement property.
Older federal employees just got a boost from the Supreme Court's recent interpretation of the causation standard under the federal sector provision of the Age Discrimination in Employment Act. To determine the prevailing standard, the court wrestled with the phrase "free from any discrimination based on age", which provides that "[a]ll personnel actions affecting employees or applicants for employment who are at least 40 years of age… shall be made free from any discrimination based on age".
For 2020, legislation enacted in December 2019 dramatically increased penalties imposed by the Internal Revenue Code for late filing of certain employee benefit plan notices and reports. In addition, a final rule published by the Department of Labour made inflation adjustments to a wide range of penalties. This article compiles the penalty amounts that apply from 2020.
New, more employer-friendly regulations recently came into effect, determining how overtime pay is calculated under the Fair Labour Standards Act. The US Department of Labour (DOL) promulgated the regulations to "provide clarity and to better reflect the 21st-century workplace". The DOL's 2020 regulatory updates address whether certain forms of compensation can be excluded from an employee's regular rate of pay.
In today's global economy, COVID-19 raises serious concerns for healthcare providers and employers in all industries. For workers who are on the frontline caring for patients and developing diagnostics and vaccines, travelling for business or in close contact with individuals who travel or may have been affected, preparedness and prevention are crucial. This article answers FAQs regarding COVID-19.
The latest developments from the Supreme Court should be noted by taxpayers and practitioners. As with the highly contested opinion in Kisor v Wilkie, it is clear that many justices are uncomfortable with granting a high level of deference to government agencies. Deference issues continue to be at the forefront of several tax cases and will likely continue to be highly relevant in forthcoming challenges to many regulations in the wake of tax reform in 2017.
The New York General Assembly recently introduced Assembly Bill A9112. An identical New York Senate companion bill has been referred to the New York Senate Committee on Budget and Revenues, after being introduced in May 2019. The bills would impose an additional 5% tax on the gross income of every corporation with data-derived income from New York customers, but provide no further details or limitation on the scope of the proposed new imposition language.
The Illinois Department of Revenue has begun a new amnesty programme, which is running from 1 October 2019 to 15 November 2019. All taxes paid to the Illinois Department of Revenue for taxable periods ending after 30 June 2011 and before 1 July 2018 are eligible for amnesty with relief from penalties and interest. In light of the phase-out of the corporate franchise tax by 1 January 2024 (enacted by Public Act 101-9), participants in the amnesty programme should proceed with extreme caution.
The Compliance Assurance Process (CAP) programme was developed to improve large corporate taxpayer compliance with US federal tax obligations. The IRS recently announced that it was accepting applications – for the first time since 2015 – from new corporate taxpayers that meet the CAP programme eligibility requirements. As such, eligible taxpayers interested in the programme for 2020 should prepare and submit an application as soon as possible.
Legislators in Sacramento are mulling over one of the most (if not the most) troubling state and local tax bills of the past decade. AB 1270, which was recently introduced and passed by the California Assembly in May 2019, would amend the California False Claims Act to remove the 'tax bar' – a prohibition that exists in the federal False Claims Act and the vast majority of states with similar laws.
The Internal Revenue Service recently released new informal guidelines regarding Section 965 of the Internal Revenue Code. Among other things, the guidelines contain information on making successive instalment payments, filing transfer agreements as a result of certain acceleration or triggering events and other matters relating to S corporation shareholders making the Section 965(i) election.
The enactment of the Taxpayer First Act brings with it several changes to the procedures and operations of the Internal Revenue Service (IRS). The act touches on (among other things) establishing the IRS Independent Office of Appeals, improving customer service and introducing changes to enforcement. However, it appears that many of the changes to the IRS appeals process are mere guidelines and do not apply to large taxpayers.
A Wisconsin governor recently signed into law an act that either bars a reduction for, or requires amounts deducted to be added back to, Wisconsin taxable income for moving expenses deducted on federal income tax returns if the expenses are associated with a business moving out of the state or country. However, the act blatantly discriminates against interstate and international commerce and is unconstitutional.
The Treasury Inspector General for Tax Administration recently released a report indicating that changes may be in the works regarding the assertion of accuracy-related penalties in examinations handled by the Internal Revenue Service's large business and international division. The report strongly indicates that large business and international examiners and their supervisors will increase their scrutiny of accuracy-related penalty criteria in examinations.
Many states and municipalities offer substantial economic incentives to corporate taxpayers to move to and invest in their areas. Central to those offers is the belief that these incentives are received tax free. However, owing to changes in the Tax Code under the Tax Cuts and Jobs Act, taxpayers must ensure that such incentives are carefully structured.