On October 26, 2020, the U.S. Small Business Administration (“SBA”) published a notice seeking comment on two Loan Necessity Questionnaires (Form 3509 for “for-profit” entity borrowers and Form 3510 for “non-profit” entity borrowers) that are to be submitted by borrowers who have received Paycheck Protection Program (“PPP”) loans and are seeking forgiveness of those loans … Continue Reading
Recent jurisprudential and legislative developments have significantly altered the Louisiana state tax penalty regime. First, the Louisiana Supreme Court on November 4, 2020 denied the Louisiana Department of Revenue’s writ application in Smith International, Inc. v. Kimberly Robinson, Secretary, Louisiana Department of Revenue [1], rendering the earlier decision by the Louisiana First Circuit Court of … Continue Reading
The Louisiana Supreme Court addressed the role of the Louisiana Tax Commission in its decision in the case of D90 Energy, LLC v. Jefferson Davis Parish Board of Review, No. 2020-C000200. While the case addressed the property tax assessments of a specific taxpayer, its larger importance is the holding regarding the role of the Louisiana … Continue Reading
On June 19, 2020, the Internal Revenue Service (the “IRS”) issued Notice 2020-50 which expands the categories of individuals eligible for coronavirus-related distributions (“CRDs”), loans, and loan repayment suspensions as well as resolves some of the issues that were concerning plan administrators and employers under the CARES Act. Under Section 2202 of the CARES Act, … Continue Reading
In an April 17, 2020 post to the Liskow Energy Law Blog, we advised our clients and friends that the Internal Revenue Service (“IRS”) had published guidance on how refunds attributable to the CARES Act newly-permitted 5-year carryback of NOLs in section 172 of the Internal Revenue Code (the “Code”) and the accelerated use of … Continue Reading
In a previous post to the Liskow website, we advised clients and friends that the CARES Act, P.L. 116-136, enacted modifications to the rules for the use of net operating losses (“NOLs”) and corporate alternative minimum tax carryforward credits (“AMT Carryforward Credits”) for tax years beginning after December 31, 2017 and before January 1, 2021. … Continue Reading
Background The Coronavirus Pandemic has wreaked havoc on small and mid-sized businesses (“SMBs”) throughout Texas and the rest of our country. Many SMBs have had to close their doors due to mandatory stay-at-home orders and other social distancing orders and requirements. The CARES Act and other recent legislation passed by Congress and signed into law … Continue Reading
On Friday, March 27, 2020, President Trump signed into law the CARES Act, which contains many provisions designed to mitigate the impact of the Coronavirus pandemic. Liskow & Lewis attorneys John T. Bradford and Jeffrey P. Birdsong wrote about four of those provisions which affected the implementation of the 2017 Tax Cuts and Jobs Act … Continue Reading
Day-to-day life has been dramatically impacted by the coronavirus disease 2019 (COVID-19), and many businesses have been forced to close or limit their service to slow the spread of COVID-19. In response, Congress has passed several pieces of legislation to assist individuals and businesses affected by the virus.… Continue Reading
On Friday, March 27, 2020, President Trump signed into law the CARES Act, which contains many provisions designed to mitigate the impact of the Coronavirus pandemic on businesses. Those provisions include the following four significant changes to the business tax provisions contained in the 2017 Tax Cuts and Jobs Act.… Continue Reading
Through the Tax Cuts and Jobs Act (“TCJA”), in 2017 Congress enacted Code Sections 1400Z-1 and 1400Z-2 of the Internal Revenue Code (the “Code”). These Code Sections were designed to encourage investment and economic growth in certain-low income communities by creating a procedure for identifying Qualified Opportunity Zones (“QOZs”) and offering certain federal income tax … Continue Reading
Previous regulations on hardship distributions from 401(k) and 403(b) plans generally provided that a participant could receive an in-service distribution prior to reaching age 59½ if the participant had an immediate and heavy financial need. The determination of whether a participant had an immediate and heavy financial need was determined based on all relevant facts … Continue Reading
Liskow & Lewis’ Shannon Holtzman, James Brown, and A’Dair Flynt recently secured several key rulings in a putative class action, successfully opposing a complex remand motion under the Tax Injunction Act and the Class Action Fairness Act (“CAFA”) and obtaining a dismissal with prejudice of the claims against Liskow’s clients in Robert J. Caluda, APLC, … Continue Reading
On June 13, 2019, the Department of Labor, the Department of Health and Human Services, and the Department of Treasury (the “Departments”), published final regulations which significantly broaden the types of health plans that may be integrated with a health reimbursement arrangement (“HRA”). More specifically, beginning January 2020, the finalized rules allow HRAs to be … Continue Reading
In a victory for the oil and gas industry, the Third Circuit rendered a decision rejecting attempts by the Louisiana Department of Revenue to impose severance taxes on crude oil production based on index pricing. The Third Circuit reaffirmed that severance taxes should be based on the “gross proceeds” obtained in an arm’s length sale … Continue Reading
Due to the Tax Cuts and Jobs Act (“TCJA”) passed by Congress in December 2017, starting in 2018 many 501(c)(3) Exempt Organizations (“EOs”) are required to treat the cost of employer-paid qualified transportation and parking benefits as unrelated business taxable income (“UBTI”) to the EO. Though EOs have until May 15, 2019 to file their … Continue Reading
In a decision by the Louisiana Board of Tax Appeals, Liskow & Lewis attorneys Robert Angelico, Jim Exnicios, Cheryl Kornick, RJ Marse, and Jeff Birdsong obtained a ruling rejecting attempts by the Louisiana Department of Revenue to increase the amount of severance taxes due on crude oil produced in Louisiana. The Department of Revenue targeted … Continue Reading
On August 30, 2017, in Announcement 2017-11, the IRS provided retirement plan loan and distribution relief from retirement plans described in Code Sections 401(a) (including 401(k) plans), 403(a), 403(b), and governmental eligible deferred compensation plans described in 457(b) (collectively “Retirement Plans”) to affected participants.… Continue Reading
John Bradford’s article “Tax Planning for Oil and Gas Joint Operations”, originally prepared for the Rocky Mountain Mineral Law Foundation’s 2016 Special Institute on Joint Operations and the New AAPL Form 610-2015 Model Form Joint Operating Agreement, has been selected for publication by the University of North Texas Institute of Petroleum Accounting in its Petroleum … Continue Reading
The oil and gas industry has a significant and far reaching economic impact in Louisiana. According to one 2014 study, the total direct and indirect impact on the state is approximately $73.8 billion.[1] Taxes make up a large part of the industry’s direct economic impact in Louisiana: In 2013, the industry paid nearly $1.5 billion in … Continue Reading
On June 17, 2016, the Texas Supreme Court ruled that an oil and gas producer (“Southwest”) was not entitled to a statutory exemption from sales taxes on its purchases of casing, tubing and pumps used in the production of oil and gas (the “Equipment”). At issue in Southwest Royalties, Inc. v. Hegar was whether the … Continue Reading
The extended downturn in the oilfield economy is showing up in some taxpayers’ inability to pay their Texas real property and personal property ad valorem taxes when those taxes become due. This note reminds taxpayers what happens when the ad valorem taxes are not timely paid. It also reminds lenders with security interests in real … Continue Reading
The Texas Franchise Tax is imposed on taxable entities that do business in Texas or that are chartered or organized in the state. Taxpayers subject to the Texas Franchise Tax may compute their tax liabilities under several alternative methods to determine which one results in the lowest amount of tax due. One such method is … Continue Reading
In early November, the Texas Federal Tax Institute will host the TexFed: Oil & Gas Tax Conference in New York City. This is the first time a conference of this nature will be held in the Big Apple, and I am honored to participate as a member of a panel that will explore farmout transactions, … Continue Reading
