This week a bi-partisan group publicized a potential agreement on a $1 trillion infrastructure bill. Popular press immediately questioned whether such an agreement is agreeable. The President was looking for much more. In late March 2021, President Joe Biden (“Biden”) released the American Jobs Plan (the "Plan"), a long-term plan to invest $2.3 trillion to rebuild infrastructure and increase jobs in the next eight years. There are discussions as to the definition of “what infrastructure is” because the Plan includes proposals beyond the typical “hard hat” definition of infrastructure. Here, we discuss the Plan as it relates to the construction industry and contractors. Part of the $2.3 trillion will include $115 billion for "modernizing the most needed bridges, highways, roads and main streets", "$20 billion for improving road safety", "$85 billion for improving existing public transport and promoting the expansion of institutions’ systems, "$80 billion for supporting Amtrak and other railway projects", "$174 billion to promote the U.S. electric vehicle industry", "$25… read more →
The U.S. Department of Labor’s (DOL’s) Employee Benefits Security Administration (EBSA) on April 14, 2021 issued its first guidance on best practices for maintaining cybersecurity to protect the retirement benefits of employees under the Employee Retirement Income Security Act of 1974 (ERISA) for private sector employer-sponsored retirement plans. Background: ERISA was established to protect plan participants and their beneficiaries. However, with the continually changing landscape in the IT environment and increased internet usage in retirement plan administration, risks have surfaced that leave retirement plans vulnerable to cyber-attacks. Many plan sponsors outsource plan administration to third-party service providers which often includes record keeping. This can create a risk of cyber crooks gaining unauthorized access to participant accounts and their personal information. The DOL’s Cybersecurity Guidance is broken down into three forms: https://www.dol.gov/newsroom/releases/ebsa/ebsa20210414 Tips for Hiring a Service Provider with Strong Cybersecurity Practices Cybersecurity Program Best Practices Online Security Tips Tips for Hiring a Service Provider with Strong Cybersecurity Practices: https://www.dol.gov/sites/dolgov/files/ebsa/key-topics/retirement-benefits/cybersecurity/tips-for-hiring-a-service-provider-with-strong-security-practices.pdf Ask… read more →
Attention Construction Contractors! Are you aware that Governor Ron DeSantis unveiled his Florida Leads budget for Fiscal Year 2021-2022? The proposed budget provides the following leads on transportation and infrastructure: $2.5 billion for highway construction to include 210 new lane miles $1 billion in resurfacing to include 2,689 lane miles $122.6 million in seaport infrastructure enhancements $331 million for aviation improvements $516 million for scheduled repairs of 89 bridges and replacement of 18 bridges $717 million for rail/transit program advancements $172.2 million for safety initiatives State law requires contractors to be prequalified with the Florida Department of Transportation (“FDOT”) in order to bid on construction contracts greater than $250,000. Applicants must register with the FDOT and electronically submit a timely application with the required type of financial statements listed below. Financial Statement Requirements Financial statements should cover the 12-month period through the calendar year end (usually January 1st – December 31st). The applicant must submit the application within four months… read more →
If you are a real estate investor, or even if your business owns its own real estate, providing your partnership tax return to your banker to satisfy reporting requirements may not be enough anymore. Partnership tax returns (Form 1065) for the 2020 tax year are in the midst of a reporting change that may leave taxpayers and lenders who use tax return information scratching their heads. Prior to 2020, partners’ capital accounts could be reported based on several accounting methods, such as tax basis and Generally Accepted Accounting Principles (GAAP). This generally meant that the amounts for partners’ capital accounts on the “Balance Sheets per Books” on Schedule L, the “Analysis of Partners’ Capital Accounts” on Schedule M-2, and each partner’s capital account analysis on their respective Schedule K-1 would all equal and were typically in-sync with the business’ books and records. New for 2020, the IRS took away the taxpayer’s choice in reporting partners’ capital accounts. The balance sheet… read more →