CARES Act – What About Partnerships?

CARES Act – What About Partnerships?

If your business is a partnership (particularly one under the Bipartisan Budget Act of 2015 (BBA)), you may have already filed your returns in March of 2020 for the 2019 tax year, and typically you would not be able to file an amended Form 1065 under the BBA.  What if you are entitled to some tax relief under the CARES Act?  Are you out of luck if you already filed?

The IRS is giving retroactive relief to partnerships who are subject to the BBA pursuant to Rev Proc 2020-23If your partnership is subject to the BBA and filed Form 1065 before Rev Proc 2020-23 was issued, you may be able to file an amended partnership return and furnish all corresponding Schedules K-1 to the IRS, but you must do so before September 30, 2020. 

There are additional rules and guidelines outlined in this article

If you are currently under IRS examination or audit, you may have additional questions or concerns regarding your options as it pertains to the CARES Act. 


If you have tax questions, please feel free to reach out to Mendes Weed, LLP at (925) 390-3222. 

In addition, we are currently assisting clients with tax law, divorce, probate, estate planning, business law, civil litigation, child custody, unlawful detainers, and other matters during this difficult time.  We have attorneys who can work remotely for you and put your concerns at ease. 

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Walnut Creek Main Office

1990 N. California BLVd.
Suite 1020
Walnut Creek, CA 94596

(925) 390-3222

San Francisco Office

95 Third Street
2nd Floor
San Francisco, CA 94103

(628) 216-5558

Oakland Office

66 Franklin Street
Suite 300
Oakland, CA 94607

(510) 822-2770

San Jose Office

3031 Tisch Way
110 Plaza West
San Jose, CA 94607

(408) 707-1667

Top 5 Tips: How to Maintain Your Law Firm’s Presence During the Coronavirus Pandemic

Top 5 Tips: How to Maintain Your Law Firm’s Presence During the Coronavirus Pandemic

Top 5 Tips: How to Maintain Your Law Firm’s Presence During the Coronavirus Pandemic

As you know, we are in the middle of the coronavirus pandemic.  All employees of Mendes Weed, LLP are working remotely with laptops our firm has provided.  On the one hand, we want to keep everyone safe. On the other hand, we need to make sure we are available to assist our clients with their very important, sometimes urgent needs, so working remotely is a great option for us right now.  This got us thinking, how do we maintain an office presence during this time while working remotely. We’ve brainstormed, and here are some ideas.  

1. Have Daily Meetings with an Office Manager or Supervisor

Our Office Manager is making sure to check in with staff every day.  Granted we have an amazing office manager we can rely on, but some of her methods can be used by all.  Our Office Manager has an office meeting at the same time every day via telephone or Zoom. She listens to concerns of attorneys and paralegals, makes sure everyone is on track to meet deadlines, and that everyone has the support and supplies they need.  Then, our office manager reports in a memo what was discussed to the Partners of the firm. This way there is a daily check in on productivity and moral support for all participants of the firm.  

2. Have a Weekly Virtual Meeting with Partners

At least once a week, we have an office meeting with everyone.  This is a great time to go over issues that come up and possible solutions, marketing ideas, and urgent client matters.  Just because we are working from home does not mean that we stop having our usual meetings. These meetings are important to the organization and efficiency of the firm.  We are able to set these meetings up virtually once a week and feel connected to our team.  

3. Write, Write, Write

It is only to be expected that some drop in work may happen.  Many of the courts are closed, matters are getting continued out, etc.  We are taking this time to write about issues we encounter in our practice that we have wanted to write about, but never have the time.  What could be more inspiring than having the time and freedom to write about areas of the law you are passionate about?

4. Work on Your Marketing Plan

With some extra time, why not work on your marketing plan?  Yes, even associates can have a marketing plan. Do you want to write more?  Network more? Volunteer more? Now is your chance to organize and create the work life you have always dreamed of.  

5. Virtual Happy Hour

When all else fails, organize a virtual happy hour on Zoom to keep the team connected.  You can even have a happy hour theme, such as a Hawaiian theme or sports theme. This New York Times article has some tips on how to have a successful virtual happy hour.  And this happy hour should be about team building, obviously, not work!  

We hope you have enjoyed these tips.  

Mendes Weed, LLP, is working remotely to assist clients at this time.  If you need help with tax law, estate planning, probate, family law, divorce, child custody or visitation, business law, civil litigation, or trust and estate litigation during this time, please feel free to reach out to us at (925) 390-3222 

SuperLawyers-RisingStars
Best of the East Bay Attorneys
Lisa Janine MendesReviewsout of 5 reviews
Walnut Creek Chanber of Commerce logo
Christina Weed - Taxation Law Specialist
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Walnut Creek Main Office

1990 N. California BLVd.
Suite 1020
Walnut Creek, CA 94596

(925) 390-3222

San Francisco Office

95 Third Street
2nd Floor
San Francisco, CA 94103

(628) 216-5558

Oakland Office

66 Franklin Street
Suite 300
Oakland, CA 94607

(510) 822-2770

San Jose Office

3031 Tisch Way
110 Plaza West
San Jose, CA 94607

(408) 707-1667

[Video ] Understanding California’s Emergency Cannabis Regulation Package

https://youtu.be/OFJCK2Ru9pA

On November 16, 2017, California’s three state licensing cannabis authorities publicly noticed proposed emergency regulations for commercial medicinal and adult-use cannabis.

Today, we will cover some of the highlights for manufacturers in this industry.

The California Department of Public Health (CDPH) will issue temporary business licenses that allow a business to engage in commercial cannabis activity.  The licenses are valid for 120 days and may be extended for an additional 90 if the business submit a complete annual license application.

Applications for annual licenses will be accepted online beginning in December, 2017.  Those applying for an annual license must disclose owners and financial interest holders, typical business information, a description of their procedure for waste disposal, transportation and security, as well as other requirements.  Businesses that are currently operating under the September 1, 2016, Compassionate Use Act will receive priority review.  The annual fees are $1,000 per license for the application and $2,000 to $75,000 for licensing depending on the gross annual revenue of the licensed premises. Applicants must have a valid local permit.

Licenses that are issued will have one category and one type.  A-licenses will be issued for adult-use, and M licenses will be used for medical use.  In addition, a Type 7 license will be issued for those extracting volatile solvents.  A Type 6 license will be issued for those extracting non-volatile solvents.  A Type N license will be issued for infusion products.  A Type P license will be issued for packaging and labeling only.

Products cannot be infused with nicotine or alcohol or have caffeine added.  Edible products are limited to 10 mg of THC per serving and 100 mg of THC per package.

Cannabis products should not have packaging that is attractive to children or is transparent.  Packaging should be re-sealable and child-resistant.

One important point to note is that a transition period will be in effect from January 1 to July 1, 2018, for state licensing authorities.  During this period, products can move between A and M licensees.  There will be some transition allowed for packaging, but packaging must still be child resistant and comply with certain other requirements such as the THC limits and product restrictions outlined in the emergency regulations.

Additional laws and changes are likely to occur.  And this video only covers some of the highlights of the emergency regulations but is by no means a complete summary.

In addition, please remember that cannabis is still a Schedule I drug under the Federal Controlled Substances Act and wholly illegal, even for medical use.  Anyone interested in this industry should make sure they are fully informed of the Federal laws related to cannabis.

Disclaimer: The tips and materials provided on this page are for informational purposes only, offered as public service. No information on this website should be considered legal advice or used as a substitute for legal advice. For legal advice, you should contact an attorney directly.

SuperLawyers-RisingStars
Best of the East Bay Attorneys
Lisa Janine MendesReviewsout of 5 reviews
Walnut Creek Chanber of Commerce logo
Christina Weed - Taxation Law Specialist
lawyers of distinction badge 2020

Walnut Creek Main Office

1990 N. California BLVd.
Suite 1020
Walnut Creek, CA 94596

(925) 390-3222

San Francisco Office

95 Third Street
2nd Floor
San Francisco, CA 94103

(628) 216-5558

Oakland Office

66 Franklin Street
Suite 300
Oakland, CA 94607

(510) 822-2770

San Jose Office

3031 Tisch Way
110 Plaza West
San Jose, CA 94607

(408) 707-1667

Tax Tips for Business Owners: How to Set Up or Run Your Business 

Tax Tips for Business Owners: How to Set Up or Run Your Business 

If you are contemplating setting up your own business or already have a business in the Walnut Creek area, here are some useful tax tips.

  • First, you need to make sure you choose the correct accounting method for your business and file the appropriate annual returns.
  • If you are a new business, you need to make sure to obtain an employer ID number (EIN).
  • You need to make estimated tax payments during the year to cover your federal and state tax liabilities. Payments are usually due quarterly in January, April, July, and October. Consult a tax attorney to help you calculate how much you should pay. Make sure your payments are timely and sent to the appropriate address.
  • If you have employees, you also need to make sure to file the appropriate tax returns annually and quarterly and make payments in a timely manner.
  • If you have independent contractors, you need to make sure that you file the appropriate Form 1099.
  • You need to keep track of all business expenses and be able to substantiate them. Mileage also needs to be accurately computed and substantiated.

How Your Business Can Affect Your Estate Plan

If your business continues to grow, you may find yourself in a position where you need to consider how the estate tax affects your estate plan. Sections 303 and 6166 of the Internal Revenue Code (IRC) can help alleviate some tax burden for small business owners who qualify. This one-time opportunity allows the estate to redeem stock with very little tax cost or to defer estate tax for a period of time. This allows the business to generate more revenue to pay some of the taxes.  The requirements for this are complicated, and you should consult with an attorney if you have questions.

Consult a Tax Attorney For More Tax Tips

Please remember this is only a summary of some of the tax tips business owners need to keep in mind. There are several other matters that may affect your tax status as a business owner, and a lawyer familiar with tax law and business taxes can assist you.

Contact Mendes Weed, LLP

Mendes Weed, LLP helps businesses comply with tax laws, and we may be able to help you as well. With offices in Walnut Creek, Sacramento, and San Francisco, we are conveniently situated to serve Northern California, but we assist clients throughout California and the U.S.

 

SuperLawyers-RisingStars
Best of the East Bay Attorneys
Lisa Janine MendesReviewsout of 5 reviews
Walnut Creek Chanber of Commerce logo
Christina Weed - Taxation Law Specialist
lawyers of distinction badge 2020

Walnut Creek Main Office

1990 N. California BLVd.
Suite 1020
Walnut Creek, CA 94596

(925) 390-3222

San Francisco Office

95 Third Street
2nd Floor
San Francisco, CA 94103

(628) 216-5558

Oakland Office

66 Franklin Street
Suite 300
Oakland, CA 94607

(510) 822-2770

San Jose Office

3031 Tisch Way
110 Plaza West
San Jose, CA 94607

(408) 707-1667

Buy-Sell Agreements in a Family-Owned Business

Buy-Sell Agreements in a Family-Owned Business

A large number of North American business enterprises are family-owned or controlled by a family. Income produced by these family-run businesses generates more than 50% of the Gross National Product, according to Forbes.

With many family-owned businesses extending to the fourth generation and beyond, it’s imperative that these entities have buy-sell agreements that are written by tax lawyers experienced with this process.

What is a Buy-Sell Agreement?

A buy-sell agreement between two or more family members who go into business together is a legally-binding agreement that governs a change in ownership in the event one or more of the owners dies, leaves the business, is forced to leave the business, is disabled, or retires.

A buy-sell agreement is intended to protect the ownership interests of the remaining partners during critical transitional periods.

The agreement stipulates:

  • the amount the departing partner or the surviving family will be compensated,
  • who will be allowed to buy his or her shares of the business, and
  • the circumstances that will generate a buyout.

Consult a Tax Lawyer for Help with a Buy-Sell Agreement in a Family-Owned Business

Whether your family-owned business is classified as a Partnership, LLC, or Corporation, Mendes Weed, LLP can help you plan for your business and prepare your buy-sell agreement that is customized for your business needs.

Representing Clients with Tax Litigation from the Fallout of a Buy-Sell Agreement

While we like to believe that going into business together as a family will be an amicable decision, it is not uncommon for family members to have a conflict with their buy-sell agreements, especially if they have properly prepared, discussed, and planned for potential issues and counseled by a  tax attorney.

Mendes Weed, LLP can guide and counsel you through this process and hopefully alleviate some of your concerns.

For more information about buy-sell agreements in a family-owned business, your tax status as a result of a change in ownership, or tax representation in front of the IRS, please contact us.

SuperLawyers-RisingStars
Best of the East Bay Attorneys
Lisa Janine MendesReviewsout of 5 reviews
Walnut Creek Chanber of Commerce logo
Christina Weed - Taxation Law Specialist
lawyers of distinction badge 2020

Walnut Creek Main Office

1990 N. California BLVd.
Suite 1020
Walnut Creek, CA 94596

(925) 390-3222

San Francisco Office

95 Third Street
2nd Floor
San Francisco, CA 94103

(628) 216-5558

Oakland Office

66 Franklin Street
Suite 300
Oakland, CA 94607

(510) 822-2770

San Jose Office

3031 Tisch Way
110 Plaza West
San Jose, CA 94607

(408) 707-1667