Recent developments have highlighted a delay in the implementation of an important provision of the SECURE 2.0 Act of 2022. The IRS has announced a postponement in the execution of the Roth Catch-Up Contribution Provision for two years. This decision is vital to participants in 401(k) plans, 403(b) plans, or governmental 457(b) plans aged 50…
In a recent development, the US Treasury Department and the IRS have proposed new regulations regarding the sale and exchange of digital assets, including cryptocurrencies and Non-Fungible Tokens (NFTs). These new rules seek to clarify the tax implications for US taxpayers who conduct transactions in these emerging digital asset classes. The proposed regulations are currently…
In a significant development, a Texas federal court recently ruled in favor of sanctions against Tornado Cash, a notable cryptocurrency mixer service. The service, which aims to obscure the source of crypto transactions, found itself at the receiving end of charges laid by the Department of Justice. It was recognized as an entity liable for…
In a major reveal regarding cryptocurrency taxation regulations, the IRS has issued an extensive guidance concerning the federal income tax treatment of staking income, encapsulated in Revenue Ruling 2023-14. Inevitably aligning with its previous guidelines on hard forks, the IRS’s ruling verifies that taxpayers acknowledge taxable income upon gaining dominion and comprehensive control over their…
In a recent report published on August 10, 2023, the Department of Taxation and Finance (DTA) disclosed a few intriguing cases added to their website on the late July 27. The report was initially overlooked due to the surge of cases that appeared on August 3. These recent enthralling legal filings and their implications are…
Four military veterans recently lodged a lawsuit at the New York State Supreme Court. The suit was filed against the New York Office of Cannabis Management (OCM), wherein the plaintiffs alleged that the rules of the agency, which favor applicants with previous marijuana-related convictions when issuing cannabis dispensary licenses, run contrary to the New York…
In important recent developments, Montgomery and Anne Arundel Counties in Maryland have increased their recordation and transfer taxes. At the same time, the increases in recordation and transfer taxes imposed in the District of Columbia in 2019 are anticipated to expire. For corporations and law firms dealing with properties in these regions, it’s critical to…
The term “indirect tax” has a broad application, describing taxes imposed on goods, land, or services, (or transactions involving said commodities). This is distinct from “direct taxes”, which are levied upon income or profits. In the context of the Build-to-Rent (BTR) sector, the most substantial indirect taxes are the goods and services tax (GST), transfer…
In the world of business law, confusion over terms and definitions can lead to grave errors in the application and understanding of the law. A recent example that serves as a stark reminder of the importance of terminological preciseness is the conflation of Limited Liability Companies (LLCs) and corporations. Law Professors Samantha Prince and Joshua…
In recent years, multinational corporate behemoths have turned to some innovative strategies in the quest to minimize their tax obligations. Tax inversion is one such tactic that is gaining prominence. To put it simply, tax inversion involves a company relocating its headquarters to a country with a lower tax rate. One company that has drawn…
Clearer prospects are emerging in the legal and taxation landscape surrounding cryptocurrency staking rewards. On July 31, 2023, the Internal Revenue Service (IRS) released Revenue Ruling 2023-14 that discusses the US federal income tax treatment of cryptocurrency tokens that taxpayers receive as a reward for validating blockchain network transactions. Operating under the proof-of-stake consensus mechanism,…
The Inflation Reduction Act, commonly known as the IRA, has instigated several tax credit incentives that pertain to considerable investments in energy projects. A key credit among these is the section 48C investment tax credit, also known as the 48C Credit. Initially offered through the American Recovery and Reinvestment Act of 2009, this tax credit…
In the continually evolving world of digital finance, Non-Fungible Tokens or NFTs have become a hot topic for debate – particularly in tax law. Many legal professionals, especially those associated with significant corporations and law firms, are grappling with the complex and uncharted tax issues surrounding these unique cryptocurrency assets. For those unacquainted, NFTs are…
In what might be regarded as a significant development for the Michigan business environment, the Michigan Supreme Court passed a decision on July 31, 2023 in the case of Vectren Infrastructure Services v. Michigan Treasury. This verdict, with implications for both in-state and out-of-state businesses, ruled an out-of-state taxpayer could not diminish its tax by…
The month of July 2023 rendered a number of intriguing developments in the fields of UK taxation laws and rulings. Key decisions have been made by numerous tribunals, and we have seen compelling movements in terms of double tax relief, employee expense allowances, and directorial company loans, among others. A remarkable instance that invites discussion…
Drawing from the corporate-friendly tax scheme, the budding position as a venture capital investment hub, and a flourishing legal marijuana business, Denver is proving increasingly appealing to large law firms. In 2022 alone, there was an 8% rise in attorney headcount at NLJ 500 firms in the Metro Denver area, culminating in 2,310 lawyers. Furthermore,…
In a decision bound to affect a significant number of global enterprises and law firms working with cryptocurrencies, The Internal Revenue Service (IRS) has clarified that stakers should include the value of any rewards earned from staking in their gross income. This ruling was released in Revenue Ruling 2023-14 on July 31, 2023. Specifically, it…