Category: Tax Law

Client Alert: Deductions to be Limited for Expenses Covered by Forgiven PPP Loans

Based on the latest guidance from the IRS in Notice 2020-32, businesses that use Paycheck Protection Program (“PPP”) loan proceeds to pay payroll costs, mortgage interest, rent and utilities will not be allowed to deduct those expenses to the extent that the PPP loan is later forgiven. Under the PPP, a business that gets a…

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POSTED IN: Articles & Quotes, COVID-19, News, Tax Law

Tax Alert: Operating Agreements Must be Revised to Deal with New IRS Audit Powers

The new IRS audit procedures for partnerships (and limited liability companies taxed as partnerships) are now in effect for tax years that begin on or after January 1, 2018. The new procedures are designed strictly to help the IRS when it audits partnerships and LLCs. Legal protections that previously benefited LLC members, such as notice…

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POSTED IN: Corporate & Business, News, Tax Law

LLC’s Must Modify Operating Agreements Now To Deal With Tax Law Changes

Business entities that are taxed as partnerships (most limited liability companies that have more than one member are taxed as partnerships), will need to modify their operating agreements this year to address recent changes in the Internal Revenue Code that give extraordinary authority and autonomy to the “Partnership Representative.” For tax years that begin on…

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POSTED IN: Articles & Quotes, Tax Law

“Amnesty” for Massachusetts Taxpayers

Massachusetts taxpayers will have the benefit of a two-month tax amnesty during September and October of 2014. The tax amnesty bill was signed into law by Governor Deval Patrick on July 11, 2014 as part of the state’s 2015 fiscal year budget. The bill directs the commissioner of revenue to work out the details, and…

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POSTED IN: Articles & Quotes, News, Tax Law