The NY Times has published an article, Wealth Matters - Teaching The Entitled Young the Financial Facts of Life, which discusses the concern of wealthy families that their children will develop a sense of entitlement and, as a result, be...
July 2009 Archives
In a July 23 press release, the Department of Justice announced that two dentists, Bradly C. Brennecke of Pleasant Plain, Ohio, and Bruce A. Mrusek of Maineville, Ohio, were cahrged with tax evasion and conspiracy to defraud the IRS. Mrusek...
Continue reading "Department of Justice: Two Cincinnati Area Dentists Charged with Tax Crimes"
In comments sent to the IRS and published by Tax Notes, William Paul, Mary Plotkin, and Kerry Burke of Covington & Burling LLP, have requested guidance from the IRS and the Treasury regarding the Foreign Bank and Financial Accounts Report...
Continue reading "Tax Correspondence: Attorneys Seek Clarification on FBAR Reporting Obligations"
According the July 23 Federal Register, the IRS is seeking public comments on Form 4970 "Tax on Accumulation Distribution of Trusts" as part of its efforts to reduce paperwork. All comments are due by September 21, 2009.Posted by Gary Robillard, Associate...
Continue reading "Comments Sought on Trust Accumulation Distribution Tax Form"
In David Blain Carroll v. United States, United States Alabama Northern District Court Judge C. Lynwood Smith, Jr. held that an executor's personal liability for unpaid estate taxes owed on his deceased father's estate was not dischargeable in bankruptcy, affirming...
Starting this fall, Warren Buffet will begin teaching kids about finance and investing via a new online animated series called the Secret Millionaire's Club. Mr. Buffet appeared on CNBC to promote the series and the full transcript can be viewed...
Continue reading "Warren Buffet's Secret Millionaire's Club"
Tax Correspondence: EXPAT Group Calls on Presidential Task Force to Support Residence-Based Taxation
In a letter to a Presidential tax reform task force that has been published by Tax Notes, Mary Louise Serrato and Jacqueline Bugnion of American Citizens Abroad, Geneva have urged that the citizenship-based tax system should end because, the group...
In a letter to the Treasury that has been published by Tax Notes, Mary Louise Serrato and Jacqueline Bugnion of American Citizens Abroad, Geneva have urged that requirements and penalties related to the foreign bank account report filings be revised...
Continue reading "Tax Correspondence: EXPAT Group Urges Treasury to Rethink FBAR Requirements"
In Alex Giannaris et ux. v. Commissioner, Judge David Laro, in a summary ruling that upheld an IRS deficiency determination, held that, when a policy was terminated because its personal interest was not deductible under section 163, a couple could...
The Committee for a Responsible Federal Budget wrote a release related to the House's passage of the Statutory Pay-As-You-Go Act of 2009, stating that, while it supports the legislation, it fears that the income tax cuts and the estate tax...
Continue reading ""CRFB Concerned About Pay-Go Bill Exemptions""
Tax Notes has published an article by Sam Goldfarb, writer for Tax Analysts. The article reports that the House, in a 265-166 vote, passed "pay-as-you-go legislation," moving closer to new budget rules that could help define tax policy. See Sam Goldfarb, "House Passes...
Continue reading "Tax Notes Article by Sam Goldfarb: "House Passes Statutory Pay-Go Bill""
According to IR-2009-66, the IRS announced a series of forums where individuals and representatives of different groups can voice their opinions and ideas on developments on tax preparer performance standards. The first forum will commence in Washington, D.C. on July 30. The...
Continue reading "IR-2009-66: Tax Preparer Review; Public Forums to Gather Input This Summer"
In Notice 2009-59, the IRS has provided a list of transactions that have been categorized as being "listed transactions." The notice will be published in IRB 2009-31 on August 3, 2009.Posted by Gary Robillard, Associate Editor, Wealth Strategies Journal....
In Notice 2009-55, the IRS has provided a list of transactions that have been categorized as being "transactions of interest." The notice will be published in IRB 2009-31 on August 3, 2009.Posted by Gary Robillard, Associate Editor, Wealth Strategies Journal....
Continue reading "IRS Notice 2009-55: Transactions of Interest"
In Headliner Volume 271, the IRS is providing advice on how to report one's real estate income as well as one's deductions and how to report rental income and expenses.Posted by Gary Robillard, Associate Editor, Wealth Strategies Journal....
According to IRS Announcement 2009-67, the IRS is reminding people of the various tax breaks that are still available to them stemming from the American Recovery and Reinvestment Act (ARRA) which was passed earlier this year.Posted by Gary Robillard, Associate...
Continue reading "IRS Announcement 2009-67: Tax Breaks Still Available"
The New York State Bar Association Tax Section published the comments of Erika Nijenhuis and its other members, urging that the Treasury and the IRS issue guidance on several issues regarding requirements imposed on some U.S. persons to file a foreign...
Continue reading ""NYSBA Members Seek Guidance on FBAR Filing Requirements""
In Ameriquest Mortgage Compnay v. Savalle et ux. et al., U.S. Eastern District of Michigan Judge Marrianne O. Battani granted partial summary judgment to the government's counterclaim to collect on tax liens to a company president's property, holding that the president...
Tax Notes has published an article by Nicole Duarte, writer for Tax Analysts. The article reports that the Treasury Inspector General for Tax Administration said that requiring tax return preparers to use a single federal identification number would allow the...
Tax Notes has published an article by Kristen A. Parillo, writer for Tax Analysts. The article reports that, according to Swiss media services, on July 30, Swiss Foreign Minister Micheline Calmy-Rey will meet Secretary of State Hillary Clinton to discuss...
Steve Akers, Associate Fiduciary Counsel, Bessemer Trust, provides the following summary of Linton v. U.S., U.S. Dist. Ct. W.D. Washington, Cause No. C08-227Z (July 1, 2009).This is the third case that has addressed the IRS's indirect gift and step transaction...
In the July 15 Federal Register, the IRS, in its attempts to reduce paperwork, has requested public comments on Form 1120-W, "Estimated Tax for Corporations." Comments are due by September 14, 2009.Posted by Gary Robillard, Associate Editor, Wealth Strategies Journal....
Continue reading "IRS Seeks Comments on Corporate Estimated Tax Form"
Estate lawyer, Patricia M. Annino, has authored a new book, Crack the $$ Code: What Successful Men Know and You Don't (Yet), which sets forth important code cracking lessons that successful men just know and women just don't, but can...
Continue reading "New Book: Crack the $$ Code: What Successful Men Know and You Don't (Yet) "
According to IR-2009-66, the IRS announced a series of forums where individuals and representatives of different groups can voice their opinions and ideas on developments on tax preparer performance standards. The first forum will commence in Washington, D.C. on July 30. Posted...
Continue reading "IR-2009-66: Tax Preparer Review; Public Forums to Gather Input This Summer"
Deloitte has published an article from its Tax Controversy Services's IRS Insights series concerning a Tax Court decision: IRC Section 7525 Federally Authorized Tax Practitioner Privilege Upheld for Meeting Minutes and Handwritten Notes In a recent decision, the Tax...
On July 14 the American Bar Association Section of Taxation and Section of Real Property, Trust and Estate Law sent a letter calling for estate tax reform to the leadership of the Senate Finance Committee and the House Ways and...
Continue reading "ABA TAX SECTION COMMENTS ON ESTATE TAX REFORM"
Deloitte has issues a special report on Congress's attempts at passing health care reform legislation and potential tax issues this may connect to: Prescription for Change: Tax Issues in Health Care Reform With President Barack Obama's administration...
On July 12, the United States and Swiss Bank UBS AG filed a joint motion for stay to permit continued settlement negotiations in the John Doe summons enforcement case, United States v. UBS, AG (No. 1:09-cv-20423) (United States District...
Continue reading "United States and UBS File Joint Motion for Stay in Summons Enforcement Case"
Kevin Brady, R-Texas, a House Ways and Means Committee member, in a July 9 statement, urged that the "punitive" tax treatment of commercial real estate be repealed, specifically with regard to provisions taxing foreigners on U.S. gains from real estate...
Continue reading "Congressman Brady: "End 'Punitive' Real Estate Tax Policy""
The IRS Small Business/Self-Employed Division issued interim guidance (SBSE-05-0609-010) to the field on updated procedures regarding the processing of estate tax cases where the executor of the estate has chosen deferred installment payment of estate tax under section 6166.See "IRS...
Tax Notes has published IRS e-mailed advice that gave guidance on section 6166 passive asset determination, concluding that money owed by a decedent's son's company to the decedent's company and that was still unpaid for 10 to 15 years is...
Tax Notes has published IRS e-mailed advice that, concluding that a contribution of an easement cannot be claimed as a charitable contribution, has advised that Rev. Rul. 2004-5 permits trusts to claim charitable contributions made by a partnership if the...
In PLR 200928013, the IRS ruled that the property om six trusts will not be includable in an individual's gross estate for federal estate tax purposes and that his proposed exercise of testamentary powers of appointment in the trusts will not...
In PLR 200928043, the IRS ruled that a surviving spouse will qualify to be able to roll over the distribution of IRA proceeds into an IRA set up and maintained in her own name and that it will not be necessary...
Citizens for Justice issued a report on July 8 suggests that an application of a two percent surtax to people earning $250,000 or more per year would generate $375 billion over 10 years to fund healthcare reform without placing a...
Continue reading ""Citizens for Justice Analyzes High-Income Surtax Proposal to Fund Healthcare""
Tax Notes had published a Congressional Research Service reports regarding patents for business methods, tax planning methods, and genetic materials reviewed some arguments for and against the patenting of tax planning methods and included a judicial history of Bilski, a...
Continue reading ""CRS Report Examines Patents on Tax Planning Methods""
Tax Notes has published the comments Marcus Owens of Caplin & Drysdale who, noting an IRS official's comments to the contrary, has observed evidence of published guidance on the tax consequences of private foundations' in investments in limited liability companies...
Tax Notes has published the comments of John Weesner of Winter Park, FL. He identified situations where the revised Foreign Bank and Financial Accounts Report form and instructions are ambiguous, incomplete, and unclear. See John Weesner, Tax Notes Correspondence: "Individual Points to...
Tax Notes has published the comments of J. Robert Arthur, Certified Public Accountant of Randolph LLC. Arthur makes several suggestions in his comments, including making the form more user-friendly and reducing confusion regarding what needs to be reported. See J. Robert Arthur,...
Continue reading "Tax Notes Correspendence: "CPA Suggests Ways to Improve Revised FBAR Form""
On July 6, the Justice Department filed a memorandum opposing Swiss banking giant UBS AG's motion seeking information in reference to number of undeclared account holders the IRS discovered in the government's action to enforce a John Doe summons issued...
The American Family Business Foundation has published a report by Stephen J. Entin titled "Economic Impact of the Estate Tax: Effects of Various Possible Reform Options." In the report, Entin argues that the repeal of the estate tax would result in revenue...
The Center on Budget and Policy Priorities has published a report by Chye-Ching Huang, Gillian Brunet, and Chuck Marr titled "Reports Calling for Estate Repeal Seriously Flawed." In the report, Huang, Brunet, and Marr argue that two reports by the...
In program manager technical assistance, the IRS addressed several issues on the required use of bonds or liens to secure the estate tax attributable to a closely held business and payable in installments under section 6166.See "Service Addresses Use of Bonds...
Continue reading "IRS Address Use of Bonds to Secure Estate Tax Payments"
H.R. 2658, introduced by Rep. Michael E. Capuano, D-Mass., would increase the estate and gift tax unified credit to an exclusion equal to $5 million, adjust it for inflation, and prevent the one-year repeal of the estate tax.See H.R. 2658,...
Continue reading "H.R. 2658: Estate and Gift Tax Unified Credit Would Increase"
In PLR 200925015, the IRS ruled that a couple would receive an extension to allocate their available generation-skipping transfer tax exemption to transfer to a trust.Posted by Gary Robillard, Associate Editor, Wealth Strategies Journal....
Continue reading "PLR 200925015: IRS Grants Extension to Allocate GSTT Exemption"
In PLR 200927013, the IRS ruled that the judicial reformation of two trusts constitutes a qualified reformation under section 2055(e)(3) and that an estate tax charitable deduction is permissible under section 2055(a) for the present value of the charitable remainder interests...
Continue reading "PLR 200927013: Service Addresses Tax Consequences of Reformation of Trusts"
In PLR 200927022, the IRS ruled, among other issues stemming from the establishment, funding, and potential termination of an Alaska Native Settlement Trust under section 646, that the settlement trust will be classified as a trust and a separate entity...
Continue reading "PLR 200927022: Service Rules on Tax Treatment of Alaska Settlement Trust"
In PLR 200927042, the IRS ruled that an estate's sale of land holdings to an assignee of a holding company that is not a qualified person in regard to a private foundation, followed by the assignee's transfer of the property...
Continue reading "PLR 200927042: Sale of Land Holdings Not Self-Dealing"
In PLR 200927040, the IRS ruled that a corporation's transfer of its securities from the exempt trust of a parent corporation to a new exempt trust by the parent's subsidiary does not alter the basis of the securities for purposes...
In Linton et ux v. United States, U.S. District Judge Thomas S. Zilly granted the government's motion for summary judgment and dismissed a couple's suit seeking a gift tax refund, ruling that the couple made an indirect gift to their...
Tax Notes has published an article by Wendy C. Gerzog, a professor of law at the University of Baltimore School of Law. The article suggests that the Tax Court's ruling in Jorgensen v. Commissioner would represent a very clear statement...
Continue reading "Tax Notes Article by Wendy C. Gerzog: "Jorgensen: A Familiar FLP Story""
The principals of CJM Fiscal Management (Melville, NY), an independent financial advisory firm, are stepping up to warn employers and their employees about the hidden fees in the 40l (k) plans and 403 (b) plans, the comparable offering to public...
A copy of Michael Jackson's will is located on the TMZ website and can be downloaded here.Posted by Lewis J. Saret, General Editor, Wealth Strategies Journal....
In the June 26 Federal Register, the IRS has issued a Notice and Request for comments on information collection under Notice 97-34, which gives guidance on the foreign trust and foreign gift reporting provisions added to the code by the Small...
Continue reading "IRS Seeks Comments for Foreign Trusts, Gift Reporting Rules"