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As an extension filer for almost the entirety of my adult life, I’m all too well aware that while the US Treasury might give you an extension on the time to file, there is never an extension of the time to pay your taxes. This applies to income tax and excise tax – and if you’re a distillery that is subject to a bond requirement because your excise tax remittances and production volumes are high enough, ensuring you have…
Continue Reading Breaking Bond – Why Withdrawal Coverage Matters For Your Distillery

The Wisconsin Department of Workforce Development has scheduled a public hearing on unemployment benefits and taxes for Thursday, November 21st, at 2 to 4 pm and 5 to 6 pm.

This public hearing is online only (via webex) and requires prior registration for both sessions: registration for the 2 to 4 pm session and registration for the 5 to 6 pm session.

Comments can also be submitted in writing via [email message](mailto: UILawChange@dwd.wisconsin.gov) or written letter to:
Janell…
Continue Reading Public hearing on unemployment in 2024

As the seasons shift and we head towards the end of the year, many of us reflect on change. Yet, for high-net-worth individuals and families, there’s an upcoming “sunset” that may impact their financial future—one that’s not found on the horizon but rather in Washington, D.C. The current federal estate tax changes to exemptions is set to be reduced in 2026, and this change could significantly impact how much wealth you can transfer tax-free.
What Does the Estate Tax

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Continue Reading Preparing for the Federal Estate Tax Changes

October 21-27, 2024, is National Estate Planning Awareness Week—a timely reminder to think about your estate plan. If you haven’t yet created an estate plan, we have a handy guide to help you understand the basics. You can check it out here: Estate Planning Guide.

If you already have an estate plan in place, now is a great time to review it to make sure it still aligns with your needs and goals. Changes in your personal circumstances,

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Continue Reading National Estate Planning Awareness Week

When high-net-worth individuals and families incorporate charitable giving into their estate planning, they often consider donor-advised funds and private foundations as vehicles for managing their philanthropy. Both options have unique advantages, and the choice depends on the donor’s goals, level of control, and financial considerations.

Donor-advised funds are like charitable savings accounts. Donors contribute to a DAF through a sponsoring organization, receiving an immediate tax deduction, while funds can be invested or disbursed over time. DAFs are easy to

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Continue Reading What is the Difference Between a Private Foundation and a Donor-Advised Fund?

In last week’s post, we talked about the Connelly case before the U.S. Supreme Court, which involved a fight between an estate and the IRS about whether money from a Key Person Insurance policy (that a company takes out on the lives of its shareholders) should count toward the company’s fair-market valuation for the purposes of estate taxes for the shareholder’s estate. The link for last week’s post can be found here.

With the context and case last…
Continue Reading Connelly: How to Pull the Wrench from the Works

The U.S. Supreme Court issued a plethora of impactful decisions in its last term. One that might have flown under the radar had to do with estate taxes. Though topic of taxes does not normally make for engaging content, this just might be an exception. If you are a business owner (or are related to one), you might be impacted, so please read on.

Now that the hook is out there, let’s turn to the topic: estate taxes and…
Continue Reading Connelly: A Wrench in the Succession Planning Works?

As we approach the 2024 election, many individuals are concerned about how potential changes in the political landscape could affect their estate plans. The upcoming election could have significant implications for gift and estate tax rates, which are set to revert to pre-2017 levels if no new legislation is passed. This blog post will help you understand the potential changes and how to prepare your estate plan accordingly.
The Current Estate Tax Landscape
The Tax Cuts and Jobs Act

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Continue Reading The 2024 Election & Your Estate Plan: What You Need to Know

Here is the latest faculty scholarship appearing in the University of Wisconsin Law School Legal Studies Research Papers series found on SSRN.

Against the backdrop of declining crime rates, gun violence and gun-related homicides have only risen over the last three years. Just as it historically has, the brunt of that violence has been borne by poor Black and brown communities. These communities…
Continue Reading Recent UW Law Faculty Scholarship

Internal Revenue Code § 83 governs the taxation of property (e.g., stock, restricted stock units, or stock options) transferred in connection with the performance of services. Generally, the property is included in the recipient’s gross income (valued at fair market value minus any amounts paid for the property) when it is transferable or no longer subject to a “substantial risk of forfeiture.” In the case of stock subject to vesting requirements, the stock will be included in gross income

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Continue Reading Navigating the 83(b) Election: Risks and Rewards of Early Taxation

The ever-changing landscape of state government requires businesses across all industries to stay informed on the happenings in Madison. Welcome to the June 2024 Recap issue of the Capitol Connection.

Inside this issue

Vos Recall Denied by Elections Commission

A months-long back-and-forth between Assembly Speaker Robin Vos and a group seeking to recall the Republican leader ended on June 27th when in a 4-2 decision, the Wisconsin Elections Commission decided that organizers of the effort failed to collect enough…
Continue Reading Capitol Connection, June 2024 Recap

The TCJA and Estate Taxes could be up in the air depending on the presidential election outcome. With the 2024 election looming, uncertainty hangs over the fate of the Tax Cuts and Jobs Act (TCJA) of 2017. This landmark legislation included a significant increase in the estate tax exemption, allowing individuals to transfer much larger sums to heirs without incurring federal estate tax. However, some key provisions of the TCJA, including the high estate tax exemption, are set to

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Continue Reading The TCJA and Estate Taxes- Start Preparing Now

Due to the rising costs of education, many Americans are looking for ways to fund the educational expenses of their children and grandchildren.

In 2023, Congress overhauled the Free Application for Federal Student Aid (“FAFSA”) and the Department of Education’s process for awarding federal student aid, which has taken effect for the 2024–25 award year. These changes included a simplified form, removal of the sibling discount, introduction of a new eligibility formula, modified family and aid considerations, and expanded…
Continue Reading How Can You Help Pay for Your Student’s Education?

Irrevocable Grantor Trusts (IGTs) have been a popular tool for estate planning. They help you reduce estate taxes, avoid probate, and distribute assets according to your wishes. But a new IRS ruling (Revenue Ruling 2023-2) throws a wrench into things. Let’s break down what this means for you.
What are Irrevocable Grantor Trusts (IGTs)?
Think of an IGT as a locked box. You put assets in the box (like stocks or cash), and a trustee manages them according to

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Continue Reading Irrevocable Grantor Trusts: IRS Ruling May Affect Your Estate Plan

Making your estate plan tax efficient may not be in the forefront of your mind when it comes to thinking about your legacy. But with the right planning, you’ll be able to make your estate plan tax efficient, saving your assets for future generations. Estate planning is not merely about passing on your assets; it’s also about ensuring that your loved ones receive as much of your estate as possible. One crucial aspect often overlooked is tax efficiency. Taxes

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Continue Reading Making Your Estate Plan Tax Efficient

Wisconsin families received a significant boost with the recent signing of Assembly Bill 1023. The bill was signed into law by Governor Tony Evers on Monday, March 4, 2024. This groundbreaking legislation, effective immediately for the 2024 tax year, expands the state’s child and dependent care tax credit from 50% to 100% of the federal credit, potentially providing substantial relief to families grappling with childcare expenses.

The amended law not only doubles the benefit percentage, but it also…
Continue Reading Wisconsin Expands Child and Dependent Care Tax Credit