Throughout 2022, as the seemingly endless rush of headlines indicated, the Federal Reserve raised the Federal Funds Rate by approximately 4.25%, from a .25% rate in March 2022 to a 4.5% rate at the end of the year, the fastest pace of rate increases in U.S. history. In the low-interest rate environment of the last 15 or so years, low-rate interest driven transactions employed by high net worth individuals were extremely effective in planning, which includes charitable planning. While such planning should and will continue, given how significantly interest rates in the U.S. have recently risen and could continue to rise in 2023, charitably inclined clients should consider the effect these rate increases will have on such charitable planning techniques. This article explores the impact of rising interest rates on two common charitable trust structures, Charitable Remainder Trusts (CRTs) and Charitable Lead Trusts (CLTs).

With the widespread adoption and use of cryptocurrencies around the world, companies and individuals are increasingly encountering situations that require a valuation of their cryptocurrency assets. As a fundamental matter, IRS recently issued guidance requiring that cryptocurrencies be treated and appraised as property, rather than securities. In Chief Counsel Advice Memorandum ILM 202302012 (released January 10, 2023), IRS advised that a taxpayer who makes a charitable donation of more than $5,000 of cryptocurrency must submit a qualified appraisal of its fair market value (FMV) to qualify for a charitable deduction under Sec. 170(a) and cannot satisfy this requirement by relying on the cryptocurrency's value as listed on an exchange.

Decentralized Finance (DeFi) is a new, but rapidly growing blockchain-based investment and trading alternative to traditional banks and finance, specifically for cryptocurrency users.

The global pandemic accelerated the adoption of telehealth and created a surge in new businesses. While growth has slowed in recent quarters, tax complexity remains around telehealth and friendly professional corporations (Friendly PC). The volume of new guidance triggered by the Inflation Reduction Act of 2022 (the IRA) has sidelined much needed guidance on the tax consolidation of Friendly PC structures for the near term. Due to the unique business model and operations of telehealth companies with Friendly PC structures, there are significant tax planning opportunities around federal income tax consolidation, transfer pricing, and state taxes.

Over the past few years, state and local governments have received a financial boost from federal aid related to the COVID-19 pandemic and surprisingly robust tax revenues.

While most people are aware of the state part of state and local tax (SALT), many are less familiar with local taxes and often overlook them.

Sales tax consequences of mergers and acquisitions (M&A) are often overlooked. Often potential sales taxes both upon the transaction itself and historical liabilities become material issues if not addressed during the due diligence phase of an M&A transaction.

ASC 740 Provision for Income Taxes requires taxpayers to determine, more likely than not, if their in-state activity results in an income tax liability.

In Online Merchants Guild v. Hassell, Secretary of Revenue (Online Merchants Guild), the Commonwealth Court of Pennsylvania found merchants selling through the Fulfillment by Amazon (FBA) program are not required to collect and remit sales tax or pay personal income tax.