Henderson, Franklin, Starnes & Holt, P.A.

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Taxpayers have until today (July 15) to request an extension to file their 2019 federal tax return. If an extension is approved, taxpayers could have until October 15 to file, but any taxes owed are due by July 15.

Common Tax Return Errors

The IRS has noted the following common tax return errors:

  • Missing or inaccurate Social Security numbers
  • Math errors
  • Inaccurate filing status
  • Incorrect calculation of credits or deductions
  • Unsigned returns
  • Filing with an expired individual taxpayer identification number

The IRS highly encourages taxpayers to use the e-file or IRS Free File system. The IRS software will formulate calculations, flag common errors, and prompt taxpayers for missing information, all of which ultimately reduces tax return errors. A tax return containing errors can delay refunds.

What if I can’t pay my tax bill?

Continue Reading IRS Provides Tips for Last-Minute Tax Filers

June 4 Update

House Bill H.R. 7010 passed the Senate and is now on its way to the President to sign. In addition to amendments relating to the PPP loan program, the bill provides that the deferral of employment taxes is now available even for taxpayers who have PPP loans that re forgiven under the CARES Act. This will allow taxpayers who obtain PPP loans and intend to apply for loan forgiveness to also defer the applicable employment taxes.

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On May 13, 2020, the Small Business Administration (“SBA”) issued anxiously awaited guidance outlining the agency’s perspective on the good faith certifications made by Paycheck Protection Program (“PPP”) applicants. (See, PPP Frequently Asked Questions, #46).

PPP recipients of loans less than $2 million found relief in the SBA’s statement that it would deem those recipients to have made the certification in good faith.

For those with PPP loans at or above $2 million, the SBA will require the recipient to adequately support its certification. If the recipient fails to do so, the SBA indicated it will seek repayment of the loan in full, but the agency will not pursue administrative enforcement or refer the matter to other agencies.Continue Reading SBA Issues New Guidance Addressing PPP Loan “Good Faith” Certification

June 4 Update

House Bill H.R. 7010 passed the Senate and is now on its way to the President to sign. In addition to amendments relating to the PPP loan program, the bill provides that the deferral of employment taxes is now available even for taxpayers who have PPP loans that re forgiven under the CARES Act. This will allow taxpayers who obtain PPP loans and intend to apply for loan forgiveness to also defer the applicable employment taxes.

April 30, 2020 Update

The IRS has issued Notice 2020-32, which provides further guidance on some certain tax consequences associated with PPP loans. In particular, the IRS has confirmed that expenses paid with PPP loans will not be deductible to the extent attributable to the portion of the loan forgiven.

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The Internal Revenue Service announced further tax relief for individuals, trusts, estates, corporations and other non-corporate tax filers.

Individuals and Businesses Extensions

Penalties and interest have been waived for every U.S. taxpayer, including those living and working abroad, who wish to wait until July 15, 2020 to file their 2019 federal tax return and/or pay any taxes owed. Should an individual need an extension beyond the July 15 deadline, they must file Form 4868.

A business who needs an extension must file Form 7004. Granted extensions will allow individuals and business owners until October 15, 2020 to file. This extension will not extend the July 15 deadline to pay taxes owed. Taxpayers requesting the October extension should estimate their tax liability and pay in full by July 15 to avoid accumulating interest and penalties.

Estimated Tax Payment and Unclaimed Refunds

Continue Reading COVID-I9: IRS Extends More Tax Deadlines and Provides CARES Act Guidance

June 4 Update

House Bill H.R. 7010 passed the Senate and is now on its way to the President to sign. In addition to amendments relating to the PPP loan program, the bill provides that the deferral of employment taxes is now available even for taxpayers who have PPP loans that re forgiven under the CARES Act. This will allow taxpayers who obtain PPP loans and intend to apply for loan forgiveness to also defer the applicable employment taxes.

April 30, 2020 Update

The IRS has issued Notice 2020-32, which provides further guidance on some certain tax consequences associated with PPP loans. In particular, the IRS has confirmed that expenses paid with PPP loans will not be deductible to the extent attributable to the portion of the loan forgiven.

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Following up on my post earlier this week regarding the CARES Act Payroll Protection Program Update: SBA Issues Some Guidance and Sample Application, the Final Rule has been issued and may be found here.

A summary of the highlights include:
Continue Reading COVID-19: SBA Issues Payroll Protection Program Loan Interim Rule Effective April 2, 2020

June 4 Update

House Bill H.R. 7010 passed the Senate and is now on its way to the President to sign. In addition to amendments relating to the PPP loan program, the bill provides that the deferral of employment taxes is now available even for taxpayers who have PPP loans that re forgiven under the CARES Act. This will allow taxpayers who obtain PPP loans and intend to apply for loan forgiveness to also defer the applicable employment taxes.

April 30, 2020 Update

The IRS has issued Notice 2020-32, which provides further guidance on some certain tax consequences associated with PPP loans. In particular, the IRS has confirmed that expenses paid with PPP loans will not be deductible to the extent attributable to the portion of the loan forgiven.

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On March 27, 2020, the federal government enacted the CARES Act. The Act includes a $349 billion dollar stimulus package available to small businesses in the form of a Small Business Administration 7(a) loan, known as a Paycheck Protection Program Loan. The loan is forgivable, and amounts to grant, if certain conditions are met. Below is a summary of the Paycheck Protection Program Loan terms and conditions along with a summary of a few other loan related provisions in the Act.

1.      Paycheck Protection Program Loan under 7(a) (NOTE: use of this loan may preclude eligibility for tax credits and payroll tax deferral under CARES Act)

Continue Reading COVID-19: Understanding the SBA Paycheck Protection Program Loan under the CARES Act

It is not uncommon to see your fellow Florida motorists, head tilted downward and not on the road, utilizing their mobile device to text while their vehicle is in motion. Florida is now catching up to the rest of the country in one important area:  giving teeth to our texting while driving law. Enacted in 2013, Florida Statute 316.305, known as the “Florida Ban on Texting While Driving Law”, is intended to improve roadway safety by preventing crashes related to the act of text messaging.

Secondary Offense Not Enough

This statute, however, only authorized law enforcement officers to stop motor vehicles and issue citations as a “secondary” offense to persons who were texting and driving. In other words, police were only able to cite motorists for texting if they were pulled over for other reasons, such as speeding or failure to yield. This law did little to curb accidents caused by “distracted driving”, which were numerous, and often deadly.Continue Reading Florida Drivers Be Aware: Texting and Driving is a “Primary” Concern

The First Amendment is commonly understood as protecting the right to free speech. But the First Amendment does not impact the ability of private citizens and organizations to punish or limit speech. This is why it’s permissible for a private employer to fire an employee for engaging in speech the employer disapproves of – private employers have the right to manage their employees as they see fit.

The situation grows more complicated when the government is the employer. Like any other employer, the government has a legitimate interest in maintaining efficient offices and agencies, which often requires managing and disciplining employee speech. At the same time, however, public sector employees have a protected right to free speech under the First Amendment.

The law attempts to balance these two interests noted above by differentiating between private and official speech. The First Amendment only protects government employees when they are speaking as a private citizen about matters of public concern. If the government employee’s speech is instead part of their official job duties, they can be disciplined or fired for what they say.

Private v. Official Speech Test

Continue Reading Airing of the Grievances: 11th Circuit Declines to Extend First Amendment Protection to Employee’s Work Complaint

Dan Schwartz of the Connecticut Employment Law blog posted yesterday about an interesting medical marijuana case in Connecticut. For the first time, a Connecticut court ruled that an employer could not refuse to hire an applicant simply because she was a medical marijuana user, despite the employer’s drug-free workplace program. This applicant, who used medical marijuana for PTSD, had her offer revoked after she tested positive for marijuana on the pre-employment drug screen. She then sued for discrimination. In ruling for the applicant, the court focused on the anti-discrimination provision in Connecticut’s medical marijuana law:

[U]nless required by federal law or required to obtain funding: . . . (3) No employer may refuse to hire a person or may discharge, penalize or threaten an employee solely on the basis of such person’s or employee’s status as a qualifying patient or primary caregiver under sections 21a-408 to 21a-408n, inclusive. Nothing in this subdivision shall restrict an employer’s ability to prohibit the use of intoxicating substances during work hours or restrict an employer’s ability to discipline an employee for being under the influence of intoxicating substances during work hours.

Conn. Gen. Stat. § 21a-408p(b)(3) (emphasis added).

Does this decision have any impact on Florida employers?

Continue Reading Connecticut Court Finds Employer Discriminated for Refusing to Hire Medical Marijuana User: What Does This Mean for Florida Employers?

The Department of Labor just issued updated FMLA forms, good through August 31, 2021. No more using “expired” forms!  For anyone who was expecting “updated” to mean changed or improved…well, we are sorry to disappoint you – the only thing that was updated was the date! The forms are otherwise identical.
Continue Reading Department of Labor Releases Updated FMLA Forms

Property Right

Can employers arbitrarily terminate a person’s employment in Florida? Florida is an “at will” state, meaning employers generally can terminate an employee for any lawful reason, just as employees may quit for any reason. Certain public employees, however, enjoy a property interest/right to their employment and may be terminated only for cause.

Both the United States and the Florida Constitutions provide that no person shall be deprived of life, liberty, or property without due process of law. In the employment context, this guarantee of due process functions to protect certain public employees from being deprived of a protected property interest in their employment. Bd. of Regents of State Colleges v. Roth, 408 U.S. 564 (1972). Indeed, in Roth, the United States Supreme Court held that, where public employees have a property right or property interest in their continued employment, the employer may not terminate the employee without certain due process protections.Continue Reading Property Rights in Continued Employment for Public Employees: The Basics