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Wiss And Team Walker Kick Off Third Annual Financial Literacy Program

Posted on by Michelle Antico

Community-focused initiative empowers individuals with essential money management skills paving the way for a more prosperous future for the next generation

FLORHAM PARK, N.J.—July 9, 2025 — Wiss, a full-service accounting and business advisory firm leveraging AI and data analytics to deliver advanced financial solutions, today announced the return of its summer financial literacy program in partnership with Team Walker, a non-profit organization offering year- round after-school and summer camp programs to underrepresented communities in Jersey City. The program, now in its third year, aims to empower young people with real-world financial decision-making skills through in-person workshops and gamification activities.

Starting on July 9, Wiss will host a five-week long program, through twice-weekly presentations at the Team Walker Learning Center in Jersey City. The participants, primarily inner-city youth, will engage in real-world money management exercises through fully developed lesson plans which explore the topics of personal finance, managing budgets, taxes, personal banking, and building wealth. The workshops will include interactive games in a simulated environment in which the participants will get the opportunity to apply what they learned and can continue practicing how to effectively manage money.

“My mission has always been to improve the quality of life for the children of Jersey City, and this partnership with Wiss is making a real impact on our community,” said Jerry Walker, Co- Founder of Team Walker. “By giving our students the tools to understand and manage their finances, we’re setting them up for long-term success. So many kids have never had this opportunity, and that’s what makes this program truly special.”

To date, approximately 70 participants, ages 11-13, have benefited from the Wiss financial literacy program at Team Walker. Through this effort individuals are empowered with the knowledge and tools they need to innovate, create, and become productive members of society, paving the way for a more prosperous future for the next generation.

“We strongly felt we could put our in-depth industry expertise into practical use with Team Walker to help bridge the gap of the perceived complexities of managing money and investing. I’m passionate about unleashing the power of the simple principles of investing to provide our youth with a hopeful path,” said Paul Peterson, CEO and Managing Partner at Wiss. “We know that when financial education starts early, and is offered in an interactive and engaging format, children can continue building on this knowledge as they grow to foster a brighter financial future.”

The partnership with Team Walker is one of several initiatives of Wiss’ financial literacy program which consists of hands-on learning experiences, strategic partnerships, and digital education initiatives designed to make financial knowledge accessible to all students.

This past spring, Wiss partnered with the New Jersey Devils and EVERFI to host an interactive financial literacy event at Plainfield High School. Students engaged in real-world money management exercises, an “Invest or Save?” decision-making challenge, and participated in a panel discussion featuring Wiss financial experts alongside New Jersey Devils representatives. Ever since launching the program in New Jersey schools, Wiss and its partners reached 1,530 high school students across 17 schools.

In addition to in-person initiatives, Wiss launched a YouTube financial literacy series featuring World Champion soccer player and Olympic medalist Kelley O’Hara to deliver expert-led, accessible financial education to students nationwide, reinforcing essential financial concepts in an engaging and relatable way.

Wiss’s financial literacy initiative is part of the firm’s broader social impact commitment, which focuses on community-driven programs that create lasting change. To learn more about Wiss’s social impact initiatives, visit wiss.com/about-us/social-impact.

About Wiss

Headquartered in Florham Park, NJ, and with offices in New York City and Florida, Wiss is clearing the path for a new era of accounting. We bring technical experts powered with AI to meet the needs of today’s data centric, growth-minded customer. Wiss is an accounting business that goes beyond the numbers, offering our dynamic clients a full spectrum of accounting and advisory services. Every Wiss client is engaged with a tailored team of specialists who advise on specific needs at their stage of growth. Wiss taps into the full potential of what an accounting business should be—modernizing the experience for clients, teams, and the industry at large. For more information on Wiss, go to wiss.com.

Team Walker

Team Walker offers youth academic and athletic programs as well as community outreach programs for families and seniors of Jersey City. These programs are offered through a structured academic and recreational environment that teaches Determination, Dedication, and Discipline, the “3-Ds” that Jerry credits to his success. Programs provide positive role models to encourage students to realize their capabilities, enjoy a sense of accomplishment, and provide an opportunity to increase their quality of life for years to come. For more information on Team Walker, go to teamwalker.org.

Contact
Haley Zadel for Wiss [email protected]

Understanding Donald Trump’s “One Big Beautiful Bill”

Posted on by Kristine Sinisi

The House of Representatives recently passed the “One Big Beautiful Bill,” promising significant changes to the American tax code and economy. With its approach heavily focused on tax cuts, job creation, and economic growth, this bill claims to be the largest and most pro-growth tax legislation in American history. But what exactly does it entail, and what does it mean for everyday Americans and businesses?

Below, we take a detailed look at the key provisions of the “One Big Beautiful Bill,” breaking down what it truly offers and the potential impacts on individuals, families, and businesses.

What is the “One Big Beautiful Bill”?   

Formally titled “An Act to Provide for Reconciliation under Title II of H. Con. Res. 14,” this sweeping legislation builds directly on the successes of the 2017 Tax Cuts and Jobs Act (TCJA). It not only extends and makes permanent many of the tax cuts introduced in the TCJA, but it also introduces new benefits aimed at middle-income families, small businesses, and the American workforce.

 The primary goal of the bill is to boost the domestic economy by creating tax conditions that favor individuals and encourage businesses to grow, innovate, and stay competitive on a global scale.   

Key Features for Workers and Families

Bigger Take-Home Pay for Families

The bill proposes an expanded child tax credit, increasing it from $2,000 to $2,200 per child, effective starting in 2025. Families also benefit from a permanently increased standard deduction, which will now sit at $31,500 for married couples and $15,750 for individuals.   

For seniors, the legislation provides a $6,000 tax exemption, significantly reducing their tax burden and supporting financial stability during their retirement years.

Tax Relief for Wage Earners 

Workers who earn less than $100,000 annually are set to see an average 12% reduction in tax liability. Tipped employees, such as service industry workers, will no longer face taxation on tips up to $25,000 per year. Similarly, hourly workers will enjoy up to $12,500 in tax-free overtime wages.   

By focusing on reducing the tax burden for the working and middle classes, the bill aims to leave more money in Americans’ pockets, easing the cost-of-living pressures.

Supporting Education and Family Growth 

To encourage savings and investments for future generations, the bill expands 529 education savings accounts to include K–12 materials and trade certifications. Additionally, the adoption tax credit has been enhanced, making adoption more financially viable for families.   

For working parents, the child and dependent care credit has been expanded alongside paid family leave tax incentives, making child care and family time more accessible across all states.    

Business Provisions to Drive Economic Growth

Permanent Small Business Support

Small business owners will benefit significantly from the permanent extension of the 20% small business income deduction. This means more businesses will retain capital that can be reinvested in growth, innovation, and staffing.   

Additionally, a minimum tax deduction for businesses earning over $1,000 in qualifying income ensures that tax relief is accessible even to minimally profitable ventures.

Incentives for Domestic Investment

The bill makes full expensing of domestic research and development (R&D) costs and capital investments permanent. This boosts innovation while encouraging entrepreneurs to build and expand within the United States rather than overseas.    

The return of 100% bonus depreciation for specific tangible property, such as equipment and machinery, also accelerates financial returns for companies investing in improvements.

Opportunity Zone Enhancements 

Opportunity zones, first rolled out under the TCJA, have been reinvigorated with expanded incentives. High-net-worth individuals have reduced tax exposure for investments in underserved communities, with a particular focus on rural areas. This provision ensures capital flows into areas most in need of economic stimulation.

Impact on Corporate America

Large corporations also see significant benefits under this legislation. Critical provisions include maintaining the corporate tax rate at 21% and relaxing some elements of multinational taxation rules, such as adjustments to the Global Intangible Low-Taxed Income and Base Erosion Anti-Abuse Tax components.   

 These changes aim to preserve competitiveness in an increasingly global economy while simplifying tax compliance.   

Addressing Healthcare and Consumer Costs   

The bill addresses pressing social issues, including healthcare affordability and consumer cost relief. Health savings accounts have been expanded, allowing families to put away more money tax-free for medical expenses. Additionally, the repeal of burdensome IRS reporting requirements for gig workers using third-party payment apps like Venmo and PayPal provides significant ease to self-employed individuals managing their tax compliance.   

Specific deductions, such as those for auto loan interest on American-made vehicles, aim to support both consumers and domestic manufacturing.

A Glimpse into the Economic Forecast   

Proponents of the “One Big Beautiful Bill” are optimistic about its impact on the American economy: 

  • Job Creation: Up to 1 million new small-business jobs are expected to be created each year, with 7.2 million existing jobs protected.
  • Household Relief: The typical family is projected to have an additional $10,900 in their annual take-home pay.
  • Business Investment: Permanent expensing provisions are likely to encourage new factory construction and equipment upgrades, strengthening domestic supply chains.   

 However, critics note the potential long-term impact on the federal deficit, which is expected to increase by $3.1 trillion over the next decade, raising concerns about economic sustainability.   

Building a Bright Financial Future   

The “One Big Beautiful Bill” is potentially one of the most ambitious tax legislations in U.S. history, aiming to deliver broad-based economic benefits while reshaping taxation rules for individuals, families, and businesses alike.    

Since the bill has now been signed into law, its implications will begin to take shape, and are expected to be analyzed and felt for decades to come. To understand how the bill may specifically affect you or your business, consider consulting with financial or tax professionals to maximize its benefits. Contact us today!

New Jersey’s FY 2026 Budget: Tax Provisions You Need to Know

Posted on by Michelle Antico

On June 30, 2025, Governor Phil Murphy signed New Jersey’s Fiscal Year 2026 budget into law. This includes the enactment of Budget Bill S-2026, in addition to other companion bills related to the FY 2026 Budget. At $59 billion, it marks the largest budget in state history and includes several tax changes that may impact businesses, investors, and individuals.

Below is a breakdown of the most significant provisions.

Expansion of Realty Transfer Fees on High-Value Real Estate (“Mansion Tax”)

The budget establishes a tiered realty transfer fee—commonly referred to as the “mansion tax”—on certain real estate property sales over $1 million:

Takeaway: The tax burden now falls entirely on sellers, not buyers. With the tax rate increases, sellers of high-value properties should factor this cost into their pricing and negotiating strategies.

Tobacco and Vaping Tax Increases

  • Vape tax: The tax on liquid nicotine products will increase from 10 cents to 30 cents per fluid milliliter.
  • Cigarette tax: Increases the current 13.5 cent per-cigarette tax levy by 1.5 cents to 15 cents, or $3 per pack of 20 cigarettes.

Online Gambling and Sports Betting Taxes

  • Previous rates: 15% (online casinos), 13% (sports betting)
  • New unified rate: 19.75% for both

Takeaway: The final tax rate of 19.75% on online gambling and sports betting is notably lower than the 25% rate proposed initially by Governor Murphy in his FY 2026 budget. This compromise reflects pushback from industry stakeholders and aims to strike a balance between revenue generation and market competitiveness.

Property Tax Relief Programs

The budget allocates additional funding to property tax relief programs, including Stay NJ, which was initially enacted in 2024 and is scheduled to take effect in 2026. 

  • Stay NJ: designed to incentivize seniors to stay in the state. The program provides property tax credits for half of their property tax bills, up to $6,500 to homeowners aged 65+ with incomes below $500,000.
  • ANCHOR: Continues paying up to $1,750 for senior homeowners and $700 for renters.
  • Senior Freeze: Continues property tax relief for eligible seniors and individuals with disabilities.

Takeaway: These programs offer meaningful relief; however, clients should closely monitor eligibility and application timelines.

Business Tax Incentives: Adoption of QSBS and enhancements to the Angel Investor Tax Credit

As part of the FY 2026 budget, New Jersey adopted a Qualified Small Business Stock (QSBS) exclusion, similar to federal rules, which provides a capital gains exemption on the sale of eligible small business stock. The exemption applies to tax years beginning on or after January 1, 2026.

  • Eligibility: Investors must hold QSBS for at least five years and meet other federal Section 1202 criteria.
  • Policy Goal: This change aligns New Jersey more closely with federal tax treatment and is designed to attract capital to early-stage companies operating in the state.

Also, New Jersey has enhanced the Angel Investor Tax Credit Program by increasing the amount of available tax credits for investments in qualifying technology ventures. The FY 2026 budget also revises the definitions of “New Jersey-based business” and “New Jersey emerging technology business” by lowering the maximum number of employees a company may have to qualify. These changes aim to expand access to credit and encourage early-stage investment.

Takeaway: Business owners are strongly encouraged to explore tax planning opportunities related to these incentives. Regarding the QSBS exclusion, it’s essential to carefully review all eligibility requirements and remain vigilant for guidance from the Division of Taxation, as this could present a valuable long-term opportunity for certain investors and entrepreneurs.

Navigate the New Jersey FY 2026 State Budget

New Jersey’s FY 2026 budget introduces a range of tax changes that present both opportunities and complexities for businesses, investors, and individuals. From the expanded mansion tax and increased gaming and excise taxes to enhanced property tax relief and new investment incentives, such as the QSBS exclusion, the landscape is shifting in meaningful ways.

At Wiss, we’re here to help you navigate these developments and identify strategies tailored to your goals. Reach out to your advisor or contact our tax team to start a conversation.

Frequently Asked Questions

1. Did NJ pass the 2026 budget?

Yes, the Legislature passed the FY 2026 state budget, and Governor Murphy signed it into law on June 30, 2025. The total spending plan amounts to $58.78 billion, with over 75% channeled into community-focused grants, property tax relief, social services, higher education, and aid for schools, municipalities, and counties.

2. What is the budget for the state of New Jersey in 2025?

The FY 2025 state budget totaled approximately $56.64 billion in state funds, supplemented by roughly $27.5 billion in federal funding.

3. What is the budget for higher education in NJ 2026?

The Governor’s FY 2026 budget includes the following allocations for higher education:

  • $685.2 million in institutional support for state colleges and universities
  • $149.1 million for county colleges
  • $4.6 million for independent higher education institutions
  • $67.5 million to offset fringe benefit costs at public research universities

However, one detailed analysis indicates $2.1 billion in direct state appropriations for higher educational services overall, a 16.1% decline from FY 2025.

4. How much is the NJ budget?

The official total for the FY 2026 budget is $58.78 billion, marking an increase of over $2 billion compared to FY 2025.

5. What are the major spending areas in NJ’s FY 2026 budget?

The FY 2026 budget places heavy emphasis on:

  • Property tax relief (via programs like ANCHOR and StayNJ)
  • Social services
  • Higher education
  • Aid to schools, counties, and municipalities
  • Full pension funding and sustained school investments

6. What tax credits or rebates are included in NJ’s 2026 budget?

The budget continues to fund key property tax relief efforts:

  • ANCHOR program: up to $1,500 for homeowners and $450 for renters, with a $250 bonus for eligible seniors
  • StayNJ program: aims to cut property taxes in half for qualifying seniors
  • Senior Freeze program: froze property taxes for eligible older residents

Navigating the New York State and City 401k Mandate

Posted on by Michelle Antico

New York State is rolling out its Secure Choice Savings Program, a state-mandated automatic-enrollment Roth IRA for employers who don’t already offer a qualified retirement plan.

As an HR Advisor, here’s what you need to know—and why it’s crucial to get ready. 

Who Does the NY State and City 401k Mandate Affect?

  • Employers with 10+ New York State employees during the entire previous calendar year.
  • New York City (NYC) employers with 5+ employees fall under a local mandate.
  • Businesses must also have operated for at least two years and not offered any qualified retirement plan in the past two years.

Why the NY State and City 401k Mandate Is Important

State-run Roth IRA

This isn’t a typical employer-sponsored 401(k). Contributions are after-tax, and employees are responsible for their own accounts. Unlike traditional plans, this one offers no employer tax credits or matching opportunities. 

Automatic enrollment required

Employers must automatically enroll employees (age 18+) at a default 3% contribution rate—for NYC, it’s 5%—unless the employee opts out. 

Payroll duties included

Employers are responsible for setting up and maintaining payroll deduction systems, remitting employee contributions within 30 days post-enrollment, and supplying all state-prepared informational materials to staff. 

No fiduciary or matching duties

Employers aren’t responsible for investment decisions or required to match contributions, and the state board will select investment options and handle administration.

Non‑Compliance Risk

Penalties scale by how many employees are non-compliant: 

  • 1st violation: $250/employee
  • 2nd within 2 years: $500/employee 
  • 3rd+: $1,000/employee *Plus, an additional $100 per employee lacking proper record-keeping  

HR Action Plan 

Audit current offerings

Confirm you do not already sponsor a qualified retirement plan. 

Headcount check

Confirm employee count over the last calendar year meets the 10-state/5-city threshold. 

Workforce & payroll readiness 

  • Choose payroll providers that can handle auto-enroll Roth IRAs.
  • Prepare to integrate contribution deduction and transfer systems.

Communications toolkit

  • Prepare in advance: FAQs, opt‑out forms, notices.
  • Educate managers and staff on implications and opt-out rights.

Monitoring & reporting

  • Track enrollment levels, remittance status, and IRA account activity.
  • Maintain logs and audit trails for three years.

Consider alternatives

  • Employers may avoid the mandate by offering a qualified retirement plan instead.
  • Compare administrative burden, tax credits, and matching costs of 401(k)s/SIMPLE IRAs vs. Secure Choice.

Key Insights for Employers

The NY State and City 401k mandate is more than just a paperwork update; it significantly reshapes HR and payroll duties, focusing on consistent deduction remittance, compliance monitoring, and clear communication with employees. While the program is funded by the state, it isn’t subsidized, meaning employers won’t pay administrative fees or offer matching contributions but also won’t receive tax breaks.

Noncompliance comes with steep consequences, as increasing penalties per employee highlight the need to act early and prepare thoroughly. However, employers still have a choice in the matter. You can opt to offer your own qualified retirement plan, but only you can determine if the benefits outweigh the costs. 

Understanding the Impact of Workforce Reductions on 401(k) Plans in 2025 

When a company experiences significant employee turnover, the effects ripple far beyond day-to-day operations. Among the most critical and often overlooked areas of impact is the company’s 401(k) plan. A substantial reduction in workforce can result in a partial plan termination, a regulatory trigger that requires full vesting of affected employees and, if mishandled, could jeopardize the plan’s qualified status with the IRS. 

What Is a Partial 401(k) Plan Termination? 

A partial plan termination occurs when a significant portion of plan participants are involuntarily terminated, typically 20% or more in a plan year or over a related period. While this threshold might sound straightforward, the IRS applies a fact-specific analysis, and the turnover percentage can include other events beyond layoffs. 

Failure to identify and address a partial plan termination correctly can result in serious compliance issues, including disqualification of the entire plan, putting both the company and remaining participants at risk. 

How to Identify a Partial Termination 

The IRS generally considers a 20% or greater turnover rate as a key indicator of partial termination. The turnover rate is calculated as:

Turnover Rate (TR) = A ÷ (X + Y) 

  • A = number of participants terminated during the plan year (excluding truly voluntary terminations)
  • X = participants at the beginning of the year
  • Y = new participants added during the year

Example: If a company had 80 participants at the beginning of the year and added 10 more, but 20 were involuntarily terminated, the turnover rate would be 20 ÷ (80 + 10) = ~22%.

It’s important to note that: 

  • The 20% threshold is cumulative and can span multiple plan years if reductions are related. 
  • Events beyond layoffs may trigger partial termination, such as: 
  • Organizational restructuring
  • Plan amendments reducing eligibility 
  • Closing of business units
  • Permanent workforce reductions due to outsourcing or automation

What Happens if a Partial Termination Is Triggered? 

If the IRS determines a partial termination has occurred: 

  • All affected employees must become 100% vested in their employer contributions, regardless of existing vesting schedules.
  • Employers must restore any previously forfeited amounts for these participants, typically using the plan’s forfeiture account, if available. 

This obligation can create financial strain, particularly if large numbers of short-tenured employees become fully vested at once. However, vesting must occur whether or not the forfeiture account has sufficient funds. 

Best Practices to Manage the Risk of Partial Terminations 

Avoiding costly errors starts with proactive oversight and understanding of your retirement plan. Here’s how employers can reduce compliance risk:

Know the Rules

Partial termination rules are nuanced. Employers should consult with an ERISA attorney or a retirement plan compliance advisor to ensure alignment with current IRS interpretations and requirements.

Understand Your Plan Documents

Review plan provisions related to vesting, eligibility, and forfeitures. Ensure plan terms align with current operational practices.

Establish Monitoring Procedures

Implement internal policies to regularly track workforce changes, including: 

  • Layoffs and terminations (voluntary and involuntary) 
  • Business restructurings 
  • Reductions in plan eligibility 

Look at trends year-over-year, not just within a single plan year.

Maintain Accurate Termination Records

Document whether terminations are voluntary or involuntary. The IRS may reclassify “voluntary” exits as involuntary if documentation is lacking or ambiguous.

Track and Manage Forfeiture Accounts

Maintain an updated ledger of forfeiture account balances. These funds may be needed to reinstate affected accounts or cover other plan costs related to corrective vesting.

Correct Failures Promptly

If you identify a vesting failure due to an overlooked partial termination, the IRS Employee Plans Compliance Resolution System (EPCRS) offers methods for self-correction or formal submission under the Voluntary Correction Program (VCP).

Don’t Wait for the IRS to Catch It 

Partial terminations can be tricky to identify especially when employee departures happen gradually or stem from non-layoff events. But the stakes are high. Failure to act can result in plan disqualification, putting your employees’ retirement savings and your company’s reputation at risk.

Strategic Steps to Safeguard Compliance

Stay ahead of potential compliance issues by building awareness across HR, Finance, and People Operations teams. Workforce changes are more than just staffing issues, they can become legal and fiduciary liabilities. Proactive monitoring, clear documentation, and expert consultation are your best tools for protecting the integrity of your 401(k) plan.

For personalized guidance on navigating the NY State and City 401k mandate, reach out to our team today. We’re here to help you make informed decisions and ensure compliance with confidence.

Wiss and Rillet Partner to Deliver a New Accounting Model for Growing Businesses

Posted on by Michelle Antico

Co-sourced model pairs Rillet’s AI-powered platform with Wiss’s accounting and advisory services to give high-growth businesses a more scalable, efficient way to manage finances

FLORHAM PARK, N.J.—June 26, 2025—Wiss, a full-service accounting and business advisory firm leveraging AI and data analytics to deliver advanced financial solutions, and Rillet, the AI-native enterprise resource planning (ERP) platform, today announced a strategic partnership aimed at helping businesses streamline operations, improve financial visibility, and reduce reliance on manual or outdated processes. For businesses navigating the challenges of rapid growth, this new offering provides both the tools and the talent needed to scale with confidence.

With this new partnership, businesses gain access to a co-sourced accounting model that blends technology and expert advisory services. Rillet’s software automates core accounting tasks such as invoicing, monthly closes, and financial reporting, while Wiss provides outsourced accounting support, financial reporting expertise, and tailored strategic advisory. This integrated approach enables businesses to move beyond basic bookkeeping and operate with the kind of financial clarity and control typically associated with larger enterprises. 

“Our partnership with Rillet illustrates the direction that Wiss is heading as a modern accounting and advisory firm focused on delivering actionable and strategic insights that go beyond just numbers,” said Paul Peterson, CEO of Wiss. “We’re continually seeking out forward-thinking solutions that break the mold of traditional accounting and reflect a more modern, technology-enabled way of supporting our clients.”

Additional benefits of this collaboration include:

  • Shorter close cycles and stronger reporting: Automated workflows and clean data structures streamline monthly closes and reduce time spent on manual reporting.
  • Built-in scale and flexibility: Businesses get access to enterprise-grade technology and finance expertise without the overhead of building it all in-house.
  • One unified experience: A fully integrated model where software, services, and strategic guidance work seamlessly together, eliminating the gaps and inefficiencies that come from juggling multiple vendors or platforms.

“Rather than offering traditional outsourcing, Wiss has embraced a co-sourced model that pairs strategic guidance with day-to-day execution,” said Jim Duffy, President of Wiss. “By integrating Rillet’s technology into this model, we’re able to give clients real-time visibility into their financials while significantly reducing the manual work behind the scenes. It’s a more modern, efficient way to support businesses as they grow and face more complex financial demands.”

“Wiss is a firm that’s truly thinking ahead when it comes to modern finance,” said Nicolas Kopp, CEO of Rillet. “They share our belief that companies deserve better tools and better guidance. This partnership is about delivering both, so finance leaders can spend less time compiling numbers and more time acting on them.”

This partnership builds on Wiss’s successful collaboration with Basis AI, which automated core accounting workflows and freed teams to focus more on strategic support. The Rillet partnership represents a natural next step in Wiss’s mission to modernize the accounting experience through technology-driven approaches and deliver deeper, more strategic value to clients.

About Wiss

Headquartered in Florham Park, NJ, and with offices in New York City and Florida, Wiss is clearing the path for a new era of accounting. We bring technical experts powered with AI to meet the needs of today’s data centric, growth-minded customer. Wiss is an accounting business that goes beyond the numbers, offering our dynamic clients a full spectrum of accounting and advisory services. Every Wiss client is engaged with a tailored team of specialists who advise on specific needs at their stage of growth. Wiss taps into the full potential of what an accounting business should be—modernizing the experience for clients, teams, and the industry at large. For more information on Wiss, go to wiss.com.

About Rillet

Rillet is the AI-native accounting platform made to tailor fit the workflows of accountants and a full replacement for legacy ERPs. Scaling and hyper-growth companies like BitWarden, Windsurf and Postscript use Rillet to enable a smarter close with native integrations, automated journal entries and AI embedded workflows.  They are backed by Sequoia, First Round Capital and Creandum with offices in New York and Barcelona.

IRS Workforce Reduction Impact on Taxpayers

Posted on by Michelle Antico

In 2025, IRS workforce reduction became a reality with over 11,000 IRS employees (25% of its workforce) exiting the workforce by March. Of the departing employees, 31% were revenue agents who were mainly responsible for conducting audits.

Additionally, in a second-round voluntary departure program, over 13,000 employees who applied to leave their jobs were approved in April. The uncertainty surrounding the IRS workforce is stronger than ever, leaving many questions about what the future holds.

The recent staffing overhaul has sparked significant debate over how these changes might impact taxpayers and the country’s overall tax collection. Workforce reductions within the IRS are not without consequences, and these changes extend far beyond the agency itself, directly affecting millions of taxpayers.

Below, we explore the potential downsides, current challenges, and ways taxpayers can adapt to a system facing strain from reduced staffing.

The Role of the IRS Workforce in Tax Collection

The IRS plays a crucial role in the United States financial ecosystem. Its workforce ensures effective tax collection, customer service, and compliance with tax policies.

However, reduced staffing can present challenges that could erode the efficiency of these operations. The current system depends on the integration of taxpayers and advisors working with the IRS to efficiently and correctly report and pay their tax obligations. With an understaffed IRS workforce, there can be an added layer of difficulty in maintaining these seamless operations.

Impact on Taxpayers

Delayed Processing Times 

A smaller IRS workforce inevitably means IRS tax delays. Slower processing of tax returns, refunds, and correspondence. Slower processing times for paper returns and amended returns are particularly notable during periods of staffing reductions.

The IRS entered 2025 with a backlog of unprocessed returns from the previous year, so the IRS’s workforce reduction of employees in the first half of 2025 can compound a pre-existing issue.

These processing delays can impact taxpayers at every income level, from individuals to businesses awaiting tax credits. They can also severely inconvenience taxpayers relying on timely refunds, especially during rising inflation or economic uncertainty.

  • While the IRS officially states that most refunds for electronically filed returns with direct deposit are issued within 21 days, under the current climate, routine refunds might take up to 5 weeks.
  • For amended return refunds, the IRS has provided a standard timeframe of 8-12 weeks. However, with less staff to perform the review needed for these returns, processing times can go far beyond the 12-week period.

Reduced Customer Service 

Fewer employees can also result in a decline of the already strained quality of IRS customer service. It can become more difficult to connect with IRS support both by phone and in person, leading to longer wait times for assistance with account issues.

Taxpayers often face challenges understanding complex tax policies or resolving disputes, and reduced staffing leaves fewer agents available to guide them. The answer rates for calls made to IRS helplines have dropped drastically in recent years; at peak times, only around 20 percent of calls are answered.

These service levels can leave taxpayers frustrated and unsure of how to resolve their issues.

Extended or Delayed Audit Periods

In cases where a taxpayer is working with an assigned auditor, recent layoffs have posed a significant challenge to the audit process. With high employee turnover, cases can be reassigned without notice, resulting in extended periods under audit while waiting for a new agent to be assigned.

This can significantly disrupt the timeliness of reaching a resolution and can even extend the audit period if more time is needed for a comprehensive review.

Increased Audit Risks (for Complex Filings)

While it is possible that audit rates overall may decrease due to staffing limitations, the IRS has expressed there will be an increased focus on pursuing cases that are considered high-dollar or high-priority. Audits may trend more toward complex business taxpayers or high-net worth individuals.

Navigating IRS Staffing Challenges as a Taxpayer

Although IRS workforce reduction presents systemic challenges, taxpayers can take proactive steps to minimize disruptions:

  • File Electronically: Use electronic filing options wherever possible. E-filing is faster, more secure, and less error-prone than paper-based submissions. Especially in recent years, processing times for paper returns have become incredibly prolonged.
  • File Accurately and Completely: Ensure your return is accurate and complete to minimize the chances of delays, errors and amended returns.
  • File Early: To avoid further delays, submit your tax returns as early as possible. By doing so, you can reduce the chance of being caught in backlogs which start to build as we approach filing deadlines.
  • Seek Professional Help: Working with certified tax preparers or accountants can help you resolve complex tax questions and potentially mitigate potential issues arising from IRS staffing changes.
  • Stay Educated: Familiarize yourself with updates in tax laws and self-help resources available on the IRS website. The more informed you are, the less likely you’ll need to rely on phone or in-person support.

The Broader Implications of IRS Staffing Reductions

Ultimately, workforce reductions at the IRS have far-reaching consequences for taxpayers and the broader economy. From delayed processing times to reduced enforcement capabilities, the impact creates ripple effects that influence trust in the fairness and efficiency of the nation’s tax system.

If you’d like to learn more about how these changes could impact the tax system or discuss solutions, our team is here to help. Reach out to us today for more insights and guidance.

FAQ

1. Can technology and online tools help taxpayers deal with IRS staffing cuts?

Yes. Digital tools like the IRS Document Upload Tool (DUT) are enabling faster responses to notices and requests, reducing the need for paper mail or phone calls. More features—like expanded online accounts and callback options—are being rolled out to help taxpayers get answers without waiting on hold or mailing documents.

2. What should I do if my IRS refund is unreasonably delayed?

After checking your refund status online and waiting the standard time (up to 5 weeks for e-filed returns, longer for amended or paper returns), you can contact the IRS or request assistance from the Taxpayer Advocate Service. Hiring a tax professional or using e-filing with direct deposit helps minimize delays. For stuck refunds, persistent contact may be required to resolve identity or document issues.

3. Are there alternatives to calling the IRS for customer support?

Yes, you can access help through the IRS website, use secure messaging in your online IRS account, utilize community volunteer tax clinics (VITA/TCE), or seek assistance from tax professionals. The IRS is also expanding self-help kiosks and in-person Community Assistance Visits for those who need face-to-face service.

4. Has audit risk changed for different types of filers?

Overall, audit rates are down due to fewer auditors, but the focus has shifted toward high-net-worth and complex business filers. For individuals and small businesses, the chance of being audited is even lower than before—provided there are no red flags (like unreported income or excessive deductions).

5. How can I expedite IRS processing or resolve correspondence faster now?

Use electronic communication whenever possible. Submit all responses and documents using available upload tools or secure portals, double-check for accuracy, and file early in tax season. If you receive a notice, respond quickly and monitor online accounts for updates instead of relying on mail.

Managing Real Estate Investment Risks for Long-Term Success

Posted on by Michelle Antico

Real estate has long been considered a valuable and tangible investment. It offers multiple benefits, including long-term appreciation, steady rental income, and tax advantages. It’s a time-tested asset that has served investors well through shifting markets and economic cycles. However, these benefits come with risks, and navigating real estate investment risks requires a solid strategy.

Whether you’re acquiring your first rental property, managing a portfolio of investments, or guiding corporate real estate decisions as a CFO or business owner, understanding and mitigating real estate investment risks is pivotal for achieving sustainable success. 

Identifying Risks in Real Estate Investments

Before investing in real estate, it’s crucial to pinpoint potential risks. Proper risk identification allows for more strategic decision-making and is the foundation of long-term profitability. Here’s a breakdown of common risks you may encounter:

Significant Risks to Watch For

Despite planning, there are risks outside your control that you’ll need to account for, including: 

  • Fluctuations in interest rates that impact financing costs. 
  • Economic downturns could lower property values and rental demand. 
  • Unexpected property repairs or maintenance, as well as exposure to natural disasters. 
  • Tenant default risks involve non-payment or evictions. 
  • Liquidity challenges if you need to sell the property unexpectedly. 

Market Analysis and Location Matters   

The real estate axiom of “location, location, location” remains as relevant as ever. A property’s location heavily influences its long-term profitability. A thorough market analysis can help investors assess whether market demand and growth trends align with their goals. Key metrics to evaluate include: 

  • Demand and supply dynamics 
  • Growth trends and local economics 
  • Zoning regulations and competition 

For developers, market analysis helps gauge the feasibility of a project and secure investor or lender approval. For investors, it sheds light on opportunities for rental income, cap rates, and projected return on investment.  

Post-acquisition, performing periodic analyses is just as critical. Monitoring rent trends, vacancy rates, and tenant demand can optimize property management and increase profitability in the long run.

Each of these risks has the potential to impact your bottom line. By taking a proactive approach, you can mitigate the impact and keep your investments on solid ground.

Strategies for Mitigating Financial Risks 

To remain ahead of potential real estate investment risks, successful investors often take a two-fold approach that balances sound internal planning with support from industry experts. Here’s how to execute and evaluate your real estate investments effectively.

Building a Strong Support Network   

Hiring reliable advisors who can guide you through various challenges is critical for managing risk. Together, these experts can enhance every aspect of your investment

  • Property Management Professionals: Handle tenant screenings, lease execution, daily maintenance, and tenant support. 
  • Insurance Brokers: Help source appropriate insurance packages to safeguard against natural disasters, liability, and sudden losses. 
  • Marketing Specialists: Ensure high occupancy rates by crafting campaigns that reduce vacancies. 
  • Accountants and Financial Advisors: Offer tax strategies that maximize returns and monitor ongoing financial performance. 
  • Legal Advisors: Navigate compliance and zoning regulations to mitigate legal risks

Collaborating with experienced professionals alleviates operational burdens and ensures that you’re managing risks systematically.

Evaluating Investment Performance

Consistently reviewing the performance of your property informs better decision-making and safeguards profitability. Focus on these metrics: 

  1. Net Operating Income (NOI): Determines property profitability by calculating revenues minus operating expenses. 
  2. Capitalization Rate (Cap Rate): Measures return on investment relative to market value. 
  3. Loan-to-Value Ratio (LTV): Highlights risk levels related to the proportion of borrowed funds. 
  4. Debt Service Coverage Ratio (DSCR): Assesses whether NOI can sufficiently cover loan payments. 
  5. Occupancy Rates: Indicates property demand; higher occupancy often reflects a desirable, well-managed property. 
  6. Tenant Turnover Rate: Tracks how often leases are vacated; high turnover can signal management issues or tenant dissatisfaction. 

Routine evaluations using these metrics help adjust strategies, reduce risks, and improve financial performance.

The Value of Diversification and Due Diligence   

Diversifying your real estate portfolio is one of the most effective ways to manage risks. Spreading investments across different asset classes (residential, commercial, and industrial properties) or geographical locations reduces exposure to market downturns.

Similarly, due diligence is non-negotiable. You unlock greater transparency in your investment process by thoroughly inspecting properties, verifying tenant screening, and understanding local regulations.

Real Estate Risk Management is a Strategic Imperative   

Navigating the complex world of real estate requires an ongoing commitment to analysis, planning, and professional collaboration. Risk management isn’t just about avoiding problems; it’s about staying ahead of uncertainties so your investments thrive even in challenging market conditions.

You can turn challenges into opportunities by proactively identifying and addressing risks—from legal and financial complexities to tenant turnover and market fluctuations—and leveraging key tools like proper insurance and robust financial metrics. 

Want to fortify your strategy and position your portfolio for sustainable growth? Start assembling your team of experts at Wiss today. Managing risks isn’t just prevention; it’s the foundation of enduring success in real estate.

Breaking Down New Tax Legislation and Its Potential Impact

Posted on by Michelle Antico

Tax policy plays a pivotal role in shaping economies and influencing organizational strategies. With the recent tax legislation of the One Big Beautiful Bill Act (OBBBA) through the U.S. House of Representatives, businesses and households need to brace themselves for notable tax changes, affecting everything from state deductions to corporate punishments for non-compliance.

Below, we’ll break down the proposed key adjustments and their potential impact to help you stay informed.

What’s Included in the Latest Tax Legislation 

The OBBBA introduces several changes to individual and corporate tax laws while reworking select incentives for clean energy and global commerce. Here’s a closer look at the key elements. 

Higher State and Local Tax Deduction Limits (SALT) 

Under current tax law, state and local tax deductions (commonly called the SALT deduction) for individuals are capped at $10,000 per year. The OBBBA proposes to increase the SALT deduction limit to $40,000 ($20,000 for married individuals filing separately) with income phaseout limitations for individuals earning more than $500,000. This adjustment provides significant tax relief for high earners in states with high taxes. 

Reforms to Business Tax Deductions 

  • Pass-through Qualified Business Income (QBI) Deduction

The bill permanently raises the QBI deduction from 20% to 23% for qualified businesses, enabling individual owners to save more on their taxable income.  However, most specialized service trade or business (SSTB) owners would continue to face limitations.

  • Domestic Research Incentives

The OBBBA suspends the required amortization of research and experimental expenditures for businesses from 2025 through 2029, encouraging innovation by permitting immediate deductions for domestic R&D spending.

  • Bonus Depreciation Extension

The bill reintroduces 100% bonus depreciation for qualified business assets acquired between January 20, 2025 and December 31, 2029, offering companies immediate tax savings for key investments in operational equipment.

  • IRC Section 179 Expensing

Limits increased to $2.5 million (phaseout at $4 million), adjusted for inflation; applies to property placed in service after Dec 31, 2024.

  • Corporate Charitable Contributions

Stricter limits now restrict deductions for corporate charitable contributions, requiring a minimum threshold of 1% of taxable income for charitable donations. 

Individual Tax Benefits 

  • Standard Deduction Boost

Temporary increases to the standard deduction grant households an extra $2,000 for joint filers and $1,000 for individuals through 2028. 

  • Child Tax Credit

Temporarily increased to $2,500 (2025–2028)

  • Estate Tax Exemption

Increased to $15 million, indexed for inflation

  • Trump Accounts for Kids

The introduction of child-focused Trump Accounts allows contributions to tax-advantaged accounts for children born between 2025 and 2028, encouraging family savings.

Clean Energy Credit Adjustments 

While many clean energy tax credits introduced in the Inflation Reduction Act face stringent phaseouts under the OBBBA, nuclear energy receives protected incentives. Renewable energy developers relying on wind and solar face new restrictions, emphasizing uncertainty for future investments. 

International Business and GILTI Adjustments 

Multinational entities experience changes to the global intangible low-taxed income (GILTI) and base erosion anti-abuse tax (BEAT) deduction rates. These updates maintain deductions at slightly reduced levels, easing concerns of steep tax increases originally scheduled for 2026. 

Addressing Unfair International Taxation 

Through new Section 899, the U.S. introduces retaliatory tax measures against countries perceived to levy unfair tax treatments. This unprecedented legislation creates economic repercussions for nations enforcing digital services taxes or diverted profits tax. 

Who Will Be Most Affected? 

Families and Individuals in High-Tax States

The proposed SALT increase delivers substantial benefits to taxpayers in high-tax blue states, reversing part of the restrictions imposed by 2017’s Tax Cuts and Jobs Act. 

Technology and Energy Sectors

Corporations focusing on renewable energy production may need to reevaluate investment plans due to the accelerated phaseout schedules and new leasing restrictions outlined in the OBBBA. However, nuclear or domestic R&D companies gain competitive tax advantages. 

Import-Export Businesses

By moderating changes to GILTI and BEAT calculations, U.S.-based multinational firms avoid more drastic tax hikes previously expected in 2026. 

Balancing Costs and Economic Growth 

While advocates of the OBBBA argue that the bill’s provisions aim to bolster economic competitiveness and incentivize domestic production, critics point to its projected $2.4 trillion deficit increase over the next decade. These numbers stem primarily from permanent extensions to tax cuts under the Tax Cuts and Jobs Act and spending increases in defense, infrastructure, and border security. 

What Comes Next?

The bill is currently under Senate review, with adjustments anticipated on SALT increases, deficit commitment compromises, and selective energy credit reinstatements. Congress aims to finalize this legislation for the President to sign by July 4.

Contact our tax specialists today to assess how these proposed changes could affect you—and build a strategy that keeps you informed, compliant, and financially prepared.

Soroban Capital Partners Tax Case Explained

Posted on by Michelle Antico

When it comes to taxes, the details matter. The recent Tax Court decision in Soroban Capital Partners LP v. Commissioner (T.C. Memo. 2025-52) showcases just how critical those details can be. The case has sent ripples through the financial and legal communities, particularly for partnerships and their limited partners, as it reinforces the importance of functional roles over formal titles when determining tax liability under self-employment tax (SECA).

If you’re a tax advisor, business owner, or a limited partner hoping to better understand the implications, this blog will guide you through what happened, why it matters, and what you need to consider going forward. 

What Happened in the Soroban Capital Partners Case? 

At the heart of the case was Soroban Capital Partners LP, a Delaware limited partnership. The firm was owned by three founding Principals through their direct and indirect interests. These Principals were labeled “limited partners” under Delaware state law but played highly active roles in the partnership’s operations.

Here’s the key issue:

The Argument by the Principals 

The Principals treated only their guaranteed payments as self-employment income, excluding the distributive income allocated to them from the SECA tax. They believed their status as “limited partners” exempted them from paying self-employment tax under IRC §1402(a)(13).

The IRS’s Position 

The IRS countered that their active involvement in business operations made their distributive income subject to self-employment tax.

The Tax Court sided with the IRS, asserting that titles like “limited partner” mean little in the context of federal tax law. Instead, it’s the actual function and involvement of a partner that determines SECA tax applicability. 

Why Does the Tax Court’s Decision Matter? 

The ruling in the Soroban case underscores three major takeaways for partnerships and limited partners across industries:

Federal Tax Rules Override State Titles 

State law classifications, such as the “limited partner” title in question, are not sufficient to opt out of SECA tax. Federal tax law looks past labels and examines the substance of a partner’s role in the business. This functional approach ensures that those who actively contribute to generating a partnership’s income are taxed accordingly.

Active Participation Drives Tax Liability 

The court highlighted specific factors that disqualified the Principals from SECA tax exclusion:

  • Roles Played 

The Principals were integral to the firm’s success, actively leading investment strategies, managing daily operations, and making personnel decisions. 

  • Time Commitment 

Each Principal worked extensive hours, contributing full-time (2,300–2,500 hours annually).

  • Public Dependence 

The firm’s marketing emphasized their expertise. The fund relied on their active involvement for credibility and profitability. 

  • Income Composition 

Most of their income resulted from active labor, not passive capital investments. Minimal capital contributions compared to high income reinforced this point. 

Aligns with Previous Tax Court Cases 

The decision echoes prior rulings, such as Renkemeyer, Campbell & Weaver, LLP v. Commissioner and Denham v. Commissioner, which also emphasized the significance of active participation over passive investment when determining SECA tax status. 

This precedent should remind practitioners and taxpayers that federal functional analysis can come into play in similar disputes. 

What Partnerships Need to Do Now 

If you’re part of a partnership, especially in professional services or investment management, the Soroban case may directly influence how your income is taxed. Below are steps you can take to ensure compliance and reduce risk:

Evaluate Partner Roles Regularly 

Don’t rely on titles alone. Conduct a functional analysis for each partner to understand their actual contribution to the partnership. Key areas to assess include:

  • Active management roles or strategic decision-making
  • Time spent working for the partnership
  • Dependence of income on labor versus capital

Review Self-Employment Tax Reporting 

Ensure current SECA tax reporting aligns with the functional roles of your partners. Misclassifying active partners as “limited” for tax exclusion could lead to IRS penalties and adjustments.

Document Contributions Clearly 

Maintain detailed records of each partner’s level of involvement and time commitment. This documentation can protect against challenges like those presented in this case.

Consult with Experts 

Complex tax issues like these often require guidance. Working with tax specialists who understand partnership classifications and federal SECA tax provisions can save you from future disputes.

Implications for Non-Tax Professionals 

Even if you’re not heavily involved in tax practices, this case offers a wake-up call for all business professionals relying on partnerships:

  • For limited partners and investors: Understand the risks of assuming titles automatically shield you from certain tax requirements. 
  • For entrepreneurs: If you’re forming a partnership, take special care to classify partners accurately from the onset.

Final Thoughts on Soroban Capital Partners Case 

The Soroban tax case provides a powerful reminder that substance trumps form in tax law. While the term “limited partner” might sound like a tax-safe label, federal law looks deeper, focusing on active contributions to the partnership’s success. This ruling is a call for diligence in evaluating partner roles and structuring income classifications.

Tax compliance is complex, but you don’t have to handle it alone. For tailored guidance and insights, connect with our expert team at Wiss. With the latest tools and knowledge, we’ll help you manage compliance, minimize risks, and optimize your financial strategy.

Planning with a Spousal Lifetime Access Trust (SLAT)

Posted on by Michelle Antico

Estate planning can feel overwhelming, especially when navigating tax laws and trying to safeguard your wealth for the future. For high-net-worth (HNW) married couples, one strategy worth considering is the creation of a Spousal Lifetime Access Trust (SLAT).

While the acronym may sound complex, SLATs are far from a “dirty word.” Instead, they present an elegant solution for couples looking to preserve their assets while ensuring financial peace of mind.

Why Estate Planning Matters

The importance of estate planning cannot be overstated, particularly in today’s shifting tax environment. Over the past 15 years, uncertainty surrounding estate tax exemption limits has created challenges for planners and families alike.

The Tax Cuts and Jobs Act (TCJA), enacted in 2017, significantly increased the federal gift and estate tax exemption. However, this provision is scheduled to sunset at the end of 2025.

Without new legislation, the exemption will revert to approximately $6.8 million per individual—about half of the current $13.99 million—starting January 1, 2026.  While there is ongoing debate in Congress, and some proposals aim to extend or expand the current exemption levels, the outcome remains uncertain under the new administration. 

As a result, many high-net-worth couples are proactively exploring strategies to lock in today’s favorable exemption levels. This is where SLATs come into play – offering a strategic and flexible solution to preserve wealth across generations.

Introduction to Spousal Lifetime Access Trusts (SLATs)

A Spousal Lifetime Access Trust (SLAT) is an irrevocable trust that allows one spouse (the donor) to transfer assets to the trust while enabling the other spouse (the beneficiary) to access and potentially benefit from these assets during their lifetime.

At the core, SLATs serve as a powerful estate planning tool to reduce taxable estates while providing financial flexibility to married couples.

Key Benefits of a Spousal Lifetime Access Trust

Estate Tax Mitigation

SLATs allow couples to remove assets from their taxable estate. This is especially beneficial for HNW couples facing potential estate tax exposure. Utilizing the exemption now through strategies like SLATs can lock in tax savings and ensure potential increases in wealth will not be subject to transfer taxes in the spouses’ estates.

Asset Protection

Assets held within SLATs are shielded from creditors and potential lawsuits, offering financial security for the beneficiary spouse and future generations.

Access to Trust Assets

The beneficiary spouse retains indirect access even though the assets are no longer within the donor’s estate. This unique feature ensures flexibility without compromising the estate tax advantages of the trust.

Generational Wealth Transfer

SLATs allow couples to build generational wealth by providing a structure for transferring assets to their heirs while limiting estate tax exposure for future generations.

How SLATs Work

Understanding the operational structure of a Spousal Lifetime Access Trust is essential for anyone considering this estate planning option.

Creation and Funding

The donor spouse establishes the SLAT and funds it using their unified estate and gift tax exemption. Typical funding assets include cash, securities, or even business interests.

Beneficiary Access

The beneficiary spouse can receive distributions from the SLAT during their lifetime. While these distributions are at the trustee’s discretion, they provide financial security and flexibility for the couple.

Irrevocability

A SLAT is an irrevocable trust, meaning that once the assets are transferred, the trust’s terms cannot be changed. This feature is both a benefit and a challenge, as it ensures estate tax exclusion but limits control over the assets.

Remainder Distribution

Upon the beneficiary spouse’s death, any remaining assets in the trust can be passed to other beneficiaries, such as children or grandchildren, free of additional estate taxes and can remain in further trust.

The Risks and Considerations of SLATs

While SLATs offer significant advantages, there are risks and challenges to consider:

  • Loss of Control: Since SLATs are irrevocable, the donor spouse relinquishes control over the trust assets. This can be a difficult adjustment for some individuals.
  • Single Beneficiary Limitation: The SLAT is structured for the benefit of the beneficiary spouse, meaning the donor spouse cannot directly access the trust’s assets should the need arise. However, creative planning, such as reciprocal SLATs, may address this issue.
  • Tax Compliance: Proper drafting and maintenance of the SLAT are critical. Failure to comply with tax regulations can result in unintended consequences, such as disqualifying the trust or including assets back into the taxable estate.
  • Divorce Risk: A key consideration for couples is the potential impact of divorce. Should the donor and beneficiary spouses separate, the SLAT’s assets remain inaccessible to the donor spouse, as the trust terms cannot be altered post-creation.

Why SLATs Continue to Be Relevant

In the past several years, estate planning professionals have highlighted SLATs as a particularly timely tool due to the scheduled sunset of the TCJA’s higher exemption limits in 2025.  While the urgency of the potential sunset may be on hold, SLATs continue to be a valuable estate planning tool that removes asset appreciation from taxable estate.

Additionally, recent years have seen an increased emphasis on asset protection and wealth transfer due to economic volatility and global uncertainty. SLATs address these concerns directly, making them a sound choice for those looking to solidify their financial legacy.

Working with Professionals to Maximize SLAT Benefits

Leveraging a SLAT requires a deep understanding of estate tax laws and carefully considering an individual couple’s financial goals. This is why working with a knowledgeable estate planner or financial advisor is essential.

At Wiss, we specialize in guiding couples through the complexities of estate planning. Our team offers personalized support to help you evaluate whether a SLAT aligns with your unique needs. From reviewing trust documents to ensuring ongoing compliance, we’re here to help you confidently make informed decisions.

How a Spousal Lifetime Access Trust Can Secure Your Family’s Financial Future

Estate planning can feel daunting, but strategies like SLATs provide a pathway to long-term financial security and generational wealth. While no plan is without its challenges, the benefits of leveraging a well-structured SLAT far outweigh the risks for many HNW married couples.

Is a SLAT the right fit for your family? Our team at Wiss is here to provide tailored advice and support. Contact us today to explore how SLATs can help you preserve wealth and achieve your financial goals.