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In May, Tennessee unanimously passed the Tennessee Information Protection Act (TIPA), outlining new data privacy protections businesses operating in the state must follow. It is similar to regulations already in effect in Utah, Virginia, Iowa, and Colorado. The legislation requires certain protections of personal information including genetic or biometric, demographic, immigration status, sexual orientation, information about minors (under 13), and precise geolocation information. Due to the comprehensive nature of the changes impacted businesses will have two years to achieve compliance.

Over the past few years, Congress has passed various legislation designed to make it easier to participate in and save money in an employer sponsored retirement plan. The growing retirement savings gap has long been an issue the government has been working to address. Efforts to change retirement savings started with the  SECURE Act of 2019 and mostly recently included additional reforms that culminated in the SECURE Act 2.0. The latter included many changes designed to encourage employers to start workplace plans and to make it easier for workers to participate. Many of the updates are significant and are scheduled to become effective over a 5-year period.

The alarming situation has prompted Congress into action calling for significant changes to make it easier for workers to qualify, participate in, and benefit from employer sponsored retirement plans. Most recently the SECURE Act 2.0 was signed into law which outlines changes to accelerate saving opportunities. Despite it’s sweeping nature, many in Congress are looking for more ways to streamline the process. One example is the Auto Reenroll Act of 2023 which was introduced in late July and allows employers to automatically reenroll non plan participants.

The Inflation Reduction Act, passed in August 2022, made significant changes designed to help counteract the effects of growing inflation. The legislation not only worked to reduce healthcare costs, but also focused on climate change, in part, by incentivizing the addition of energy efficient updates to homes and other dwelling units. The Energy Efficient Home Improvement Credit offers up to $2,000 for the installation of certain efficient appliances and systems. There is also a $150 credit for taxpayers that undergo a home energy audit. Unfortunately, there has been little guidance on what needs to be included in the audit.

Over the last few months, the IRS has issued several warnings about companies using misleading or deceptive practices to encourage businesses to apply. While past activities were focused on simply issuing warnings, the IRS recently announced a change in strategy. On July 26th, it was announced the agency will now increase scrutiny on dubious submissions while providing additional warnings and tips about aggressive marketing.

Fraud in any form is certainly unwelcome. Over the past few years there has been a significant increase in the amount of cyber attacks being perpetrated. In fact, there were over 232,972 individuals that fell victim to phishing attacks of various types in 2021. More specific to tax fraud, there has been a concurrent increase resulting in an average median loss was $278, 325. Given these numbers, the IRS has been working closely with state tax authorities, software companies, tax preparation firms, and payroll processors to defend against identity theft and fraud. A key purpose of the group, known as the Security Summit, is to reduce the amount of fraud through ongoing reporting and education.

The SECURE Act 2.0, which was enacted in late 2022, builds upon updates made in the 2019 legislation of the same name. Many of the changes are designed to ensure broader access to plans, facilitate automatic enrollment and escalation, increase catch up contribution limits, and modify required minimum distribution (RMD) timing. There were also several employer targeted provisions designed to make it easier and less costly to offer and maintain an employer sponsored retirement plan. Beyond these changes, there were also updates to the rules governing plan distributions. While the focus is on finding ways to expand retirement savings, there were also updates made that allow for penalty free distributions to be taken under certain circumstances. This includes distributions for terminal illnesses, domestic abuse, and for birth/adoption

The automotive industry is going through a period of significant change. The commitment by major U.S. automakers such as GM and Ford to electric vehicles (EVs) is drastically changing manufacturers business models. Despite the large-scale shift, it is the current economic conditions including issues with credit availability and inflation that are acting as roadblocks to profitability. The Cox Dealership Sentiment Index – 2nd Quarter 2023, found that many independent dealers are focused on maintaining profitability while addressing staffing issues.

The SECURE Act 2.0 called for several changes to be made to retirement plans to facilitate broader access and additional retirement saving opportunities. These include the introduction of new distribution types for personal emergencies and victims of domestic abuse, changes to how catch-up contribution amounts are calculated, and changes to Required Minimum Distribution (RMD) requirements. Although there is a 5-year phase in period, the RMD changes went into effect at the start of 2023.This triggered the need for guidance on how regulators will handle non-compliance. The IRS recently issued Notice 2023.-54 which provides guidance on common RMD issues.

Included as part of the Consolidated Appropriations Act of 2023, the legislation builds on many of the reforms made in the SECURE Act of 2019. Since the legislation is comprehensive not all the changes became effective when passed instead relying on a gradual phase-in over a several year period. Starting in 2024 several provisions will become effective including certain required minimum distribution rules (RMDs), the introduction of new 401(k) starter plans, penalty free early distributions, and much more.