On January 1, 2018, the rules and procedures relating to IRS audits of partnerships, including those limited liability companies taxed as partnerships, (for purposes here, collectively, the “Partnerships”) will change. The Bipartisan Budget Act of 2015 (“BBA”)(26 U.S.C.A. §§6221-6241), which was signed by President Obama on November 2, 2015, is generally intended to make it easier for the IRS to audit Partnerships and to assess and collect underpayments of taxes. It allows the IRS to assess and collect taxes directly from the Partnerships rather than from the partners or members (for purposes here, collectively, the “Partners”) as was the case under the old rules. Continue Reading New IRS Partnership Audit Rules Take Effect Jan 1: What You Need to Know

For employers, the tide is making its long awaited turn in our nation’s capital at the National Labor Relations Board (“NLRB”). Last week, the NLRB reversed precedent on four significant rules that were widely viewed as favorable to unions and a proverbial thorn in the side of employers and the business community. Here is a snapshot of last week’s activity:  Continue Reading ‘Tis the Season for Employers: NLRB Reverses Course with Four Key Rulings

UPDATE: On November 22, 2017, OSHA announced that it moved the electronic reporting deadline for 2016 data and information from December 1, 2017 to December 15, 2017. The following blog post has been updated to reflect this change. No other parts of the new electronic submission regulations were changed.

December 15, 2017 is the final deadline to comply with the newly implemented Occupational Safety and Health Administration (“OSHA”) regulations that require electronically submitting 2016 workplace injury data and information to OSHA. To help navigate these regulations, here are few reminders about this new reporting format that affects almost all construction industry businesses.

Continue Reading One Final Reminder: OSHA Electronic Records Submission Deadline December 15, 2017

One of the general and principal benefits of incorporating a business entity is limited liability; the owners of a corporation are not liable for the corporation’s actions or debts. There are, however, exceptions. One of the exceptions is the doctrine of “piercing the corporate veil,” under which courts may cast aside the “veil” of incorporation and hold a corporation’s shareholders personally liable for the corporation’s actions.  Continue Reading First Department of New York Loosens the Standard for “Piercing the Corporate Veil”

This article was originally published in the 2017 edition of the Utility and Transportation Contractor Association’s Magazine.

If you are a union contractor, you are probably making contributions into one or more union pension funds every month. These pension funds, known as multi-employer pension plans (MEPs), rely on a number of employers paying their share toward a common fund. Notably, because of the nature of these pension plans, many (if not all) of them are underfunded and do not presently have enough assets to cover their expectant liabilities. However, despite underfunding, employees are still entitled to their full pension benefits. But who is responsible for this unfunded amount, and what happens if you exit the fund?  Continue Reading What Every Contractor Needs to Know About Withdrawal Liability

Have you ever been in a situation where your subcontractor or fabricator did not have the financial ability to purchase material needed for a project? Have you ever offered your assistance by way of either directly purchasing the material and providing it to the subcontractor/fabricator or advancing funds to the subcontractor/fabricator to allow for the purchase? While this arrangement has its advantages, contractors should be aware of their exposure, particularly if the subcontractor/fabricator has financial issues down the road. Even though a contractor fronts the funds to purchase the materials, it could lose its interest in those materials to the subcontractor/fabricator’s lender, especially if that lender holds a security interest in the subcontractor/fabricator’s inventory.  Continue Reading Contractors: Protect your Investment in Materials

October 26, 2017 – King of Prussia, PA
PDF INVITATION

Cohen SegliasMadison Risk Group, McCarthy & Company, and The Shepherd Agency invite you to their 2017 Construction Executive Boot Camp featuring New York Times best-selling author Steve McClatchy. Steve will present his Decision-Making System that will help you manage the pressures and tensions inherent in creating, building, leading, and sustaining a fast changing high-performance company within the construction industry.  Continue Reading Construction Executive Boot Camp 2017

In a previous post, we wrote about drones (which are more formally referred to as “unmanned aircraft systems” or UAS), as well as the nascent federal and state statutory and regulatory framework.

Since our last article, drone use – as predicted – has grown more prevalent throughout the U.S. commercial marketplace and especially the construction industry. Last year, an estimated 2.5 million drones were sold in the United States, and approximately 670,000 drones were registered with the Federal Aviation Administration (“FAA”) during the same time period. Continue Reading Still “Up in the Air”: More Drones and More Regulations

On July 26th join Cohen Seglias attorneys Matt Gioffre and Dan Fierstein for their seminar, “Killer Contract Clauses for Construction & Service” for the Mechanical & Service Contractors Association (M&SCA) in Blue Bell, PA. Matt and Dan will explain Killer Contract Clauses, how courts will interpret and enforce them, and will provide best practice tips for managing a project to minimize the impact of these contractual provisions.

Continue Reading Mechanical & Service Contractors Association: Killer Contract Clauses for Construction & Service

Design professionals doing business in Kentucky beware: the Kentucky Court of Appeals recently held that a contractor may pursue a negligent misrepresentation claim against an architect for delays to a project resulting from allegedly defective plans and specifications. The Court permitted the contractor’s tort claim despite the absence of a contractual agreement between the parties and the fact that the contractor signed documents that waived its claims.  Continue Reading KY Contractors Can Now Assert Claims for Negligent Misrepresentation Against an Architect Despite Absence of a Contract