The Wall Street Journal The Wealth Report: Why the Rich Don’t Trust Their Advisers. "The wealthy should be relying more than ever on their financial advisers. ... So it’s surprising that recent surveys show that the rich are opting to...
November 2007 Archives
The IRS announced today in Rev. Rul. 2007-68, that interest rates for the calendar quarter beginning January 1, 2008, will drop by one percentage point. The new rates will be: *seven (7) percent for overpayments [six (6) percent in the...
Continue reading "Interest Rates Drop for the First Quarter of 2008"
Washington Post That's Rich -- but Maybe Not for Someone Else: Issue of Who's Really Wealthy Can Also Affect Political Debate Who's rich? Who's middle class? How can you tell the difference? The two front-running Democratic presidential contenders, Sen. Barack...
NY Times Brooke Astor's son & former lawyer indicated on criminal charges. For Lawyers, Perks to Fit a Lifestyle. Financial Times How private banks "hook prospective clients." CNN Warren Buffet on Estate Tax: "Take More Out of My "Hide"" Ohio...
In PLR 20074017 (Aug. 9, 2007), the IRS ruled that a proposed conversion of an income trust to a unitrust will not cause the trust to lose its GST exempt status and will not cause either the trust or any...
Continue reading "IRS Rules in PLR on EGT Consequences of Trust Conversion"
In PLR 200747001 (Aug. 3, 2007), the IRS made the following rulings re a proposed charitable lead trust ("CLAT"), which would be funded with S corp stock: 1. The funding of CLAT will be a completed gift for federal gift...
Continue reading "IRS Rules in PLR that Trust is Valid CLAT"
In PLR 200747011 (Aug. 7, 2007), the IRS ruled that a payment by a revocable trust of part of a premium under a split-dollar life insurance arrangement will not result in IRC Sec. 2511 gift tax if certain conditions are...
Continue reading "IRS Rules in PLR on EGT Consequences of Split Dollar Life Insurance"
In PLR 200747002 (June 21, 2007) the IRS ruled that neither the beneficiaries of two trusts holding life insurance policies nor the insured individual are treated as possessing incidents of ownership of the insurance under IRC Sec. 2042, and that...
Continue reading "IRS Rules in PLR that ILIT Beneficiaries Lack Incidents of Ownership"
In IRS, Office of Chief Counsel Memorandum No. 20747019 (Oct. 11, 2007), the IRS examined the following issues regarding IRS acceptance of stock as collateral for the IRC Sec. 6324A estate tax lien: 1. Whether, and under what circumstances, stock...
Continue reading "IRS Analyzes Issues Re Taking Stock as Collateral for Estate Tax Lien"
Tax Notes Today, 2007 TNT 255-8 (November 21, 2007), has published an unofficial transcript of the November 14, 2007, IRS hearing on the proposed regulations regarding the deductibility pursuant to Internal Revenue Code Section 67(e) of certain costs incurred by...
Continue reading "Text of Public Hearing on Proposed Section 67 Regulations Available"
On November 20, 2007, the IRS issued Revenue Ruling 2007-70, 2007-50 IRB 1, announcing the applicable federal rates for purposes of Internal Revenue Code Sections 1274(d), 1288(b)328(f), 42(b)(2), 7520, 846 and 807. The Section 7520 AFR for determining the present...
Continue reading "Applicable Federal Rates for December 2007 Announced"
The Internal Revenue Service reminded section 501(c)(3) organizations, including charities and churches that federal law prohibits them from becoming directly or indirectly involved in campaigns of political candidates. The prohibition against political campaign activity has been in effect for more...
Continue reading "IRS Reminds Charities and Churches of Political Activity Ban"
Tax Notes Today, 2007 TNT 224-1 (November 19, 2007), reports on Senior Tax Law Specialist Robert Fontenrose's comments at the Western Conference on Tax-Exempt Organizations on November 16. The article summarizes Fontenrose's discussion about comments recieved in response to Notice...
Restricted (Rule 144) stock studies form the basis for the marketability discounts that have become a standard part of almost every estate & gift tax valuation. But when the SEC makes changes to Rule 144, those changes will impact the...
Tax Notes Today, 2007 TNT 217-19 (November 8, 2007), provides detailed comments that were submitted by the ABA Section of Real Property, Trust and Estate Law Section (“ABA Section”) in response to proposed Treasury Regulations regarding the IRC 67 Limitation...
The IRS Criminal Investigation Division (CID) wants publicity. Watch Out!! These are the IRS agents with badges, and guns. Tax Notes Today notes that the IRS Criminal Investigation Division is making a coordinated effort to increase its publicity, according to...
The Tax Prof Blog notes that the Congressional Research Service has issued a report to Congress entitled "Patent Tax Strategies: Issues in Intellectual Property and Innovation." Posted by Lewis J. Saret, General Editor, Wealth Strategies Journal....
Continue reading "CRS Issues Report on Tax Strategy Patents"
The Tax Court, in Hector F. Arias et ux. v. Commissioner, T.C. Summ. Op. 2007-189 (Nov. 6, 2007) held that a distribution an individual received from a trust was includable in taxable income. Posted by Lewis J. Saret, General Editor,...
Continue reading "Tax Court Holds Trust Distribution Is Taxable Income"
Professor Wendy C. Gerzog discusses Stone v. United States, 60 T.C. 540, Doc 2007-13057, 2007 TNT 106-21 (N.D. Cal. 2007). In Stone, the district court accepted the IRS's determination that an estate was not entitled to a fractional interest discount...
Continue reading "Tax Notes Article by Wendy Gerzog on the Valuation of Art for Estate Tax Purposes"
The BNA Daily Tax Report ("DTR") and Tax Notes both reported on statements by Charles Morris, IRS Estate & Gift Manager-West, at the California Tax Bar and California Tax Policy Conference on November 2, 2007. Some highlights from his address...
Continue reading "Reports on Charles Morris's Statements at the California Tax Bar conference"
Tax Notes has published an interesting article by Aviva Aron-Dine, a policy analyst at the Center on Budget and Policy Priorities. In it, Aron-Dine examines the Salazar Bill, which proposes an unlimited estate tax exemption for farmland, and criticizes it...
BNA's Daily Tax Report ("DTR") reported on IRS Branch 4 chief George Masnik's comments to an American Institute of Certified Public Accountants resource panel on November 5, 2007. According to the report, the IRS expects to issue sample charitable lead...
Continue reading "Guidance Projects Involving Estate Tax in Development"
In PLR 200744020 (June 08, 2007), the IRS ruled that a testamentary trust and a "remaining trust" are GST exempt, that certain trust distributions are not subject to GST tax, and that the exercise, lapse, or release of a beneficiary's...
Continue reading "IRS Rules on GST Consequences of Trust Distributions"
In PLR 200744005 (June 28, 2007), the IRS ruled that a disclaimer of property passing under a trust will constitute an IRC Sec. 2518 qualified disclaimer and that the disclaimed property, which passes to a foundation because of the disclaimer,...
Continue reading "IRS Rules Property Disclaimed Qualifies for Charitable Deduction"
In PLR 200744001 (July 18, 2007), the IRS ruled that a gain realized by a decedent's revocable trust from a property sale whose contract was entered prior to death but which did not close until after the decedent's death was...
Continue reading "IRS Rules Gain From Post-Death Property Sale Is Not IRD"
In PLR 200744019 (June 1, 2007), the IRS ruled that the division of a charitable remainder unitrust ("CRUT")into two separate trusts will not cause either trust to fail to qualify as CRUT under IRC Sec. 664, that neither CRUT will...