In TD 9428, the IRS issued final regs relating to the treatment of open account debt between S corps and their shareholders. The final regs provide rules regarding the definition of open account debt and the adjustments in basis of...
October 2008 Archives
Beginning Nov. 1, 2008 the fee for an exact copy of a previously-filed and processed tax return and all attachments will increase to $57. Taxpayers or their designated representatives must still complete and mail the Form 4506, Request for Copy...
For 2009, personal exemptions and standard deductions will rise and tax brackets will widen because of inflation adjustments. By law, the dollar amounts for a variety of tax provisions must be revised each year to keep pace with inflation. As...
Continue reading "2009 Inflation Adjustments Widen Tax Brackets and Expand Tax Benefits"
The Information Reporting Program Advisory Committee (IRPAC) today released the advisory group's recommendations on a wide range of tax administration issues. IRPAC was established in 1991 on a Congressional recommendation suggesting the IRS consider "creation of an advisory group of...
The Tenth Circuit Bankruptcy Appellate Panel, in Weinman v. Graves (In re Graves), BAP No. CO 08-038, affirmed a lower court decision denying a bankruptcy trustee's' motion for turnover of a debtor couple's prepetition tax refund, which they had applied...
Continue reading "10th Circuit BAP Denies Bankrtupcy Trustee Motion for Turnover of Tax Refund"
Jennifer Myers, President of Sage Financial Management Group, Inc., has issued the following 3rd Quarter Market Report.MARKET OVERVIEW History is in the making as our global financial markets stand in a state of disarray. Events that we had thought and...
Continue reading "Sage Financial Management Group Issues 3rd Quarter Market Report"
FinCEN has released Issue 14 (Oct. 2008) of the SAR Activity Review for download. The SAR Activity Review is designed to provide meaningful information about the preparation, use, and value of Suspicious Activity Reports (SARs) and other BSA reports filed...
Continue reading "FinCEN Releases Issue 14 of The SAR Activity Review"
The following is a quarterly update of economic conditions and investment strategy provided by Chevy Chase Trust. Economic ConditionsWhile second quarter GDP increased at a 2.8% annual rate and the third quarter GDP is likely to be flat, a broad slowdown...
Continue reading "Chevy Chase Trust Issues Third Quarter 2008 Update"
The Financial Crimes Enforcement Network (FinCEN), as part of its efforts to make the administration of the Bank Secrecy Act (BSA) more efficient and effective, announced the publication of a proposal to simplify its rules and regulations by centralizing them...
Continue reading "FinCEN Proposes Regulatory Simplification"
The Ninth Circuit Court of Appeals, in Kandi v. United States, 2008 U.S. App. LEXIS 20761 (Sept. 25, 2008), held that an individual who was the sole member of an LLC was liable for the LLC's unpaid employment taxes. The...
Continue reading "9th Circuit Holds Owner of Single Member LLC Liable for Unpaid Employment Taxes"
Steve Akers, Associate Fiduciary Counsel, Bessemer Trust, provides the following summary of Bianca Gross v. Commissioner, TC Memo 2008-221 (Sept. 29, 2008).The IRS has been arguing that if gifts of limited partnership interests are made soon after the partnership is...
Continue reading "Steve Akers' Summary of Bianca Gross v. Commissioner"
The push by Congressional Democrats for a second stimulus package appeared to gain some momentum this week. As several news organizations have reported (see, e.g., New York Times, Bloomberg), Federal Reserve Chairman Ben Bernanke told House lawmakers that "consideration of...
Continue reading "Push for Second Stimulus Package Gains Momentum"
Chief Counsel Notice CC-2009-003 (Oct. 17, 2008), explains how to determine whether a case filed as a lien or levy action under section 6320(c) (liens) or section 6330(d)(1) (levies) or a review of a denial of relief from joint and...
Notice 2008-102 sets forth certain cost-of-living adjustments effective January 1, 2009, applicable to the dollar limitations on benefits and contributions under qualified retirement plans. Other limitations applicable to deferred compensation plans are also affected by these adjustments. This notice also...
Continue reading "IRS Notice 2008-102 Contains Cost of Living Adjustments Effective January 1, 2009"
The Tax Court, in Heller v. Commissioner, TC Memo 2008-232 (Oct. 20, 2008), in an opinion that will warm the hearts of tax lawyers and accountants everywhere, held among other things, that taxpayers were liable for penalties for negligence and...
The Tax Court, in Estate of Leonard Rosen, v. Commissioner, 131 TC No.8 (Oct. 20, 2008), held that an estate was entitled to include in its estate tax overpayment an amount it initially paid to the IRS in payment of...
Tax Notes reports that, according to Michael Chesman, director of IRS office of Professional Responsibility ("OPR"), effective in either January or Feburary 2009, tax practitioners who file a Form 2848, Power of Attorney, will automatically undergo a tax check to...
Continue reading "Practitioners Filing Power of Attorney Must Undergo Tax Check"
The following articles have now been posted on the Wealth Strategies Journal and are available for download: Planning Through Economic Turmoil, by Martin M. ShenkmanChoices: "Recent Tax Guidance on Private Trust Companies, Family Co-Trustees and Distribution Committees: Notice 2008-63," by...
Continue reading "New Articles Posted on Wealth Strategies Journal 2.0"
The IRS issued a letter ruling concerning trust conversion to a total return trust on May 23. The ruling concluded that converting a trust to a total return trust could not trigger realization of gain or loss under section 1001...
Continue reading "Trust Conversion Will Not Trigger Realization of Gain or Loss"
The IRS issued a ruling concerning trusts and the non-zero inclusion ration on May 30. The IRS ruled that the proposed modification of a Trust to the upper limit of discretionary spending will neither cause the Trust to have a...
In a letter ruling on June 25, the IRS ruled to revoke the tax-exempt status of a trust. The ruling stated that the trust failed to provide evidence it was operating exclusively for exempt purposes outlined in section 501(c)(3) of...
On August 28th, the IRS released a legal memorandum ruling that the government may collect a federal tax liability owed by a corporation or LLC from its successor if the successor corporation or LLC is liable under relevant state law....
Continue reading "Service Rules Successor Liability Applies to Corporation's Federal Tax Liability"
On October 6, the IRS released a list of organizations who have lost their charitable donee status under sections 501(c)(3) and 170(c)(2).The complete list can be accessed on the IRS website, or by clicking on the following link.Posted by Shannon...
Continue reading "IRS Deletes Organizations from Charitable Donee List"
The National Taxpayers Union Foundation ("Foundation") issued a report estimating the cost of McCain and Obama's spending plans. The Foundation estimated that McCain's spending plan would cost almost $7 billion while Obama's plan would cost $343.5 billion. Posted by Shannon...
Continue reading "National Taxpayers Union Foundation Estimates Candidates' Spending Plans Cost"
Representative John Lewis (D-GA) introduced HR 7083, the "Charity Enhancement Act of 2008" on September 25. The bill aimed to enhance charitable giving and improve disclosure and tax administration. The bill passed in the house on September 27 and was...
Continue reading "HR 7083 to Enhance Charitable Giving Incentives"
Tax AnalystsTM published a letter which contained an IRS ruling regarding disclaimers on May 20. The IRS ruled that the disclaimers a woman made of her interests in an IRA and retirement plan qualify under section 2518. Therefore, this forfeit...