On Dec. 20, 2024, the Treasury Department and the IRS released proposed regulations (REG-116610-20) to update Circular 230, which governs practice before the IRS. These amendments, if finalized, would have a substantial impact on attorneys, CPAs, enrolled agents, and other tax professionals who practice before the IRS. Understanding these proposed amendments is essential for tax practitioners to prepare for potential changes ahead.

Social Security is one of the richest pension programs ever created. Most middle-income couples will receive over $1.4 million in eligible benefits over a 20-year retirement. Higher-income couples often receive $2 million or more over the same retirement period and can collect over $100,000 per year in combined benefits.

In the past few years, the digital asset industry has exploded both in growth and complexity. Just a few years ago, most digital asset holders would acquire a digital asset directly, anticipating it would appreciate. Now, with the growth of the digital asset derivatives market, such as futures, option products, and ETFs, a digital asset holder can invest in many more ways in this expanding industry. The ability to invest in a wide range of digital asset products brings several tax issues that must be considered.

Many Americans faced overreaching tax changes with the Tax Cuts and Jobs Act of 2017. Taxpayers’ attention went to items like the Qualified Business Income Deduction, Net Operating Losses, and sweeping tax rate changes across the board. However, an often overlooked change was a revision to Section 174 and the introduction of a new definition for specified research or experimental (SRE) expenditures. This change was not slated to go into effect until the 2022 tax year, and once it arrived, it came with endless taxpayer questions and a lack of federal guidance on implementation.

The Inflation Reduction Act, enacted in 2022, provides a groundbreaking framework for advancing clean energy initiatives across the United States. This legislation’s primary focus is to incentivize energy-efficient investments through tax credits, including provisions that allow local governmental agencies and other tax-exempt entities to benefit from these incentives via elective pay, also referred to as direct pay. By tapping into these opportunities, local governments can significantly reduce costs while advancing sustainability goals, modernizing infrastructure, and stimulating local economies.

2024 was yet another busy year for New York taxes. The Budget was, once again, full of new and interesting tax provisions, albeit lighter on changes than the last few years. There were various highlights, including new rules regarding representatives, guidance from New York City on changes to the Business Corporation Tax, and a challenge to the Tax Department’s New Corporate Regulations related to Public Law 86-272. 

One of the most common concerns clients have about transferring a home that is subject to a mortgage to an inter vivos trust (a trust created during one’s lifetime) is whether doing so will trigger the due-on-sale (DOS) clause of the mortgage. Most mortgage agreements contain a provision stating that upon the conveyance of property subject to the mortgage, the entire outstanding amount of the mortgage is immediately due and payable to the lender.

In Loper Bright Enterprises et al. v. Raimundo, 544 F. Supp. 3d 82, 103-04 (2021), the U.S. Supreme Court overturned the Chevron doctrine, a policy of deferring court discretion to federal agency regulations. Chief Justice Roberts authored the majority (6-3) opinion. 

Certified public accountants and other financial professionals excel at deciphering complex financial matters, especially when it comes to asset management. However, it’s not unheard of for both financial experts and lawyers to get caught off guard during the asset division process in a high-net-worth divorce.