Blogs

Business and Financial Services

May I Be Excused? New York Federal Court Says COVID-19 Pandemic a “Natural Disaster,” and Why Your Force Majeure Clause Matters

Throughout the ongoing COVID-19 crisis, one of the biggest challenges facing businesses and the legal community has been the lack of clear judicial direction addressing the pandemic’s impact upon contract performance obligations. Few agreements prepared before the pandemic began likely included provisions expressly providing for such an event. Now, contracting parties are wondering whether they…

January 18, 2021

Business and Financial Services

PPP Second Draw – What Businesses and Lenders Need to Know About the New Round of Funding

Many have been waiting for the federal government to pass additional COVID-19 economic stimulus legislation. Those who have a had a particular interest in Congress’s activities include small businesses and lenders who received or lent Paycheck Protection Program (“PPP”) Loans under the CARES Act. Now, more than four months after the last application under the…

December 28, 2020

Business and Financial Services

Tax Implications of PPP Loan Forgiveness

Paycheck Protection Program (PPP) loans taken out in connection with the coronavirus (COVID-19) crisis that were subsequently forgiven raise a number of tax questions. A PPP loan may be forgiven in an amount equal to the sum of: (1) payroll costs; (2) interest (but not principal) payments on covered mortgage obligations (for mortgages before February…

October 19, 2020

Business and Financial Services

Creditors’ Rights Questions During COVID-19 – Part 1

As the coronavirus pandemic carries on, many creditors, including landlords and lenders, are wondering to what extent they can enforce leases and contracts, given various relief programs that have been instituted by federal, state, and local governments, such as eviction and foreclosure moratoriums. Below are a couple of scenarios describing such circumstances and answers to…

October 15, 2020

Business and Financial Services

The IRS Chief Counsel’s Informal Guidance Clarifies Some Issues Left Open after Notice 2020-65 Regarding the “Payroll Tax Holiday”

IRS Office of Chief Counsel monthly payroll industry call on September 3, 2020 In addition to Notice 2020-65 and Instructions to Form 941 which we outlined in our recent blog, the IRS Office of Chief Counsel for employee benefits, exempt organizations and employment tax provided informal but insightful guidance on its monthly IRS payroll industry…

October 14, 2020

Business and Financial Services

IRS Releases Instructions to Form 941 Expanding on Prior Guidance on Deferral of Social Security Tax

On October 1, 2020, the IRS released instructions for Form 941 providing additional guidelines for reporting deferred Social Security taxes pursuant to the President’s Memorandum (discussed previously on our blog) and IRS Notice 2020-65. Background On August 8, 2020, the Presidential Memorandum directed the Secretary of the Treasury to use his authority pursuant to section…

October 8, 2020

Business and Financial Services

IRS Guidance – President’s Memorandum Deferring Payroll Tax Obligations for Four Months

On August 8, 2020, President Trump signed a Presidential Memorandum directing the Treasury Department to defer the employee’s portion of Social Security taxes due to the COVID-19 pandemic for wages paid from September 1, 2020 through December 31, 2020 (see our blog). The deferral applies only for wages less than $4,000 for any bi-weekly period,…

September 1, 2020

Business and Financial Services

8 Common Business Bankruptcy Questions

Financial and economic challenges due to the pandemic have resulted in a growing number of bankruptcy filings for both individuals and businesses. A number of creditors’ rights challenges arise when a business or individual whom you transact with files for bankruptcy. Here are examples of several scenarios currently impacting landlords, tenants, and business owners and…

August 18, 2020

Business and Financial Services

President’s Memorandum to the Secretary of Treasury Defers Payroll Tax Obligations for Four Months

On August 8, President Donald J. Trump, signed the memorandum (the President’s Memorandum) directing the Secretary of Treasury to defer the withholding, deposit, and payment of the 6.2 percent payroll tax during the period of September 1, 2020 through December 31, 2020 for wages less than $4,000 during any bi-weekly pay period (i.e., $104,000 annually)…

August 11, 2020

Business and Financial Services

Beyond PPP – Financing Options for the Restaurant Industry

The Small Business Administration administered Paycheck Protection Program (“PPP”), designed to incentivize small businesses to keep their workers on payroll, will stop receiving new applications on August 8, 2020. Franchisees and independent restaurant operators would be well advised to now consider financing alternatives in light of the impending PPP application deadline. Most readily available options…

July 27, 2020