Nicole L. Sultani

The Corporate Transparency Act (the “Act”) was enacted in 2021 as part of the National Defense Authorization Act to create transparency in business entity ownership and prevent illegal business activity. The Act was passed on January 1, 2021, and final rules were promulgated on September 30, 2022. The reporting requirements are effective January 1, 2024.  

For tax professionals, a new year means more than new resolutions. The 2023 updated estate, gift and generation-skipping transfer (GST) transfer tax exemptions represent new wealth and estate planning opportunities for clients. The federal estate, gift and GST exemption amounts have increased this year to $12,920,000 per person (an $860,000 increase from 2022). Particularly considering these amounts are scheduled to decrease by half in 2026, the time is ripe for many clients to consider how best to utilize their exemptions before they lose them.