Storm Clouds on the Horizon: An Uncertain Future for Taxation of Carried Interests
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Washington Technology Industry Association's February Finance Community Meeting
Time to get back in the game?
February Finance Community Meeting
2/18/2010
5:00pm to 7:00pm
Davis Wright Tremaine, LLP (Davis Center)
The Washington Technology Industry Association has assembled a diverse panel of speakers from financial institutions, money managers and industry executives to discuss current trends and the current options and strategies to meet your needs. Whether you have a lot of cash, or only a little, an update on the current investment and corporate cash management environment will prove interesting.
Panel:
Chad Cohen, Zillow.com
Rob Derry, Silicon Valley Bank Asset Management
George Taylor, Moss-Adams Weath Advisors, LLC
Moderator:
Glenn Walcott, former CFO, Big Fish Games
Join the meeting for happy hour, networking and further discussion. Attendance is being limited to 50 participants. Click here for more information or to register.
Washington State Court of Appeals Rejects Novel Privacy Claim Based on Dissemination of Unsubstantiated Information
By Eric M. Stahl and Sarah K. Duran
The Washington Court of Appeals this week held that state law does not recognize a cause of action for invasion of privacy based on “negligent dissemination of unsubstantiated information.” Corey v. Pierce County, Case No. 62505-5 (Wash. App. Jan. 25, 2010).
The case is good news for Washington state media. It squarely rejects an expansive reading of the 2008 Bellevue John Does public records case and the emerging theory that truthful reporting about criminal investigations is actionable—a theory that, were it to be accepted by the courts, would upend decades of established defamation law.
Continue Reading...Strategy for Measure 67 Taxes
By Patrick J. Green and John A. DiLorenzo, Jr.
With the Jan. 26, 2010, passage of Measure 67 in Oregon, taxes on corporations with sales in the state will increase retroactively to 2009. C corporations will pay a higher minimum tax and higher corporate income tax on income in excess of $250,000. Other business entities will pay an increased minimum tax regardless of profits.
This advisory provides a brief analysis of Measure 67's implications and describes a strategy for tax reduction for businesses operating as C corporations.
Continue Reading...Recent Decision Defines Standards of Care for Preserving Electronically Stored Information
"By now, it should be abundantly clear that the duty to preserve means what it says and that a failure to preserve records—paper or electronic—and to search in the right places for those records, will inevitably result in the spoliation of evidence."
By Elleanor H. Chin and Randy Gainer
01.25.10
The above quote from U.S. District Judge Shira Scheindlin’s decision in Pension Committee of the University of Montreal Pension Plan et al. v. Banc of America Securities LLC is a warning to all parties involved in litigation and their counsel. The decision will provide a reference point for evaluating whether parties were reasonable in the steps they took to preserve evidence at the onset of litigation. Lawyers, compliance officers and litigation decision makers must understand the implications of this ruling. Judge Scheindlin states ignorance is not an excuse for negligent loss of data.
Key take-away points
First, a party should issue written instructions to preserve documents and electronically stored information as soon as it anticipates litigation. Second, the individuals accountable for implementing the litigation hold should have sufficient personal knowledge of the technical processes to determine whether they are appropriate, and truly likely, to capture all relevant information.
Partner Jim Fang to Speak at 4th National Symposium on Mergers & Acquisitions in China
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Zhi-Ying James (Jim) Fang Partner - Los Angeles 213.633.6847 jimfang@dwt.com Download VCard
The law firm of Davis Wright Tremaine LLP is pleased to inform you that our partner, Zhi-Ying James Fang, will speak at the American Conference Institute’s 4th National Symposium on Mergers & Acquisitions in China. The event takes place Feb. 25 and 26, 2010, at the Carlton on Madison in New York City. Mr. Fang will present on “Best Practices in Corporate Structuring and Consolidation” on Feb. 26 from 3:45 to 4:30 p.m. EST. Mr. Fang has arranged for Davis Wright Tremaine clients, contacts and colleagues to receive $200 off the cost of registration. Just mention this special discount when you register (a free brochure is available from the registration page). If you have any questions, please contact the American Conference Institute at (888) 224-2480 or via their Web site. Thank you. |
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Officers and Managers Risk Personal Liability, Penalties and Attorneys' Fees for Unpaid Wages
By Holly M. Hearn and Rebecca L. Olson
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As employers begin 2010 facing a continuing economic downturn, managers and officers should be reminded of the potential personal risks that arise from the nonpayment of employee wages. The legal obligations that apply to corporate employers apply equally to individual officers and managers who exercise control over direct payment of wages and act willfully in failing to pay wages. This can come as a surprise because officers and managers often assume that they are not personally liable for corporate obligations. They also fail to appreciate the broad definition of “wages” and the limited nature of defenses. |
New in 2010: Self-Reporting and Excise Taxes for Health and Welfare Plan Problems
Failure to comply with COBRA and other health and welfare plan rules can trigger heavy excise tax penalties. In the past, those penalties were rarely assessed and employers could quietly fix their own problems. Now, however, you may have to report your own problems and assess these taxes on yourself.
On Sept. 8, 2009, the Internal Revenue Service (IRS) issued final regulations regarding new reporting requirements. Starting in 2010, employers (and certain third parties) must self-report and pay excise taxes for failing to comply with the following:
- COBRA
- HIPAA portability, access, renewability and nondiscrimination rules
- The Genetic Information Nondiscrimination Act (GINA)
- Mental health parity rules
- Minimum hospital stays under the Newborns’ and Mothers’ Health Protection Act
- Continued group health plan coverage of postsecondary dependent children on a medically necessary leave of absence under Michelle’s Law
- Health savings account (HSA) comparable employer contributions rules
- Archer medical savings account (MSA) comparable employer contributions rules
House Jobs Bill and Summary
Attached is a copy of the Jobs Bill passed by the House, and a summary of the bill.
Among other things, the bill would extend COBRA assistance. From the summary:
"Help with Health Insurance for Unemployed Workers (COBRA): $12.3 billion to extend from nine to 15 months the 65% COBRA health insurance subsidy for individuals who have lost their jobs. The job lost eligibility date is extended in the provision to June 30, 2010. Approximately seven million people benefited from the premium subsidy provided in the Recovery Act."
Climate Change: Sen. Cantwell Introduces Alternative to Cap and Trade
By Craig Gannett and Lauren Giles Wishnie
With the debate over climate change legislation stalled in the Senate, on Dec. 11, 2009, Sen. Maria Cantwell of Washington introduced her long-awaited alternative strategy for reducing carbon emissions dramatically by mid-century. In doing so, she and her Republican co-sponsor, Sen. Susan Collins of Maine, are challenging the widespread, but far from unanimous, consensus in support of the regulatory model known as cap and trade.
Continue Reading...