IRS Updates Guidance on Temporary Procedures to Fax Forms 1139 and 1045 to Obtain Quick Tentative Refunds due to NOL Carrybacks and Accelerated Use of AMT Carryforward Credits

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 AMT Carryforward Credits in section 53(e) of the Code can be obtained.   See, J. Bradford, New IRS Guidance on Obtaining Refunds for Net Operating Loss Carrybacks, Corporate AMT Carryforward Credits and Filing Amended Returns for Partnerships (the “Prior Blog Post”).[1]  Since that time, the IRS has published on its website additional guidance in the form of frequently-asked questions and responses (“FAQs”) regarding the implementation of the temporary policy allowing (1) corporations to file by fax Form 1139 – Corporation Application for Tentative Refund (“Form 1139”) to obtain a tentative refund for a prior tax year to which an NOL is carried back pursuant to the new NOL carryback rules and to obtain a tentative refund attributable to implementing the new accelerated use of AMT Carryforward Credits and (2) individuals to file by fax Form 1045 – Application for Tentative Refund (“Form 1045”) to obtain a tentative refund for a prior tax year to which an NOL is carried back.[2] Continue Reading

Louisiana State Mineral and Energy Board Approves Resolutions Providing Relief for State Lessees

A special meeting of the Louisiana State Mineral and Energy Board was held on April 29, 2020, to address the impacts of both COVID-19 and historically low oil prices on operation and maintenance of Louisiana State Leases.  The Board approved two proposed resolutions (1. Proposed Enforcement Moratorium Resolution 2. Proposed Penalty Waiver Resolution) that will assist State Lessees during these difficult times. Continue Reading

Louisiana Second Circuit Provides Guidance as to Good Faith Required When Conducting Operations Necessary to Interrupt Prescription of Mineral Servitude

While the long-term fallout from the recent decline in oil prices and the COVID-19 pandemic remains unclear, it is clear that drilling activity has already started to decline. During this downturn in activity, mineral rights owners must remain cognizant of the maintenance activities necessary to preserve their mineral rights.  Cannisnia Plantation, LLC v. Cecil Blount Farms, LLC,[1] is the most recent decision that provides the industry with a real-life application of the rules under Louisiana law for maintaining mineral servitudes. Continue Reading

The Supreme Court Looks for a Middle Ground to Determine When Clean Water Act Permit is Required for Discharges to Groundwater

On April 23, the Supreme Court of the United States issued an opinion in County of Maui, Hawaii v. Hawaii Wildlife Fund, et al., where the Court held that, in limited circumstances, a party discharging pollutants into groundwater that ultimately end up in navigable waters will need a permit under the Clean Water Act. Continue Reading

ARCO v. Christian: Supreme Court Allows State Law Claims for Restoration Damages in Excess of EPA Superfund Cleanup, but EPA Must Approve Any Additional Remedial Action

This week, in a split 7-2 opinion authored by Chief Justice Roberts, the Supreme Court held that Montana state law claims brought by private landowners against Atlantic Richfield Company (“ARCO”) for alleged impacts from the Anaconda Smelter Superfund site are not preempted by CERCLA and are not precluded by ARCO’s settlement of EPA’s CERCLA claims; however, any restoration damages awarded to the landowners must be spent on actual restoration of the property, as required by Montana state law, and restoration must be conducted in a manner either approved by the EPA or consistent with the EPA’s already-approved remedial action plan.

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Main Street Lending Programs

In addition to the SBA’s Payment Protection Program (PPP) and Economic Injury Disaster Loans (EIDL), on April 9, 2020, the Federal Reserve announced that it was going to provide up to $2.3 trillion in loans to support the economy through various programs, including the Main Street Lending Program (“MSLP”).  The MSLP will support credit flow to small and mid-sized businesses by providing support to businesses that were in good financial standing prior to the COVID-19 crisis.  This is a new loan program authorized by the CARES Act.  We will continue to update this summary as more information becomes available.

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New IRS Guidance on Obtaining Refunds for Net Operating Loss Carrybacks, Corporate AMT Carryforward Credits and Filing Amended Returns for Partnerships

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.  See, J. Bradford and J. Birdsong, CARES Act Makes Significant Changes to Four Key Business Tax Provisions Enacted in the Tax Cuts and Jobs Act of 2017.[1]  The Internal Revenue Service (“IRS”) now has published guidance on how refunds attributable to the newly-permitted 5-year carryback of NOLs in section 172 of the Internal Revenue Code (the “Code”) and the accelerated use of AMT Carryforward Credits in section 53(e) of the Code can be obtained.  The IRS also has published guidance allowing business entities classified as partnerships for federal income tax purposes to file amended partnership income tax returns, including Form 1065 and Schedule K-1, to help individual and corporate taxpayers who are partners in those partnerships take advantage of changes in the federal income tax law enacted in the CARES Act. Continue Reading

COVID-19 Lending Resources

Liskow & Lewis is committed to serving its clients as they adapt to the unprecedented economic consequences of the ongoing COVID-19 pandemic. As part of this commitment, the firm has created a COVID-19 Lending Resource page for the lending programs established by the CARES Act, which provides economic relief for small and medium firms, including non-profits. Click here for articles by Liskow attorneys, as well as helpful links to more information from the Treasury Department and the SBA.

Emerging on the Other Side of the Coronavirus Pandemic: Raising Structured Capital for Small and Mid-Size Businesses

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 by President Trump contain several programs designed to assist these businesses in their efforts to make it through the hardships of the next several months.  But what about the longer-term capital needs for SMBs as the pandemic subsides and these businesses emerge from the mandatory stay-at-home and other orders and begin to move forward again?

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