Author Archives: admin

Issue: May 29, 2018

New Audit Rules: Part 2 – The Partnership Representative

The Bipartisan Budget Act of 2015 (“BBA”) provides that partnerships and LLCs taxed as partnerships must appoint a Partnership Representative (“PR”).  The PR need not be a partner or a member and will have substantially broader powers than the old Tax Matters Partner in connection with partnership audits.

The new audit rules provide that the PR has almost complete authority to act on behalf of the partnership or LLC (and therefore, effectively, the partners and members) when dealing with the IRS, without any requirement that the PR keep the partners, the members or the managers advised as to anything, even the very existence of the ongoing audit. 

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Issue: May 29, 2018

New Audit Rules: Part 3 – Who Pays the Tax?

This is the third of our articles dealing with the new audit rules established for partnerships for tax years beginning after December 31, 2017.  This article deals with whether, after an audit resulting in the need for additional payment to the IRS, to (a) apply the default rule of taxing the partnership during the year of the audit (the “audit year”) so that the then-current members bear the tax burden, or (b) elect to “push out” the tax to those who were partners during the year being audited (the “review year”).

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Author: Greg Gnepper

Issue: May 25, 2018

On May 10, we marked the 125-year anniversary of Nix v. Hedden, 149 U.S. 304 (1893).  In this historic decision, the United States Supreme Court gave its definitive answer to an age-old question:  Are tomatoes considered fruits or vegetables?

The case started when Congress passed the Tariff Act of 1883, which imposed a tax on imported vegetables.  Mr. Nix sued the port authority for assessing the tax on his tomatoes.  He cited botanical classifications and noted that tomatoes grow on vines and contain seeds—like fruit. 

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Author: Camila Alarcon

Issue: May 21, 2018

Online Sales and Delivery of Alcohol

Arizona Attorney General Mark Brnovich issued an opinion, dated April 6, 2018, on the sale and delivery of alcohol, and the use of websites and mobile device applications for the delivery of alcohol. This opinion changes or clarifies, depending on your point of view, the following common practices:

• Those businesses that can receive orders online need to ensure that orders are not placed or transmitted between 2:00 a.m. and 6:00 a.m. This includes retailers with off-sale privileges, direct shipment licensees, farm wineries, and craft distilleries.

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Author: Mike King

Issue: May 16, 2018

QUESTION: WHAT COLOSSAL MISCUE CAUSED A CREDITOR TO LOSE ABOUT $78,000 WORTH OF COLLATERAL?
ANSWER: INADVERTENTLY OMITTING THE LETTER “T” FROM THE DEBTOR’S MIDDLE NAME INVALIDATED THE UCC-1 FINANCING STATEMENT!

What’s in a name?

Ronald Markt Nay bought two Terex Dump Wagons with loans from LEAF Capital Funding, LLC (“LEAF”).  One loan was for $41,000 and the other loan was for $36,950.  LEAF filed UCC-1 financing statements with the Indiana Secretary of State’s Office to perfect its liens against the two dump wagons. 

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