Social Security’s Looming Crisis: Understanding the Problem and the Proposed Solutions
The future of Social Security is a topic of concern due to the program's impending insolvency. There are several proposals to address the issue, including increasing the payroll tax rate, raising the taxable wage base, adjusting the cost-of-living adjustments (COLAs) and increasing the retirement age. While each proposal has its pros and cons, it is crucial for policymakers to find a solution that ensures the sustainability of Social Security for current and future generations.
Proposed Regulations Regarding the IRA’s Clean Vehicle Credit
The Inflation Reduction Act (IRA) extended and expanded the Section 30D New Clean Vehicle (CV) Credit, previously known as the Electric Vehicle (EV) Credit. The IRS explained that the purpose of these amendments is to promote the purchase and use of “clean vehicles” by lower and middle-income Americans, to promote resilient supply chains and domestic manufacturing, to strengthen supply chains with trusted trading partners, to protect against improper credit claims and to achieve significant carbon emissions reductions.
Noncompliance with Unclaimed Property Reporting Requirements Can Prove Costly
Every state has an unclaimed property (UCP) law that requires businesses to regularly report their UCP holdings. Some states, including Illinois, even require “negative reporting” by businesses that believe they do not hold any UCP. Noncompliance can lead to costly state audits, and nearly every business is at risk.
U.S. Supreme Court Rules Against the IRS on Critical FBAR Issue
The U.S. Supreme Court recently weighed in on an issue regarding a provision of the Bank Secrecy Act (BSA) that has split two federal courts of appeal. Its 5-4 ruling is welcome news for U.S. residents who “non-willfully” violate the law’s requirements for the reporting of certain foreign bank and financial accounts on what is generally known as an FBAR.
Reading the Tea Leaves: Potential Tax Legislation in the New Congress
The 2022 mid-term election has shifted the scales in Washington, D.C., with the Democrats no longer controlling both houses of Congress. While it remains to be seen if — and when — any tax-related legislation can muster the requisite bipartisan support, a review of certain provisions in existing laws may provide an indication of the many areas ripe for action in the next two years.
2023 Tax Calendar
To help you make sure that you do not miss any important 2023 deadlines, we have provided this summary of when various tax-related forms, payments and other actions are due. Please review the calendar and let us know if you have any questions about the deadlines or would like assistance in meeting them.
Year-End Spending Package Tackles Retirement Planning, Conservation Easements
Recently, the year-end spending “omnibus” package was signed into law by President Biden. It includes two important new laws that could affect your financial planning: The Setting Every Community Up for Retirement Enhancement (SECURE) 2.0 Act and the Conservation Easement Program Integrity Act.
1099-MISC vs. 1099-NEC
In 2020, the IRS released a new form – Form 1099-NEC. This form is still in use for 2022. While it might not have affected you last year, it may this year. This Client Alert will provide you with some general guidelines and resources to help you determine which form you need to file. It will also address questions that we often receive from clients.
Clean Vehicle Credit Comes With Caveats
The Inflation Reduction Act (IRA) includes a wide range of tax incentives aimed at combating the effects of climate change. One of the provisions receiving considerable attention from consumers is the expansion of the Qualified Plug-in Electric Drive Motor Vehicle Credit, now known as the Clean Vehicle Credit.
The Inflation Reduction Act Includes Wide-Ranging Tax Provisions
The U.S. Senate and House of Representatives have passed the Inflation Reduction Act (IRA), and President Biden has signed the bill into law. The IRA includes significant provisions related to climate change, health care and, of course, taxes. The IRA also addresses the federal budget deficit. According to the Congressional Budget Office (CBO), the IRA is projected to reduce the deficit by around $90 billion over the next 10 years.