THE EVERETT ADVOCATE – FRiDAy, JAnuARy 23, 2026 Page 17 BEACON | FROM PAGE 16 REQUIRE MORE PUBLIC DISCLOSURES OF FUNDRAISING AND SPENDING BY BALLOT QUESTION GROUPS (S 2898) Senate 38-0, approved and sent to the House a bill requiring more frequent public reporting of fundraising and spending by groups supporting or opposing ballot questions. Under the bill, ballot question committees would be required to provide monthly reports on their finances. After September of that year,, campaigns would have to file biweekly reports until Election Day. The bill would hold ballot question campaigns to the same standard of disclosure already followed by candidates for office. Currently, ballot committees don’t have to report on their finances between Jan. 20 and September. “This is a bipartisan bill, a commonsense bill that we must pass now to ensure our campaign finance laws are strengthened, they’re consistent and they’re fair for everyone,” said sponsor Sen. Sal DiDomenico (D-Everett). “The ballot questions are happening this fall. We have to get this done right now.” “Statewide ballot questions are a great tool for empowering the public to vote directly on statewide policies, but it is vitally important that our voters know which people and organizations are funding these policy proposals,” continued DiDomenico. “I am proud to pass my legislation through the Senate that will close a loophole in our campaign finance law and ensure our residents have all the information they need to make an educated decision when voting on ballot measures.” “With the increasing number of ballot questions in each election, the need for transparency has never been greater,” said Sen. John Keenan (D-Quincy), Senate Chair of the Joint Committee on Election Laws. “Many of the questions are backed with significant funding and other resources. This important bill will allow voters to see who is supporting or opposing the ballot questions, sponsoring the ads and paying for mailings. It will help voters make informed decisions at the polls.” (A “Yes” vote is for the bill.) Sen. Sal DiDomenico Yes SIGNATURE GATHERING FOR BALLOT QUESTIONS (S 2898) Senate 34-3, approved an amendment that would require that when a ballot question group pays people or a company to gather signatures to qualify the question to be on the ballot, the petition must include a disclosure, in a manner to be determined by the secretary of state, which clearly informs potential signers that the petition is being distributed by a paid signature gatherer. Another provision prohibits pay-per-signature arrangements in this signature gathering process and specifically prohibits any bonus pay or incentives, paid to the signature gatherer, which is contingent upon the number of signatures collected. A violation of this ban would be punishable by a fine of between $100 and $10,000 and each signature collected would be considered to be a separate offense. in violation of this section. “By prohibiting pay-per-signature arrangements, we will drastically reduce the unique financial incentive for signature gatherers to mislead voters into signing petitions and ensure that initiative campaigns can still collect signatures based on the merits of the policy,” said sponsor Sen. Barry Finegold (D-Andover). “Individuals should not be restricted from engaging in political activity that is legal,” said Sen. Ryan Fattman (R-Sutton), one of three senators to vote against the amendment. “The proponent of the amendment says that this will stop fraudulent activity, but fraudulent activity is already illegal and published on the signature petition. My position revolves around freedom of speech, where people have the ability to petition their government through a ballot process. The ballot process includes payment to collect signatures in various forms, and I don’t believe it’s constitutional to ban that.” (A “Yes” vote is for the amendment. A “No” vote is against it.) Sen. Sal DiDomenico Yes BLUE STAR LICENSE PLATES (S 2903) Senate 38-0, approved and sent to the House a proposal that would create a new special license plate to honor the memories of fallen law enforcement officers by offering a symbol of respect to their surviving spouses, parents and children. It would also create a Blue Star Family emblem for motorcycle plates. “As we mourn Officer Stephen LaPorta, who fell in the line of duty, we are reminded that the freedoms and protections of our commonwealth would be impossible without the courage and service of Officer LaPorta and all those who have given their lives to protect others,” said Senate President Karen Spilka (D-Ashland). “His selflessness reflects the very best of public service and stands as a solemn reminder of the profound debt we owe to those who place themselves in harm’s way to keep our communities safe. This legislation represents small but meaningful recognition to honor the memory of the fallen and to affirm our enduring commitment to the families and loved ones they leave behind.” BEACON | SEE PAGE 18 Trust Income Tax Returns For 2025 Tax Year F or this upcoming tax season, whether you have previously executed a revocable trust or irrevocable trust, it is important to know the Trust income tax return filing requirements. If you have executed a revocable Trust, it will be treated as a grantor-type Trust and therefore no separate tax return will be required to be filed for the Trust. If you were to open a stock brokerage account or money market account in the name of such a trust, for example, you can have the bank or financial institution simply use your social security number for IRS 1099 reporting purposes. Upon your death as the Settlor of such a revocable Trust, the Trust would then become irrevocable and would no longer be classified as a grantor-type trust. In such an event, if the Trust generates income, whether interest, dividend, capital gain income, or net rental income from rental real estate, then a separate Trust tax return would need to be filed. Furthermore, the Trustee would have to file for a federal ID number for the Trust with the IRS. If the Trust does not distribute its income, it will have to pay taxes at the Trust level. The highest tax bracket for Trusts of 37 percent starts at only $15,650 in taxable income. Therefore, it is often more desirable to distribute the income to the income beneficiaries in order to claim an income distribution deduction at the Trust level to zero out the Trust’s taxable income. The income will then be taxed to the income beneficiaries who actually receive the distribution on their individual income tax returns. For the 2025 calendar year, the 22 percent tax bracket for a married couple does not begin until taxable income reaches $96,950. The 37 percent tax bracket for the same couple does not begin until taxable income reaches $751,600. With a Medicaid irrevocable Trust executed for asset protection purposes, a tax return would have to be filed by the Trust under its federal ID number in the event it generates taxable income. The Trust should be drafted in such a way as to be treated as a grantor-type Trust. If this Trust is generating taxable income, there would then be a grantor letter issued to the Settlor/Grantor/Trustor of the Trust in order for that person to report the items of income on his or her individual income tax return. There are several Trust provisions that would need to be included in the irrevocable Trust in order for it to be treated as a grantor-type Trust for tax purposes. Since the irrevocable Trust is drafted to be treated as a grantor-type Trust, it does not matter if interest income, dividend income, capital gain income or net rental income is actually distributed to the Grantor. Those items of income will pass through to the Grantor of the Trust via the grantor letter and will be reported on his or her Form 1040. The Trust will not be paying the income taxes on the income it generates. Upon the death of the Settlor of the irrevocable Trust, the Trust will no longer be treated as a grantor-type Trust. Consequently, any net income generated by the Trust will be taxed at higher Trust income tax rates unless the net income is actually distributed to the income beneficiaries or remainder beneficiaries. For this upcoming tax season, be aware of the income tax rules pertaining to revocable and irrevocable Trusts when determining whether or not a tax return needs to be filed, and if so, which type of Trust income tax return. Joseph D. Cataldo is an estate planning/elder law attorney, Certified Public Accountant, Certified Financial Planner, AICPA Personal Financial Specialist and holds a masters degree in taxation.
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