Social Security’s Looming Crisis: Understanding the Problem and the Proposed Solutions

The future of Social Security is a topic of concern due to the program’s impending insolvency. There are several proposals to address the issue, including increasing the payroll tax rate, raising the taxable wage base, adjusting the cost-of-living adjustments (COLAs) and increasing the retirement age. While each proposal has its pros and cons, it is crucial for policymakers to find a solution that ensures the sustainability of Social Security for current and future generations.

Proposed Regulations Regarding the IRA’s Clean Vehicle Credit

The Inflation Reduction Act (IRA) extended and expanded the Section 30D New Clean Vehicle (CV) Credit, previously known as the Electric Vehicle (EV) Credit. The IRS explained that the purpose of these amendments is to promote the purchase and use of “clean vehicles” by lower and middle-income Americans, to promote resilient supply chains and domestic manufacturing, to strengthen supply chains with trusted trading partners, to protect against improper credit claims and to achieve significant carbon emissions reductions.

Noncompliance with Unclaimed Property Reporting Requirements Can Prove Costly

Every state has an unclaimed property (UCP) law that requires businesses to regularly report their UCP holdings. Some states, including Illinois, even require “negative reporting” by businesses that believe they do not hold any UCP. Noncompliance can lead to costly state audits, and nearly every business is at risk.

U.S. Supreme Court Rules Against the IRS on Critical FBAR Issue

The U.S. Supreme Court recently weighed in on an issue regarding a provision of the Bank Secrecy Act (BSA) that has split two federal courts of appeal. Its 5-4 ruling is welcome news for U.S. residents who “non-willfully” violate the law’s requirements for the reporting of certain foreign bank and financial accounts on what is generally known as an FBAR.

Reading the Tea Leaves: Potential Tax Legislation in the New Congress

The 2022 mid-term election has shifted the scales in Washington, D.C., with the Democrats no longer controlling both houses of Congress. While it remains to be seen if — and when — any tax-related legislation can muster the requisite bipartisan support, a review of certain provisions in existing laws may provide an indication of the many areas ripe for action in the next two years.

Tax Relief for Hurricane Ian Victims

If your home or personal property was damaged this year by Hurricane Ian or other natural disasters, you may be entitled to tax relief that can help soften the blow. Individuals who itemize their deductions are permitted to deduct casualty losses caused by a “sudden, unexpected or unusual event,” such as a hurricane, tornado, earthquake, volcanic eruption, fire or flood. This Client Alert will provide a brief overview of the rules for deducting personal casualty losses.

ORBA Welcomes New Hires to Cloud CFO and Tax Groups

ORBA, one of Chicago’s largest public accounting firms, is pleased to announce that Dave Gnatek, MBA, CPA, Muzammil Chaudhry, CPA, Michael Loesevitz, CPA, JD, LLM and Katherine St. Clair have joined the firm.