Earlier this month, the IRS provided new guidance on income tax issues through an update to the Employee Retention Credit (ERC) Frequently Asked Questions section. Included in the update was information on when to report income and timing considerations for the 2021 tax year. Specifically, it confirms that the amount of the ERC refund reduces the amount of wage expense on the income tax return for the year qualified wages were paid or incurred.

In November 2024, the IRS announced that interest rates will decrease for the first quarter of 2025, which begins January 1, 2025. The changes outlined in IR-2024-290 outline all the relevant interest rate changes including various reductions.

New Jersey’s Open Public Records Act (OPRA) is undergoing transparency and procedural changes due to a new bill signed into law by Governor Murphy. The new law, which became effective on September 3rd, calls for several changes to existing OPRA rules. This includes updates to the attorney’s fee provision, a new requirement on state agencies to include public records on their websites, and allowances for lawsuits to be filed against those making requests for the purpose of disrupting government operations.

Starting on January 1, 2025, most Pennsylvania business owners will be required to file annual reports, a significant change from the decennial reports of the past. Governor Wolf signed Act 122 of 2022 on November 3, 2022, making annual reports a requirement for both domestic and foreign business filing associations. The change is a departure from prior rules which required businesses to file with the state every ten years.

When the Tax Cuts and Jobs Act was passed in 2017, it called for several changes that limited and streamlined taxes for both businesses and individuals. It created the Section 199a deduction for pass-through companies, allowed for temporary 100% bonus depreciation, updated expensing rules for Section 179D, and called for a new employer tax credit for paid family and medical leave.

The Federal Trade Commission (FTC) has issued a final rule that bans noncompete clauses in employment contracts across the United States. The rule affects approximately 18% of U.S. workers—totaling 30 million individuals—who are currently bound by noncompetes. This measure is designed to boost job mobility and wage growth by removing barriers that restrict employees from transitioning between competing roles. The decision has triggered considerable debate and is currently facing legal challenges. Critics argue the ban could harm business competitiveness and stifle innovation. Furthermore, the U.S. Chamber of Commerce contends that the FTC does not have the regulatory authority to enact such changes.

In mid-April 2024, the IRS released a draft of the new information return that will be used for reporting digital asset transactions and furnished by brokers. The 2025 Form 1099-DA is expected to be included on federal tax returns when taxpayers answer “yes” to the digital asset question that concerns receiving, selling, exchanging, or disposing of digital assets or financial interest in a digital asset during the relevant tax year. Examples of digital assets include cryptocurrencies, stablecoins, and non-fungible tokens.

In November 2022, when Pennsylvania Governor Wolf signed into law Act 122 of 2022, it established a new annual report requirement for domestic and foreign filing associations, repealing the previous decennial report requirement.

In September 2020, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) 2020-07, Not-for-Profit Entities (Topic 958): Presentation and Disclosures by Not-for-Profit Entities for Contributed Nonfinancial Assets.  The new standard is now in effect for annual periods beginning after June 15, 2021, and interim periods within fiscal years beginning after June 15, 2022.

Businesses will see their leases in a whole new light as they begin implementing the Financial Accounting Standards Board’s (FASB’s) new lease reporting standards. As was revealed in early 2016, the FASB will soon require almost all for-profit and nonprofit entities to start recording leases on their balance sheets and statements of financial position.