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Update on U.S. Federal Government Financial Aid & Other Sources of Financial Aid in Response to the Economic Crisis Connected with the COVID-19 Coronavirus March 30, 2020 This summary is intended to provide helpful information to small businesses who may be considering seeking financial assistance during this economic crisis connected with the…

The so called gig economy, in which many people in our nation work as independent contractors and move around from gig to gig, has been a classic example of free market success - it has improved the lots of workers and companies, and it has improved the overall economy.  Gig workers have vastly increased their autonomy and flexibility; they ha…

Seed-Stage Startup Financing Innovation SAFEs (Simple Agreements for Future Equity) are old news in the fast-moving realm of startup companies and seed-stage venture capital.  But in the buttoned-down world of accounting rules and SEC regulations, SAFEs are very much on the cutting edge of problematic issues.  The accounting rules have no…

The “Tax Cut and Jobs Act” of December 2017 (“Tax Reform”), effective for 2018 and going forward, is the best tax reform in our country in at least the last century. The Tax Code should be abolished - not merely reformed - and the national income tax should be replaced with a national sales, or consumption, tax: i.e., the &l…

In a recent analysis performed by McKinsey & Company and published by U.S. News, Best States Ranking , California was ranked no. 32 in the “Best States” ranking. I don’t know for a fact, but I expect that there was a time when California was ranked first, or at least in the top 10. But now, California seems…

Now that Tax Day is over, let's talk about what happened.  (I know, I know.  It's painful!  But, if we are to have any hope of ever making it better, we've got to face the reality of what's happening.) Filing Income Tax Returns is a Waste of Precious Time and Money This year, in the United States, about 150 million individuals have f…

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…

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”)…

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…

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…

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…

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…

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…

"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…