tax – Coronavirus (COVID-19)

July 15, 2021July 15, 2021 by Duane Morris

IRS Warns of Ongoing and Pandemic-Related Tax Scams

ach year, we share with you what the IRS calls its “Dirty Dozen” list of tax scams. This year, the pandemic has given rise to new, and even more sophisticated scams. The scams on the 2021 IRS Dirty Dozen list can be encountered at any time during the year, but they peak during tax season(s). With numerous changes impacting taxpayers due to the global pandemic such as extended and inconsistent tax deadlines, various stimulus payments, COVID-related unemployment or economic hardship payments, tax scams continue to occur at an alarming rate and an increasing number of people fall prey to these scams. Don’t be one of them. If it sounds too good to be true, it probably is.

Some scams are complex, with sophisticated algorithms being used to steal identities. Other scams are as simple as picking up the telephone to trap unaware and unsuspecting taxpayers. Once again and not surprisingly, phishing and phone scams are two of the most prevalent ways in which taxpayers have been victimized. As expected, as the country continues to recover from the effects of a global pandemic, many entries on this list are associated with the impacts of COVID-19.

To read the full text of this Duane Morris Tax Accounting Group Alert, please visit the firm website.

September 14, 2020September 17, 2020 by Duane Morris

IRS Adds Additional Forms That Can Be Signed Electronically Related to the Pandemic

On August 28, the IRS announced that it would temporarily allow the use of digital signatures on certain forms that cannot be filed electronically. As of September 11, 2020, they added several more forms to that list.

To read the full text of this post by Duane Morris partner Brad Molotsky, please visit the Duane Morris Project Development/Infrastructure/P3 Blog.

September 1, 2020 by Duane Morris

IRS Warns of Ongoing Tax Scams

The scams on the 2020 IRS Dirty Dozen list can be encountered at any time during the year, but they peak during tax season. With the extended tax deadlines this year due to the pandemic and extension season well under way, tax scams continue to occur at an alarming rate and an increasing number of people fall prey to these scams. Don’t be one of them. If it sounds too good to be true, it probably is.

Some scams are complex, with sophisticated algorithms being used to steal identities. Other scams are as simple as picking up the telephone to trap unaware and unsuspecting taxpayers. Once again and not surprisingly, phishing and phone scams are at the top of the list. And moving up from number eight last year to number two this year are fake charities, particularly popular among scammers due to the increasing number of people in need and the many new charities recently organized due to COVID-19.

To read the full text of this Duane Morris Tax Accounting Group Alert, please visit the firm website.

August 25, 2020August 31, 2020 by Duane Morris

$1B of CARES Relief for Small Business in PA Governor Wolf’s Recreational Cannabis Bill

Earlier today, August 25, 2020, Gov. Tom Wolf called on the Pennsylvania legislature to legalize recreational marijuana and use the tax revenue to help small businesses that have been impacted by the COVID-19 pandemic.

According to the Philadelphia Business Journal, Gov. Wolf’s proposal on recreational marijuana was part of a package unveiled to spend the $1 billion remaining out of $3.6 billion CARES Act funding. The Governor called for a range of spending that would include$225 million in forgivable loans and grants to small businesses and another $100 million for restaurants and bars, hospitality and leisure businesses that have taken a big hit since March with business closures and occupancy restrictions. Tax revenue from the sale of recreational marijuana would add to the state’s small business funding and half would go to historically disadvantaged businesses.

To read the full text of this post by Duane Morris partner Brad Molotsky, please visit the Duane Morris Project Development/Infrastructure/P3 Blog.

August 18, 2020August 18, 2020 by Duane Morris

COVID-19 Telework May Trim Fund Managers’ NYC Biz Taxes

With COVID-19 continuing to spread through much of the U.S., working from home has become the preferred, if not required, form of work for many employers and their employees. Entering the pandemic’s sixth month, this new work-life arrangement shows no signs of stopping anytime soon.

Working from home may trigger a host of unforeseen state tax consequences for employers and employees alike,[1] particularly in the Northeastern U.S. where people frequently cross state lines to travel between their office and home.

One industry in particular has seen, and may continue to see, a substantial state tax benefit from remote working arrangements: hedge fund and private equity fund managers with offices located in New York City.

To read the full text of this article by Duane Morris attorneys Scott Gluck and Maximilian Viski-Hanka, originally published in Law360, please visit the firm website.

August 11, 2020August 31, 2020 by Duane Morris

Required Minimum Distributions Deadline Fast Approaching

The Coronavirus Aid, Relief, and Economic Security (CARES) Act, signed into law on March 27, 2020, changed the 2020 required minimum distribution (“RMD”) rules for any defined contribution retirement plan subject to RMD payments (such as an IRA or 401(k)). If you would have otherwise been subject to a mandatory RMD, you may choose to forgo those distributions for the 2020 year.

To read the full post by Duane Morris attorney Joanna Lardin, please visit the Duane Morris Private Client Services Blog.

July 6, 2020August 31, 2020 by Duane Morris

CARES Act Reanimates Sale-Leaseback Tax Benefits

Taxpayers looking to undergo alternative financing arrangements in response to the Coronavirus Aid, Relief, and Economic Security Act may look to engage in sale-leaseback transactions to accelerate and utilize the benefits of the CARES Act’s tax provisions.

To read the full text of this article by Duane Morris attorneys William D. Rohrer and Maximilian Viski-Hanka, please visit the firm website.

May 18, 2020August 31, 2020 by Duane Morris

HEROES Act Proposes New Changes to the Tax Code

On May 15, 2020, nearly a month and a half since the passage of the Coronavirus Aid, Relief and Economic Security Act (CARES Act), the House of Representatives passed the $3 trillion Health and Economic Recovery Omnibus Emergency Solutions Act (HEROES Act) in an effort to blunt COVID-19’s increasingly severe economic impact. The HEROES Act aims to continue the CARES Act initiative by helping businesses and individuals. It also adds relief to state and local governments. While the Senate has not yet voted on the bill, this is the first step toward securing an additional round of stimulus for an economy that is desperate for relief.

To read the full text of this Duane Morris Alert, please visit the firm website.

April 22, 2020August 31, 2020 by Duane Morris

Tax Implications of Charitable Contributions Under the CARES Act

On March 27, 2020, the bipartisan Coronavirus Aid, Relief, and Economic Security (CARES) Act was signed into law. In order to encourage charitable contributions at this unprecedented time, the CARES Act made some valuable changes to the way those contributions are treated on your tax return.

To read the full text of this post by Duane Morris attorney Joanna Lardin, please visit the Duane Morris Private Client Services Blog.

April 20, 2020August 31, 2020 by Duane Morris

COVID-19 Pandemic Causes Compliance Delays for Mexico’s Anti-Money Laundering Law

The Financial Intelligence Unit (Unidad de Inteligencia Financiera) of Mexico’s Tax Administration Service (Servicio de Administración Tributaria) (SAT) issued a communication relating to potential delays in the compliance of the provisions set forth in the Mexican Anti-Money Laundering Law (Ley Federal para la Prevención e Identificación de Operaciones con Recursos de Procedencia Ilícita) as a consequence of the COVID-19 pandemic.

To read the full text of this Duane Morris Alert, please visit the firm website.