On 1 March 2024, New York Governor Hochul signed into law the amended LLC Transparency Act (“Act”). Enacted on 23 December 2023, the Act underwent significant revisions as a result of the agreement between the Governor and the legislators. The Act requires that all limited liability companies (LLCs) formed under the New York Limited Liability Company Act (“LLC Act”) or seeking authorization to do (or doing) business in New York State disclose information about certain of their beneficial owners, or submit a statement that the entity qualifies for an exemption from this requirement. All LLCs in existence prior to 1 January 2026 must comply with the Act before 1 January 2027.

On 14 November 2023, the IRS issued the long-awaited proposed implementing regulations (REG-142338-07) under section 4966, added by the Pension Protection Act of 2006 (“Proposed Regulations”). The Proposed Regulations address many definitions related to donor advised funds, donors and donor advisors. The proposed regulations are intended to help taxpayers understand how the imposition of excise taxes on taxable distributions may apply to them.

Two recent tax controversies demonstrate the authority of US courts in situations where a taxpayer’s assets are held in a country different than the taxpayer’s country of residence. In United States v. Kelly, a US person held assets in a Swiss bank account and failed to file a Foreign Bank Account Report (FBAR), and the court ordered repatriation of those assets to the United States. In Puri v. United States, an Indian taxpayer held assets in a US bank account, and the United States Supreme Court denied certiorari, finalizing the district court’s order that denied taxpayer’s motion to quash an administrative third-party summons issued by the IRS.