Supreme Court Refuses to Hear Internet Sales Tax Cases

In Business Law, Tax by Coolidge Wall

New York implemented a law that imposes sales tax collection duties on some out-of-state retailers that are not physically present in the state. The law requires out-of-state retailers engaged in “affiliate marketing” to collect sales tax. Affiliate marketing occurs when the retailer enters a contract with a third party (the affiliate) who operates an independent website. Under the contract, the affiliate agrees to provide on its website a link that directs readers to the retailer’s website in exchange for a percentage of the sales made to readers who use the link. Overstock.com and Amazon.com sued the New York State Department …

Supreme Court Will Hear Religious Freedom Cases

In Business Law, Healthcare Reform, Litigation by Coolidge Wall

The Supreme Court agreed on November 26, 2013 to hear the religious challenges of Hobby Lobby Stores and Conestoga Wood Specialties Corp. to the contraceptive coverage requirements of the Affordable Care Act. While not on the Supreme Court website calendar yet, the latest information indicates the cases will be heard in March. The Court has consolidated the two cases and scheduled only one hour of argument for both cases. As discussed in earlier blog posts (Supreme Court Asked to Decide If Corporations Have Religious Freedom and Do For-Profit Corporations Have Religious Freedom?), the general issue is whether for-profit companies with …

Stay away from my friends: When is a business’s social media friend list a trade secret?

In General, Litigation, Social Media by Coolidge Wall

The general rule in Ohio is that for a customer list to be a trade secret, it has to be… a secret. Usually this means that the customer list is stored in a locked drawer or a password-protected server that only a few trusted people can access. But with the emergence of social media, a friend list may be as or more important than a traditional customer list. But can a business’s friend list be a trade secret just like a customer list? Christou v. Beatport, L.L.C., No. 10-cv-02912-RBJ-KMT, 2012 U.S. Dist. LEXIS 34307 (D. Colo. 2012) raised this very …

IRS Finalizes Regulations Governing De Minimis Safe Harbor Expensing

In Business Law, Tax by Coolidge Wall

The IRS has released final regulations governing when taxpayers must capitalize expenditures and when they can deduct expenditures related to the acquisition of tangible property. These regulations are effective for taxable years beginning on or after January 1, 2014. Importantly, the final regulations provide for a de minimis safe harbor election that allows taxpayers to immediately deduct the cost of acquiring certain items of tangible property, provided that specific requirements are satisfied. The election is made annually by attaching a statement to a timely filed income tax return. Very generally, taxpayers making the safe harbor election can immediately deduct the …

Asset Protection: Sometimes, being attached to your spouse means that your creditors cannot attach your assets

In Business Law, Estate Planning, General by Coolidge Wall

HISTORY LESSON: Back in days of yore (2/9/72 – 4/4/85) in Ohio, a form of property ownership known as Tenancy By the Entirety (TBE) was recognized. The TBE form of property ownership harkens back to times when women had much less control over their affairs and needed to be protected from their husband’s debts. It is useful now to protect assets from creditors. “TBE” EXPLAINED: The general principle behind TBE property is that it is not owned part by husband and part by wife, but entirely by a fictional third-party made of the union of husband and wife. As such, …

Ohio’s Most Litigated Private Pool?

In Litigation, Real Estate by Coolidge Wall

An Ohio family in Mahoning County has demonstrated their commitment to property rights, swimming, or both. In 1949, Ohio Edison obtained an easement for building and maintaining an electric transmission line, and currently maintains a 69,000 high voltage line within the easement area. More than 25 years later, in 1977, the Wilkes family purchased a home on a lot partially covered by Ohio Edison’s easement. In 1993, they installed an above-ground swimming pool and storage shed within the minimum safe distances from the transmission lines pursuant to the National Electrical Safety Code. In November of 2008, Ohio Edison notified them …

IRS Announces 2014 Pension Plan Limitations

In Business Law, Employee Benefits, Employment Law, General by Coolidge Wall

On October 31, 2013, the IRS announced cost-of-living adjustments for 2014 retirement plan contributions. For 2014, the amounts that individuals will be able to contribute to retirement plans will remain the same as 2013. Highlights of the IRS announcement include: Continuing the annual salary deferral limit for 401(k), 403(b), and most 457 plans at $17,500. Leaving unchanged the additional catch-up contribution for employees age 50 and older at $5,500. Increasing the limit on total contributions to defined contribution plans from $51,000 to $52,000. Leaving unchanged the definition of highly compensated employee as an employee making $115,000 per year. Increasing the …

IRS Modifies the Health Flexible Spending Account “Use It or Lose It” Rule to Allow a Limited Carry Over of Unused FSA Funds

In Business Law, Employee Benefits, Employment Law, General by Coolidge Wall

On Halloween, the IRS treated employers and health flexible spending account participants to a change in the longstanding “use it or lose it” rule. Beginning immediately, employers may amend their cafeteria plans to allow participants to carry over up to $500 of unused FSA funds at the end of the plan year so that the carryover can be used to reimburse qualified medical expenses incurred in the following plan year. In addition, the amount carried over will not count against the permitted $2,500 salary reduction limit applicable to the next plan year. According to the guidance, however, a plan cannot …

Ways to Pass the Check: Cost-shifting during the electronic discovery process

In Litigation by Coolidge Wall

There is an old saying that there is no such thing as a free lunch. But in the e-discovery arena, there are times when counsel can “pass the check” for e-discovery to the opposing party. Many courts treat e-discovery the same way they treat paper discovery, and presume that parties must pay their own costs. See Dahl v. Bain Capital Partners, L.L.C., 655 F. Supp. 2d 146, 148 (D. Mass. 2009)(internal citations omitted). In fact, the Southern District of New York in the landmark Zubulake case found that cost-shifting should be considered only when electronic discovery imposes an “undue burden …

A True “Black Swan”: How unpaid internships were good, but are now bad

In Business Law, Employment Law by Coolidge Wall

I love when a movie comes out that makes me smarter, even without watching it. A good example is The Black Swan. I had never heard of such a thing and had no idea what it symbolized before Fox bombed the airwaves with commercials featuring dark, elegant-looking shots of Natalie Portman in ominous poses. Intrigued, I looked up the metaphorical use of a black swan in literature and film. I learned that a black swan represents an event that surprises the observer, has a major effect on the observer and others, which is usually negative, but is often inappropriately rationalized …