Below are this week’s alerts for the Investment Network. Enjoy!
This Issue’s Topics:
- Client Alert: New IRS Guidance on Deduction Limit for Corporate Cash Contributions
- Client Alert: DOL’s Optical Illusion – Fiduciary Investment Advice Status
- Chicago Bar Association Future and Derivatives Law Committee Meeting: CFTC Regulatory Roundup
- ACG Chicago NextGen Leaders: CEO Connect
Client Alert Stradley Ronon: New IRS Guidance on Deduction Limit for Corporate Cash Contributions
February 11, 2021
IRS Releases Guidance on Corporate Charitable Deduction for Cash Contributions
The IRS, in news release 2021-27, explained how corporations may qualify for the new 100% limit for disaster relief contributions and offered a temporary waiver of the recordkeeping requirement for corporations otherwise qualifying for the increased limit. Generally, under Section 170, a corporation’s charitable deduction can’t exceed 10% of its taxable income, computed with certain modifications. (Section references are to the Internal Revenue Code of 1986, as amended (the Code).) The Taxpayer Certainty and Disaster Tax Relief Act of 2020, part of the Consolidated Appropriations Act, 2021 (CAA 2021), temporarily increased the limit, to up to 100% of a corporation’s taxable income, for contributions paid in cash for relief efforts in qualified disaster areas. Qualified contributions must be paid by the corporation during the period beginning on Jan. 1, 2020, and ending on Feb. 25, 2021. Contributions made to a supporting organization or to establish or maintain a donor advised fund do not qualify.
To read more, click here.
Client Alert Stradley Ronon: DOL’s Optical Illusion – Fiduciary Investment Advice Status
February 15, 2021
The U.S. Department of Labor (DOL) has reinstated the five-part test for when one becomes a fiduciary under to retirement investors (e.g., ERISA plan sponsors, participants, IRA owners, etc.) by reason of giving non-discretionary investment advice. While at first blush, the reinstatement seems to offer great relief to various financial institutions that were possibly ensnared under the DOL’s tricky 2016 conflicts of interest rule, private fund sponsors, broker-dealers and investment advisers should proceed with caution. Interpretations by the DOL over the second half of 2020 suggests it will liberally interpret (and enforce) the five-part test for when one becomes an investment advice fiduciary. Tellingly, that the Trump administration opted to expansively interpret the five-part test to the point that it has more than a passing resemblance of the 2016 conflicts of interest rule under the Obama administration suggests that, regardless of which party controls the Executive Branch, the risks of becoming a fiduciary have increased and the opportunities to avoid such status have inexorably winnowed.
To read more, click here.
Chicago Bar Association Future and Derivatives Law Committee Meeting: CFTC Regulatory Roundup
Thursday, February 25, 2021, 12:00-1:15 P.M., CDT
- Katie Trkla of Foley & Lardner
- Daniel Konar of Coinbase
- Laurian Cristea of ErisX
- Sarah Riddell (Moderator) of Morgan Lewis
Illinois MCLE credit will be offered. To register for this meeting, click here.
ACG Chicago NextGen Leaders: CEO Connect
Thursday, March 11, 2021, 9:00-10:00 A.M. CDT
Join us for an exciting fireside chat with the Cofounder of The Starbucks Company, Zev Siegl, who has since become a Global Keynote Speaker, Coach, and Startup Mentor. Zev will share lessons learned from his experience building Starbucks in its early days, new venture startup strategies that are applicable in 2021, advice for founders whose businesses are challenged by the Pandemic, and much more. Following the chat, which will be moderated by George Khalife (Vice President, Midwest U.S. at the Toronto Stock Exchange), we will open up the discussion for questions followed by a networking session.
For more information, click here.