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The IRS Delayed Its Payment Reporting Rule Change Again. Is That Good for Taxpayers?

Beginning in 2023, the reporting threshold for businesses that use third-party apps, such as Venmo, Etsy, StubHub and Airbnb, was set to decrease significantly, from $20,000 to $600.  Now, the Internal Revenue Service has delayed the decreased reporting threshold for another year and announced that it will begin to phase in the lowered threshold starting in 2024, starting at $5,000 for the 2024 tax year. 2023, then, will simply be treated as another transition year. The American Rescue Plan Act of 2021 also removed the de minimis threshold, which previously allowed an exception to filing Form 1099-K. In prior years, Form 1099-K was required to be issued for third-party networks transactions only if the number of transactions exceeded 200 for the year and the aggregate amount of these transactions exceeded $20,000.  We asked two professors and authors of ALM’s Tax Facts with opposing political viewpoints to share their opinions about the most recent delay in the effective date for the reduced Form 1099-K threshold. Below is a summary of the debate that ensued between the two professors. Their Votes: Bloink Byrnes Their Reasons: Bloink: This newly reduced threshold is going to create widespread confusion for ordinary taxpayers. Using online money...

11 New Findings on What Clients Really Think of Advisors 0

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11 New Findings on What Clients Really Think of Advisors

Start Slideshow U.S. consumer demand for live, hands-on financial advisors continues to grow despite voluminous data and technology designed to empower individuals to handle their own investments, says new research from Cerulli Associates and the Securities Industry and Financial Markets Association. The “advised” investor segment has grown to 47% now from 35% in 2009, while the group  classifying themselves as “self-directed” has fallen to 24% from 41%, according to the research. At the same time, 63% of investors indicate a willingness to pay for advice, compared with 38% in 2009, Cerulli noted. Interest in formal financial plans has increased to 54% from 38% in the same 14-year stretch, the research found. “Investors seek advisors with a service set aligned with their financial goals,” Scott Smith, advice relationships director at Cerulli, said in a statement. “Looking forward, we believe demand will be centered around personalized comprehensive advice delivered through trusted advisors.” Kenneth E. Bentsen, Jr. SIFMA president and CEO, added: “The data clearly indicates that Investors are increasingly choosing professional advice and recognize the value to navigate complicated choices. Trustworthiness and quality of service comprise the foundation of client satisfaction.” Among the big takeaways, Cerulli and SIMFA found: “Advised clients want to know that someone is...

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Fidelity Customers Face Issues With Trading Site, Apps

Numerous Fidelity Investments customers reported problems using the investment giant’s website and mobile brokerage Friday afternoon, according to social media posts and data. Downdetector, an outage monitoring site, reported a spike in problem reports, to around 3,000, in the early afternoon, although the numbers had dwindled to under 200 by about 2 p.m. Eastern time. Website issues account for more than 60% of the reports and mobile brokerage nearly 30%, Downdetector indicated. On X, formerly Twitter, Fidelity acknowledged the issues in response to customer complaints and questions, including a post from a user asking when he would be able to transfer money to his Fidelity account. “We are aware that customers are experiencing issues with our website, Active Trader Pro (ATP), and our mobile apps. We are working urgently on resolving the issues. We apologize for the inconvenience and appreciate your being a customer,” the company posted around 2:20 p.m. One user posted, “Now I can’t close my position becuase the price moved away. How can we all get compensated our lost profits?”

Economic Volatility Taking a Toll on Canadians: Manulife Bank Financial Health Survey 0

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Economic Volatility Taking a Toll on Canadians: Manulife Bank Financial Health Survey

New data shines a light on the affordability crisis in Canada; vast majority of Canadians say the Canadian economy is on the brink of a recession, if not already in one Toronto, ON (Nov. 22, 2023) – Manulife Bank has released its semi-annual Financial Healthy Survey, finding that the Canadian economy, which has been in a period of volatility and uncertainty for the last 18 months with soaring inflation, record cost of living, and a near fivefold increase in interest rates has, continues to affect Canadians. According to the results, 86 per cent of Canadians are concerned about the direction of the Canadian economy and a vast majority (84 per cent) think we’re either already in a recession or heading into one within the next year (73 per cent). It’s also becoming clear that things are hitting close to home for Canadians: almost 90 per cent are concerned about the affordability of life in Canada and 70 per cent are worried about their overall financial health and wellness. “We’ve been in a period of economic volatility for a number of months and that it is not likely to change any time soon,” says Alex Lucas, President, Manulife Bank. “Despite slowing...

Marsh McLennan Develops New Generative AI Tool 0

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Marsh McLennan Develops New Generative AI Tool

New York, NY (Nov. 21, 2023) – Marsh McLennan and its business Oliver Wyman, a global leader in management consulting, are pleased to announce the launch of a new Generative AI tool for colleagues. The tool, called LenAI, was developed by Marsh McLennan’s Dublin Innovation Center in collaboration with Oliver Wyman Digital and is available to Marsh McLennan’s more than 85,000 colleagues worldwide. “We have some of the brightest minds in business working across our four businesses and a collaborative culture,” said Paul Beswick, Senior Vice President and Global Chief Information Officer, Marsh McLennan. “When it came time to introduce the tool, we were able to deploy it quickly and securely. Since its full launch recently, LenAI has been a game changer for our teams, enabling them to work smarter for the benefit of our clients.” “We know AI has the potential to help our clients increase their productivity, transform complex and expensive processes, and do other things that were out of practical reach until now,” added Vivek Sen, Partner, Head of Digital, Oliver Wyman, Americas. “We’ve always been at the forefront of helping our clients leverage the latest technologies even within highly regulated industries, and AI is no different.”...

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Ohio Settles Lawsuit With Chemical Companies For $110 Million Over PFAS Contamination

Article 0 Comments DOVER, Del. (AP) – The DuPont Co. and two spin-off firms will pay $110 million to the state of Ohio to settle a lawsuit over environmental threats from toxic chemicals used at a former DuPont facility in neighboring West Virginia, the companies said Wednesday. The settlement involving DuPont, the Chemours Co. and Corteva Inc. resolves Ohio’s claims relating to releases of manmade, fluorinated compounds known as PFAS. It also resolves claims relating to the manufacture and sale of PFAS- containing products and claims related to firefighting foam containing PFAS. The compounds, which are associated with an increased risk of certain cancers and other health problems, are often referred to as “forever chemicals” because of their longevity in the environment. They have been used in the production of nonstick coatings such as Teflon, firefighting foam, water- and stain-resistant textiles, food packaging and many other household and personal items. According to the companies, Ohio will allocate 80% of the settlement to the restoration of natural resources related to the operation of the Washington Works facility near Parkersburg, West Virginia, on the eastern shore of the Ohio River. The other 20% will be used to address PFAS claims statewide, including...

Despite Insurance Costs, Lux Condos Going Up: Miami Tower to Have $150M Penthouse 0

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Despite Insurance Costs, Lux Condos Going Up: Miami Tower to Have $150M Penthouse

Article 0 Comments (Bloomberg) — A roughly 13,000-square-foot, full-floor penthouse and roof at the Rosewood Residences, a 17-story condo tower designed by Peter Marino in Miami’s South Beach, could soon be the most expensive in Miami Beach’s history. It’s priced at “over $150 million,” according to project developer Michael Shvo. It is expected to be completed by 2026. The new condo tower will be part of a three-acre hotel, restaurant and luxury campus filled with amenities on 18th Street and Collins Avenue. It will be located in a compound whose best-known building, the art deco Raleigh Hotel, has been a Miami Beach landmark since it was built in the 1940s. The hotels and residences will be operated by the luxury Rosewood Hotels & Resorts brand. “If I told you that at 220 Central Park South they’re selling a unit at $13,000 a square foot, or at the Aman New York that we sold units at that price, nobody [would think] that was outrageous,” Shvo says in his Manhattan conference room. “We are by far the premier product building, not only in Miami Beach but in the country. And there’s no reason that people will pay less to be 100 feet...

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Marketing Rule Among 2024 Enforcement Priorities: SEC Roundup

Welcome to SEC Roundup, a bimonthly video series by former Securities and Exchange Commission senior trial counsels Nick Morgan and Tom Zaccaro, founders of the nonprofit advocacy group Investor Choice Advocates Network. In this episode, Morgan and Zaccaro talk to a nationwide panel of SEC experts regarding the SEC’s annual enforcement report, which details the hundreds of cases brought by the SEC enforcement division over the last year. On wide-ranging topics including the Marketing Rule, off-channel communications, whistleblowers, gatekeepers and disclosures, the panel offers insights into where the SEC will be going in 2024. The former SEC lawyers from five different cities highlight risk areas and advice for those looking to stay clear of the SEC.

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Oregon Regulator to Investigate Pacificorp’s Request to Limit Wildfire Liability

Article 0 Comments Oregon’s utility regulator this week said it would investigate a petition by PacifiCorp to limit its liability from future wildfire-related lawsuits, delaying a decision on the power provider’s request by as long as nine months. In October, the Berkshire Hathaway Energy BRKa.N subsidiary asked regulators in five of the six states it serves to limit damages tied to future utility-caused wildfires. That request came four months after an Oregon jury found PacifiCorp must pay at least $87 million in compensatory and punitive damages for four wildfires that damaged more than 2,400 properties over Labor Day in 2020. Putting a limitation on liability will allow it to ensure reasonable rates and finance future expenditures, PacifiCorp said in its October filing. On Tuesday, the Oregon Public Utility Commission (OPUC) approved a staff recommendation submitted on Nov. 17 to suspend PacifiCorp’s request for up to nine months for an investigation. The proposed modifications have “significant policy implications as well as legal issues” and cannot be adequately investigated by the effective date of Nov. 29, 2023, proposed by PacifiCorp, OPUC staff said in the recommendation. The Portland-based utility serves 2 million customers in Oregon, Washington, California, Utah, Idaho and Wyoming. PacifiCorp’s...

Oyster Launches Usage-based Rental Insurance 0

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Oyster Launches Usage-based Rental Insurance

New York, NY (Nov. 20, 2023) – Oyster, a modern insurance platform for commerce, is pleased to announce that it has launched a new rental insurance product. This offers the first usage-based rental insurance program in the U.S., providing rental shops and marketplaces with theft and damage coverage for their rental bikes, ebikes, kayaks, and paddleboards through Oyster’s modern platform. “The expanding rental market presents risk challenges for businesses due to the distinct nature of renting an item,” said Vic Yeh, Co-Founder and CEO at Oyster. “Leveraging Oyster’s tech-driven underwriting platform, we are now able to provide comprehensive coverage for the rapidly growing rental market.” Oyster’s rental insurance enables businesses to safeguard their rental assets for rental, lease, and subscription. Its usage-based pricing model ensures that riders or businesses only pay for insurance during the duration of the rental. The coverage encompasses protection against theft, damage, and natural disasters, spanning from a single day to over a year. Integrated seamlessly into Oyster’s platform, businesses can effortlessly offer this coverage to their customers with a user-friendly interface and a real-time digital experience. Rental businesses interested in learning about Oyster’s rental insurance product can learn more at withoyster.com/rental-insurance. About Oyster Oyster is...