Cummings & Lockwood

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Corporate Transparency Act

January 25, 2023

In 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, 2023

To 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, 2023

Included 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, 2022

The 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, 2022

On October 18, 2022, the IRS officially announced the inflation adjustments for 2023 for the gift and estate tax exemptions.


2022 Private Clients Group Annual Update Letter

October 2022

This annual update summarizes the current status of the estate and gift tax rates and exemptions at the federal and state levels (Connecticut, New York and Florida) and highlights key provisions of these important state law developments.


IRS Issues Proposed Regulations Clarifying Anti-Clawback Rules for Retained Interest Gifts

April 29, 2022

In November of 2019, the IRS issued final regulations referred to as the “Anti-Clawback” regulations that made it clear that a taxpayer who took advantage of the higher gift tax exemptions (currently, $12,060,000) available under the 2017 Tax Cuts and Jobs Act would not owe additional estate tax upon death if the exemption is lower at the time of death.  The regulation was needed since the estate tax calculation includes lifetime taxable gifts.  Otherwise, a taxpayer who made a large gift now may not pay gift tax but the estate would pay estate tax upon the taxpayer’s death if the exemption was lower at that time.


The Biden Administration's Revenue Proposals Again Include Changes to the Estate and Gift Tax System

March 30, 2022

On March 28, 2022, the Biden Administration released its “General Explanation of the Administration’s Fiscal Year 2023 Revenue Proposals.”  The document again supports several drastic changes to the estate and gift tax system in addition to changes to the income tax system.


Status of Remote Notarizations in New York and Connecticut

February 24, 2022

On December 22, 2021, New York joined 39 other states (including Florida) to make remote notarizations permanently legal.


The Department of the Treasury Issues Proposed Regulations Implementing the Corporate Transparency Act

February 3, 2022

In December 2021, the Financial Crimes Enforcement Network (FinCEN) of the Department of the Treasury issued proposed regulations implementing certain beneficial ownership reporting requirements of the Corporate Transparency Act of 2020.


IRS Raises Annual Exclusion and Gift and Estate Tax Exemptions for 2022

November 11, 2021

In Revenue Procedure 2021-45, the IRS announced its inflation adjustments to key figures for the calendar year 2022. For the first time in several years, the annual exclusion from gift tax will increase from $15,000 to $16,000 per year per donee effective January 1. 2022.