Client Alerts

 

IRS Ramps Up Effort to Collect Employer Shared Responsibility Payments

The IRS has recently started sending letters to businesses asserting tax penalties under the Affordable Care Act (ACA), also known as "Obamacare". These letters advise that the business owes an Employer Shared Responsibility Payment (ESRP) penalty as a result of failing to comply with certain provisions of the ACA. Under the ACA, all employers with 50 or more full-time employees are required to offer health insurance coverage that is affordable and provides minimal essential coverage to at le ...
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New IRS Audit Rules Mean Tax Deadline Looming for Partnerships and LLCs to Make Big Decisions

On January 1, 2018, new IRS audit rules went into effect that made big changes on how the IRS will conduct future audits of partnerships (i.e, general and limited partnerships and LLCs).  These new changes give the IRS more power in conducting audits of partnership tax returns. Before 2018, in most cases, if the IRS wanted to audit the tax return of a partnership, the IRS had to open up audits of the individual partners (or LLC members). And, the IRS would then have to assess tax, penalties ...
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North Carolina’s New Sales Tax on Repair, Installation and Maintenance Charges

Beginning in March 2016, North Carolina sales and use tax will be assessed on most charges for repair, installation and maintenance services ("RIM services"). The North Carolina Department of Revenue has issued several Directives to attempt to explain how the new RIM services rules are to apply.  Unfortunately, some of the language in these Directives has simply added to the confusion. Background. Since January 2014, sales of "service contracts" have been subject to North Carolina sale ...
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North Carolina Court of Appeals Affirms How Change of Domicile Saves North Carolina Income Taxes

The North Carolina Court of Appeals affirms the Business Court's finding that the Fowlers had changed their domicile from North Carolina to Florida and therefore could avoid substantial North Carolina income tax on the sale of their business. On August 4, 2015, in Fowler v. NC Department of Revenue, 2015 WL 4622 914 (August  4, 2015), the North Carolina Court of Appeals issued its decision and upheld the August 2014 decision of the North Carolina Superior Court in Fowler v. NC Department of ...
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Client Alert – Recent Amendments to Dental Board Rules Pertaining to Record-Keeping and Unprofessional Conduct

The North Carolina State Board of Dental Examiners recently enacted amendments to several of its rules governing the practice of dentistry with an effective date of July 1, 2015.  Although many of the amendments were technical in nature and simply clarify existing rules, the Board has made several substantive changes to the rules that pertain to (1) record-keeping requirements and (2) the definition of “unprofessional conduct”.  Dental practitioners need to take note of these changes so as ...
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The Importance of a Well Drafted Operating Agreement Following the Enactment of the New North Carolina LLC Act

On January 1, 2014, the North Carolina General Assembly enacted the new North Carolina Limited Liability Company Act under Chapter 57D of the North Carolina General Statutes (the “New LLC Act”) and repealed the former LLC Act codified in Chapter 57C of the General Statutes (the “Old LLC Act”).  Given that the new legislation replaces the Old LLC Act, it should be noted that the provisions of the New LLC Act apply to limited liability companies formed prior to the January 1, 2014 effecti ...
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North Carolina Life Insurance Has Long Received Solid Protection From Creditors – But Only if You Follow the Rules

North Carolina has long provided its residents with special protection for life insurance policies against the claims of creditors.  Recent cases, however, have made clear that the protection is only afforded if the rules are followed explicitly. Creditors and sources of liability are everywhere these days.  The most obvious targets for liability are physicians and celebrities, but anyone could be at risk for a terrible car accident ruled to be their fault.  In the legal process, when som ...
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For media inquiries, please contact: Erin Molinaro | ekm@crlaw.com