Final regulations on informational reporting obligations for custodial brokers were published in the Federal Register on July 9, 2024 with an ominous note that the information reporting requirements for non-custodial brokers (i.e. Decentralized Finance or DeFi) would be forthcoming. The first effective date for those final regulations would be January 1, 2025. On December 27, 2024 the Treasury Department published the final regulations applicable to DeFi specifically targeting participants in trading front-end services that help retail investors interact with DeFi protocols. The final regulations outline the three traditional steps in the sale of a security involving a customer giving a…

Somewhere in the corner of the backyard, high in the branches of a sturdy oak tree, sits your childhood treehouse. The hand-cut 2x4s haphazardly perforated by crooked nails still emit an earthy fragrance reminiscent of freshly-cut grass, damp leaves, and summers long past. Sure, if you broke it down, those weathered planks might fetch a few dollars as reclaimed wood. A developer might see the site of the old oak tree as part of a lucrative plan for an expansive subdivision. But to your family, that treehouse is priceless—a repository of youthful memories, secret club meetings, and first kisses. Its…

The U.S. tax system requires taxpayers to report their income and expenses on an annual accounting basis (e.g., a calendar year). Because taxpayers may have profits in some years but losses in others, this reporting requirement can sometimes cause financial distortions. For example, a taxpayer with a business loss of $100,000 in 2023 and business income of $100,000 in 2024 is at a net zero if the two tax years are combined. Should the taxpayer be required to pay income tax on the earnings of $100,000 in 2024 merely because those earnings were recognized in a separate tax year? Section…

Does the Internal Revenue Service owe you money? The IRS says that over one million taxpayers may have missed out on the Recovery Rebate Credit (RRC) claimed on their 2021 tax returns. The agency is now taking steps to mail those out. While the amounts may vary, the maximum payment is $1,400 per individual. The estimated amount of payments going out will be about $2.4 billion. Background The American Rescue Plan Act of 2021, enacted in early March 2021, provided Economic Impact Payments (EIPs or stimulus payments) of up to $1,400 for eligible individuals or $2,800 for married couples filing…

Stop me if you’ve heard this one before: the beneficial ownership information (BOI) filing requirements are temporarily on hold. In a late December ruling, the government has (again) been enjoined from enforcing the BOI reporting requirements under the Corporate Transparency Act (CTA). A December 26 order from the Fifth Circuit has reversed an earlier ruling granting a stay. A stay is a court order that stops a legal proceeding—it’s usually temporary. Here’s what happened. Last-Minute Scramble On December 23, 2024 ruling, a unanimous Fifth Circuit bench granted the government’s emergency motion for a stay of a preliminary injunction, pending an…

It’s hardly cause for celebration. You’re the executor of an estate and the time has come to choose whether to elect date of death value or an alternate valuation date. How do you decide? With only a few more days until the new year, you may consider thinking of it like deciding how to spend New Year’s Eve. There is the low-key option: lounging on the couch in your pajamas, snapping candid photos, setting realistic resolutions, and sipping sparkling apple juice out of plastic cups. Or there’s the glitz and glam option: dressing up in a curated outfit, setting overly-ambitious…

Wishing all of my Forbes readers a beautiful holiday and all the best for the New Year. Something about taxes (of course) but a little bit different to bring extra joy to the season. ‘Twas the year-end for taxes, and across the globe wide, Citizens wondered how their returns might abide. With passports in hand and accounts far and near, Would Uncle Sam’s rules bring confusion or fear? The expats were nestled in homes overseas, Debating their FBARs with quiet unease. And I with my spreadsheets, so tidy, precise, Had just settled in to make sense of advice. When out…

The holiday season is a time for generosity, especially when it comes to giving gifts to loved ones. Fortunately, one thing you will most likely not need to worry about this holiday season is whether the gifts you are giving are taxable. While gifting can be a joyful experience and often a non-taxable transaction, it’s still important to understand the tax implications that may come into play. Specifically, the IRS has rules regarding the taxation of gifts, and these rules can affect both what you give and how much you give. When it comes to gifting during Christmas, two key…

In this episode of Tax Notes Talk, Tax Notes chief correspondent Stephanie Soong recaps the latest updates from the OECD’s two-pillar project and highlights what is expected from the organization in 2025. Tax Notes Talk is a podcast produced by Tax Notes. This transcript has been edited for clarity. David D. Stewart: Welcome to the podcast. I’m David Stewart, editor in chief of Tax Notes Today International. This week: OECD update. It’s been a while since we checked in on what’s happening with the OECD’s project for modernizing international taxation for the digital economy. With details being finalized and legislation…

As 2024 closes, taxpayers are looking to the next year—only, the 2025 tax year is likely to be anything but typical. There’s a new administration, a new Congress—and some of Trump’s 2017 tax cuts are set to expire. Here’s a guide. By Kelly Phillips Erb, Forbes Staff It happens every year. As December 31 creeps closer, taxpayers scramble for tax savings and wonder what they could have done differently to save during the year. One answer is an easy one—start well in advance. Engaging in a bit of tax planning at the start of the year means that you won’t…