On December 3, 2024, a Texas Federal Court issued a nationwide injunction blocking the enforcement of the Corporate Transparency Act and staying filing requirement deadlines for Beneficial Ownership Information (BOI) reports. A copy of the Order can be found here. Please be aware that this is only a preliminary injunction. Currently, it is not known
The Corporate Transparency Act (CTA), effective January 1, 2024, requires certain business entities (reporting companies) to report beneficial ownership information (BOI) to the US Treasury Department’s Financial Crimes Enforcement Network (FinCEN). The deadline for businesses that were created before January 1, 2024 have until January 1, 2025 to file their initial BOI report. For reporting
On August 20, 2024, a federal court struck down the FTC’s Rule banning most Non-Compete Agreements. WHAT DID THE COURT DECIDE? The U.S. District Court for the Northern District of Texas granted summary judgment to the plaintiff, Ryan LLC, in its case challenging the FTC’s rule banning most non-compete agreements, holding: that the FTC promulgated
On September 4, 2024, the Federal Trade Commission’s (“FTC”) final rule banning most non-competes with workers is scheduled to go into effect. WHAT DOES THIS FTC RULE PROHIBIT? The FTC’s rule declares that an entity under the FTC’s authority engages in unfair competition if, regarding an worker other than a senior executive, it: Enters into or
Starting on January 1, 2024, certain privately held companies in the United States will have to report information about their beneficial owners to the Financial Crimes Enforcement Network (“FinCEN”) as part of the Corporate Transparency Act. Any corporation, limited liability company, limited partnership, or other similar entity which was created or registered to do business
How are Expense Reimbursements Taxed by the IRS? If your business reimburses you or your employees for out-of-pocket expenses, the IRS treats such reimbursements as being made under either an accountable plan or a non-accountable plan. If reimbursements are made under a non-accountable plan, they are taxed as income to the employee and the business
During April 2021, the Internal Revenue Service (“IRS”) issued updated guidance for employers regarding the Employee Retention Credit (“ERC”) and credits for paid sick and family leave (“Paid Leave”). Employee Retention Credit On April 2nd, 2021 the IRS published Notice 2021-23, which explains the changes to the Employee Retention Credit for the first two calendar
COVID-19 Relief Included in the Consolidated Appropriations Act of 2021 A new stimulus package has been released under the Consolidated Appropriations Act of 2021 (the “Act”). This second round of relief will provide much-needed aid for small businesses and unemployed Americans. The primary changes between the Act and the first relief package, the CARES Act,
Under the Consolidated Appropriations Act of 2021, which was signed into law by President Trump on December 27, 2020 (the “Act”), significant changes were made the employee retention tax credit (“ERC”) enacted under the CARES Act. Originally, companies were forced to choose between receiving a PPP loan or taking the ERC. As a result, the
The Internal Revenue Service (“IRS”) has recently released guidance regarding methods for reporting partnership tax capital accounts. Partnerships & limited liability companies filing Form 1065 for tax year 2020 must calculate partner capital accounts using the transactional approach for the tax-basis method. According to IRS data, most partnerships already use the tax basis method, but
