The New York State Society of CPAs

The Federal Trade Commission (FTC) voted on April 23 to ban noncompete agreements for most workers across the country. The final noncompete rule makes it illegal for employers to include such agreements in employment contracts and requires those employers with active noncompete agreements to inform their workers that these agreements are no longer valid.

With so many regulators out there, it can be tough to keep track of all the decisions being made. This is the NYSSCPA's regular series that collects relevant regulatory announcements from the past week and puts them in one place to help you stay on top of the issues.

This is the final part of a three-part series explaining the basics of the tax-deferred 1031 exchange, the different types available, the mechanics of how they work, and the benefits to be reaped by a client who decides to partake in such an exchange. To view Part 1, please click here. To view Part 2, please click here.

Another seismic development occurred just before the end of 2023 as the Treasury Department and Internal Revenue Service released proposed regulations on donor advised funds (DAFs). The release of the proposed regulations was significant not least because of how long the sector has been operating without meaningful guidance in this area. It has been over 15 years since DAFs were first legally defined and specifically regulated with the addition of Section 4966 and related provisions of the Internal Revenue Code as part of the Pension Protection Act in 2006.

As we enter a new year—an election year at that—many business tax incentives, including those affecting tax-exempt organizations, face potential elimination after 2025. As of this writing, Congress has introduced legislation to extend some of these incentives. Meanwhile, the popular Employee Retention Tax Credit (ERC) came under IRS fire in 2023 after a significant uptick in fraudulent claims by unscrupulous ERC “mills.” The following summarizes updates to the ERC along with other significant changes presented recently at the FAE’s Exempt Organization Conference.