The potential for a Universal Savings Account (USA) is picking up steam as the Tax Cuts and Jobs Act provisions approach their 2025 expiration. Advocates suggest a flexible savings model – akin to health or education savings accounts but without restrictive use criteria – could be revolutionary for financial planning across various life events. During […]
Are Universal Savings Accounts a Possibility in 2025? Read More »
In mid-June, the U.S. Treasury and IRS launched an enforcement drive to close loopholes and curb abusive tax schemes involving partnership transactions, which are used by affluent taxpayers looking to circumvent their tax obligations. These tactics involve manipulative basis shifting across interrelated business entities to artificially lower the amount of tax due, an issue exacerbated
New IRS Initiative Targets Tax Loopholes and Abusive Partnership Transactions Read More »
In a significant decision, the U.S. Supreme Court recently upheld the 2017 mandate on the taxation of American-owned businesses’ foreign profits, commonly known as the mandatory repatriation tax. This ruling affirms Congress’ constitutional authority to tax shareholders on their share of undistributed corporate income, particularly impacting pass-through businesses. This tax was originally introduced as part
Supreme Court Validates Tax on Overseas Profits for U.S. Corporations Read More »
Originally part of the 2020 pandemic relief efforts, the ERC was meant to alleviate financial pressures for businesses by subsidizing wages up to $26,000 per employee for retained workers during COVID-19 related downturns. Despite the program’s intent to distribute $55 billion over 10 years, the IRS discovered widespread abuse, leading to an unplanned payout of
Up to 90% of ERC Claims Are Potentially Fraudulent Forcing IRS to Extend Freeze Read More »
Just in time for Memorial Day, Governor Ned Lamont signed into law a property tax exemption specifically for veterans with permanent and total disabilities related to their service. This new legislation, effective from October 1, 2024, will provide significant financial relief by exempting the primary residence or one motor vehicle of eligible veterans from property
New Law Gives Property Tax Exemptions to CT Veterans With Disabilities Read More »
In a significant move to revitalize and enhance the efficiency of tax dispute resolutions, the IRS has recently established a new Alternative Dispute Resolution (ADR) Program Management Office. This strategic initiative follows a substantial decline in ADR engagement, as detailed in a 2023 Government Accountability Office report. ADR utilization has decreased by 65% from 429
IRS Opens New Office to Encourage Alternative Dispute Resolution Read More »
The short answer is no one really knows. During a recent hearing with the House Ways and Means Committee, Treasury Secretary Janet Yellen provided only limited details on how the Biden Administration plans to manage the expiring provisions of the Tax Cuts and Jobs Act (TCJA), which are set to phase out in 2025. Secretary
TCJA Expires in 2025. What Happens Next? Read More »
The U.S. Department of Labor has introduced significant changes to the Fair Labor Standards Act (FLSA), adjusting the salary thresholds for overtime exemptions. These changes will come into effect in two phases, the first raising the threshold to $43,888 on July 1, 2024, and the second increasing it to $58,656 on January 1, 2025. This
Navigating the New Overtime Rules for Connecticut Small Business Owners Read More »
The IRS recently announced the 2025 inflation adjustments for health savings accounts (HSAs) and health reimbursement arrangements (HRAs), reflecting the ongoing economic conditions. The adjustments show an increase in allowable contributions and cost thresholds for high-deductible health plans (HDHPs), which could impact financial planning for those utilizing these accounts. For individuals with self-only HDHP coverage,
IRS Increases HSA Limits for 2025 Read More »
The IRS recently issued a critical update for corporations regarding the Corporate Alternative Minimum Tax (CAMT), a change introduced in the Inflation Reduction Act. This new legislation introduced a CAMT based on a corporation’s adjusted financial statement income effective after December 31, 2022. Under normal circumstances, corporations are required to make quarterly estimated income tax
IRS Grants Penalty Relief for CAMT Underpayment of Estimated Corporate Taxes Read More »
The IRS reported a significant return to taxpayers, disbursing around $659 million in refunds, marking a 2.7 percent increase in 2023 over 2022. This uptick in refunds comes against a backdrop of approximately $4.7 trillion in gross revenues collected by the agency, which underpins nearly 96% of federal government operations. Despite the increase in refunds,
How Did the 2023 Tax Season Go for the IRS? Read More »
An estimated 30 million Americans currently under a non-compete agreement may soon be free to leave their job and immediately go to work for a competing business because the Federal Trade Commission (FTC) recently issued rule that prohibits them for nearly all employees. Here’s what we know now: What does the new rule say? Non-compete
What Business Owners Need to Know About the FTC’s New Rule on Non-competes Read More »