Are you expecting a refund from the IRS this year? Tax Tip 2010-63 provides 10 facts you should know about your refund: 1. Refund Options You have three options for receiving your individual federal income tax refund: a paper check, direct deposit or...
Continue reading "Tax Tip 2010-63: Ten Things You Need to Know About Tax Refunds "
Ruth Helman, Craig Copeland & Jack VanDerhei have posted their article "The 2010 Retirement Confidence Survey: Confidence Stabilizing, but Preparations Continue to Erode," EBRI Issue Brief, No. 304, March 2010, on SSRN. The abstract is below:"This paper presents key findings...
The ABA Section of Taxation will be hosting the following teleconference and live audio webcast CLE today at 1:00pm ET, titled "The Economic Substance Doctrine." A description of the program follows below:"At press time, the Senate has passed a version...
For those still working on their federal tax return, Tax Tip 2010-61 lists 10 tips that you may find helpful as the filing deadline draws nearer: 1. E-file your return Don't miss out on the benefits of e-file. Your...
Continue reading "Tax Tip 2010-61: Top Ten Tips for Last Minute Filers "
In PLR 201012050, the IRS ruled that the donation of units in a closely held LLC by a married couple to a tax-exempt private foundation did not constitute self-dealing, as prohibited by Internal Revenue Code section 4941. Although the married...
Continue reading "PLR 201012050: Couple's Donation of LLC to Private Foundation is Not Self-Dealing"
In PLR 201012052, the IRS ruled that an administrative services program established by a tax-exempt healthcare provider for the purpose of providing administrative services to an affiliated for-profit corporation licensed as an insurer was not an unrelated trade or business....
The defendant in United States v. John McCarthy has pled guilty for willfully failing to file a Report of Foreign Bank and Financial Accounts (FBAR) for 2004. The defendant was a former client with UBS and held a foreign bank account...
Continue reading "Former UBS Client Enters Into Plea Agreement"
The IRS has released Announcement 2010-21: Announcement 2010-21 is issued pursuant to § 521(b) of Pub. L. 106-170, the Ticket to Work and Work Incentives Improvement Act of 1999, which requires the Secretary of the Treasury to report annually to...
Continue reading "IRS makes announcement relating to Advance Pricing Agreements"
The IRS has released Announcement 2010-20: Announcement 2010-20 provides that the IRS will soon issue opinion and advisory letters for pre-approved defined benefit plans that have been restated for EGTRRA and the guidance on the 2006 Cumulative List. The letters...
Continue reading "IRS makes announcement relating to pre-approved defined benefit plans "
If you haven't made all the contributions to your traditional Individual Retirement Arrangement that you want to make - don't worry, you may still have time. Tax Tip 2010-61 lists 10 facts about setting aside retirement money in an IRA: ...
When preparing to file your federal tax return, don't forget your contributions to charitable organizations. If you made qualified donations last year, you may be able to take a tax deduction if you itemize on IRS Form 1040, Schedule A....
Continue reading "Tax Tip 2010-60: Ten Tips for Deducting Charitable Contributions "
The Wall Street Journal, in an article titled "When Siblings Step Up," reports that the number of families caring for elders has dramatically increased over the past few years. About 43.5 million Americans look after someone 50 or older, 28%...
Albert Feuer has posted an article titled "Who is Entitled to Life Insurance Benefits and Top-Hat Benefits from an ERISA Plan Following a Divorce or a Marital Separation?" NYSBA Family L. Rev. Newsletter, Vol. 41, No. 3, p. 10, Winter 2009,...
The U.S. Court of Appeals for the Eleventh Judicial Circuit upheld the obligation of a decedent's estate to pay income taxes that arose from a sale occurring before the decedent's death of the decedent's farm. The Court held that because...
McGuireWoods reports that on March 25, 2010 the House of Representatives passed the "Small Business and Infrastructure Jobs Tax Act of 2010" (H.R. 4849). The bill would limit the use of GRATs, including the imposition of a ten year minimum term...
In Publication 598, Tax on Unrelated Business Income of Exempt Organizations, the IRS explained the rules for the tax on unrelated business income of exempt organizations, including which organizations are subject to the tax, what the requirements are for filing...
The Hill recently reported that an estate tax plan proposed by Senators Jon Kyl (R-Ariz.) and Blanche Lincoln (D-Ark.) is gaining popularity in the House. The plan would create a 35 percent tax on estates worth more than $5 million,...
Continue reading "Senate Estate Tax Proposal Gains Popularity in House"
Robert Greenstein, Executive Director, Center on Budget Policy and Priorities, delivered testimony before the House Ways and Means Select Revenue Measures Subcommittee. The testimony addressed three points: While current budget deficits are not themselves a problem -- large deficits...
Tax Notes has published the March 2010 issue of Taxwise Giving, Charitable Contributions--Gift Tax Reporting Essentials, by Conrad Teitell of Cummings & Lockwood LLC. This issue elaborates on gift tax reporting rules for charitable gift annuities, deferred payment gift annuities,...
Continue reading "Tax Notes Publishes March 2010 Issue of "Taxwise Giving" "
The IRS has released the following message: Notice 2010-29 provides interim rules to the issuers of variable annuity contracts on issues that arise under §§ 807 and 816 as a result of the adoption of Actuarial Guideline XLIII. Notice 2010-29...
Continue reading "IRS releases Notice 2010-29 relating to variable annuity contracts"
Every year, millions of taxpayers donate money to charitable organizations. Tax Tip 2010-59 provides six facts you should know about the tax treatment of tax-exempt organizations. 1. Annual returns are made available to the public. Exempt organizations generally must make their annual returns...
Continue reading "Tax Tip 2010-59: Six Important Facts about Tax-Exempt Organizations "
The IRS has released the following message: Notice 2010-28 provides interim guidance on stripping transactions for qualified tax credit bonds under section 54A of the Internal Revenue Code and on certain income tax accounting matters associated with holding and stripping...
The IRS has released the following message: IRS offices will be open nationwide on Saturday, March 27 from 9 a.m. to 2 p.m., local time, to help taxpayers. The location of participating offices is listed on IRS.gov. The IRS message...
Continue reading "More Than 180 Local IRS Offices Open This Saturday to Help Taxpayers "
The IRS has released the following message: 2007 Corporation Complete Report Now Available - This report presents data tables for corporation income tax returns with accounting periods that ended July 2007 through June 2008. Data have been classified in various...
Continue reading "IRS Releases 2007 Corporation Complete Report"
Criminals use many methods to steal personal information from taxpayers. They can use your information to steal your identity and file a tax return in order to receive a refund. To help you avoid becoming the victim of a scam artist, Tax...
Continue reading "Tax Tip 2010-58: Ten Things the IRS Wants You to Know About Identity Theft "
If you are living and working abroad you may be entitled to the Foreign Earned Income Exclusion. Tax Tip 2010-57 lists five important facts from about the exclusion: 1. The Foreign Earned Income Exclusion United States Citizens and resident aliens who live...
Continue reading "Tax Tip 2010-57: Five Facts about the Foreign Earned Income Exclusion "
The ABA Journal, in an article titled "Lawyer Warns of Blogging Burden, Even as Top Law Firms Embrace It," highlights the warnings of one burnt-out attorney blogger. Kevin O'Keefe began blogging in October 2006 but quickly learned blogging was a...
Continue reading "ABA Journal: Lawyer Warns of Blogging Burden, Even as Top Law Firms Embrace It"
The ABA Journal, in an article titled "Does Connecticut Hate the Net?: State is a battleground for online legal services," reports on a legal referral system that has raised ethical concerns. The system, Total Attorneys, provides contact information of potential clients to...
Continue reading "ABA Journal: Does Connecticut Hate the Net?"
The ABA Journal, in an article titled "Get Your Head in the Cloud: Despite ethics questions, law firms are storing client data on the Net," reports on the use of cloud computing technology to store client data online. Cloud computing offers firms the...
In PLR 201011034, the IRS ruled that judicial reformation of a charitable remainder unitrust did not result in self-dealing under Internal Revenue Code section 4941. The IRS found that there were no disqualified persons, as defined in section 4946(a), who would...
Continue reading "PLR 201011034: Judicial Reformation of Trust Not Self-Dealing"
In PLR 201011035, the IRS ruled that certain proposed contractual relationships between a tax-exempt educational organization and charitable remainder trusts would not generate unrelated business taxable income. The exempt organization served as the legal owner of the trusts' assets, served...
Continue reading "PLR 201011035: UBTI Not Generated from Contractual Relationship"
In PLR 201011001, the IRS ruled that a trust may receive an extension of time to file a charitable deduction election under Internal Revenue Code section 642(c). The trust's tax returns were inadvertently filed late by the trust's accountant, which...
Continue reading "PLR 201011001: IRS Grants Trust Exension to Elect Charitable Deduction"
Edward M. Polansky, CPA, Chair, Federal Tax Policy Committee, Texas Society of Certified Public Accountants, has written a letter to the IRS. The letter urges the IRS to issue for taxable years beginning on or after January 1, 2009 interim...
Emanuel J. Kallina, II, Editor-in-Chief of www.CharitablePlanning.com corresponded with the Treasury and IRS in regards to Section 2511(c) and Notice 2010-19. In his correspondence, Kallina urged the Treasury to issue regulations excepting charitable remainder trusts ("CRTs") and pooled income funds...
In PLR 201011002, the IRS ruled that a proposed division and later merger of trusts (a) will not result, under Section 1001, in the realization of any gain or loss from a sale or other disposition of assets; (b) will...
In PLR 201011008, the IRS ruled that a proposed division and later merger of trusts (a) will not result, under Section 1001, in the realization of any gain or loss from a sale or other disposition of assets; (b) will...
Revenue Ruling 2010-11 provides various prescribed rates for federal income tax purposes for April 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. These rates...
If you are in the business of farming, there are a number of tax issues that you should consider before filing your federal tax return. Tax Tip 2010-56 lists 10 facts that farmers may want to know before filing their federal...
Continue reading "Tax Tip 2010-56: Ten Things You May Not Know about Farm Income and Deductions"
Taxpayer Assistance Centers allow taxpayers to access good old-fashioned face-to-face assistance from the Internal Revenue Service. No Recorded menus. No hold Music. Tax Tip 2010-55 provides 10 examples of how visiting an IRS TAC can be a great way for you to get assistance: 1....
Continue reading "Tax Tip 2010-55: Come On Over! Ten Ways the IRS Can Help You in Person "
The Health Coverage Tax Credit pays 80 percent of health insurance premiums for eligible taxpayers and their qualified family members. However, many people who could be receiving this valuable credit don't know about it, and are missing out on big...
Continue reading "Tax Tip 2010-54: Eight Important Facts about the Health Coverage Tax Credit "
Penney J. Lewis has posted an article titled "Medical Treatment of Dementia Patients at the End of Life: Can the Law Accommodate the Personal Identity and Welfare Problems?" on SSRN. The abstract is below:"Legal approaches to decision-making in the area...
The Joint Committee on Taxation has released two documents on the health care reform bill passed yesterday by the House: Technical Explanation of the Revenue Provisions (JCX-18-10) "This document,1 prepared by the staff of the Joint Committee on Taxation, provides...
Continue reading "Joint Committee on Taxation Releases Analysis of the House Health Care Bill"
The Generation Skipping Transfer Tax (GST), along with its more notorious and politically embattled counterpart, the Estate Tax, is skipping 2010. And much like the Estate Tax, the GST is set to return with a vengeance next year, barring congressional...
Sander M. Levin, Acting House Ways and Means Committee Chair, issued the following statement in response to President Obama's signing of the Hiring Incentives to Restore Employment Act: "This law will give businesses, especially small businesses, a boost to hire...
Revenue Ruling 2010-11 provides various prescribed rates for federal income tax purposes for April 2010 (current month) including the applicable federal interest rates, the adjusted applicable federal interest rates, the adjusted federal long-term rate, and the adjusted federal long-term tax-exempt...
The IRS has released Publication 559, Survivors, Executors, and Administrators, For use in preparing 2009 Returns. The introduction to Publication 559 mentions that "this publication is designed to help those in charge of the property (estate) of an individual who...
In a comment made March 18, 2010, Senator Chuck Grassley (R-Iowa), the Senate Finance Committee ranking minority member, stated that the Illinois Supreme Court's ruling in Provena Covenant Medical Center v. Illinois Department of Revenue confirms the view that "[t]here...
In Announcement 2010-19, the IRS provides procedures for certain Type III supporting organizations on how to obtain an Internal Revenue Code section 4940 tax refund and to request a ruling that the organization was and continues to be a Type...
Continue reading "IRS Provices Procedures for Trusts Qualifying as Supporting Organizations"
In SEIU v. United States, the Ninth Circuit reversed a district court's reduction of penalties for two tax-exempt labor organizations. The penalties resulted from the organizations' late filing of informational returns. The Ninth Circuit found that the amount of penalty...
If you use a portion of your home for business purposes you may be able to take a home office deduction; Tax Tip 2010-53 offers insight into this important issue: Generally, in order to claim a business deduction for your home,...
Continue reading "Tax Tip 2010-53: What You Need to Know about the Home Office Deduction"
Errors made on tax returns may delay the processing of your tax return, which in turn, may cause your refund to arrive later. Tax Tip 2010-52 lists nine common errors you should avoid to help guarantee that your refund arrives on time:...
Continue reading "Tax Tip 2010-52: Oops! Errors to Avoid at Tax Time"
Did you receive a $250 Economic Recovery Payment in 2009? You'll need to know if you are claiming the Making Work Pay Tax Credit on your 2009 tax return. Only individuals who received income from the Social Security Administration, Department...
The tax filing deadline is approaching. If you don't file your return and pay your tax by the due date you may have to pay a penalty. Tax Tip 2010-51 lists nine facts about the two different penalties you may face if...
Continue reading "Tax Tip 2010-51: Nine Things You Should Know about Penalties"
The Wall Street Journal, in an article titled "Mediators Focus on Elder Issues," reports the mediators are begging to specialize in elder issues, such as disputes over medical care and inheritance. The article notes that families who utilize a mediator...
Carter G. Bishop & Daniel S. Kleinberger have posted an article titled "The Single Member Limited Liability Company as Disregarded Entity: Now You See it, Now You Don't," on SSRN. The abstract is below: The power and complexity of the...
Continue reading "Bishop & Kleinberger: The Single Member LLC as Disregarded Entity"
The United States Court of Appeals for the Second Circuit (the "Court"), in a summary order, affirmed an order by the Tax Court to hold liable an estate for accuracy-related penalties under Section 6662. It found that the Tax Court...
The New York State Department of Taxation and Finance Office of Tax Policy Analysis Taxpayer Guidance Division has issued a statement that provides the steps to effectuate a QTIP election for New York State tax purposes when an estate is...
The IRS and Treasury have updated the 2009-2010 Priority Guidance Plan. See also Updated 2009-2010 Guidance Priority List Contains 31 New Items, 2010 TNT 51-28, March 17, 2010.Posted by Neil I. Rumbak, Associate Editor, Wealth Strategies Journal. Normal 0 false...
Continue reading "IRS Updates 2009-2010 Priority Guidance Plan "
Alan R. Einhorn, Chair of the AICPA Tax Executive Committee, thanked the IRS for issuing interim guidance--Notice 2008-32 and Notice 2008-116--under Section 67 regarding the 2-percent floor on miscellaneous itemized deductions for estates and non-grantor trusts. He then requested similar...
Tax Notes has published an article by Milford B. Hatcher Jr. and Edward F. Koren of Holland & Knight. The article addresses "which types of defined value clauses are likely to prevail and which still involve significant risks of being...
BusinessWeek reports that the House of Representatives will start the process of extending President George W. Bush's tax cuts that will preserve benefits for families earning under $250,000 and let lapse lower rates for high-earners. The House also plans to begin work...
Continue reading "House to Tackle Extension of Bush Tax Cuts in April"
BusinessWeek reports that the House of Representatives will start the process of extending President George W. Bush's tax cuts that will preserve benefits for families earning under $250,000 and let lapse lower rates for high-earners. The House also plans to begin work...
Continue reading "House to Tackle Extension of Bush Tax Cuts in April"
Acting Ways and Means Committee Chair Sander M. Levin spoke to reporters at a question-and-answer session. Levin noted that this year, the Ways and Means Committee will address abusive tax havens, and not deferral. He also mentioned his desire to...
The U.S. Department of Justice has posted an article titled "ADA: Know Your Rights - Returning Service Members with Disabilities." The intro is below:"The ADA is a civil rights law that prohibits discrimination and guarantees that people with disabilities have...
The NAELA Student Journal is now available online. Articles currently posted include the top eight papers submitted to the 2009 student writing competition, including:Its All About the Money: Potential Repercussions of Denying Disabled Veterans the Freedom to Hire an AttorneyBy...
In PLR 201010006, the IRS granted an extension to an individual so that the individual may allocate the individual's exemption from generation-skipping transfer tax to transfers to trusts. See also Extension Granted to Allocate GSTT Exemption, 2010 TNT 49-49, March...
In PLR 201010005, the IRS granted an extension to an executrix of an estate so that the executrix may allocate the decedent's exemption from generation-skipping transfer tax to transfers to trusts. See also Extension Granted to Allocate GSTT Exemption, 2010...
In PLR 201010004, the IRS granted an extension to a couple so that they may allocate their exemption from generation-skipping transfer tax to those portions of the trusts for which they are transferors. See also Extension Granted to Allocate GSTT...
The IRS has requested from the general public and Federal agencies comments regarding Form 706-QDT, Estate Tax Return for Qualifying Domestic Trusts. See also Comments Sought on Qualified Domestic Trust Return, 2010 TNT 49-84, March 15, 2010.Posted by Neil I....
Continue reading "IRS Requests Comments on Qualified Domestic Trust Return"
The IRS has requested comments from the public and other federal agencies on a proposed regulation regarding the election to treat certain revocable trusts as part of an estate. See also Comments Requested on Regs on Revocable Trusts as Part...
In PLR 201010003, the IRS ruled that a couple consisting of a donor and his spouse may allocate their exemption from generation-skipping transfer tax to transfers to an irrevocable trust that the donor created for the benefit of his descendants. ...
Judge Larry J. McKinnney of the United States District Court for the Southern District of Indiana has ruled in Fisher v. U.S. Judge McKinney held that because gifts from parents to children of interests in a limited liability company were...
Continue reading "District Court Opinion by Judge Larry J. McKinney: Fisher v. U.S."
Lee A. Sheppard analyzes recent Form TD F 90-22.1 ("FBAR") regulations proposed by the Department of Treasury's Financial Crimes Enforcement Network. She concludes that under these regulations, opportunities for tax evasion exist. See Lee A. Sheppard, "News Analysis: FBAR Regulations...
In PLR 201010029, the IRS ruled that a private foundation's scholarship awards were not taxable expenditures. The private foundation originally operated a loan program to students who graduated from a specific high school, but later changed the loan program into...
Continue reading "PLR 201010029: IRS Rules Scholarship Awards Are Not Taxable Expenditures"
In PLR 201010028, the IRS determined that an organization incorporated to restore historic properties and to preserve the legacy of a specific individual, among other things, did not qualify for tax exempt status under Internal Revenue Code section 501(c)(3). Membership to the...
Continue reading "PLR 201010028: Tax Exemption Denied to Organization Restoring Historic Property"
In ILM 20101027, the IRS announced that a private foundation withdrew a private letter ruling request on whether an income tax treaty between the United States and the United Kingdom exempted the foundation from the federal excise tax on US...
Ezrea Klein of the Washington Post recently reported on a bipartisan tax reform effort, the first in 25 years, put forth by Senator Ron Wyden (D-Ore.) and Senator Judge Gregg, the ranking Republican on the Budget Committee. The proposed plan reduces...
Continue reading "Washington Post: Congressional Tax Reform Long Overdue"
In a recent report, the Joint Committee on Taxation released estimated revenue effects of the manager's amendment to the Patient Protection and Affordable Care Act, as passed by the Senate on December 24, 2009. Posted by Jenny Robertson, Associate Editor,...
In a recent report, the Joint Committee on Taxation provided technical explanations of the revenue provisions in the American Workers, State and Business Relief Act of 2010, passed by the Senate on March 10, 2010. Title I contains extenstions of...
Continue reading "Joint Committee on Taxation Releases Technicl Explanation of Tax Extenders Bill"
The Center for Excellence in Elder Law at Stetson University College of Law will be presenting an webinar titled "The Fundamentals of Special Needs Trust Administration," on April 23, 2010 at 12:00pm. The half-day webinar is designed for Special Needs...
Continue reading "Stetson Special Needs Trust Administration Webinar on April 23"
Catherine M.A. McCauliff has posted an article titled "Didn't Your Mother Teach You to Share?: Wealth, Lobbying and Distributive Justice in the Wake of the Economic Crisis," on SSRN. The abstract is below:"My article entitled, Didn't Your Mother Teach You...
Continue reading "Catherine McCauliff: Didn't Your Mother Teach You to Share?"
An individual has issued a correspondence to the IRS. The correspondence requests advice in regards to filing a Form TD F 90-22.1 ("FBAR") for a prior year if no understatement of income exists. See also Individual Seeks Guidance on FBAR...
Jay Bruno of Bruno American Tax Services has written a letter to IRS Commissioner Douglas H. Shulman in response to requests for comments in Announcement 2009-51 and Notice 2009-62. This letter criticizes the Treasury Department's enforcement of the filing of...
Gail Chapman Haynes of the Pension Real Estate Association, has issued a correspondence to the IRS and Treasury. The correspondence requests the following from the IRS and Treasury: "(A) The following specific guidance: Normal 0 false false false EN-US X-NONE...
Susan Serota of Pillsbury Winthrop Shaw Pittman LP has written a correspondence to IRS Commissioner Douglas Shulman. The correspondence, which addressed Notice 2009-62, requests guidance clarifying that foreign investments by U.S. qualified retirement plans are not considered financial accounts for...
A Center on Budget and Policy Priorities report examined House Budget Committee Ranking Minority Member Paul Ryan's budget plan. The report claims that Ryan's budget plan: "Provides Largest Tax Cuts in History for Wealthy, Raises Middle Class Taxes, Ends Guaranteed...
Continue reading "Center on Budget and Policy Priorities Examines Ryan's Budget Plan"
The Tax Policy Center has issued Preliminary Revenue Estimate and Distributional Analysis of the Tax Provisions in A Roadmap for America's Future Act of 2010. This document asserts that H.R. 4529, the Roadmap for America's Future Act of 2010, would...
Continue reading "Tax Policy Center: Tax Reform Bill Would be Regressive "
Filing your tax return doesn't have to be stressful. Tax Tip 2010-50 lists five stress-relieving tips to help you: 1. Don't Procrastinate Resist the temptation to put off your taxes until the very last minute. Rushing to meet the filing deadline may...
Continue reading "Tax Tip 2010-50: Five Tips to Avoid Tax Time Stress "
The Internal Revenue Service (IRS) today announced the release of the 2009 IRS Data Book, which is an annual snapshot of IRS activities for a given fiscal year. The report describes activities conducted by the IRS from Oct. 1, 2008,...
There are many e-mail scams circulating that fraudulently use the Internal Revenue Service name or logo as a lure. The goal of the scam - known as phishing - is to trick you into revealing personal and financial information. The...
Continue reading "Tax Tip 2010-49: Five Facts You Need to Know about Suspicious E-mails "
Richard Nenno, Managing Director and Trust Counsel, Wealth Advisory Services, Wilmington Trust Company, wrote a correspondence to the Treasury and IRS. The correspondence requests that the Treasury or IRS issue a notice or regulation exempting application of Section 2511(c) to...
The Joint Committee on Taxation has released its "Estimated Budget Effects of the Revenue Provisions Contained in the President's Fiscal Year 2011 Budget Proposal."See also JCT Estimates Effects of Obama Budget Revenue Provisions, 2010 TNT 45-9, March 9, 2010.Posted by...
Tax Notes has published an article by Stephen M. Breitstone of Meltzer, Lippe, Goldstein & Breitstone, LLP. The article addresses "the practical impact of carried interest legislation on real estate partnerships if enacted in the form currently proposed. This legislation...
The IRS has made the following announcement: Revenue Procedure 2010-20 provides a safe harbor under section 118(a) of the Internal Revenue Code for the treatment of a Smart Grid Investment Grant under 42 U.S.C. 17386 made by the United States...
The U.S. Congress Joint Economic Committee's Weekly Economic Digest reports on the stabilization of the U.S. labor market. It reports that "payrolls essentially unchanged, despite winter storms," "unemployment rate hold steady," and "underutilization persists."Posted by Neil I. Rumbak, Associate Editor,...
Continue reading "U.S. Congress Joint Economic Committee: "Labor Market Continues to Stabilize""
Most taxpayers have a choice of either taking a standard deduction or itemizing their deductions. If you have a choice, you can use the method that gives you the lowest tax. Tax Tip 2010-48 provides information that can be helpful...
Continue reading "Tax Tip 2010-48: Standard or Itemized Deductions"
In a recent letter to IRS Commissioner Douglas Shulman, the American Hospital Association wrote that Schedule H of Form 990, which is used by nonprofit hospitals to report their community benefit activities, does not accurately reflect the activities of multi-hospital...
Continue reading "AHA Urges IRS to Improve Hospital Reporting Form"
The Internal Revenue Service today announced several additional steps it is taking this tax season to help people having difficulties meeting their tax obligations because of unemployment or other financial problems. Listed below are the details for some of the efforts...
Continue reading "IRS Outlines Additional Steps to Assist Unemployed Taxpayers and Others "
The IRS has made the following announcement: Notice 2010-26 designates the Chile earthquake occurring in February 2010 as a qualified disaster for purposes of § 139 of the Internal Revenue Code in the affected areas of Chile. The designation enables...
Taxpayers who pay state or local real estate taxes but don't qualify to itemize their tax deductions, may qualify for an increased standard deduction. This is the last year that the higher standard deduction for real estate taxes is available....
Continue reading "TAX TIP 2010-47: Additional Standard Deduction for Real Estate Taxes "
Rodney D. Chrisman has posted the abstract from an article titled "LLCs are the New King of the Hill: An Empirical Study of the Number of New LLCs, Corporations, and LPs formed in the United States between 2004-2007 and How...
Bloomberg, in an article titled "Business Lobbyists Push to Revive Estate Tax They Tried to Kill," reports that the National Federation of Independent Business and the Associated General Contractors of American are calling on Congress to reinstate the estate tax...
Continue reading "Bloomberg: Business Lobbyists Push to Revive Estate Tax They Tried to Kill"
Heather M. Field has posted an article titled "Explicit Elections in the Federal Income Tax System," 47 Harv. J. on Legis. 21 (2010), on SSRN. The abstract is below: Taxpayer choice pervades the federal income tax system. This choice can be made either...
Continue reading "Heather Field: Explicit Elections in the Federal Income Tax System"
Jeffrey Brown presented a paper titled "Automatic Lifetime Income and Retirement Income Security," today at Northwestern. The presentation was part of Northwestern's Advanced Topics in Taxation Series organized by Tom Brennan and Charlotte Crane. The abstract is below: This paper proposes that...
Continue reading "Jeffrey Brown: Automatic Lifetime Income and Retirement Income Security"
The IRS has made the following announcement: Revenue Procedure 2010-19 provides guidance for individuals who emigrate from Canada and wish to make an election for U.S. federal income tax purposes under paragraph 7 of Article XIII (Gains) of the Convention...
Continue reading "IRS releases Revenue Procedure 2010-19 relating to Canadian emigrants"
Did you pay someone to care for a child, spouse, or dependent last year? If so, you may be able to claim the Child and Dependent Care Credit on your federal income tax return. Tax Tip 2010-46 lists 10 important...
Continue reading "Tax Tip 2010-46: Top Ten Facts About the Child and Dependent Care Credit "
The IRS has asked for public comment on Form 1041. See also Comments Requested on Estate Income Tax Return, 2010 TNT 43-54, March 5, 2010.Posted by Neil I. Rumbak, Associate Editor, Wealth Strategies Journal....
Continue reading "IRS Requests Comments on Estate Income Tax Return"
The ABA Journal reports that many lawyers do not believe that early retirement is an option. Citing retirement benefits and just the pure love of the job, many lawyers are not retiring and in fact, leaving firms like Arnold &...
The ABA Journal reports that due to the recession in the third quarter of 2009, recruiting numbers by U.S. firms on law school campuses have plummeted. However, NALP's Executive Director James Leipold suggests that the worst is behind us, and...
Michael D. Bosasera at the Ohio Trust & Estate Blog, has posted an article on asset protection techniques, including recommendations covering liability insurance, corporate entities, vehicles, and when to act. Please click here for the full post. Posted by Marc...
The IRS has released the following message: Revenue Procedure 2010-14 provides a safe harbor method of reporting gain or loss for certain taxpayers who initiate deferred like-kind exchanges under § 1031 of the Internal Revenue Code but fail to complete...
Continue reading "Revenue Procedure 2010-17: Guidance on Like-Kind Exchanges "
The IRS has released the following message: Notice 2010-24 provides guidance as to the corporate bond weighted average interest rate and the permissible range of interest rates specified under § 412(b)(5)(B)(ii)(II) of the Internal Revenue Code. It also provides guidance...
Continue reading "Notice 2010-24: Guidance on Corporate Bond Weighted Average Interest Rate"
The IRS has released the following message: WASHINGTON -- Massachusetts Tax Attorney Kevin Kilduff was barred from practicing before the Internal Revenue Service for 48 months for failing to file one federal tax return and for filing another five returns...
The Child Tax Credit is a valuable credit that can significantly reduce your tax liability. Tax 2010-45 lists 10 important facts from the IRS about this credit and how it may benefit your family: 1. Amount - With the Child...
Continue reading "Tax Tip 2010-45: Ten Facts about Claiming the Child Tax Credit "
If your mortgage debt is partly or entirely forgiven during tax years 2007 through 2012, you may be able to claim special tax relief and exclude the debt forgiven from your income. Tax Tip 2010-44 lists 10 facts the IRS...
Continue reading "Tax Tip 2010-44: Ten Facts about Mortgage Debt Forgiveness"
The IRS has recently solicited public comments on Form 990, the informational return for tax-exempt organizations. The IRS uses Form 990 to determine whether exempt organizations continue to fulfill the qualifications and requirements for tax exemption and whether the filers...
In a recent letter to IRS Commissioner Douglas Shulman, members of the American Bar Association Section of Taxation proposed 17 examples of program-related investments (PRIs) by exempt organizations. These new examples supplement 19 other examples that the Section of Taxation...
Continue reading "ABA Members Propose Additional Program-Related Investments"
Members of the American Bar Association Section of Real Property, Trust and Estate Law have sent to the IRS comments regarding Notice 2010-19 and its effect on transfers in trust. The comments encourage the IRS to clarify that Section 2511(c)...
Mark Kenny of Union Bank wrote a correspondence to the IRS in response to Notice 2010-19. The correspondence mentions that because charitable remainder trusts ("CRTs") are not grantor trusts, Notice 2010-19 creates an ambiguity in regards to the funding of...
The Court of Federal Claims, in Curtin et al. v. U.S., has dismissed a claim brought by two executors of an estate for the issuance of a replacement check from the IRS for a refund that the two executors claim...
The federal estate tax's great hibernation of 2010 is having a significant impact on the estate taxes of certain states. Indeed, state estate taxes that piggy-back the current federal estate tax are sleeping with it this year. And in some...
Continue reading "Jamie's Corner: State Estate Taxes in 2010"
Steve Akers, Associate Fiduciary Counsel, Bessemer Trust, provides the following summary of Estate of Shurtz v. Commissioner, T.C. Memo 2010-21 (February 3, 2010): "In a case involving the creation of a family limited partnership to hold undivided interests in timberland...
Continue reading "Steve Akers's Summary of Estate of Shurtz v. Commissioner, T.C. Memo 2010-21"
In a reversal of its prior position that medical residents are ineligible for the student exception from FICA taxes, the IRS announced that it will in fact honor the refund claims of residents, universities and hospitals made for tax periods...
Continue reading "IRS to Honor FICA Refund Claims of Medical Residents"
On March 2, 2010, the IRS and SEC announced that they would work together more closely in order to "monitor and regulate the municipal bond market and industry." The two agencies will focus on issues concerning tax-exempt bonds through a...
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On March 2, the IRS and the SEC signed a memorandum of understanding in order to improve compliance with each agency's rules and regulations and to create a committee focused on "policy, procedures, and compliance issues." Tax Analysts contacted practitioners...
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The IRS is challenging compensation paid by the New York Stock Exchange to former chairman and CEO Richard A. Grasso on the basis that the compensation was unreasonable under Internal Revenue Code section 162. While serving as chair of NYSE's...
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You might be eligible for a valuable tax credit. A tax credit is a dollar-for-dollar reduction of taxes owed. Some credits are even refundable, which means you might receive a refund rather than owe any taxes at all. Tax Tip 2010-43 lists five...
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The IRS has released the following message: WASHINGTON -- The Internal Revenue Service and the Securities and Exchange Commission announced that the two agencies agreed to work more closely to monitor and regulate the municipal bond market and industry. IRS...
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The IRS has made an announced a ruling that may change the tax liability for medical residents: WASHINGTON -- The Internal Revenue Service has made an administrative determination to accept the position that medical residents are excepted from FICA taxes based on...
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The IRS has released a message about unclaimed tax refunds; it estimates that nearly $1.3 billion dollars have yet to be claimed by taxpayers for 2006: ...For 2006 returns, the window closes on April 15, 2010. The law requires that...
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Taxpayers looking for tax preparation assistance should look into IRS sponsored, community-based, volunteer tax return preparation programs. Tax Tip 2010-42 lists ten important points about these volunteer programs: 1. The IRS sponsors both the Volunteer Income Tax Assistance and Tax Counseling for the...
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The IRS provides free publications and forms as well as other tax material and information to help taxpayers meet their tax obligations. Tax Tip 2010-41 lists four ways you can get the information you need to file your tax return: 1. IRS.gov The...
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The IRS has released the following message: Eight articles from the winter 2010 issue of the Statistics of Income Bulletin (IRS Publication 1136) are now available. The articles present preliminary data on individual income for tax year 2008; data on...
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The IRS has released the following message: Revenue Ruling 2010-09 announces the rates of interest. Revenue Ruling 2010-09 will appear in Internal Revenue Bulletin No. 2010-13, dated March 29, 2010. Posted by Joshua Hock, Associate Editor, Wealth Strategies Journal...
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Military members and their spouses may be eligible to receive free tax return preparation assistance. The U.S. Armed Forces participates in the Volunteer Income Tax Assistance program and provides free tax advice, tax preparation, return filing and other tax assistance to...
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The New York Times, in an article titled "Nets Will Offer Free Tax Preparation as a Game Promotion," reports that the New Jersey Nets have offered a coupon for free state income tax preparation services to New Jersey fans who...
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Family Business Magazine and Stetson University's Family Enterprise Center are joining together to present a new joint conference, "Transitions: The Changing Environment for Family Companies," to be held April 15-16 at the Celebration Hotel in Celebration, Florida. The conference will...
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The IRS and Treasury have extended and revised rules regarding who must file a TD F 90-22.1, Report of Foreign Bank and Financial Accounts ("FBAR"). In addition, the IRS continued the suspension of filing an FBAR for anyone who is...
The IRS has issued a Notice and request for comments regarding qualified disclaimers of property under Treasury Regulation Section 25.2518-2(b). See also Comments Requested on Regs on Qualified Disclaimers, 2010 TNT 39-98 (March 1, 2010). Normal 0 false false false...
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Citizens for Tax Justice has released its Legislative Agenda for 2010. The Legislative Agenda for 2010 stresses that Congress's refraining from extension of tax cuts and its raising of revenue through various means are necessary for the fairness of the...
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In PLR 201008049, the IRS ruled that a murderer is the designated beneficiary of his victim's IRA, in order to determine the IRA distribution period. In addition, the IRS ruled that it will not penalize the murder victim's stepdaughter, the...
The IRS recently solicited public comments on Treasury Regulation section 1.457-8, which concerns the eligible deferred compensation plans offered by state and local governments under Internal Revenue Code section 457. Comments are due by April 27, 2010. See also 2010...
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The February 2010 issue of Bifocal, Journal of the ABA Commission on Law and Aging is available online at http://tinyurl.com/yh3ccam. In this issue you'll find: -- Advocacy Victory for People with Younger-Onset Alzheimer's Disease Results in Expedited Benefits (by Leslie Fried)...
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