The IRS has created Form 172, Net Operating Losses (NOLs), effective for the 2024 tax year. While none of the rules for net operating losses (NOLs) have changed, taxpayers with NOLs must attach the new form to their returns both for the tax year in which an NOL originates and the later tax years to which the NOL is carried forward. The IRS delay in finalizing the form has caused the form to...
As discussed in our post on December 3, 2024, the threshold for third-party payment platforms to send Form 1099-K, Payment Card and Third-Party Transactions, is $5,000 for the 2024 tax year. Practitioners should ask clients if they use any such payment platforms, such as Venmo or PayPal. If clients use them, they should check to see if a Form 1099-K was issued for the 2024 tax year. If a clien...
On February 27, 2025, the Financial Crimes Enforcement Network (FinCEN) announced that companies required to report beneficial ownership information that have not yet submitted the required report will not be subject to any fines, penalties or other enforcement actions for now. FinCEN indicated that it intends to extend the previously-announced March 21, 2025, filing due date. FinCEN did not i...
Effective March 1, 2025, Suffolk County is increasing its local sales and use tax rate from 4¼% to 4⅜%. As a result, the combined local and state sales and use tax rate will increase from 8⅝% to 8¾%.
On February 19, 2025, the Financial Crimes Enforcement Network (FinCEN) announced that companies required to report beneficial ownership information that have not yet submitted the required report generally have until March 21, 2025 to file the report. FinCEN also indicated it will assess its options to further modify deadlines, while prioritizing reporting for those entities that pose the mos...
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...
