Ipads, iPhones, and Barter Transactions

From the hardly noticed case of Sherwin Community Painters, Inc. v. Commissioner, T.C. Memo. 2022-19, come some interesting tidbits.  First, just the facts.  Sherwin Community Painters, Inc. is a C-corporation with a single shareholder.  As its name implies, Sherwin was a painting contractor. The case arose from the Service’s disallowance of certain business deductions claimed…

S-Elections Gone Wrong

The IRS just released four separate Private Letter Rulings (“PLRs”) addressing the inadvertent termination of a taxpayer’s S-election. It is often said the devil is in the details, which is demonstrated aptly by these four PLRs.  Fortunately for the taxpayer, in each case the Service found that the terminations were inadvertent, which means the taxpayer…

Updated PPP Guidance Coming Soon

Yesterday Treasury Secretary Mnuchin and SBA Administrator Jovita Carranza issued a joint statement regarding the imminent release of updated guidance. Although we are awaiting the release of the full guidance, at this point we know: 1. THE LAST DATE ON WHICH A PPP LOAN APPLICATION CAN BE SUBMITTED TO A LENDER IS JUNE 30, 2020.…

MONEY FOR NOTHING AND CHECKS FOR FREE!!!

As part of the stimulus package relief, businesses with fewer than 500 employees are eligible for up $10 million dollars in loans, which can be used for payroll and other expenses, like insurance premiums, mortgages, rent or utilities. The federal government has allocated $370 billion for this program. SO LONG AS THE COMPANIES EITHER: (1)…