On August 17, 2024, new requirements governing the relationship between residential buyers, sellers, and real estate agents went into effect.
FinCEN Confirms the CTA Does Not Require Disregarded Entities to Obtain an EIN
On July 24, 2024, FinCEN updated its Corporate Transparency Act FAQ section to confirm that disregarded entities may use their parent’s Employer Identification Number when filing Beneficial Ownership Reports.
FinCEN Corrects Employer Identification Number Issue for Single Member LLCs
After receiving complaints that disregarded entities required to file Beneficial Ownership Information (BOI) Reports could not do so using their parent’s Employer Identification Number (EIN), the Financial Crimes Enforcement Network (FinCEN) has corrected the issue.
New Revenue Ruling Aims to Root Out “Basis-Shifting Transactions”
On June 17, 2024, the IRS published Revenue Ruling 2024-14 as part of a package it says will raise an additional $50 billion dollars of income taxes over the next decade from “basis-shifting transactions.”
SCOTUS Holds that Life Insurance Proceeds Used to Finance Stock Purchase Agreements Do Increase the Value of Closely Held Corporations for Estate Tax Purposes
On June 6, 2024, the Supreme Court of the United States ruled that life-insurance proceeds required to be used to redeem stock of a deceased shareholder must be included in the value of the company for purposes of determining the deceased shareholder’s gross estate.
Supreme Court Resolves Circuit Split: Federal Arbitration Act Mandates a Stay of Court Proceedings, Not Dismissal
In a recent decision, the United States Supreme Court held that Section 3 of the Federal Arbitration Act requires a court to stay a proceeding pending arbitration and provides no discretion for the court to dismiss the action.
Greater Protections for Pregnant Workers Borne Out of the EEOC’s Final PWFA Rule
The EEOC recently issued its final regulations interpreting the Pregnant Workers Fairness Act (the “PWFA”), a law that became effective on June 27, 2023. The final rule, which becomes effective June 18, 2024, provides clarity regarding: (1) who and what types of limitations and medical conditions are covered under the PWFA; and (2) what accommodations are reasonable.
Treasury Finalizes Regulations for Requesting an Extension of Time to Make Certain GST Elections
On May 3, 2024, the Treasury Department finalized regulations for the extension of time to make certain elections pertaining to the Generation Skipping Tax (GST) including elections for exemption allocations under section 2642(g).
FinCEN BOI Reporting for Disregarded Entities Appears to Conflict with Existing IRS Regulations for Employer Identification Numbers
Since Treasury Regulation Section 301.6109-1(h)(2)(i) took effect in 1997, the Internal Revenue Service (IRS) has permitted disregard entities, including single member limited liability companies to use the Employee Identification Number (EIN) of its owner (unless the disregarded entity has employees). Unfortunately, and without any regulatory authority, the Financial Crimes Enforcement Network (FinCEN) is not permitting disregarded entities to use their owner’s EIN for purposes of beneficial ownership reporting.
Double Whammy for Employers: DOL Increases Salary Requirements for FLSA Overtime Exemptions
Lost in the hoopla over the FTC’s noncompete ban announced on the same day (April 23), the United States Department of Labor (“DOL”) unveiled its final rule significantly raising the minimum-salary threshold to qualify for overtime exemptions under the Fair Labor Standards Act (“FLSA”).