The coronavirus crisis has altered nearly every facet of our lives, including investment and estate planning. Shareholder Jennifer D’Amato recently participated in a Table of Experts discussion: The COVID Calculation – The current pandemic is upending many investment and estate-planning strategies from the Milwaukee Business Journal that focused on how individuals and business owners are adapting as the pandemic continues, including how COVID-19 has altered planning timetables and financial strategies. If you have any questions about your business succession or estate plan, please contact your Reinhart attorney. Please visit Reinhart’s Coronavirus Resource Center for additional up-to-date information. Continue Reading…

Are you documenting all your intercompany transactions? If your transactions with a foreign affiliate exceed $10 million, your U.S. company is in danger of an IRS transfer pricing adjustment and a penalty. There are currently more transfer pricing adjustments at stake in the U.S. Tax Court than all other tax issues combined. Suppose, for example, that ForCo sells widgets to USSub, a distribution company in the United States. USSub has the use of ForCo’s unique distribution software. If USSub has difficulty collecting from customers, USSub has the use of ForCo’s collection staff. Such a simple scenario for conducting business in…

Late on May 15, 2020, the U.S. Small Business Administration (SBA) released its PPP loan Forgiveness Application (Forgiveness Application) for borrowers (Borrowers) under the Paycheck Protection Program (PPP). While the SBA has still not yet released interim final rules and regulations relating to PPP loan forgiveness, the Forgiveness Application provides more details on several critical questions which have been plaguing Borrowers. Although the SBA has still not provided final rules and regulation relating to PPP loan forgiveness, the new PPP Forgiveness Application provides several key clarifications regarding how PPP loan forgiveness will be calculated. Below is a summary of key clarifications…

The Coronavirus Aid, Relief, and Economic Security Act (CARES Act) provides a refundable employee retention tax credit (ERC) for qualified wages paid by certain employers impacted by COVID-19. The Internal Revenue Service (IRS) subsequently released comprehensive Frequently Asked Questions (FAQ), with an updated list released on May 7, 2020, to address many of the open questions related to application of the ERC. The IRS has also released a draft of a new IRS Form 941, Employer’s Quarterly Federal Tax Return, set to go into effect for the second quarter of 2020, to accommodate reporting for COVID-19-related payroll…

Wisconsin, like most of the country, has been under a “Safer at Home” order for almost eight weeks. However, the country is beginning to reopen and we are seeing plans for reopening both at the federal and state levels. In anticipation for this shift away from “Safer at Home,” employers must plan for the numerous issues that will inevitably arise during this transition. Comprehensive planning and communication in the time leading up to and during the return-to-work process will be key to ensuring a safe and productive reopening. Here, we outline the critical issues to be addressed. When and How…

A significant question for both practitioners and taxpayers is how COVID-19 will change tax practice before the Internal Revenue Service (IRS). Many practitioners and clients have been concerned by what appears to be a partial shutdown of IRS services. The changes made by the IRS seem to be a step back from the Taxpayers First Act, which promised a new and more modern IRS, and as stimulus payments have been dispersed, the question arises: “What now?” IRS Partial Shutdown Because of COVID-19 In March 2020, the IRS, in response to the COVID-19 pandemic, began closing all Taxpayer Assistance Centers. This…

REGULATORY UPDATES COVID-19 FAQs (April 11, 2020) The U.S. Departments of Labor (DOL), Health and Human Services (HHS), and the Treasury (Departments) issued joint Frequently Asked Questions (FAQs) clarifying certain aspects of the Families First Coronavirus Response Act (FFCRA) and the Coronavirus Aid, Relief, and Economic Security Act (CARES Act). Highlights include: The testing coverage requirements end when the COVID‑19‑related public health emergency ends. The FAQs clarify that the public health emergency ends the earlier of [1] the date the Secretary of HHS declares the emergency is over or 90 days following the date of the public health emergency declaration.…

Since implementing the Paycheck Protection Program (PPP) more than a month ago, the U.S. Small Business Administration (SBA) has issued confusing guidance that makes multinational companies, particularly foreign-owned U.S. companies, wonder whether they are eligible. As we previously noted, the key is the interaction of the affiliate rules and the limit of 500 employees. These affiliate rules include both U.S. and foreign affiliates. According to the first Interim Final Rule announced earlier this year, “You are eligible for a PPP loan if you have 500 or fewer employees whose principal place of residence is within the United States.” Based…

Using another company’s trademarked logo, tagline or other content to promote your own company is a sure-fire way to find yourself on the wrong end of a trademark infringement lawsuit. Using another company’s logo or name to imply that you have authorization or approval from it to resell its products at wildly inflated prices can end the same way. Recently, 3M took a stand against sellers doing just that. 3M manufactures N95 masks used by frontline health care workers across the country in the fight against COVID-19. Using trademark law in a unique fashion, 3M filed 10 lawsuits across the…

The Internal Revenue Service (IRS) on May 4, 2020, released a series of Frequently Asked Questions (FAQs) addressing the distribution and loan provisions included in the Coronavirus Aid, Relief, and Economic Security Act (CARES Act). The IRS also noted that additional guidance addressing the provisions of the CARES Act will be forthcoming. The following are key takeaways for plan sponsors: Coronavirus‑Related Distributions The CARES Act permits sponsors of qualified retirement plans to permit eligible individuals to receive distributions of up to $100,000. An “eligible individual” is someone diagnosed with COVID‑19, someone whose spouse or dependent is diagnosed with COVID‑19 or…

On April 28, the Employee Benefits Security Administration (EBSA) of the U.S. Department of Labor (DOL) and the Internal Revenue Service (IRS) (collectively the Agencies) issued a joint notice announcing the extension of certain timeframes applicable to group health plans, disability and other welfare plans, pension plans, and participants and beneficiaries of these plans during the COVID-19 national emergency. On the same day, the EBSA published Disaster Relief Notice 2020-01 to provide relief for employee benefit plans and service providers from certain deadlines under the Employee Retirement Income Security Act of 1974 (ERISA). The guidance reflects the Agencies’ understanding that…

Vor zehn Jahren war die Representation and Warranty Insurance (“RWI”)[1] noch ein exotisches Versicherungsprodukt in den USA; selten fand es Anwendung bei mittelständischen M&A Transaktionen. Hohe Prämien, eng begrenzte Deckungen, heikle Konditionen und ein undurchsichtiger Versicherungsvorgang ließen diese für die meisten Parteien unattraktiv erscheinen. Inzwischen haben die Versicherer darauf reagiert. In den letzten fünf Jahren sind Prämien von mehr als 3,5% der Deckungssumme auf 2,5% bis 3,0% gesunken, und der typische Selbstbehalt (“Retention”) wurde von 2% des Kaufpreises auf 1% reduziert. Außerdem ist die Versicherungsdeckung größer als bisher. Steuer- bzw. Umweltrisiken wurden früher durch teure Zusatzpolicen versichert; heute sind…