Super Lawyers Recognizes 10 K&F Attorneys for Tax, White Collar Defense, and Business Litigation in New York
NEW YORK CITY, NY (September 29, 2020) – Kostelanetz & Fink is pleased to announce that 10 attorneys at the firm have been selected for inclusion in the 2020 New York Metro Super Lawyers list, recognizing the firm’s experience and skill in the areas of Tax, Criminal Defense: White Collar, and Business Litigation.
Yoram Keinan quoted in Bloomberg Tax article entitled “Interest Limitations Could Trip Anti-Abuse Tax for Some M&A”
In the article, Mr. Keinan comments on final IRS base erosion and anti-abuse tax (BEAT) rules (T.D. 9910; RIN: 1545-BP36), which Bloomberg explains “companies considering mergers or acquisitions will now need to account for the unused deduction of the companies they’re eyeing—or risk tripping an anti-abuse tax after the deal."
Yoram Keinan Quoted in Bloomberg Tax Article Entitled “U.S. Shareholders May See Second Tax After Offshore Tax Opt-Out”
In the article, Mr. Keinan comments on new final high-tax exclusion rules, under Section 954(b)(4) and Section 951A of the tax code, which Bloomberg explains has “expanded the kind of foreign income eligible to be free from U.S. tax if the income, known as global intangible low-taxed income (GILTI) is already taxed offshore at least 18.9%.”
SBA Issues Important New PPP Forgiveness Guidance – Owner Compensation and Nonpayroll Expenses, Including Related-Party Rentals
On August 24, 2020, the U.S. Small Business Administration (“SBA”) issued an interim final rule (“IFR”) with important guidance on previously unanswered questions about certain Paycheck Protection Program (“PPP”) loan expenses eligible for forgiveness. After months of silence from the SBA, the IFR, titled Treatment of Owners and Forgiveness of Certain Nonpayroll Costs, addresses who is subject to the owner-employee compensation rules and limits certain nonpayroll costs from eligibility for forgiveness, including related-party rent payments and expenses of home businesses.
As part of Kostelanetz & Fink’s commitment to pro bono work and giving back to the tax community, K&F partners Megan Brackney, Yoram Keinan, Bryan Skarlatos, and Michael Sardar were proud to participate in the most recent IRS Virtual Settlement Conferences in coordination with the IRS’s Office of Chief Counsel on July 28 and 30, 2020.
The Paycheck Protection Program Flexibility Act of 2020 (“PPPFA”) was signed into law by President Trump on June 5, 2020. The PPPFA intends to provide flexibility for businesses making use of Paycheck Protection Program (“PPP”) funds by:
- extending the “covered period;”
- increasing the amount of loan forgiveness that may be attributable to non-payroll costs;
- extending the date by which employers must restore full-time employee (“FTE”) levels;
- creating a new safe harbor for inability to restore FTE levels;
- extending the loan repayment period to five years; and
- deferring payroll tax.
Yoram Keinan Quoted in Bloomberg Article Entitled “IRS Tries to Plug Timing Loophole in Anti-Abuse Rule Proposal”
Yoram Keinan was quoted in a Bloomberg Tax article, entitled “IRS Tries to Plug Timing Loophole in Anti-Abuse Rule Proposal.” The article details how, ”The proposed rules are Treasury’s attempt to bar companies from keeping a 100% deduction on early payments of their royalties agreements.” Mr. Keinan noted that shareholders will “now have to track this new concept of a hybrid dividend account, which generally leads to a higher compliance burden.”