The Wall Street Journal, in an article titled "Swiss Banks Get Tough on Tax-Dodgers," reports that Swiss Banks are increasing their scrutiny of European clients that they suspect may be skirting home-country tax laws. As a direct result of last...
Continue reading "WSJ: Swiss Banks Get Tough on Tax-Dodgers"
According to the California Supreme Court in Steinhart v. County of Los Angeles, 223 P.3d 57 (Calif. 2010), a home changed ownership, for tax purposes, when settlor of revocable intervivos trust that contained the home died. This is true even though the trust continues...
In Issue 2010-19 of e-News for Tax Professionals, the Internal Revenue Service made the following announcement: As a result of changes made by the recently enacted Affordable Care Act, health coverage provided for an employee's children under 27 years of...
In Issue 2010-19 of e-News for Tax Professionals, the Internal Revenue Service made the following announcement: The Internal Revenue Service is requesting membership nominations for (IRPAC), which provides recommendations to IRS leadership on a wide range of information reporting and administration...
Continue reading "IRS Seeks Applications for Information Reporting Advisory Council "
The Planned Giving Design Center has released a message detailing a recent, private ruling by the Internal Revenue Service that, according to the Center, declares: "that a public charity's receipt of commissions in connection with a real estate leasing activity will not be...
Continue reading "Brokerage Commissions Not Unrelated Business Income Says IRS"
The Internal Revenue Service has released Publication 544, Sales and Other Dispositions of Assets for use in preparing 2009 tax returns. In an online announcement, the Planned Giving Design Center, said that Publication 544 includes a "discussion of gain from bargain sales"...
The Planned Giving Design Center has released the following message detailing recent developments in an ongoing ethics scandal: The United States has asked a federal court to permanently bar Philip A. Kaiser, a St. Louis tax lawyer, from promoting several allegedly...
Continue reading "U.S. Sues Missouri Lawyer to Halt Alleged Tax-Fraud Schemes"
ExecSense is hosting the a webinar titled "How and Why to Create a Personal Brand as a Tax Lawyer." For more information and to register for the webinar, visit this page. Posted by Neil I. Rumbak, Associate Editor, Wealth Strategies...
Continue reading "ExecSense Webinar: How and Why to Create a Personal Brand as a Tax Lawyer"
The Wills, Trusts and Estates Prof Blog reports that Random House has released E-Book publishing rights of many of William Styron's books to his family. Posted by Jamie Delman, Associate Editor, Wealth Strategies Journal...
Continue reading "Styron's Family Allowed to Control E-Book Rights"
Christopher Caldwell, of the Financial Times has favorably reviewed Ray Madoff's book, Immortality and the Law: The Rising Power of the American Dead. Per the review, here, Madoff examines the "tightening grip" testators have on resources under current law. See also:...
The Wall Street Journal's Wealth Report has an interesting article on the impact the financial crisis had on America's most affluent citizens. The article discusses calculations by Edward Wolff, an economist at New York University, that indicate the top 1%...
Continue reading "WSJ: Top 1% Increased Their Share of Wealth in Financial Crisis"
Business Week has published an article titled "Mind the Estate Tax Gap" by Amy Feldman. Some people assume that having no estate tax in 2010 is a good thing for the families of the ultra-rich who die in 2010. However,...
The Joint Economic Committee of the U.S. Congress has published its Weekly Economic Digest dated April 28, 2010. The current digest discusses the following:New Home Sales SurgeMixed Results on Home PricesExcluding Aircraft, Durable Goods Orders RisePosted by Wesley J. Bailey,...
Continue reading "JEC Weekly Economic Digest: Hopeful Signs on the Economy"
McGuireWoods reports that a legislation has been introduced in Senate to amend the Fair Labor Standards Act (FLSA) and Social Security Act. The goal of the legislation is to penalize the employers who classify their employees as independent contractors. The...
The April issue of Your ABA has an article discussing the benefits of conducting client feedback interviews and offers tips to consider when developing a client feedback program.Posted by Wesley J. Bailey, Associate Editor, Wealth Strategies Journal....
Continue reading "Client Feedback: You Really Do Need to Know"
If you are one of the many lawyers who desire a better work-life balance then you should read "Making the Case for a Flexible Work Arrangement." The article provides advice and factors you should consider before asking your employer to...
Continue reading "Making the Case for a Flexible Work Arrangement"
The U.S. Tax Court has issued a memorandum that denies innocent spouse relief to a surviving spouse whose husband's estate paid her joint tax liabilities. The Court held that the surviving spouse cannot be treated as the payor of the...
Continue reading "Tax Court: Surviving Spouse Not Allowed Innocent Spouse Relief"
The Congressional Research Service analyzed the estate tax. The analysis reported that the estate tax is responsible for only a small percentage of revenue. It also claimed that proposed revisions to estate tax rates and exemption amounts will have little...
Continue reading "Congressional Research Service Analyzes Effects of the Estate Tax"
The IRS has released the following message: Workers who lose their jobs during April and May may qualify for a 65-percent subsidy on their COBRA health insurance premiums, according to the Internal Revenue Service. The American Recovery and Reinvestment Act...
Continue reading "COBRA Subsidy Eligibility Period Extended to May 31 "
The IRS has released a message discussing the Affordable Care Act's changes to the tax code: As a result of changes made by the recently enacted Affordable Care Act, health coverage provided for an employee's children under 27 years of...
The IRS has released the following message: REG-134235-08 provides notice of public hearing on a notice of proposed rulemaking providing guidance to tax return preparers on furnishing an identifying number on tax returns and claims for refund of tax that...
The Aspen Family Business Group will host a webinar titled "Introduction to Family Business," on May 1, 2010. Sam H. Lane of the Aspen Business Group will present "[a]n overview of the issues facing family business owners and the approaches...
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Joe Paul of the Aspen Family Business Group has posted an article titled "An Assessment Story: Bringing Hidden Family Dynamics to Light." The article highlights the importance of amily communication in estate planning, especially when substantial assets are involved. Mr....
Your ABA has an article discussing ethical considerations that arise when employing new technologies in legal marketing.Posted by Wesley J. Bailey, Associate Editor, Wealth Strategies Journal....
Continue reading "Marketing Using Web 2.0 Technologies Raises Ethics Concerns and Questions"
You might want to check out the April issue of Your ABA which has an article titled "Eleven Things That Annoy Clients the Most."Posted by Wesley J. Bailey, Associate Editor, Wealth Strategies Journal....
Continue reading "Eleven Things That Annoys Clients the Most"
CCH Reports that IRS released a draft of Schedule UTP, Uncertain Tax Positions Statement that should be used by certain taxpayers to report uncertain tax positions. The taxpayers with uncertain positions that affect their income tax liability would be required...
Continue reading "CCH: IRS Releases Draft Schedule UTP, Uncertain Tax Position Statement"
Forbes has published an article titled "Estate Tax Could Come Back With Sharp Bite" by Deborah L. Jacobs. In the article, Jacobs focuses the discussion on the unpleasant situation that many families will find in 2011 when the federal estate...
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Due to unforeseen circumstances, a previously scheduled Webinar on "New Developments in Foreign Trusts and Foreign Account Reporting" presented by Moses & Singer LLP has been postponed to TUESDAY, MAY 11, 2010 at 2:00 p.m. ET The Webinar will review provisions of...
McGuireWoods reports that for the taxable years beginning on and after January 1, 2013, a new 3.8% surtax will be imposed on the passive investment income of certain taxpayers, including trusts and estates. New section 1411 of the Internal Revenue Code was...
In an article titled "Is It Ethical to Draft a Will for a Client You Have Never Met in Person," Nicole Garton-Jones explores the ethical as well as socioeconomic nuances of online legal representation. Ms. Jones argues that technological advances...
Continue reading "Is it Ethical to Draft a Will for a Client You Have Never Met in Person?"
Tax Notes has published an article by Wendy C. Gerzog, Professor at University of Baltimore School of Law. The article examines Estate of Black v. Commissioner and family limited partnership issues in it. See Wendy C. Gerzog, "FLP in...
Continue reading "Tax Notes Article by Wendy C. Gerzog: "FLP in the Black""
The IRS provided the following emailed advice on income distribution deductions:"UILC: 661.01-00, 662.00-00 Release Date: 4/23/2010 ID: CCA_2010032614491121 Office: * * * From: * * * Sent: Friday, March 26, 2010 2:49:14 PM To: *...
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The IRS has submitted various forms for OMB review and comments. See also Forms Submitted for OMB Review, 2010 TNT 79-127, April 26, 2010 Posted by Neil I. Rumbak, Associate Editor, Wealth Strategies Journal....
Continue reading "IRS Submits Various Forms for OMB Review and Comments"
An article authored by Donald T. Rocen, a former IRS Deputy Counsel (Operations), titled "The IRS Sets its Sight on the Wealthy," and published in the CCH Wealth Planning Advisor, has been made available by Miller & Chevalier on their website. The...
Continue reading "Don Rocen: The IRS Sets its Sight on the Wealthy"
In PLR 201016006, the IRS granted an extension of time to a personal representative of an estate to make an alternate valuation election under Section 2032. See also Extension Granted to Make Alternate Valuation Election, 2010 TNT 79-70, April 26,...
Continue reading "IRS Allows Personal Representative Extension to Make Alternate Valuation Election"
In PLR 201010633, the IRS ruled that a proposed trust reformation will not violate Section 664. In addition, the trust reformation will not affect the trust's qualification as a charitable remainder unitrust if it otherwise meets the requirements of Section...
Continue reading "PLR 201016033: Tax Consequences of Proposed Trust Reformation Provided"
Miller Chevalier presents an ERISA University Teleconference on "Protecting Yourself From Employer Stock Litigation." THURSDAY, MAY 13, 2010 at 1 p.m. EST The Teleconference will discuss class action participant lawsuits and ways plan fiduciaries can protect themselves from potential...
The United States District Court for the Southern District of Illinois granted summary judgment to the United States on its claim to foreclose on a couple's property. The Court held that the trust to which the couple transferred property was...
The Register of Wills would like you to know that the Probate Division website has a new look and the Live Chat Pilot Project launches today!! Information on the Live Chat Pilot Project (taken from the Court's website with permission)...
Continue reading "DC Register of Wills Launches New Live Chat "
On its face, Medicaid doesn't seem to have a whole lot do with estate planning or wealth management. It is, after all, a needs-based (or means-tested) government benefit program. And even after Obama-care's Medicaid eligibility expansion takes effect, patients will...
Continue reading "Jamie's Corner: Estate Planning , Health Care Reform, and Medicaid"
NPR published an article titled "There May Be a Tax Upside To Dying in 2010." The article discusses the confusion surrounding the federal estate tax in 2010 and highlights the fact that as more time passes in 2010 it is...
Continue reading "NPR: There May Be a Tax Upside to Dying in 2010"
Venable, LLP, in an article by Charles Kolstad and Rory Cohen titled: "HIRE Act Takes a Higher Toll on Foreign Entities," discusses new rules and burdens on the foreign institutions and investors with US investments. These new requirements are result...
Continue reading ""Hire Act Takes a Higher Toll on Foreign Entities""
The Senate Budget Committee voted to pass a budget resolution for 2011. Budget Committee Chair Kent Conrad expects the House also will pass its own budget resolution. Several amendments also were approved. Republicans gained approval of a few of their...
Continue reading "Tax Notes Article: Detailed Budget Resolution Passed"
A report from Citizens for Tax Justice claims that Republican proposals to make permanent the tax cuts enacted under Bush are unfair.Posted by Neil I. Rumbak, Associate Editor, Wealth Strategies Journal....
Republicans on the Senate Budget Committee issued a release criticizing Obama's budget. Posted by Neil I. Rumbak, Associate Editor, Wealth Strategies Journal....
The New York Times, in an article by Stephanie Strom titled: "One-Fourth of Nonprofits Are to Lose Tax Break," reported that as of midnight on May 15 as many as a quarter of nonprofit organizations may lose their tax...
Continue reading "NYT: One-Fourth of Nonprofits Are to Lose Tax Break"
Ranking Member of the Senate Budget Committee Judd Gregg issued a release that criticizes the Senate Democrats' fiscal year 2011 budget resolution. Posted by Neil I. Rumbak, Associate Editor, Wealth Strategies Journal....
The IRS has requested comments on Rev. Proc. 2004-18, which deals with average area purchase price safe harbors and nationwide purchase prices under Section 143.Posted by Neil I. Rumbak, Associate Editor, Wealth Strategies Journal....
The Senate Budget Committee, in its Chair's Mark, "cuts spending and deficits, while making critical investments to strengthen the nation's economic recovery and promote long-term economic growth. It cuts spending as a share of the economy by 11 percent. It...
The American Action Forum provided an outline that provided suggested for tax reform including "replacing the income, corporate, payroll and estate taxes with a single, simple taxwith a broad base and only two rates."See also American Action Forum Outlines Principles...
The American Action Forum issued a report that analyzed tax policies and the tax system. Posted by Neil I. Rumbak, Associate Editor, Wealth Strategies Journal....
Continue reading "American Action Forum Analyzes Tax System"
Senate Budget Committee Ranking Minority Member Judd Gregg delivered remarks at the Senate Budget Committee Mark-Up of the Proposed Fiscal Year 2011 Budget Resolution. Posted by Neil I. Rumbak, Associate Editor, Wealth Strategies Journal....
Forbes has posted an article on its website titled "Family Swindled By Madoff Fights $61 Million IRS Bill," which reports on a dispute between the family of the late Norman F. Levy and the IRS. The IRS has valued the Levy...
Continue reading "Forbes: Family Swindled By Madoff Fights $61 Million IRS Bill"
The U.S. Tax Court has issued a memorandum that holds that an individual's rental of a cabin did not constitute rental activity under Section 469. As a result, he may not deduct Schedule E expenses. In addition, inclusion of the...
Continue reading "Tax Court: Individual Cannot Deduct Rental Expenses"
Joshua E. Perry has posted an article titled "A Missed Opportunity: Health Care Reform, Rhetoric, Ethics and Economics at the End of Life," on SSRN. The abstract is below: "This article argues that congress's failure to include a provision for...
Senate Budget Committee ranking minority member Judd Gregg criticized inclusion of reconciliation instructions, which may allow the Senate "to bypass filibusters on legislation that reduces the deficit and is restricted to provision that raise or reduce revenue," in the initial...
A survey conducted by RSM McGladrey Inc. found "significant concern among small and mid-sized companies about potential tax increases." Posted by Neil I. Rumbak, Associate Editor, Wealth Strategies Journal....
The IRS addressed the following letter to an individual who requested advice on whether the individual qualified for the first-time homebuyer credit:" Normal 0 false false false EN-US X-NONE X-NONE MicrosoftInternetExplorer4 Normal 0 false false false EN-US X-NONE X-NONE MicrosoftInternetExplorer4...
The IRS issued to Congressman Tim Holden the following letter in response to Congressman Holden's constituents' inquiry about whether they could claim a first-time homebuyer credit for a home they purchased from their parents: Normal 0 false false false EN-US...
The IRS wrote to Congressman Tom Latham the following letter, which, in response to a question from Congressman Latham's constituents, provides a general explanation of Section 36 and the homebuyer tax credit: Normal 0 false false false EN-US X-NONE X-NONE...
Continue reading "IRS Provides General Explanation of Section 36 and the Homebuyer Tax Credit"
House Ways and Means Committee Chair Sander M. Levin delivered at the National Press Club remarks regarding economic recovery and tax reform. Posted by Neil I. Rumbak, Associate Editor, Wealth Strategies Journal....
Dan Danner, President and CEO of the National Federation of Independent Business, issued a statement expressing concern about tax compliance for small businesses. Posted by Neil I. Rumbak, Associate Editor, Wealth Strategies Journal....
In a Washington Post column titled "Goldman Sachs and the Revolt of the Lower Upper Class," Matt Miller discusses his view that the SEC's fraud case against Goldman Sachs may be the first sign of revolt by the "lower upper...
Continue reading "Washington Post: Goldman Sachs and the Revolt of the Lower Upper Class"
The New York Law Journal has posted Guest vs. Hansen, which was decided on April 20, 2010. The U.S. Court of Appeals for the Second circuit held that an administrator who is a beneficiary of an estate may represent the...
Steve Akers, Associate Fiduciary Counsel, Bessemer Trust, provides the following summary of Holman v. Commissioner 105 AFTR 2d ¶ 2010-721 (8th Cir. April 7, 2010): The Eighth Circuit Court of Appeals has affirmed the Tax Court's decision (at 130 T.C....
Moses & Singer LLP presents a Webinar Program on "New Developments in Foreign Trusts and Foreign Account Reporting." WEDNESDAY, APRIL 28, 2010, 2:00-3:00 p.m. ET The Webinar will review provisions of the HIRE Act and proposed regulations on foreign bank...
McGuireWoods published its first installment in a series of WorkCite articles, which will help employers understand Patient Protection and Affordable Care Act, as well as its companion bill, the Health Care and Education Reconciliation Act of 2010. This initial installment provides...
Continue reading "McGuireWoods Healthcare Reform Guide: Installment No. 1"
The current issue of Financial Advisor includes an article titled "Estate Tax Audits Tough As Ever." Despite the current state of confusion surrounding the estate tax, the article points out that the IRS continues to aggressively audit estate tax returns...
Continue reading "Financial Advisor: Estate Tax Audits Tough As Ever"
The U.S. Department of Justice announced that that seven UBS clients were charged in hiding assets in Swiss bank accounts.Posted by Neil I. Rumbak, Associate Editor, Wealth Strategies Journal....
Continue reading "U.S. DOJ Announces Charges Against UBS Clients"
A criminal information has been filed against UBS account holder Federico Hernandez. The criminal information alleges that Mr. Robbins used sham corporations to hide his accounts with UBS AG, filed false tax returns, and failed to file Forms TD F...
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A criminal information has been filed against UBS account holder Jules Robbins. The criminal information alleges that Mr. Robbins used a sham corporation to hide his accounts with UBS AG, filed false tax returns, and failed to file Forms TD...
Continue reading "Criminal Information Filed Against UBS Account Holder"
A federal grant jury has indicted Richard Werdiger for conspiracy to defraud the United States, for filing false tax returns, and for failure to file Forms TD F 90.22.1, Reports of Foreign Bank and Financial Accounts. Posted by Neil I....
A federal grant jury has indicted Ernest Vogliano for conspiracy to defraud the United States, for filing false tax returns, and for failure to file Forms TD F 90.22.1, Reports of Foreign Bank and Financial Accounts. Posted by Neil I....
A federal grant jury has indicted Sybil Nancy Upham for conspiracy to defraud the United States, for filing false tax returns, and for failure to file Forms TD F 90.22.1, Reports of Foreign Bank and Financial Accounts. Posted by Neil...
A federal grant jury has indicted Shmuel Sternfeld for conspiracy to defraud the United States, for filing false tax returns, and for failure to file Forms TD F 90.22.1, Reports of Foreign Bank and Financial Accounts. Posted by Neil I....
The U.S. government has filed a complaint against Kenneth Heller for tax evasion and failure to Forms TD F 90-22.1, Report of Foreign Bank and Financial Accounts. Posted by Neil I. Rumbak, Associate Editor, Wealth Strategies Journal....
The American Bar Association Section of Taxation submitted a letter to Senator Max S. Baucus and Senator Charles E. Grassley. The letter requested that the Senate Finance Committee hold a hearing on wealth transfer taxes. See also ABA Tax Section...
In PLR 201015003, the IRS ruled that an estate is allowed to elect special use valuation under Section 2032A for farm property, that the estate may elect to have the farm property treated as Qualified Family-Owned Business Interest under Section...
The American College of Trust and Estate Counsel Journal has published an article titled "The Preferred Partnership GRAT - A Way Around the ETIP Issues?" by N. Todd Angkatavanich and Karen E. Yates. The editor provides the following synopsis of...
Continue reading "ACTEC Journal: The Preferred Partnership GRAT - A Way Around the ETIP Issues?"
The Wealth Counsel presents a Complimentary Live Online Meeting with Webinar Replay followed by a Live Q & A on "Now What? Practical Solutions for Estate Tax Planning in 2010 and Beyond." FRIDAY, APRIL 23, 2010, 1:00-2:00 p.m. EDT To register,...
In PLR 201015025, the IRS ruled that trust modifications in a proposed agreement will not prevent trusts from maintaining their generation-skipping transfer tax exempt status. In addition, the trust modifications usually will not cause any portion of the assets of...
The United States District Court for the Western District of Michigan held that federal tax liens against a prior owner remain on property purchased in a county tax foreclosure proceeding.See also Federal Tax Liens Remain on Property Sold in County...
Revenue Ruling 2010-12 provides various prescribed rates for federal income tax purposes for May 2010 (the 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....
Moses & Singer, LLP has posted its Spring 2010 newsletter that covers the following topics: New "HIRE" Act Impacts Foreign Reporting Grantor Retained Annuity Trusts: Here Today, Gone Tomorrow? A Cautionary Tale Regarding Will Executions Pushing Back on Child Support...
Continue reading "Wealth Preservation Advisor: An Estate Planning Update"
The Joint Economic Committee of the U.S. Congress has published its Weekly Economic Digest dated April 15, 2010. The current digest discusses the following:Manufacturing and service sectors expanding160,000 non-farm payroll jobs addedFed discusses short- and long-term economic challengesPosted by Wesley...
Most taxpayers have already filed their federal tax returns, but many may still have questions. Tax Tip 2010-74 provides general information about refund status, recordkeeping, mistakes and what to do if you move: -Refund Information You can go online to check...
Continue reading "Tax Tip 2010-74: Here's What Happens After You File "
The IRS has released the following message: Notice 2010-30 provides an extension of time to pay tax until October 15, 2010 to civilian spouses of military service members working in American Samoa, Guam, the Northern Mariana Islands, Puerto Rico, or...
The Internal Revenue Service sends millions of letters and notices to taxpayers every year. Tax Tip 2010-72 lists eight facts taxpayers should know about IRS notices - just in case one shows up in your mailbox: 1. Don't panic....
Continue reading "Tax Tip 2010-73: Don't Panic! Eight Things to Know If You Receive an IRS Notice "
IRS Commissioner Douglas Shulman provided written testimony before the House Small Business Committee. In the written testimony, Commissioner Shulman expressed the IRS's ongoing commitment to assist small business. See also Shulman Describes IRS Assistance to Small Businesses, 2010 TNT 72-42,...
Continue reading "IRS Commissioner Stresses IRS's Commitment to Assist Small Businesses"
Tax Notes has published an article by Professor Stephen B. Cohen. This article replies to Professor Douglas Kahn's assertions of the correctness of Supreme Court Chief Justice John Roberts's criticism of Supreme Court Justice (but, at the time, Judge, on...
Tax Notes has published an article by Joseph E. Tierney III, Shareholder at Meissner Tierney Fisher & Nichols S.C. The article explains that Section 2511(c) was intended to stop incomplete gifts, which before the repeal of the estate tax were...
Reuters has an interesting article on the U.S. investigation of UBS. The article outlines the negotiations between top UBS executives and the U.S. and provides details concerning the bank's financial situation which led to the settlement in which UBS agreed...
Continue reading "Reuters: How the U.S. Cracked Open Secret Vaults at UBS"
A press release from House Majority Leader Steny Hoyer praised Democratic involvement in the American Recovery and Reinvestment Act and lists tax benefits that the American Recovery and Reinvestment Act provides. Posted by Neil I. Rumbak, Associate Editor, Wealth Strategies...
Joshua C. Tate, assistant professor at Southern Methodist University, Dedman School of Law, published an interesting article in the Georgia Law Journal titled "Immortal Fame: Publicity Rights, Taxation, and the Power of Testation" (available on SSRN). In the article, Tate...
Continue reading "Tate: Immortal Fame: Publicity Rights, Taxation, and the Power of Testation"
The ABA Journal, in an article titled "Virtual Offices May Violate Ethics Rules, New Jersey Opinion Says," highlights the warning that attorneys who enter into the time-sharing arrangements known as "virtual offices," and hold out these offices as their principal...
Continue reading "New Jersey Virtual Offices May Violate Ethics Rules "
On April 5, 2010, ABA Journal reporters moderated an audio chat between chief legal officers and top law firms leaders. This discussion focused on the use of the alternative billing practices as alternative to billable hour. Posted by Mariya Link Associate Editor,...
You can make a change or an adjustment to a tax return you've already filed by filing an amended return. Tax Tip 2010-72 lists 10 facts about amending your federal tax return: 1. If you need to amend your tax return, use Form...
Continue reading "Tax Tip 2010-72: Ten Facts about Amended Returns "
The U.S. Department of Justice said in a release that Harry Abrahamsen has pleaded guilty to failure to file a Report of Foreign Bank or Financial Accounts.Posted by Neil I. Rumbak, Associate Editor, Wealth Strategies Journal....
Jeffery L. Kwall, professor at Loyola University Chicago School of Law, published an article in the upcoming issue of the Indiana Law Journal titled "When Should Asset Appreciation Be Taxed?: The Case for a Disposition Standard of Realization" (available on...
In PLR 201014044, the IRS ruled that if certain conditions are met, Section 2702(a)(1) and 2702(a)(2) will not apply to the trust modification at issue.See also IRS Addresses Gift Tax Consequences of Proposed Trust Modification, 2010 TNT 69-52, April 12,...
Continue reading "PLR 201014044: Modification to Trust not Subject to Section 2702"
In PLR 201014032, the IRS granted a married couple an extension to allocate the married couple's generation-skipping transfer tax exemption to a transfer to a trust. See also Extension Granted to Allocate GSTT Exemption, 2010 TNT 69-51, April 12, 2010.Posted...
Continue reading "PLR 201014032: Extension Granted to Allocate GSTT Exemption to Transfer to Trust"
In PLR 201014043, the IRS ruled that the judicial reformation of a trust to delete compliance with Section 170(b)(1)(A) as a requirement of eligibility to be a charitable remainder beneficiary under the trust will not cause the trust to fail...
Continue reading "PLR 201014043: Judicial Reformation of Trust Does Not Affect CRUT Status"
There are many records you have that may help document items on your tax return. You'll need this documentation should the IRS select your return for examination. Tax Tip 2010-71 lists five tips from the IRS about keeping good records. 1....
Continue reading "Tax Tip 2010-71: Five Tips for Great Record-Keeping "
With the tax filing deadline close at hand, Tax Tap 2010-70 offers 10 tips for those still working on their tax returns: 1. File Electronically Consider filing electronically instead of using paper tax forms. If you file electronically and choose to have...
Continue reading "Tax Tip 2010-70: Ten Last Minute Filing Tips"
If you can't meet the April deadline to file your tax return, you can get an automatic six month extension of time to file from the IRS. Tax Tip 2010-69 lists 7 facts about filing an extension: 1. Extra time to file...
Continue reading "Tax Tip 2010-69: Seven Things about Getting More Time to File your Tax Return "
The American Recovery and Reinvestment Act of 2009 created the First-Time Homebuyer Tax Credit: there is still time to claim this credit on your 2009 tax return. If you purchased or entered into a binding contract to purchase a home in 2009 or...
Continue reading "Special Edition Tax Tip 2010-05: Top 10 First-Time Homebuyer Credit Tax Tips"
People who owe taxes but can't pay the full amount owed by the April deadline should still file their return on time and pay as much as they can to avoid penalties and interest. If you can't pay the full...
Continue reading "Tax Tip 2010-68: Three Ways to Pay Your Federal Income Tax"
Will you be making a payment with your federal tax return this year? If so, you might benefit from taking a look at Tax Tip 2010-67 which lists 10 points about making tax payments correctly: 1. Never send cash! 2. If you file...
When you invest in energy-efficient products, you may be saving money on both your energy bills and your tax return. Tax Tip 2010-66 lists six energy-related tax credits created or expanded by the American Recovery and Reinvestment Act of 2009: 1....
Continue reading "Tax Tip 2010-66: Going Green May Reduce Your Taxes "
When you invest in energy-efficient products, you may be saving money on both your energy bills and your tax return. Tax Tip 2010-66 lists six energy-related tax credits created or expanded by the American Recovery and Reinvestment Act of 2009: 1....
Continue reading "Tax Tip 2010-66: Going Green May Reduce Your Taxes "
In PLR 201014045, The IRS ruled income from a trust that provides health benefits to retired employees of an entity that is funded by the state excludable under Section 115 from gross income. It also ruled that no requirement exists...
The United States District Court for the Southern District of Mississippi, Southern Division, in in the Matter of the Estate of Jerry Wayne Young, Sr., Deceased, dismissed an estate's objection to an IRS proof of claim in regards to its...
Continue reading "Lower Federal Court Agrees with IRS that Tax Liens Against Estate Valid "
The Heritage Trust and Estates Newsletter published an article titled "The Art of Donating Art" by Joy Berus. In the article, Berus discusses the tax benefits that may arise when making a charitable contribution of art and provides twelve steps...
Continue reading "Heritage Trust & Estates Newsletter: The Art of Donating Art"
Tom Daley has written a letter to the editor of Tax Analysts in response to recent commentary on Delaware Incomplete Nongrantor Trusts ("DING Trusts") by Tax Analysts columnist David Cay Johnston. Daley explains how an application of Section 2511(c)...
Continue reading "Letter to Tax Notes Editor Critiques Previous Commentary on DING Trusts"
The IRS has released a number of rulings on whether or not scholarship awards made through a private foundation's scholarship program are taxable expenditures. In PLR 201014069, recipients of the scholarship had to establish a substantial connection to a specific...
Continue reading "IRS Releases Multiple Rulings on Scholarship Awards"
In PLR 201014041, the IRS granted an extension of time to make an election under Internal Revenue Code section 168(h) not to be treated as a tax-exempt controlled entity to the subsidiary of a nonprofit organization. According to the ruling,...
Continue reading "PLRS 201014041: IRS Grants Extension for Tax-Exempt Entity Election"
The IRS provides an appeals system for those who do not agree with the results of a tax return examination or with other adjustments to their tax liability. Tax Tip 2010-65 lists seven points about your appeal rights: 1....
Continue reading "Tax Tip 2010-65: Seven Important Facts about Your Appeal Rights "
The Taxpayer Advocate Service is an independent organization within the Internal Revenue Service whose employees assist taxpayers who are experiencing economic harm, who are seeking help in resolving problems with the IRS, or who believe that an IRS system or...
Continue reading "Tax Tip 2010-64: Seven Things to Know About the Taxpayer Advocate Service "
The Taxpayer Advocate Service is an independent organization within the Internal Revenue Service whose employees assist taxpayers who are experiencing economic harm, who are seeking help in resolving problems with the IRS, or who believe that an IRS system or...
Continue reading "Tax Tip 2010-64: Seven Things to Know About the Taxpayer Advocate Service "
The IRS has released Publication 536, Net Operating Losses (NOLs) for Individuals, Estates and Trusts for use in preparing 2009 returns.See also IRS Releases Publication on Net Operating Losses, 2010 TNT 69-29, April 9, 2010.Posted by Neil I. Rumbak, Associate...
A Congressional Research Service report reviews tax reform proposals in the 111th Congress. See also CRS Reviews Tax Reform Proposals in 111th Congress, 2010 TNT 68-18, April 8, 2010. Posted by Neil I. Rumbak, Associate Editor, Wealth Strategies Journal. Normal...
Tax Analysts has reported that David Gannaway, director in the Litigation and Corporate Financial Advisory Services Group at Marks Paneth & Shron LLP, told Tax Analysts that U.S. taxpayers undergoing voluntary disclosures may want to challenge the 20% penalty to...
Daniel Gross, a senior editor at Newsweek, wrote an article published in the latest issue of Columbia Law School Magazine titled "The Estate Tax Mess." In the article, Gross discusses the history of the estate tax and the factors leading...
Continue reading "Columbia Law School Magazine: The Estate Tax Mess"
The U.S. Court of Appeals for the Eighth Circuit affirmed a Tax Court ruling that when a couple that gifted to their children family limited partnership shares, Section 2703 applies. In addition, the Court held that for valuation purposes, restrictions...
Continue reading "Eight Circuit Affirms Tax Court's Ruling on Valuation of Family LP Shares"
The Wealth Counsel Quarterly presents a complimentary webcast on "Succession Planning for Farmers, Ranchers and Vintners - Why It's Important to the Nation's Food Supply." WEDNESDAY, APRIL 28, 2010, 1:00-2:10 p.m. EDT Information on how to register can be found here....
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The United States Department of Justice issued a release that highlights its tax enforcement results for 2009. See also IRS Release Details Fiscal 2009 Tax Enforcement Efforts, 2010 TNT 67-24, April 8, 2010. Posted by Neil I. Rumbak, Associate Editor,...
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Loeb & Loeb has published the High Net Worth Family Tax Report, Vol. 5 No. 1. The report discusses current tax issues that high net worth individuals should be aware of, including pending legislation that would make GRATs less favorable;...
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Jefferson P. VanderWolk has posted an article titled "The New World of Tax Information Exchange," on SSRN. The abstract is below:"The smaller financial centers such as Switzerland, Liechtenstein, Hong Kong and other low-tax jurisdictions have no realistic choice but to...
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Forbes has published an article by Robert Wood titled "Ten Facts About Tax Expatriation." The ten facts listed by Mr. Wood are:1. Uncle Sam taxes income worldwide2. Expatriating means really leaving3. The old 10-year window is closed 4. Big changes...
The IRS has recently posted on its website a FAQ about the annual reporting requirements for exempt organizations. Topics covered include filing responsibilities, exceptions to the filing requirement, requirements for small tax-exempt organizations, results from failure to file the annual...
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In a letter to the Treasury, the Council on Foundations submitted suggestions for the authorization of centralized equivalency determination repositories (EDIR). According to the Council, charities operating overseas would greatly benefit from centralized EDIR, and the IRS would be able...
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The AALU discusses federal estate tax reform in its recently published Washington Report titled Update on Estate Tax Reform: Developments and Dynamics. The report addresses the current state of federal estate tax reform and examines several factors which continue to...
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In Bellco Credit Union v. United States, the United States District Court for the District of Colorado ruled on the liability of a tax-exempt credit union for unrelated business income tax. Three specific products offered by Bellco Credit Union were at issue:...
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The Department of the Treasury recently submitted a report to Congress examining charity-owned life insurance arrangements. The report analyzes federal tax law implications of charity-owned life insurance arrangement under existing law, and identifies potential conflicts with the organizational and operational...
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In response to Notice 2009-1, which relates to qualified tuition progeam accounts, an individual asked that provisions in the notice allowing for investors to change investment strategies twice per calendar year be made permanent, rather than the provisions being limited...
In William R. Klauer v. Commissioner (T.C. Memo. 2010-65), the Tax Court held that the step transaction doctrine did not apply to a transfer of land from an S corporation manufacturing company to a non-profit trust, and therefore the S...
The Wall Street Journal reports that Congress may extend a provision allowing taxpayers age 70 ½ or older to transfer as much as $100,000 from their individual retirement accounts to a charity of their choice without having that transfer included...
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The American Bar Association Section of Taxation, in the following April 5, 2010, letter to the Senate Finance Committee and to the House Ways and Means Committee, addressed the urgency of Congress's attention to the estate and generation-skipping transfer taxes:...
Tax Notes has published an article by Calvin H. Johnson of the University of Texas at Austin School of Law. The article examines and critiques common trust funds, and suggests solutions to their problems, including a repeal of their form.See...
Tax Notes has published an article by Amourae Riggs, a student at the Woodbury School of Business at Utah Valley University and Sheldon R. Smith, a professor of accounting at the Woodbury School of Business at Utah Valley University. The...
Bloomberg, in an article titled "U.S. Wealthy Lack Loopholes to Offset Obama's Taxes," reports on the tax implications of the recently passed health care legislation on high income individuals. The article quotes wealth management professionals who state that there are...
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Brian Galle has posted an article titled "Conditional Taxation and the Constitutionality of Health Care Reform" 119 Yale L.J. Online ___ (2010), on SSRN. The abstract is below: "This brief essay argues that the recently-enacted tax on individuals who fail...
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On April 5, 2010, the American Bar Association Section of Taxation sent a letter to members of Congress urging them "to address the unusual status of the federal estate and generation-skipping transfer (GST) taxes in 2010 and 2011." In the...
Investment News has published an article titled "Wealthy Might Have to Kiss Their GRATs Goodbye" by Hillary Johnson. In her article, Johnson discusses how the Small Business and Infrastructure Jobs Tax Act of 2010 would make grantor-retained annuity trusts (GRATs)...
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McGuireWoods reports that the IRS extended no "unbundling" of fiduciary fees treatment to tax years before January 1, 2010 (Notice 2010-32). The trustees would be able to continue to deduct their entire amount of "bundled" fees without regard to...
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In a recent tax alert, Miller and Chevalier Chartered reports on the codification of the economic substance doctrine as part of the Health Care and Education Reconciliation Act of 2010. The tax alert provides an overview of the doctrine and...
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In PLR 201013072, the IRS ruled that a private foundation's ownership of stock in a for-profit corporation whose trade or business did not substantially relate to the exempt purpose of the private foundation did not constitute excess business holdings for...
In PLR 201013033, the IRS ruled that the transfer of a decedent's IRA by the decedent's estate into a trust, followed by the transfer of the IRA by the trust to a charity, did not constitute a transfer within the...
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The New York Law Journal has posted Matter of Flamenbaum, which was decided on March 30, 2010. The Vorderasiatisches Museum of the Federal Republic of Germany filed a claim against Riven Flamenbaum for the return of an ancient gold tablet,...
In PLR 201013065, the IRS ruled that the transfer of assets by one private foundation to another private foundation classified as a trust would not result in voluntary termination of the transfering foundation, that the trust would not be treated...
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In a recent study published in the New England Journal of Medicine, researchers studied the trajectories of disability in a number of elderly patients and compared those trajectories to the causes of death. The researchers concluded that in most cases,...
Professor Richard Schmalbeck and Professor Jay Soled write in the New York Times that tax deductions are ruining baseball for working-class fans. For example, over the past two decades, the average ticket price for a Chicago Cubs game has increased 265 percent....
Americans for a Fair Estate Tax (AFET) has published a Statment of Principles for Estate Tax Legislation. The statement argues that estate tax revenue serves vital purposes and that the tax should be permanently reinstated at no less 45% for...
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In PLR 201013027, the IRS ruled that when new trusts are created from GSTT exempt trusts and distributions are made from those new trusts to beneficiaries, those distributions are still GSTT free. The Service cites 26.2601-1(b)(4)(i)(A) for the proposition that...
In PLR 201013017, the IRS ruled that a settlement agreement dividing trusts will cause neither loss of GSTT exemption nor gift tax liability. The Service notes that under 26.2601-1(b)(4)(i)(B), a court approved settlement of a bona fide issue regarding trust...
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In PLR 201013002, the IRS ruled the transfer tax consequences of the exercise of a POA. The service determined that exercise of the POA will not cause the property subject to the power to be included in the gross estate...
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In PLR 201013030, the IRS ruled that a proposed division and subsequent merger of a trust will not be taxable under section 1001, will not be subject to the gift tax, and will not affect the trust's GST exemption. Posted...
In PLR 201013033, the IRS ruled that when Decedent's IRA is transferred from the estate to a trust and then from the trust to a charity, no 691(a)(2) transfer has occurred. Posted by Jamie Delman, Associate Editor, Wealth Strategies Journal...
McGuireWoods reports that the IRS can now legally withdraw a federal tax lien after it has been released, if "doing so would be in the best interests of the taxpayer and the United States." This announcement could significantly benefit taxpayers...
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In PLR 201013024, the IRS ruled that amounts a trust beneficiary recieves in redemption of a decedent's stock will be treated as a distribution in full payment in exchange for the surrendered stock. In addition, the beneficiary will recognize capital...
NoDeathTax.org reports that rock star Gene Simmons of Kiss told the Bloomberg Cable radio show, in response to hearing that the estate tax may come back at 55%, "are you kidding, killing me?"Clearly, Simmons is not a fan. Posted by...
Maria J. Silveira, M.D., M.P.H., Scott Y.H. Kim, M.D., Ph.D., and Kenneth M. Langa, M.D., Ph.D. have published a study regarding the value of advance directives. Their findings are below:"Background Recent discussions about health care reform have raised questions regarding...
The New York Law Journal has posted Matter of Atkins, which was decided on March 26, 2010. The court concluded that the evidence presented a prima facie case for removal. Affidavits and supporting documentation relied upon by the court included...
The New York Times, in Paul Sullivan's "Assemble a Paper Trail, and Make Sure Your Heirs Can Follow It," addresses the importance of possessing up to date wills, trusts, beneficiary designation forms, and health care proxies and guardianship, and...
The IRS has solicited comments on Revenue Procedure 98-19, which provides guidance on the reporting and notice requirements for tax-exempt organizations under Internal Revenue Code section 6033. Comments must be received by May 28, 2010.See also 2010 TNT 60-41.Posted by Jenny...
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In a letter to the IRS, Laura Peebles of Deloitte Tax LLP requested further clarity on Internal Revenue Code section 2511(c) as it relates to transfers of interests in charitable remainder trusts (CRTs). Peebles suggested that section 2511(c) should not...
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