Sarah Johnson, an associate at Venable LLP, has written an article in Estate Planning Alert, a publication of Venable's Tax and Wealth Planning Group entitled: "Federal Estate Tax Repealed (For One Year Only, or Possibly Not at All)." In her article, Johnson...
Continue reading "Sarah Johnson: Federal Estate Tax Repealed "
The Treasury Department, acting on behalf of the IRS, has submitted various forms and regulations to the OMB for review and clearance. Comments addressed to the OMB are due by January 29, 2010. See Tax Notes: "Forms, Regs, Guidance,...
Continue reading "IRS Submits Forms and Regs for Office of Management and Budget Review"
The United States Tax Court has published a memorandum opinion by Judge Diane L. Kroupa, entitled Estate of Paul Rule v. Commissioner. The Tax Court granted an estate's motion to dismiss for lack of jurisdiction, ruling that a deficiency notice against...
Tax Notes has published an article by Chuck O'Toole, reporting on expiring provisions in the tax code: A host of tax provisions expire at midnight December 31, and legislation to extend some of them has stalled in the Senate, at...
Continue reading "Ring in the New Year With Changes to the Tax Code"
Steve Gorin of Thompson Coburn LLP has requested that Treasury exercise its authority to amend language in section 2511(c) to clarify that a gift to a trust will not be characterized as a gift that is incomplete, in whole or...
Continue reading "Lawyers Requests That Treasury Address Tax Treatment of Transfers in Trust"
In a December 28 press release, House Ways and Means Committee ranking minority member Dave Camp, (R-MI), said, "the tax and deficit-spending ways of the Democrat-controlled House is wreaking havoc on our economy and on families." Posted by Marc Patterson,...
Continue reading "Representative Camp Slams Dem's Tax and Spending Policies"
In PLR 200952009, the IRS ruled that investments by a fund whose shares are offered to insurance company segregated assets accounts as an investment vehicle for variable life insurance policies and variable contracts, will not cause the variable contract holders...
In PLR 200952034, the IRS granted a trust's request for an extension to take a section 642(c)(1) charitable deduction in year 1 for a gift made in year 2. Posted by Marc Patterson, Managing Associate Editor, Wealth Strategies Journal....
Continue reading "PLR 200952034: IRS Grants Trust Extension to take Charitable Deduction"
In a statement released on December 23, the American Council for Capital Formation called on Congress to pass bipartisan legislation that would cap the estate tax at 35 percent with an exemption of $5 million ($10 million for couples). ...
New York Times, An Estate Tax Mess, editorial: The Senate has failed to act. Republicans refused to consider the House bill or even a two-month delay to allow time for debate. Democrats correctly refused to consider a proposal to increase...
Rep. Rodney Frelinghuysen (R-NJ), has introduced H.R. 4270, the Common Sense Tax Relief Act of 2009, which would permanently extend the sales tax deduction, the child credit, estate tax repeal, the tuition deduction, and the current capital gains tax rate...
Continue reading "Bill Introduced to Extend Expiring Tax Provisions"
The United States Tax Court has published a memorandum opinion by Judge David Laro, a U.S. Tax Court Judge, entitled "Estate of Kwang Lee v. Commissioner." The Tax Court held that an estate may not amend its petition to allege...
Continue reading "Court Memorandum by Judge David Laro: "Estate of Kwang Lee v. Commissioner""
Senator Chuck Grassley (R-IA), in a December 22 statement said: The bottom line is that the Senate Democratic leadership decided that they were going to attach the tax extender package to a controversial estate tax bill in an attempt to...
Continue reading "Grassley Says Dems are Responsible for Failure to Pass Tax Extenders Bill"
The United States Tax Court has published a memorandum opinion by Judge Paige Marvel, a U.S. Tax Court Judge, entitled "Estate of Anne W. Morgens v. Commissioner." The Tax Court held that the amount of gift tax paid by recipients...
Revenue Ruling 2010-1 provides various prescribed rates for federal income tax purposes for January 2010 (current month) including the applicable federal interest rates, the adjusted applicable federal interest rates, the adjusted federal long-term rate, the adjusted federal long-term tax-exempt rate....
The IRS has modified (Rev. Proc. 2010-11) the conditions under which a trustee of a blind trust that meets the requirements of section 102(f)(3) of the Appendix to Title 5 of the U.S. Code may execute and file an income...
Continue reading "IRS Allows Automatic Consent for Trustees Filing on Behalf of Blind Trusts"
Tax Notes has published an article by Victor Thuronyi, a senior counsel (taxation) at the IMF, regarding the need for comprehensive reform of the U.S. tax system. Thuronyi argues that reform cannot be accomplished through a single bill, but should be...
Continue reading "Tax Notes Article by Victor Thuronyi: "Planning Tax Reform""
Tax Notes has published an article by Michael Mooney, a partner with Nutter McClennen & Fish LLP in Boston. In the article, "Mooney examines existing guidance on the timing of gifts to charity shortly before a major corporate liquidity event and...
Chuck O'Toole of Tax Analysts reports that senators may include a retroactive reinstatement of the estate tax into a broad tax reform bill in 2010. "It's very possible that estate tax reform will be folded into tax reform next year,"...
Continue reading "Retroactive Estate Tax May be Folded into Tax Reform Next Year"
The Americans for a Fair Estate Tax, in a December 17 letter to senators, urged Congress to "temporarily extend the estate tax under its 2009 parameters rather than let the tax exire altogether" in 2010. The group says that the...
Continue reading "Americans For a Fair Estate Tax Urges Extension of Estate Tax"
Steve Akers, Associate Fiduciary Counsel of the Bessemer Trust, provides the following summary of Petter v. Commissioner, T.C. Memo 2009-820 (Dec. 7, 2009), which rejects the IRS's objections to a formula disclaimer, which acts like a defined value clause, violates public...
Continue reading "Steve Akers: Summary of Petter v. Commissioner, T.C. Memo 2009-820"
Steve Akers, Associate Fiduciary Counsel of the Bessemer Trust, has written a FAQ on many of the questions surrounding the lapse of the estate and GST tax in 2010. Issues he addresses include: What happens to the estate tax and GST...
Continue reading "Steve Akers: FAQ on the Repeal of the Estate Tax"
The Bessemer Trust to host estate planning conference call - January 6 at 1pm EST. ESTATE PLANNING UPDATE: Estate Tax Repeal and Planning Considerations for Defined Value Clauses in Light of Petter and Christiansen Two of the biggest developments in...
Continue reading "Bessemer Trust to Host Estate Planning Conference Call - Jan 6 at 1pm EST."
The IRS has released Publication 950 (rev. Dec. 2009), Introduction to Estate and Gift Taxes. The publication provides a general understanding of when estate and gift taxes. It explains how much money or property taxpayers can give away during their...
Continue reading "IRS Releases Introduction to Estate and Gift Taxes"
The Congressional Budget Office, in a December 18 report, examined policy options for changing taxation of wealth transfers, including, permanently repealing the estate tax, making the 2009 law permanent without indexing the exemption amounts, making the 2009 law permanent and...
Continue reading "CBO Report: Taxation of Wealth Transfer Policy Options"
The IRS has released Notice 2010-4, issuing guidance to trustees, middlemen, and trust interest holders of widely held fixed investment trusts ("WHFITs)") on reporting rules in reg. section 1.671-5. Posted by Marc Patterson, Managing Associate Editor, Wealth Strategies Journal. ...
Continue reading "IRS Releases Guidance on Widely Held Fixed Investment Trusts"
All the recent news on the estate tax: New York Times, Estate Tax is Expiring, but Death Won't Last Bloomberg News, Estate Tax Expiration Sets Up Battle on Retroactive Restoration Wall Street Journal, Amid Debate, Business Owners Struggle With Estate...
Politico reports that Republicans blocked a final attempt by Democrats on Wednesday to extend the estate tax for two months and now the estate tax will disappear on January 1, 2010 as scheduled. Senate Majority Leader Harry Reid's statement on...
The Tax Policy Center of the Urban Institute and the Brookings Institution has published The Estate Tax Debate: Watch the Rate, Not the Exclusion, by Howard Gleckman. In his article Gleckman comments: In some perverse way, it's fun to watch lawmakers dive...
Continue reading "The Estate Tax: It's the Rate, Not the Exclusion That Counts"
The Wall Street Journal reports: Senate Finance Committee Chairman Max Baucus (D., Mont.) said he will try early next year to pass legislation ensuring no lapse in the estate tax, after Republicans blocked another effort to extend the tax for...
Continue reading "Senate Will Try to Retroactively Extend the Estate Tax Next Year"
Sam Young of Tax Analysts reports that on December 15, IRS Senior Estate Tax Officer John Pirri, gave advice to DC practitioners on avoiding audit selection. Young reports: Pirri first told practitioners to include all relevant documents with the estate tax...
Continue reading "Senior Estate Tax Officer Gives Advice on Avoiding Audit"
United for a Fair Economy is calling on the Senate to extend the current estate tax before the holiday recess. United for a Fair Economy is a group of wealthy individuals, including Bill Gates, John Bogle, and Anna Burger, that...
Continue reading "Group of Wealthy Individuals Calls on Senate to Extend Estate Tax"
Chuck O'Toole of Tax Analysts, reports that House Democrats are wrapping up their business for the year, leaving the Senate to deal with the estate tax. The House will take up consideration of several bills before the holiday break, but...
Continue reading "Estate Tax Update: Estate Tax Future Uncertain"
The IRS has released Publication 1438 (rev. Nov. 2009), File Specifications, Validation Criteria, and Record Layouts for Electronic and Magnetic Tape Filing Programs for Form 1041, U.S. Income Tax Return for Estates and Trusts for Tax Year 2009. It should...
Continue reading "IRS Releases Instructions on E-Filing for Trusts and Estates"
On December 2, 2009, Representative Glenn Nye (D-VA), introduced H.R. 4174, which would provide relief with respect to estate and gift taxes, small businesses, and government contractors. Posted by Marc Patterson, Associate Editor, Wealth Strategies Journal....
Continue reading "House Bill Would Provide Tax Relief From Estate and Small Businesses Tax"
The United States Tax Court has published a memorandum opinion by Judge James Halpern, entitled Estate of Samuel P. Black v. Commissioner, Et. Al. v. Commissioner. The Tax Court has held the following: (1) the fair market value of decedent's...
Continue reading "Tax Court Memorandum by Judge Halpern: Estate of Samuel P. Black v. Commissioner"
The estate tax may end up being repealed after all. Plans to attach a temporary two-month extension of the estate tax at current 2009 rates have been dropped from a defense spending bill due to Senate opposition. If the estate tax does expire...
Continue reading "Estate Tax Close to Being Repealed as Scheduled"
Meg Shreve of Tax Analysts reports that liberal interest groups that want a permanent estate tax that raises more revenue may have to wait till 2010. See Megan Shreve: "The Lobby Lookout: Progressives Argue For Bolstering Estate Tax," TNT 236-9,...
In PLR 200950032, the IRS ruled that the modification of a trust to allow limited distributions to the trust's charitable beneficiary will not disqualify the trust as a charitable remainder annuity trust under section 664. Posted by Marc Patterson, Associate...
In PLR 20095008, the IRS ruled that a decdent's IRA cannot be treated as an inherited IRA under section 408(d)(3), and that decedent's widow is eligable to transfer the funds into an IRA established in her own name without having to include the proceeds in...
Continue reading "PLR 20095008: IRS Addresses IRA Distributions"
On December 9, the House voted to approve the Tax Extenders Bill of 2009 (H.R. 4213). The bill renews $31 billion in expiring tax incentives for 2010, which are paid for by taxing carried interest interest at ordinary income rates...
Continue reading "House Approves Tax Extenders Bill 241-181"
Tax Analysts has published a study by the American Family Business Foundation entitled, Myths and Realities Surrounding the Estate Tax, by Antony Davies Davies, Ph.D. and Pavel Yakolev, Ph.D. In the study the authors argues: The estate tax, created to...
Continue reading "American Family Business Foundation: Estate Tax is Unnecessary"
The Heritage Foundation has published "Tax hikes Unnecessary for Extension of Current Policy," by Curtis S. Dubay. In his article Dubay argues:Congress will soon debate extending certain tax provisions that will expire at the end of the year. Even though...
Continue reading "Heritage Foundation: Tax Hikes Unnecessary for Extension of Current Policy"
On December 7, Senate Finance Committee member Senator Schumer, D-NY, introduced the Madoff Investors' Bill of Rights, which he said aims to provide expanded tax and retirement relief to small investors who invested all and have nothing left because of...
Continue reading "Senator Schumer Unveils Madoff Investors' Tax Bill of Rights"
Open CRS has released a new Congressional Research Service Report, Estate Tax Legislation in the 111th Congress (December 02, 2009). The report examines and analyzes several versions of proposed estate tax bills in the 111th Congress, including legislation to permanently...
Continue reading "CRS Report: Estate Tax Legislation in 111th Congress"
The United States Tax Court has published a memorandum opinion by Judge Mark Holmes, entitled Estate of Anne Y. Petter v. Commissioner. The Tax Court, in a case where the value of shares donated to a FLLC was higher than first reported,...
Continue reading "Tax Court Memorandum by Judge Holmes: Estate of Anne Y. Petter v. Commissioner"
In PLR 200949021, the IRS granted a taxpayer a 60 day extension to make an allocation of his available GST exemption with regard to a transfer to a trust. Posted by Marc Patterson, Associate Editor, Wealth Strategies Journal. ...
Continue reading "PLR 200949021: IRS Grants Extension to Allocate GST Exemption"
In PLR 200949008, the IRS granted a taxpayer an extension to allocate a decedent's generation-skipping transfer tax exemption with respect to transfers to three charitable remainder unitrusts. Posted by Marc Patterson, Associate Editor, Wealth Strategies Journal. ...
In PLR 200949006, the IRS granted a married couple a 60 day extension to allocate their respective available generation-skipping tax exemptions in regards to transfers to two trusts. Posted by Marc Patterson, Associate Editor, Wealth Strategies Journal....
Continue reading "PLR 200949006: IRS Grants Extension to Allocate GST to Trusts"
In PLR 200949009, the IRS granted a trustee an extension of 60 days to file the required notice and certification under section 2056A that a decedent's spouse (trust's beneficiary) has become a U.S. citizen. Posted by Marc Patterson, Associate Editor,...
In PLR 200949022, the IRS graned the co-executors of a decdent's estate an extension for making an alternate valuation election under section 2032. Posted by Marc Patterson, Associate Editor, Wealth Strategies Journal. ...
Continue reading "PLR 200949022: Extension of Time For Making Alternate Valuation Election"
In PLR 200949012, the IRS ruled that the grantor of a proposed trust is not treated as the owner of any portion of the trust under section 671. Furthermore, the IRS ruled that the trust's beneficiary is treated as the...
Continue reading "PLR 200949012: Ownership and Tax Consequences of Proposed Trusts"
In a legal memorandum, the IRS has concluded that its sale of an interest of a decdent's estate contained in a gross estate valid and that the Service may amend the deed to reflect the correct property description. Posted by Marc...
Continue reading "IRS Legal Memorandum: IRS Sale of Decedent's Interest is Valid"
Jeff Carlson of CCH reports that it is unlikely that the Senate will vote on extending the estate tax before it expires at the end of 2009. Senate Leaders are too occupied with passing health care reform to complete work on...
Continue reading "Senate May Wait Until 2010 to Act on Estate Tax"
Steve Akers, Associate Fiduciary Counsel, Bessemer Trust, provides the following summary of Estate of Christiansen v. Commissioner, 104 AFTR2d 2009-XXXX (8th Cir. Nov. 13, 2009, corrected Nov. 18, 2009), which represents a major taxpayer victory on the issue of defined...
Continue reading "Steve Akers' Summary of Estate Christiansen v. Commissioner"
Tax Notes has published an article by Wendy C. Gerzog, a professor at the University of Baltimore School of Law, regarding Linton, (a decision about a family LLC, indirect gifts, and the step transaction doctrine). According to Gerzog, the Linton case provides...
Continue reading "The Linton Case: Family LLC and the Step Transaction"
The House voted today to approve the Permanent Estate Tax Relief for Families, Farmers, and Small Businesses Act of 2009 (H.R. 4154). The bill permanently extends the estate tax with a 45 percent top rate and a $3.5 million exemption...
A Tax Notes article by Chuck O'Toole reports that the House Rules Committee voted 7-1 to block a proposed floor vote on an amendment offered by Shelley Berkley, D-NV, to the Permanent Estate Tax relief for Families, Farmers, and Small...
Continue reading "House Rules Committee Denies Consideration of Berkley-Brady Estate Tax Bill"
The Center on Budget and Policy Priorities has published a statement by Chuck Marr and Gillian Brunet, on the upcoming estate tax vote, recommending that extending the 2009 estate tax rates is the 'far more reasonable' approach than supporting the Permanent...
Open CRS has released a new Congressional Research Service report, Estate and Gift Taxes: Economic Issues, (RL30600) (November 27, 2009). The report found that the estate tax is progressive, but undermined by avoidance mechanisms. Here is the summary: The United...
Continue reading "CRS Report: Estate Tax is Progressive But Undermined by Avoidance"
The Seventh Circuit joined the Fifth and Eleventh Circuits in ruling for the taxpayer and reversing the Tax Court's judgment in the Kanter case. The Seventh Circuit instructed the Tax Court to adopt the special trial judge's report as its...
Tax Notes has published an article by Chuck O'Toole, reporting on a possible upcoming conflict between House and Senate versions of the new estate tax bill. Senate Finance Committee Chair Max Baucus, D-MT, and Budget Committee Chair Kent Conrad, D-ND,...
Continue reading "Senators Seek to Index Estate Tax Exemption Levels to Inflation"
Organizations are pushing for broader exemption to the estate tax bill that would exclude farms from estate taxes. In a November 30 letter addressed to House Speaker Nancy Pelosi, D-CA, and House Minority Leader John Boehner, R-OH, 91 organizations stated...
Continue reading "Groups Push For Farm Exemption From Estate Tax"
Google Scholar now provides the full text of journals and legal opinions from the U.S. Supreme Court, federal district and appellate courts, and the appellate and supreme courts from all 50 states to its search engine: As many of us...
The Williams Institute at the UCLA School of Law has published a report, Federal Estate Tax Disadvantages for Same-Sex Couples, by Michael D. Steinberger: Throughout the course of their lives, same-sex couples experience many legal challenges not faced by their...
Continue reading "UCLA Report Finds Disadvantages for Same-Sex Couples Under Estate Tax Law"
The IRS has issued corrections to final regulations (TD 9468) that provide guidance on the amount deductible from a decedent's gross estate for claims filed against the estate under section 2053(a)(3). Posted by Marc Patterson, Associate Editor, Wealth Strategies Journal....
