Congress recently passed the Coronavirus Aid and Economic Security Act (CARES Act). The CARES Act provides for numerous changes to the Internal Revenue Code, but one of the major changes is to the treatment and limitation of business interest deductions. Prior to the CARES Act, Congress had tightened limitations on business interest deductions through the Tax Cut and Jobs Act. …
On March 18, 2020, the Families First Coronavirus Response Act became law. It is effective for paid sick leave or expanded family and medical leave taken between April 1, 2020, and December 31, 2020. Freeman Law first wrote on this legislation here. Recently, the U.S. Department of Labor has issued helpful guidance via frequently asked questions and answers. Those can …
Does a pandemic like the Coronavirus trigger a contractual force-majeure clause? A force-majeure clause is sometimes referred to as an “act-of-god” clause. And perhaps nowhere are the concepts of “church” and “state” more integrally connected than where the secular law resorts to defining an “act of god.” Where applicable, a force-majeure clause allows a party to stop performing its contractual …
The IRS has been busy issuing guidance regarding the coronavirus and its effects on the federal income tax system. In addition, the IRS has specifically recognized the detrimental effects the coronavirus (COVID-19) outbreak has had on taxpayers. On March 25, 2020, the IRS announced a “sweeping series of steps to assist taxpayers by providing relief on a variety of issues …
The Texas Comptroller announced on March 25, 2020, that it is offering assistance to businesses that are potentially struggling to pay the full amount of the Texas sales tax that they collected in February, 2020. For affected businesses, the Texas Comptroller is offering short-term payment agreements to pay the collected sales taxes, with the waiver of penalties and interest, in …
The United States has the power to place a lien on a taxpayers’ property and rights to property when that taxpayer has unpaid federal taxes.[1] The government is statutorily authorized to bring a civil action to enforce this lien under Internal Revenue Code (IRC) § 7403.[2] While § 7403 generally provides that courts are to adjudicate lien enforcement actions on …
On March 19, 2020, the Texas Third Court of Appeals, issued its opinion in Hegar et al. v. J.D. Fields & Company, Inc., Tex. Ct. App. (3rd Dist.), No.03-19-00351-CV, 03/19/2020). The court ruled that a taxpayer’s sales tax protest is not barred by sovereign immunity. The taxpayer, J.D. Fields & Company, Inc. (hereinafter “Taxpayer”) in this matter is a pipe …
The U.S. Supreme Court announced that it is postponing upcoming oral arguments. The last time that it did that was more than a hundred years ago in 1918 as a response to the Spanish flu.[1] Case in point that our judicial system is undergoing strains that, while not entirely unprecedented, are rarely seen. And that strain will test constitutional values in the …
Because of the spread of the coronavirus, Judge Clay Jenkins has ordered that Dallas County shelter-in-place, effective as of 11:59 p.m. March 23, 2020. This order will prohibit residents from leaving their residence unless for an “essential activity”, and it will continue until 11:59 p.m. April 3, 2020. For purposes of this order, the following are deemed essential activities: …
