Treasury and the IRS just issued Revenue Procedure 2023-34 setting forth inflation-adjusted items for 2024 for various Internal Revenue Code provisions. In the estate, gift and generation-skipping tax arena, some of the numbers have been estimated for over a month. Now they are official. The Unified Credit Against Estate Tax provision says the basic exclusion…
UPDATE on Reporting by Almost All Companies
In an earlier edition of this newsletter, I told you about the Corporate Transparency Act and the requirement that almost all companies will have to file reports, beginning January 1, 2024, with the Financial Crimes Enforcement Network aka FinCEN, which is part of the Department of the Treasury (website is at fincen.gov). Basically, any organization…
January 2024 MUST Report – Almost All Companies
Beginning in 2024, almost all companies will have to start filing reports under the Corporate Transparency Act with the Financial Crimes Enforcement Network aka FinCEN, which is part of the Department of the Treasury (website is at fincen.gov). Basically, any organization which has to file something with the Secretary of State (or equivalent governmental office…
New Social Security “Wage Base”
Almost everyone has heard that the Social Security Administration announced an 8.7% increase in Social Security benefits for 2023. While it’s true that the cost of living adjustment will benefit more than 65 million Social Security beneficiaries, what has been seriously under-reported is the change in the Social Security “wage base.” In 2022, the wage…
New 2023 Estate, Gift and GST Exemption Amounts
The IRS has issued Rev.Proc 2022-38. The purpose is to set forth inflation-adjusted items for 2023 for various IRS Code provisions. Of particular interest to people involved in the estate planning field are (1) the new unified credit against estate tax (which affects the gift and GST exemptions as well); (2) the change in the…
RMD Regs Effective Date Postponed
The IRS has issued Notice 2022-53. It addresses the proposed regulations regarding required minimum distributions. The Notice covers more than one issue, but in this email, the main point is that when those proposed regulations were released earlier this year, one of the major issues that arose was the “as least as rapidly” rule. The…
Estimated 2023 Estate, Gift and GST Exemptions and Exclusions
Thomson-Reuters Checkpoint has been tracking inflation figures. Now that the Consumer Price Index has been published for August 2022, they have estimated what inflation will do to the exemptions and exclusions for estate, gift and GST tax. The IRS has not officially issued these figures, but generally speaking, these estimates are fairly accurate. The estate…
Inflation Reduction Act – NO Estate Tax Changes
I have been asked if there appear to be any changes in federal transfer taxes, whether gift taxes, estate taxes or generation-skipping transfer taxes.The direct answer is “no” but, indirectly, with the additional funding for the Internal Revenue Service, it’s likely that enforcement including audits of estate and gift tax returns will increase. Bloomberg…
New Texas Rule Against Perpetuities
The Texas Legislature has passed HB 654, which is a Bill that does only one thing – it amends Section 112.036 of the Texas Trust Code (a part of the Texas Property Code). It’s on to the Governor, presumably for his signature. Section 112.036 sets out the maximum time that a trust, other than a…
Delay In IRS Tax Filings
Some of you have seen a recent announcement about delays in the IRS deadline to May 17, 2021. On February 24, 2021, I reported on a delay for tax filings for all Texas residents. You may be asking which applies to you. This email is to give you some clarity you won’t get on television,…