On February 17, 2025, a federal district court in Texas lifted the remaining nationwide injunction that had paused the filing requirements under the Corporate Transparency Act. This injunction had been entered in the case of Smith et al v. United States Department of Treasury, et al (No. 6:2024cv00336-JDK Document 30 (E. D. Tex. 2025)). The Department of Justice of the new administration petition...
It took the IRS until February 7, 2025 to issue the 2025 version of Form 1040-ES, Estimated Taxes for Individuals. As a result of this delay, tax software companies will need a few more days before the final version of the voucher is incorporated into tax software packages. The delay of the availability of the paper form provides a chance to highlight the benefits of using debits to pay estima...
The 2025 federal lifetime unified estate and gift tax exclusion is $13,990,000, up from $13,610,000 in 2024. In addition, the annual federal gift tax exclusion in 2025 is $19,000 per person per year, up from $18,000 in 2024. The 2025 New York estate tax exclusion is $7,160,000, up from $6,940,000 in 2024. (There is no gift tax in New York State.)
The legal saga of the Corporate Transparency Act continues. On January 23, 2025, the Supreme Court reversed the December 3, 2024, nationwide injunction that had paused the filing requirements under the Corporate Transparency Act. However, after that December 3, 2024 injunction had been put in place, a separate nationwide injunction was entered by a separate judge in a separate case on January ...
The IRS has announced that it will reopen the e-file system on January 27, 2025. Individual income tax returns from the 2024 tax year, can be e-filed once the system reopens. In addition, if a client needs to file a prior-year return that is beyond its due date, returns from the 2023 and 2022 tax years can also be e-filed once the system reopens. If a client needs to file a late return from th...
The IRS has released the 2025 standard mileage rate. For business travel, it is 70 cents per mile (up from 67 cents per mile in 2024). For medical-related travel, it remains 21 cents per mile (same as in 2024). The rate for charitable use of an automobile is not subject to adjustment, and it remains 14 cents per mile. If you have not already enrolled or taken our seminar, it’s time to enr...
The final regulations on required minimum distributions (RMDs) from retirement accounts, issued earlier this year by the Treasury Department, are effective on January 1, 2025. The new regulations clarify the requirements for lifetime RMDs from IRAs and employer-sponsored plans and set forth the rules for RMDs for beneficiaries, after the original account owner dies. The new rules also affec...
The last days of December 2024 saw a flurry of court activity related to the requirement for companies to file beneficial owner information. After the dust settled, the requirement remains on hold for now. Here is a summary of how the injunction that stopped the filing requirement was briefly lifted and then reinstated. Again, the result is that companies are not currently required to file ben...
The IRS has indicated that it will continue to apply the domestic filing exception for eligible passthrough entities to avoid having to file Schedules K-2 and K-3 for the 2024 tax year. These schedules report information about foreign activities. Even if an entity has no foreign activities, the IRS generally requires all entities to file Schedules K-2 and K-3 if the passthrough entity has any ...
The Financial Crimes Enforcement Network (FinCEN) has announced that, due to ongoing litigation, reporting companies are not currently required to file beneficial owner information. This effectively suspends the January 1, 2025 filing due date for existing entities until the ongoing litigation ends. The alert posted to the FinCEN website includes the following: While this litigation is ong...
