Hey SEC - In the Real World, SAFEs are Equity - August 1, 2017

Just becuase you wear a badge, that does not mean you are always right.  And technocratic analysis in the sterile environment of the ivory tower must be tested against real world facts and circumstances on the ground. This article provides a comprehensive analysis of accounting for SAFEs, applying all relevant portions of authoritative U.S. GA…

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Hey SEC. Seriously - SAFEs are Equity, not Debt. - July 14, 2017

In a land far, far away, in a tall ivory tower, an ongoing debate is raging about whether SAFEs (Simple Agreements for Future Equity) should be accounted for as debt, or as equity.  Who could have imagined there would ever be such a debate?!  You can read the background information about this issue in our article Hey SEC! SAFEs are E…

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Hey SEC - SAFEs are Equity, not Debt! - June 26, 2017

We are currently helping to represent a client before the United Sates Securities Exchange Commission (“SEC”) in a case that has broad ramifications for startup companies and investors, especially those involved in crowdfunding under Regulation A. Investment instruments known as Simple Agreements for Future Equity (“SAFEs”)…

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Go for the Gold - August 19, 2016

The IRS taxes our Olympic champions. The U.S. Olympic Committee pays a relatively small amount of cash to our country’s Olympic medal winners, and the IRS taxes those cash awards.  That’s fine I suppose.  But it also taxes our Olympians on the value of the Olympic medals they receive as trophies.  How do you spell RIDICUL…

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California Partial Sales Tax Exemption - Manufacturing or R&D Equipment - July 20, 2016

The state of California has provided a partial exemption from sales taxes on purchases of equipment used in manufacturing or research and development activities for years 2014 through 2022.  This partial exemption is at a rate of 4.1875% from July 1, 2014 to December 31, 2016 and 3.9375% from January 1, 2017 to Ju…

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R&D Tax Credits - Big Savings for Small Startups - July 8, 2016

Those of you who follow our posts know that we don’t have a high opinion of U.S. Tax Law, or of the Senators and Congressmen who have enacted such a convoluted mess.  But when they do something positive, we’re happy to take note and give them credit.  The Protecting Americans from Tax Hikes (“PATH”) Act, enacted in…

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How Big is the U.S. Tax Code? - April 26, 2016

How big is the Internal Revenue Code (the "IRC" or the "Tax Code")? It's so big that nobody seems to actually know how big it is. And it's growing all the time. The official income tax code - the law enacted by Congress - contains over 3 million words. With the compliance regulations of the IRS added, the size of the body of federal income tax rule…

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IRS: Abuse of Power - May 23, 2013

The recent revelations about the IRS targeting citizens and organizations based on their political views should be a matter of grave concern to all citizens who love our form of government and desire to protect our personal civil liberties. The scandal is much worse than is being reported by mainstream media - many individuals and organizations tha…

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The Fair Tax - An Idea Whose Time Has Come? - April 19, 2013

"The entire American tax process is a farce. I have no idea how anything works. It's absurd." "I just got destroyed on my personal income taxes." "I don't ever want to pay taxes again - ever, anywhere." These are just a few of the many expressions of similar sentiment I heard from my clients this tax season. I'm sure such feelings are a big surpris…

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