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There are myriad potential tax benefits for a US person who
becomes a bona fide resident of Puerto Rico. Mayer Brown summarized
these rules in a previous Legal Update. For those watching
carefully, however, there have been a number of recent events
suggesting that how individuals take advantage of these rules is
getting heightened scrutiny both from Congress and the Internal
Revenue Service. Mark H. Leeds and Juan F. Lopez Valek of the New York office of
Mayer Brown examine these recent events and announcements in the
Before the proposed rules actually were published, however, the Biden White House
issued a regulatory freeze. Under the regulatory freeze, it appears that these proposed regulations will be withdrawn from the Office of the Federal Register and set aside for review. The review and approval must be completed by a department or agency head appointed or designated by President Biden (or an approved delegate), unless the OMB director allows publication of the proposed regulations due to some sort of emergency exception.
Whether publication of the EEOC proposed rules will continue to be delayed or whether the rules in their current form will be published at all remains unclear. We look forward to further clarity once the Biden administration informs the public of its intentions for wellness programs generally, and of the fate of the proposed regulations. As explained in our Legal Update, the incentive provisions were removed from the regulations, effective January 1, 2019. Until regulat
Here is a summary of the extended relief:
The Notice further extends the 180-day deadline for taxpayers to invest eligible gains in a qualified opportunity fund. Now, if a taxpayer’s 180-day deadline to invest eligible gains in a qualified opportunity fund was or is on or between April 1, 2020 and March 31, 2021, then the deadline has been automatically extended to March 31, 2021. However, a taxpayer who sells an asset that generates eligible gains in 2020 will still need to make a valid deferral election in accordance with the instructions to Form 8949, complete Form 8997, and file the completed Form 8949 and Form 8997 with a timely filed Federal income tax return (including extensions) or amended Federal income tax return for 2020 even if the taxpayer invests the eligible gains in a qualified opportunity fund in 2021.
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Seyfarth Synopsis: The IRS issued Notice 2020-86, which provides guidance on the rules that apply to safe harbor plans that were changed by the Setting Every Community Up for Retirement Enhancement Act of 2019 (the “SECURE Act”). The guidance covers the increase in automatic contributions permitted under a qualified automatic contribution arrangement (or “QACA”) safe harbor plan, safe harbor notice requirement changes, and issues related to the retroactive adoption of safe harbor status.
The SECURE Act included a number of changes to the rules that apply to safe harbor plans. As described in our prior Legal Update available here, the SECURE Act (1) increased the 10% cap on automatic contributions under a QACA to 15%, (2) eliminated the requirement that a non-elective safe harbor plan notify participants of the plan’s safe harbor status before the beginning of the plan year, and (3) established new rules that per
Seyfarth Synopsis
: Employers should identify as soon as possible any current employees and employment candidates who may require H-1B work permit sponsorship before October 1, 2021, given that it is anticipated USCIS will again receive H-1B registrations far in excess of the annual quota, resulting in a random lottery-type selection process.
This Legal Update is intended to enable employers to identify any current employees and employment candidates who may require H-1B work permit sponsorship before October 1, 2021. We recommend that employers identify any such candidates as soon as possible.
In last year’s H-1B cap (FY 2021), USCIS implemented an electronic registration system for all cap-subject H-1B petitions. The initial registration period ran run from March 1, 2020 until March 20, 2020, followed by a lottery, and then a 90-day filing window for selected registrants. It is expected that USCIS will implement the electronic registration period for this year’s cap (FY 2022