DOL Suspends Changes to Trump-Era Labor Regulations  

April 12, 2021 | IRS Regulation

Just weeks before President Biden took office, the Trump administration took action to change how employers determined independent contractor status. Now, the U.S. Department of Labor (DOL) is rescinding those regulations, returning the country to the guidelines set by previous administrations. Here is a brief overview of these new (old) regulations. Independent Contractor Status If  Continue Reading »

Parties’ Agreement Complicates Spousal Support Calculation in S Corp Context

April 5, 2021 | Court Rulings, Divorce Litigation, Valuations

Marshall v. Marshall Instead of facilitating a resolution, a separation agreement between the divorcing spouses led to a protracted lawsuit. The issue was how to determine alimony where the owner spouse had an interest in a pass-through entity and the agreement was not entirely clear as to what income to consider. On second review, the  Continue Reading »

Key Changes for Businesses created by the New American Rescue Plan Act

March 29, 2021 | IRS Regulation, Tax Planning

The American Rescue Plan Act (ARPA) was signed into law earlier this month, providing a massive infusion of much-needed relief to nearly every corner of the American economy — from individuals to businesses to nonprofits to healthcare organizations and state and local governments. If you’re a business or self-employed individual here in Maine, there are  Continue Reading »

LLC Buyout at Fair Value Poses ‘Conundrum’ for the Court

March 22, 2021 | Valuations

Finkel v. Palm Park, Inc. In allowing LLC members to buy out a departing member to avoid the dissolution of the company, a court had to determine the fair value of the departing member’s interest in a holding company. The court, in large part, relied on the fair market valuation the remaining members’ BV expert  Continue Reading »

What makes a small business owner’s compensation ‘reasonable’?

March 15, 2021 | Accounting Standards, IRS Regulation, Tax Planning, Valuations

As a small business owner, you need to ensure that your compensation reflects what others would receive for performing similar duties in a similar setting. Not only is this important for tax purposes, but it’s needed to determine the value of your business. Total Compensation Package As the business owner, you’re likely to have related  Continue Reading »

Court Says Restaurants Fail to Meet Requirements for COVID-19-Related Business Interruption Coverage

March 8, 2021 | Court Rulings

Rose’s 1, LLC v. Erie Ins. Exch. State and federal courts have started to rule on breach of contract claims from plaintiffs whose businesses suffered economic losses triggered by the COVID-19 crisis. Thus far, the court decisions have not been favorable to the plaintiffs. In the instant case, a number of restaurants in the District  Continue Reading »

COVID Relief Provisions that Can Lower Your Business Taxes

March 1, 2021 | IRS Regulation, Tax Planning, Tax Preparation

After a most unusual, volatile and unprecedented year for Maine businesses, your finances — and tax situation — may be unlike any other “normal” year. Filing your business taxes can oftentimes be stressful, but with the economic hardships of the past year, it can be even more challenging. The silver lining is that there is  Continue Reading »

Solvency Opinion Based on Management Projections Faces Daubert Challenge

February 22, 2021 | Court Rulings, Debt & Financing

Official Committee of Unsecured Creditors v. Calpers Corp. Partners, LLC In a bankruptcy-cum-Daubert case that turned on solvency, a court recently rejected both parties’ claims that the opposing financial expert testimony was inadmissible. Among the myriad of attacks (all unsuccessful) against the experts was the plaintiff’s claim that the debtor’s expert had relied on management  Continue Reading »

5 Valuable Tax Credits for 2020 Individual Returns

February 15, 2021 | IRS Regulation, Tax Planning, Tax Preparation

Every dollar counts, especially as the COVID pandemic continues to create economic uncertainty here in Maine and throughout the country. As tax season arrives, it can be helpful to learn about federal income tax credits that can significantly lower your tax obligations. It’s important to note that tax credits aren’t the same as tax deductions.  Continue Reading »

Overstated’ Projections Sink Plaintiff’s Fair Value Determination

February 8, 2021 | Court Rulings, Valuations

Magarik v Kraus Earlier this year, a New York trial court presiding over a buyout dispute featuring an online wholesaler of faucets, sinks, and fixtures rebuffed the departing shareholder’s valuation. His expert’s discounted cash flow analysis collapsed on account of unreasonable projections that the company had used to secure a loan from a bank. Dubious  Continue Reading »