“Sticking the Landing”
Regarding New York & snowbird/estate tax planning, the emphasis on “affirmatively leaving” and "sticking the landing" with respect to residence has always been important. That's also the case in Connecticut- especially with this recent case.
Connecticut decided that a decedent had not spent enough time in their new residence of choice (Florida) and pulled their estate back into Connecticut. It cost the estate $13M in Connecticut estate taxes.
https://www.cl-law.com/news-events/connecticut-emphasizes-time-spent-in-determining-domicile-for-estate-tax-purposes
h/t: Cummings & Lockwood LLC
“Off the Grid”
A Texas Federal Court ordered a defendant to and over all access to his cryptocurrency to satisfy his tax obligations (or face contempt charges and jail). Your Bitcoin may not have a jurisdiction, but you (and your trusts) do. Ignore crypto tax compliance at your own risk- especially U.S. Citizens.
h/t: Zerohedge
“CTA See-Saw”
The Corporate Transparency Act see-saw continues.
We're looking at a functional LATE MARCH deadline for BOI filing.
With FINCEN enforcement of the CTA tabled by the 5th Circuit Court of Appeals until resolution of the appeal, the 5th Circuit issued its briefing schedule for the Top Cop Case:
Briefing ends FEBRUARY 28th
Oral arguments are scheduled for MARCH 25th
The 5th Circuit will rule shortly after that.
But wait, there’s more . . .
A new angle has opened up where a second Texas Court case attacked the constitutionality of the CTA on different grounds.
Smith v. Department of the Treasury, E.D. Tex., No. 6:24-cv-00336, was decided on January 8, 2025
Key Points from Mark Friedlich on the ruling:
-The judge asserted that the CTA "expands federal power beyond constitutional limits" and oversteps into areas traditionally governed by state authority.
- The plaintiffs have been deemed likely to succeed in arguing that the #CTA and its implementing regulations are unconstitutional.
- The judge contested the use of the interstate commerce clause to justify the #CTA, stating that private companies formed under state law are not channels or instrumentalities of commerce.”
h/t: Mark Friedlich, Wolters Kluwer Tax
With broader points of analysis coming into play, it looks like the CTA will have to get full Supreme Court attention. Stay tuned.
(Additionally, it’s a good bet that L.A. situations impacted by the wildfires are going to get FEMA extensions from FINCEN CTA compliance like disaster-struck areas in Florida / North Carolina)