The Patient Protection and Affordable Care Act (the Act) imposes new, substantive requirements on health insurance issuers in the group and individual markets and employer-sponsored group health plans. In two recently issued notices, Notice 2012-32 and 2012-33, the IRS invited comments on reporting requirements that accompany certain of the Act’s requirements that apply to all issuers and plans that provide “minimum essential coverage” and to “applicable large employers” under the Act’s shared responsibility requirements.Notice 2012-32Where a non-exempt US citizen or green card holder is covered under an employer plan that provides “minimum essential coverage,” he or she will not be subject to a tax penalty under the Act’s individual mandate. (The Act defines “minimum essential coverage” to include health insurance coverage offered in the individual market, an eligible employer-sponsored plan, or government-sponsored … [Read more...] about IRS Asks for Comments on Employer Reporting of Health Insurance Coverage Under Affordable Care Act
Closed accounts on credit report
Credit cards, particularly for college students, can allow students to buy school supplies, pay for tuition, and set up an early history of credit [i] They can also entrap students in debt, representing a higher risk of being overwhelmed by debt.[ii] Having a credit card as a student can be a life-altering choice as there are legitimate reasons a student may need a credit card.[iii] In 2008, 56% of undergraduates held credit cards at the age of 18 and 91% of students had at least one credit card by their final year of college; by graduation, 56% of students carry four or more cards.[iv] From 2004 to 2008, the average college student card debt went up from $2,169 to $3,173.[v] While making a choice about having a credit card as a student can be difficult, credit card marketing can push students to obtaining credit cards for the wrong reasons. Marketing strategies such as on-campus marketing, rewards, college affinity cards and college logos on credit cards have been effective ploys to … [Read more...] about Credit Card Marketing Geared Towards Students and the Policies to Address the Dilemma: Can More Be Done?
On September 22, 2015, the Securities and Exchange Commission (SEC) filed a settled administrative proceeding alleging that a registered investment adviser failed to adopt cybersecurity procedures in violation of an SEC rule. The adviser consented to a censure, a cease and desist order, and a $75,000 fine.According to the SEC enforcement action, between 2009 and 2013, an adviser "stored sensitive personally identifiable information (PII) of clients and other persons on its third party-hosted web server without adopting written policies and procedures regarding the security and confidentiality of that information and the protection of that information from anticipated threats or unauthorized access. In July 2013, the firm's web server was attacked by an unauthorized, unknown intruder, who gained access rights and copy rights to the data on the server. As a result of the attack, the PII of more than 100,000 individuals, including thousands of [the adviser]'s clients, was rendered … [Read more...] about SEC Enforcement Action Alleges an Adviser Failed to Adopt Adequate Cybersecurity Policies and Procedures; SEC Issues an Investor Alert on Data Theft
Effective September 23, 2013, the Securities and Exchange Commission ("SEC") lifted the ban on general solicitation and advertising in connection with certain fundraising activities. This rule change was required by the Jumpstart Our Business Startups Act (the "JOBS Act"). We have seen a considerable amount of confusion in the media about what this rule change means for private companies and funds. Of particular note, the rule change does not put into effect the so-called "crowdfunding" exemption called for by the JOBS Act, which contemplates the ability of private companies to raise up to $1 million annually from lower net worth investors. The SEC is expected to propose rules related to crowdfunding this fall. Even under the new rules, there are significant restrictions on the ability to raise capital. This advisory highlights key aspects of the SEC's rule change concerning general solicitation, as well as other actions taken by the SEC.General Solicitation and Advertising … [Read more...] about Fundraising by Private Companies: SEC Lifts Ban on General Solicitation
The Securities Exchange Commission (“SEC”) and the Commodity and Futures Trade Commission (“CFTC”) (together, the “Commissions”) have issued final joint rules and guidelines that require certain entities regulated by the Commissions to establish programs to address risks of identity theft. The final joint rules are similar to the identity theft red flag rules (“Red Flag Rules”) that were jointly issued by the Federal Trade Commission (“FTC”) and other federal agencies in 2007, and the proposed joint rules that the Commissions issued in early 2012. The final joint rules implement provisions of the Dodd-Frank Wall Street Reform and Consumer Protection Act, as amended (“Dodd-Frank”). Generally speaking, this means that entities like broker-dealers and federally registered investment advisers who were not covered under the earlier Red Flag Rules must now establish identity theft programs that comply with the … [Read more...] about SEC and Commodity and Futures Trade Commission (CFTC) Issue Final Joint Rules on “Red Flags” Compliance
The death blow for Michael Dalrymple’s Phoenix eco-friendly building supply company was the credit freeze that paralyzed the banking system and the nation in the fall of 2008.His business, called a.k.a Green, held on a little longer, but closed its doors for good in 2009.Dalyrmple said he blames the big banks and their political enablers for credit freeze that killed his business. “It was extremely frustrating as an entrepreneur looking to be in charge of my success or failure to come to the realization that the fate of my business was determined by greed, corruption and illegal behavior on Wall Street and in Washington,” he said.It took more than two years, but Dalrymple will soon extract his own very small measure of revenge.He is cutting ties with JPMorgan Chase & Co., his longtime lender, and moving all of his banking assets to a regional Arizona bank with no link — as far as he knows — to the financial crisis. In doing so, he will join a growing … [Read more...] about Customers Close Accounts to Protest Wall Street, Abusive Lending Practices
In Discover Bank v. Morgan, 363 S.W.3d 479 (Tenn. 2012), the Supreme Court held that under Tenn. Code Ann. § 47-18-109(a) of the Tennessee Consumer Protection Act (“TCPA”), actual damages are recoverable for the loss of available consumer credit due to the actions of a defendant if such damages can be proven with particularity.In Discover Bank v. Morgan, Discover filed an action against Morgan to recover over $16,000 in credit card charges. Morgan filed an answer and counter-complaint denying any liability for the charges, alleging instead that the credit card had been issued to her deceased husband who had designated Morgan as a mere “authorized user” on the account. Morgan also alleged that Discover had previously informed her that she would not be held responsible for the account if she provided a copy of her husband’s death certificate. After Morgan did so, however, Discover attempted to collect the balance from Morgan and … [Read more...] about In a Matter of First Impression, the Tennessee Supreme Court Holds That Damages for Loss of Consumer Credit are Recoverable Under the Tennessee Consumer Protection Act
The world of international taxation becomes more transparent with every passing year. This reflects the desire of global tax authorities to achieve compliance efficiency, prevent the inappropriate avoidance of taxpaying obligations and promote equity among taxpayers.There have been many elements of transparency in recent years, including transfer pricing documentation in more than 70 countries, FIN 48 (ASC 740) for financial reporting purposes, UTP Schedule for U.S. tax purposes, and exchange of information agreements between Organisation for Economic Co-operation and Development (OECD) member and non-member countries.The most recent evolution of this process in the United States was enactment of the so-called Foreign Account Tax Compliance Act (FATCA) in 2010 and release of extensive proposed regulations implementing FATCA in February 2012. At the same time, the United States announced an agreement with several EU countries to exchange information with respect to foreign accounts, a … [Read more...] about Foreign Account Tax Compliance Act in 2010
Tip of the Month: Litigation may be the most appropriate or only route when a taxpayer has been denied a credit(s) to which he or she feels entitled to receive. But, as the cases outlined below indicate, it makes good business sense to engage knowledgeable counsel who is aware of all potential procedural issues to avoid dismissal of an otherwise sustainable cause of action. Recent Announcements of Credit/Incentives Applications and PackagesCalifornia- On December 15, the California Alternative Energy and Advanced Transportation Financing Authority announced that electric car manufacturer Tesla Motors Inc. will receive roughly $39 million in sales tax exclusions through a California incentive program designed to promote high-tech jobs. Tesla was granted the incentives for $464 million in qualified purchases in 2015 and 2016. The carmaker is the largest single recipient of exclusions through the Sales and Use Tax Exclusion Program run by the authority … [Read more...] about December 2015 State Tax Credits & Incentives Update
In difficult economic times, debtors’ attorneys closely review credit reports looking for potential legal claims against creditors. Long after a debtor has been discharged from bankruptcy, creditors can find themselves defending claims of improper credit reporting. A recent case from the Eastern District of North Carolina illustrates the trouble facing creditors who furnish incorrect reports of discharged debt. See In re Adams (Bankr. E.D.N.C. 2010).The Adams debtors filed a chapter 13 petition in 2008 and received a discharge after completion of plan payments. A few days after the discharge, the debtors filed a motion seeking a declaration from the bankruptcy court that all payments due on their residential mortgage were current. The mortgage lender was served with this motion but filed no response. The bankruptcy court entered an order declaring the mortgage debt current. Thereafter, the debtors applied to refinance their mortgage. They were turned down when their … [Read more...] about Credit Reporting and Bankruptcy: Is Your Post-Discharge Credit Reporting Inviting Trouble?