We’ve gathered the best insights from our members to share with you each month. Get to know your peers, and get the latest news directly from these industry insiders!

Lawrence Scherer, Esq., CPA, LL.M. Taxation

On March 1, 2024, Northern District Court in Alabama held the Corporate Transparency Act (CTA) unconstitutional. There is specific language in that ruling which seems to only apply as to the Plaintiffs in that particular case. We waited a week to see if the treasury department would give the nation some guidance; none came. Thus, we fear that all 33 Million entities (except the plaintiffs in that particular case) are still subject to filing CTA registrations. As penalties are so onerous: Filing should be considered mandatory; as Late Filing will cost $500/day; and Failure to File can add to that up to Two (2) years in jail.

As a safe course of action, we are recommending all NEW 2024 entities file their registrations immediately (within 90 days of formation) while 2023 and earlier entities wait until after the summer to file in case guidance from the treasury does finally come. We believe immediate action for 2024 entities makes sense as penalties for late or non-filing would be catastrophic.

Hail Hail a Bill of Workers Rights.

On March 1, 2024, the New York City Dept of Consumer and Workers Protection issued a “Bill of Rights” to be displayed at every employer New York City workplace. The bill of rights covers: Paid safe and paid sick leave; New York Fair Workweek Law; Minimum wage law; Employees’ right to unionize; Paid Family Leave; and Employees’ rights to unemployment benefits, etc. After 7-1-24, the City’s employers must distribute the Workers’ Bill of Rights to all employees, display it prominently, and post it on their website or mobile app. Failure can subject the employer to fines starting at $500.

Matrimonial Cheaters Never Prosper; Well Now at Least They May Not Have to go to Jail!

You may not believe it, but adultery is currently a criminal offense in New York State. Very few people have been charged under this criminal statute, but some have. Since 1972, only 13 people have been charged with adultery, and of those, only 5 out of the millions of affairs that have happened were convicted, obviously this law was no deterrence.

Under a new bill, the act of adultery would be decriminalized.

Update to New York State Real Estate Commission Rules.

Effective January 1, 2024, there are vast, sweeping changes to the commission rules for residential real estate sales. Buyer’s brokers must be compensated by direct agreement with the Seller, or paid by the Buyer. This change will eliminate the arbitrary payment levels that Seller’s agents impose by share “agreements.” Sellers may choose to pay a buyer broker, or not.

Their decision to pay a buyer broker, and how much, will be part of a marketing plan to sell their home, and will be included as part of a written listing agreement. The conversations between listing agents and sellers will include strategic discussions about the benefits to a seller of having a buyer work with a broker.

The compensation of buyer’s brokers will no longer be part of MLS or similar listing services. This means that consumers who will not have the information on whether the seller will be willing to pay their broker or they, as the buyer, will need to pay their broker. The amount of closing costs required for a purchase will vary depending on which property they buy and the (unknown) commission structure. Although designed to be a consumer protection, it appears that this rule will only make a buyer’s online search even more challenging.

MTA Has Made it Official; Congestion Pricing is a “GO”

Under this taxing scheme (ostensibly to limit traffic) the MTA will charge vehicles driving south of 60th Street from 5 a.m. to 9 p.m. weekdays and 9 a.m. to 9 p.m. on weekends. Traffic on the West Side Highway and FDR Drive will be exempt. Further, there are exemptions and discounts under the plan. Drivers who make less than $50,000 per year can apply for a discount and drivers who enter from the Lincoln, Holland, Battery and Queens-Midtown tunnels can receive a credit as they are already paying a toll to enter.

Truck and some bus drivers will need to pay $24 or $36 during the day to enter the congestion relief zone. While less costly, passenger cars will be charged between $5.50 and $22.50; while motorcycles will be charged between $2.75 and $12.50. There will even be a surcharge for passengers in cab, Uber, Lyft and buses.

Multiple lawsuits to stop the plan are expected.

In addition to being a co-founder of the LIAFPN, Larry Scherer has a strong background in Trust & Estates and Elder Law, and serves as Managing Member of Scherer & Pudell, Pllc, a Transactional Law Firm in Garden City, NY. He can be reached at (516) 747-7007.

Connect on LinkedIn

Content Disclaimer

The information provided in this publication does not, and is not intended to, constitute Legal, Accounting or Financial advice; instead, all information and content are for general informational purposes only. Information herein may not constitute the most up-to-date information.

Readers of this newsletter should contact their individual professionals to obtain advice with respect to any particular matter referenced herein. No reader, user, or browser of this site should act or refrain from acting on the basis of information herein without first seeking legal, accounting or financial advice from trained professionals in the relevant fields of practice.

Receipt and reading of this newsletter or any referenced information or resources contained herein does not create any kind of service relationship or engagement for services between the reader, the LIAFPN and its contributing authors.

Views expressed herein are those of the individual contributing authors writing in their individual capacities only – not those of their respective employers, the LIAFPN. All liability with respect to actions taken or not taken based on the contents of this site are hereby expressly disclaimed. The content herein is provided “as is;” no representations are made that the content is error-free.