Government measures in key jurisdictions 4th edition - Flipbook - Page 157
United States of America
Litigation
Generally, yes. Federal and state courts are operating, albeit under modified protocols.
Are the courts
operating?
Tax
Government stimulus policy generally takes two forms: fiscal policy (direct payments to
individuals, business subsidies, and tax incentives) and monetary policy (central bank
intervention). The U.S. government is using tax policy to stimulate the economy in response to the
Has any new
coronavirus (Covid-19) outbreak. These policy tools are contained in the Coronavirus, Aid, Relief,
legislation been
introduced in light of
and Economic Security Act (CARES Act) and Families First Coronavirus Response Act (FFCRA). The
Covid-19?
CARES Act offers some taxpayers an opportunity to take immediate action to reduce their federal
income tax liability as they prepare their 2019 income tax returns. However, much of the CARES
tax impact will be delayed until income tax returns are filed for tax periods during the crisis, which,
for most U.S. taxpayers, began in 2020. Thus, in many cases, federal income tax refunds
(particularly refunds resulting from the carryback of net operating losses (NOLs)) will not become
available until income tax returns for 2020 are filed in 2021.
Nevertheless, some action may be taken in the short-term to accelerate the ability of taxpayers to
obtain income tax refunds this year, and some action may be taken during the balance of 2020 to
ensure that income tax refunds will be obtained when 2020 income tax returns are filed in 2021.
Company
law matters
Have any measures
been put in place to
accommodate social
distancing (such as
remote general
meetings)?
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For more details, please refer to our client alert here.
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On August 8, 2020, President Trump signed an Executive Order which created a payroll tax deferral,
a temporary suspension of the 6.2% Social Security tax charged to employees. It is a deferral until
the end of the year. The tax would ultimately need to paid, unless Congress acts, so many
employers and employees are wary of this program.
Yes, in many cases taking advantage of legal concepts already on the books. Generally, U.S. corporate law is
specific to the state of incorporation, except for listed companies, where federal securities law considerations
are important. State law generally permits adjournment of annual meetings for emergencies, and for the
conduct of meetings by remote means. State law generally allows for action by written consent without
a meeting in many cases. For private companies, those whose charters contain conflicting provisions are
generally reviewing changing them. For public companies, the long-held idea that holding annual meetings
online could suppress shareholder democracy has been turned around, with many enthusiastically embracing
the idea.
Government measures in key jurisdictions