Tax Court Rejects Claimed Deduction for Management Fees
Aspro, Inc. v Commissioner The U.S. Tax Court recently agreed with the Internal Revenue Service that management fees a corporation paid to its three shareholders over a three-year period were not deductible since none of the fees were paid “purely for services” and...
Indiana Supreme Court Issues Key Ruling on Discounts in Compelled Buybacks
Hartman v. BigInch Fabricators & Construction Holding Co., Inc. Last year, in a compelled buyout, the Court of Appeals sided with the departing minority shareholder when it found discounts did not apply in a closed-market sale. In a freshly minted decision, the...
Plaintiff’s Proposed Class Action Alleging Overpayment Survives Motion to Dismiss
Lysengen v. Argent Trust Co. This proposed ESOP class action featured familiar claims against the trustee and several individual defendants. In her complaint, the plaintiff alleged the trustee violated ERISA by allowing the plan to overpay for company stock and by...
Labor Shortage: Unlock Solutions by Evaluating Your Employment Value Proposition
In normal market conditions, people who've been unemployed due to an economic slump are generally eager to take a job when the economy perks up. But times are far from normal in many places and industries. One of the most pressing concerns employers face today is...
Tax Breaks for Green Manufacturers
In recent years, energy-efficient tax breaks have enticed many manufacturers to "go green." At the end of 2020, The Consolidated Appropriations Act (CAA) was enacted, which includes various provisions that expand and improve certain green tax breaks. Here are five...
Expert Identifies Only Viable Method to Value Stock in ‘Severely Distressed’ Private Company
Lucero v. United States The taxpayer sued the federal government for a refund, arguing she had overpaid income taxes on stock she had received as part of settling a lawsuit against her former employer. She initially relied on the value in the settlement agreement but...
4 Ways to Improve Productivity
So-called "lean" manufacturing is easier said than done, but there are several improvements that can increase your firm's output. Lean companies operate as efficiently as possible, using the least possible staff time, equipment, and raw materials. Here are four ideas...
Are Your Employees Afraid to Return to Work?
If you have employees working from home, and you want to transition them back to the workplace as the economy picks up, you may find it's harder than you once thought. For some employees, nervousness about remaining health risks is still a factor — especially for...
Appropriations Law Adds Some Business Tax Breaks and Extends Others
Ever since the CARES Act was passed in early 2020, many businesses in Maine and across the country have been waiting for additional government action to help handle the economic fallout of the COVID pandemic. After much back and forth — and much delay — the...
Plaintiff’s COVID-Related Contract Claim Falters Despite Force Majeure Provision
NetOne, Inc. v. Panache Destination Management While the economy teeters during the ongoing COVID-19 crisis, courts are beginning to rule on lawsuits brought by businesses under various legal theories. In the instant case, the plaintiff suggested the defendant had...