- IRS Establishes New Income Tax Brackets for 2023
The IRS this week announced higher federal income tax brackets and standard deductions for 2023, which will apply to tax year 2023 for returns filed in 2024. The standard deduction for 2023 will rise to $27,700 for married couples filing jointly, up from $25,900 in 2022, and $13,850 for single filers, an increase from $12,950.
Why it Matters: These increases are in response to soaring inflation, which continue to impact the economy and government policy. Last week, it was announced that Social Security and Supplemental Security Income benefits will increase 8.7% in 2023.
- Final Rule Issued for Corporate Transparency Act: What Businesses Need to Know
On September 29, 2022, FinCEN issued its Final Rule, and a corresponding Fact Sheet. These rules set forth the requirements for certain businesses to disclose information regarding the individuals who own or control the business.
Why it Matters: The Corporate Transparency Act is intended to deter activity such as money laundering, financing terrorism, and tax fraud, among other things. Failure to disclose the necessary information may subject businesses to significant civil and criminal penalties. Learn more on the subject.
- Scholarship Program Poised to Assist Michigan’s Middle Class
The new Michigan Achievement Scholarship program will help Michigan families reduce the costs of attending various post-high school education programs. Public university students who are selected will receive up to $5,500 a year for five years, independent university students will be able to get up to $4,000 a year for five years, private trade school students $2,000 a year for two years and community college students $2,750 a year for up to three years.
Why it Matters: The Michigan Achievement Scholarship program is projected to double the number of the recipients who receive financial aid through the state’s various programs. And the new program seeks to reduce or eliminate the need for student loans for families across the state.
- Records Cannabis Sales in September Reports CRA
Cannabis sales in Michigan drew in $212 million in September, setting a record in terms of cannabis sales per month. The Cannabis Regulatory Agency has reported that more than 90% of sales came from adult-use recreational cannabis purchases.
Why it Matters: Michigan breaks another record, set earlier this year, in cannabis sales per month. As product continues to enter the market causing prices to drop, many licensees are asking the Cannabis Regulatory Agency to stop issuing licenses in fear of profit losses.
- House Bill Proposes to Establish a Version of the Telephone Consumer Protection Act in Michigan
The federal Telephone Consumer Protection Act seeks to stop unwanted telephone solicitation. Michigan House Bill 6307, the Michigan Telephone Solicitation Act (the “MTSA”), would enact similar restrictions on a state level.
Why it Matters: If enacted, Michigan would follow in the footsteps of other states, such as Florida, Oklahoma, and Washington, who have implemented similar protections for residents. The MTSA would exempt certain solicitation calls, such as those made with express authorization and those to existing customers. Violations, especially knowing violations and those impacting vulnerable individuals, would be subject to stiff civil penalties. The bill also proposes to establish a private cause of action for impacted individuals.
Related Practice Groups and Professionals
Business & Tax | Paul McCord
Business & Tax | Robert Burgee
Cannabis Law | Sean Gallagher
Energy, Utilities & Telecommunication | Michael Ashton