Alerts & Updates
IRS and U.S. Treasury Release Guidance on Cryptocurrency Reporting
September 7, 2023Crypto staking rewards are a kind of digital “dividend” or “interest” paid to cryptocurrency owners who help regulate and validate cryptocurrency transactions in the underlying blockchain network. Staking pays out cryptocurrency as compensation for using the owner’s existing holdings to vouch for the accuracy of the transactions.
Client Alert - The New 529-to-Roth IRA Conversion Rule
July 10, 2023Beginning in 2024, the federal legislation known as the SECURE Act 2.0 will allow beneficiaries of 529 plans to transfer up to $35,000 of 529 plan funds over the course of their lifetime to their own Roth IRA without paying taxes or penalties.
Client Alert - A Summary of the Tax Law Provisions of the 2024-2025 Connecticut Biannual Budget
June 20, 2023On June 12, 2023, Governor Ned Lamont signed Connecticut’s two-year, $51 billion budget into law. The budget is said to include the largest income tax cut in Connecticut history and includes approximately $500 million in tax relief to Connecticut taxpayers, primarily by lowering certain income tax rates, modifying the pass-through entity tax, and expanding or increasing certain tax credits.
IRS Reveals 10-Year Spending Plan for $80 Billion Funding
April 24, 2023The Inflation Reduction Act enacted in August 2022 included $80 billion in funding for the IRS over the next decade. On April 6, 2023, the IRS released its Strategic Operating Plan (the “SOP”) which outlines the IRS’s plan for using these funds.
Supreme Court Rules that Non-Willful Foreign Bank Account Reporting Penalty Applies on a Per Report Basis
April 17, 2023The Bank Secrecy Act requires every U.S. person with a financial interest in, or signature or other authority over, a financial account located outside the U.S. to report the account to the U.S. Treasury Department annually, if the total value of the foreign financial accounts exceeds $10,000 at any time during the year.
The IRS Puts its Stake in the Ground with Respect to Step Up in Basis on Grantor Trusts Not Included in Taxable Estate
April 7, 2023With IRS Revenue Ruling 2023-2, the IRS is attempting to eliminate a position trumpeted by certain estate and gift tax practitioners and commenters since 2002.
Biden Administration's 2024 Fiscal Year Budget Proposals Once Again Threaten Changes to the Estate and Gift Tax System
March 31, 2023On March 9, 2023, the Treasury Department released its General Explanations of the Administration’s Fiscal Year 2024 Revenue Proposals (known as the Greenbook), to accompany President Biden’s proposed budget for fiscal year 2024.
Corporate Transparency Act
January 25, 2023In September 2022, the Financial Crimes Enforcement Network (“FinCEN”) of the Department of the Treasury issued final regulations implementing the beneficial ownership information (“BOI”) reporting requirements of the Corporate Transparency Act of 2020 (the “CTA”).
2022 Cummings & Lockwood Firmwide Annual Update
January 4, 2023To Our Clients and Friends:
The end of the year is a good time for reflection about our values and accomplishments and our goals for the coming year. A letter from our new Chairman and Managing Director, Laura Weintraub Beck.
Tax Update: What the SECURE 2.0 Act of 2022 Means for 529 Accounts
January 3, 2023Included in Congress’ recently passed SECURE 2.0 Act of 2022 (SECURE 2.0) is a noteworthy planning opportunity for those with 529 Accounts. In the past, withdrawals from tax-advantaged 529 Accounts could only be used for qualified education expenses without incurring federal income tax and penalties. While accounts could be rolled over for certain relatives, the options were undesirable for most.
Massachusetts Millionaire’s Tax Passed
November 11, 2022The Massachusetts constitution requires that the income tax must be a flat tax. On November 8, 2022, voters in Massachusetts approved a constitutional amendment for the first time in 22 years which imposes a 4% surtax on top of the state’s 5% flat tax for the portion of the annual household income exceeding $1,000,000. The $1,000,000 threshold will be adjusted annually to reflect cost-of-living increases.
Inflation Causes Significant Increases to Federal Estate and Gift Tax Exemptions
October 18, 2022On October 18, 2022, the IRS officially announced the inflation adjustments for 2023 for the gift and estate tax exemptions.