Government measures in key jurisdictions 5th edition - Flipbook - Page 166
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 coronavirus (Covid-19) outbreak. These policy tools are
contained in the Coronavirus, Aid, Relief, and Economic Security Act (CARES Act) and
Families First Coronavirus Response Act (FFCRA). The 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.
•
For more details, please refer to our client alert here.
Has any new
legislation been
introduced in light
of Covid-19?
Company
law matters
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
Have any measures
law generally allows for action by written consent without a meeting in many cases. For private
been put in place
companies, those whose charters contain conflicting provisions are generally reviewing
to accommodate
changing them. For public companies, the long-held idea that holding annual meetings online
social distancing
could suppress shareholder democracy has been turned around, with many enthusiastically
(such as remote
embracing the idea.
general meetings)?
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Government measures in key jurisdictions
