The July 2010 issue includes: How to attract physicians as clients. The practice of elder law now and in the years to come. How to use seminars and speaking engagements in your marketing plan. Five tiers of asset protection...
Continue reading " The WealthCounsel Quarterly -- July 2010 Issue"
Forbes has published an article titled "Using Life Insurance to Make Charitable Donations." The article discusses the benefits of using insurance policies when making charitable donations and examines the different methods available as well as the advantages of each.Posted by...
Continue reading "Forbes: Using Life Insurance to Make Charitable Donations"
U.S. News & World Report has published an article titled "The Dangers of DIY Estate Planning." The article examines the pros and cons of do-it-yourself estate planning and concludes that while a DIY estate plan is often better than no...
Continue reading "U.S. News: The Dangers of DIY Estate Planning"
The Wealth Strategies Journal has just published a new article titled "Avoiding Estate Planning Malpractice" by Robert Moshman....
A patent application for hedging commodities contracts was rejected by the Supreme Court today on the grounds that the strategy involved abstract ideas. The Court did not further define what constituted a patentable process but the ramifications of the decision...
Continue reading "Tax Notes: Hedging Strategy for Energy Traders Held Not Patent-Eligible"
The Internal Revenue Service is providing administrative relief for sponsors of defined contribution plans, such as section 401(k) plans, that were affected by the storms and other severe weather in those counties in Alabama, Connecticut, Massachusetts, Mississippi, New Jersey, Rhode...
Continue reading "Deadlines Extended for Certain Retirement Plans in Eight States "
The Internal Revenue Service has released Notice 2010-46, 2010-24 IRB 1, which impacts on the process for withholding and reporting by foreign intermediaries with respect to their payment and receipt of substitute dividend payments on underlying U.S. Securities. Among its'...
Continue reading "IRS Releases Notice 2010-46 Relating to Securities Lending "
IRS Document 6292 contains multi-year projections of the number of tax returns to be filed with the IRS by fiscal year of filing. The publication includes detailed projections by approximately 50 different individual, business and tax-exempt return types such as...
Continue reading "IRS Releases Estimates of Tax Returns to Be Filed and Other Data"
The Internal Revenue Service is providing guidance to individuals and businesses affected by the oil spill in the Gulf of Mexico and has announced a number of new efforts to help affected taxpayers, including a special Gulf Coast Assistance Day...
Continue reading "IRS Provides Tax Help, Guidance to Gulf Oil Spill Victims "
Lily L. Batchelder, associate professor at New York University School of Law, has published an article on SSRN titled "Reform Options for the Estate Tax System: Targeting Unearned Income, Testimony Before the U.S. Senate Committee on Finance." The article contains...
The American Bar Association has published it's June 2010 Your ABA Newsletter. The Newsletter contains the following articles:Secrets of Internet search: Insider tips, little-known resources backgrounding experts, moreEleven steps to protect client dataGetting internet evidence admittedEthics of starting your own...
In this year without estate tax, much of the commentary celebrating the tax's absence has also come with a stiff warning: some 2010 decedents would have been better off, from a tax perspective, had they died in 2009. And...
Continue reading "Jamie's Corner: No Estate Tax, More Taxes?"
Gail Posner's only surviving child, 46-year-old Bret Carr, is challenging his mother's will in Miami-Dade County Circuit Court, contending she was coerced into changing it by several employees while suffering from cancer and drug addiction. The family pet Chihuaha, Conchita,...
Continue reading "AP: Florida Estate Battle Features $3M for Pet Chihuaha "
Tipper and Al Gore not only bought an 8.8 million dollar California mansion through a trust months before the couple separated, but also transferred as many as nine properties in Carthage, Tenn., from their own names into a limited...
Continue reading "Former Vice President and Current Divorcee Al Gore Smartly Planned for Divorce "
The Joint Economic Committee of the U.S. Congress has published its Weekly Economic Digest dated June 28, 2010. The current digest discusses the following:New and existing home sales drop in May, after expiration of Homebuyers' Tax credit.Excluding transportation, durable goods...
A United for a Fair Economy press release expressed support for the "Responsible Estate Tax Act" that Senator Bernie Sanders introduced. Posted by Neil I. Rumbak, Associate Editor, Wealth Strategies Journal. ...
Senator Bernie Sanders introduced the "Responsible Estate Tax Act," which would reinstate both the estate and generation skipping transfer taxes. He also issued a press release regarding the introduction of the bill. Posted by Neil I. Rumbak, Associate Editor, Wealth Strategies Journal. ...
In a June 22, 2010 speech, House Majority Leader Steny H. Hoyer mentioned that a serious discussion is necessary in regards to the effects of a possible permanent extension of the 2001 and 2003 tax cuts. Posted by Neil I. Rumbak,...
As the American public becomes increasingly concerned with fiscal problems, taxwriters are struggling to find ways to address these concerns without considering tax increases.See Meg Shreve, "Lobbyists See No Easy Answers for Revenue Raisers This Summer," 2010 TNT 120-4, June 23, 2010. Posted by Neil...
House Majority Leader Steny H. Hoyer indicated that a permanent extension of the 2001 and 2003 tax cuts for middle income taxpayers is not certain and should be considered only after Congress agrees on a long-term deficit reduction plan.See Eric Kroh,...
In PLR 201024011, the IRS ruled that a state's restated deferred compensation plan constitutes an eligible deferred compensation plan as defined in Section 457(b), and the amounts of compensation deferred in accordance with the terms of the plan will be...
In ECC 201024053, the IRS held that an irrevocable trust should file Form 1041 for years in which the irrevocable trust has income. The IRS also held that if the irrevocable trust is a grantor trust, it may avail itself...
In ECC 201024059, emailed advice, the IRS held that gift tax on a transfer of closely-held business stock may be assessed at any time if information that the donor provided on the gift tax return did not meet the dislosure...
In PLR 201024005, the IRS held that a transfer of qualified replacement property by a taxpayer to his spouse in a divorce settlement constituted a gift under Section 1042(e)(3).Posted by Neil I. Rumbak, Associate Editor, Wealth Strategies Journal....
Meg Lassar of the Wealth Briefing has an article discussing how most trusts and foundations in the US and abroad are still established in perpetuity and maintain endowments, but that the limited life option is beginning to attract more attention. ...
Continue reading ""Real Endowments are Not Money, but Ideas""
George Harris and Jennie Cherry of Kozusko Harris Vetter Wareh LLP, have written on the recent changes effecting grantors and beneficiaries of off-shore trusts. The Hiring Incentives to Restore Employment Act which passed in March includes a panoply of changes...
Investment News has published an article titled "Coleman's Death Highlights Problems with Multiple Wills." As we have seen many times before, the existence of more than one will often leads to confusion as to the decedent's true intentions as well...
Continue reading "Investment News: Coleman's Death Highlights Problems with Multiple Wills"
Investment News has published a list of the "nastiest celebrity estate battles in recent years." The list discusses the litigation involving the estates of John Wayne, Anna Nicole Smith, Jimi Hendrix, Farrah Fawcett, and Michael Jackson.Posted by Wesley J. Bailey,...
Continue reading "Investment News: Estate Battles of the Stars"
Tax Notes has published an article by Robert Michaelsen, professor emeritus of accounting at University of North Texas. The article examines the arguments for and against a federal estate tax and determines that a continuation of the estate tax is...
Continue reading "Tax Notes Article by Robert Michaelsen: About the Estate Tax"
Tax Analysts has reported that Senator Bernie Sanders is lobbying support for estate tax reform legislation that he plans to introduce on June 24. Yesterday, Sanders sent a letter to colleagues detailing the Responsible Estate Tax Act and asking for...
Continue reading "Senator Sanders Seeks Support for Alternative Estate Tax Compromise"
In PLR 201024012, the IRS held that Section 2702(a)(1) and 2702(a)(2) will not apply to a proposed amendment and restatement of a trust if certain requirements are met. Upon the execution of the amendment and restatement, the son of the...
In PLRs 201024009 and 201024010, the IRS granted extension to individuals to allocate available generation-skipping transfer tax exemptions to transfers to trusts.Posted by Neil I. Rumbak, Associate Editor, Wealth Strategies Journal....
Continue reading "PLRs 201024009; 201024010: IRS Grants Extensions to Allocate GSTT Exemptions"
In PLR 201024006, the IRS granted an extension to a widow and estate so that they can allocate their available generation-skipping transfer tax exemption to two trusts.See also Extension Granted to Allocate GSTT Exemptions, 2010 TNT 118-66, June 21, 2010.Posted by Neil I. Rumbak,...
In PLR 201024029, the IRS ruled on the estate, gift, and generation-skipping transfer tax consequences of the division of a trust and charitable subtrust.Posted by Neil I. Rumbak, Associate Editor, Wealth Strategies Journal....
Charles Rotblut, editor of the AAII Journal, has published an article with Forbes considering the tax code changes that could be expected in the next year. Unless Congress act, capital gains, dividends, and estate taxes will revert to 2002 levels...
Continue reading "Forbes: Capital Gains and Dividend Taxes: What's Next"
Bloomberg has published an article reporting that the IRS has frozen or denied about $1.22 billion of the $12.6 billion in claims for the first-time homebuyer tax credit after audits uncovered a large number of erroneous or fraudulent filings. According...
In PLRs 201024017; 201024018; 201024019; 201024020; 201024021; 201024022; 201024023; 201024024; 201024027; 201024043; and 201024044, the IRS ruled on the estate, gift, and generation-skipping transfer tax consequences of proposed mergers of their trusts and their subtrusts. Posted by Neil I. Rumbak, Associate Editor, Wealth...
In PLR 201024026; 201024014; 201024015; and 201024016, the IRS ruled on the estate, gift, generation-skipping transfer tax consequences of proposed mergers of trusts.Posted by Neil I. Rumbak, Associate Editor, Wealth Strategies Journal....
In PLR 201024035, the IRS ruled that a qualified terminable interest property election is null and void for estate, gift, and generation-skipping transfer tax purposes. See also QTIP Election Is Voided for Estate, Gift, GST Purposes, 2010 TNT 118-50, June 21, 2010.Posted...
In PLR 201024008, the IRS, ruling on an individual's disposition of an interest in a marital trust, held that the individual, upon the distribution of trust property, will have made net gifts of the remainder interest and of his qualifying...
The Wealth Strategies Journal has just published a new article titled "Advice for Americans With Undisclosed Accounts at UBS and Other Foreign Banks as IRS Lifts Cloak of Swiss Bank Secrecy" by Terry Segal and Michael Mustokoff, both of Duane...
Normal 0 MicrosoftInternetExplorer4 st1\:*{behavior:url(#ieooui) } /* Style Definitions */ table.MsoNormalTable {mso-style-name:"Table Normal"; mso-tstyle-rowband-size:0; mso-tstyle-colband-size:0; mso-style-noshow:yes; mso-style-parent:""; mso-padding-alt:0in 5.4pt 0in 5.4pt; mso-para-margin:0in; mso-para-margin-bottom:.0001pt; mso-pagination:widow-orphan; font-size:10.0pt; font-family:"Times New Roman";} Normal 0 MicrosoftInternetExplorer4 st1\:*{behavior:url(#ieooui) } /* Style Definitions */ table.MsoNormalTable {mso-style-name:"Table Normal";...
Continue reading "New York Addresses Fiduciary Duties of LLC Organizers"
Normal 0 MicrosoftInternetExplorer4 /* Style Definitions */ table.MsoNormalTable {mso-style-name:"Table Normal"; mso-tstyle-rowband-size:0; mso-tstyle-colband-size:0; mso-style-noshow:yes; mso-style-parent:""; mso-padding-alt:0in 5.4pt 0in 5.4pt; mso-para-margin:0in; mso-para-margin-bottom:.0001pt; mso-pagination:widow-orphan; font-size:10.0pt; font-family:"Times New Roman";} The Journal of Accountancy has a report discussing the proposed rules issued Tuesday by...
Continue reading "IRS and Treasury Issue Proposed Regulations (TD 9491, REG-120399-10)"
The New York Times recently published an article reporting on the deal struck between Swiss lawmakers and U.S. authorities in the UBS case. According to the article, Swiss lawmakers have agreed to disclose information on thousands of individuals with accounts...
Continue reading "NYT: Swiss Approve Deal for UBS to Reveal U.S. Clients Suspected of Tax Evasion"
Bryan Cave has published it's Tax News and Developments June 2010 Bulletin. The Bulletin contains the following articles:Step Transaction Doctrine Not Applicable to Multi-Step Bargain Sales to CharityUPREITs - Bottom-Dollar Guaranty (BDG) AgreementsSubchapter S and Q Sub Banks Following Notice...
Continue reading "Bryan Cave: Tax News and Developments June 2010 Bulletin"
In response to IRS guidance, the ABA Section of Taxation Teaching Tax committee has undergone a project to review community property issues, and to submit to the IRS comments, related to registered domestic partnerships.See "ABA Forms Group to Examine Domestic Partner...
Joseph J. Thorndike, in "Moments in Tax History: Stealing Huey's Thunder," examines President Roosevelt's plan to increase the inheritance tax and individual tax, and to provide a new graduated rate structure for the corporate tax. See Joseph J. Thorndike, "Moments in...
The New York Times has published an article titled "Confusion Over the Dormant Estate Tax Keeps Advisers Busy." The article reports that the uncertainty in the areas of trusts and estate tax has created more business for tax professionals. No...
Continue reading "NYT: Confusion Over the Dormant Estate Tax Keeps Advisers Busy"
Notice 2010-48 provides relief to sponsors of defined contribution pre-approved plans (i.e., master and prototype ("M&P") and volume submitter ("VS") plans) affected by recent federally declared disasters (as defined in § 165(h)(3)(C)(i) of the Internal Revenue Code (the "Code")). The...
The 2010 IRS Nationwide Tax Forums are about to begin! The tax forums are three-day events that provide tax professionals with the most up-to-date information on federal and state tax issues presented by IRS experts and partner organizations. The IRS...
Small firms may now begin applying for certification for tax credits or grants available for projects that show significant potential to produce new cost-saving therapies, create U.S. jobs, and increase U.S. competitiveness. To apply, firms should use Form 8942, Application...
As a precursor to a similar move in the U.S., British Chancellor George Osborne will release an emergency budget. It is expected to include an array of spending cuts and tax hikes to reduce the £156 billion deficit he...
The Wall Street Journal is running a piece today on the trials and tribulations of the Michael Jackson estate. Since his death one year ago this month, his businesses have been run by the singer's longtime lawyer John Branca. Branca is...
Continue reading "Jackson Estate Steers to Next Crisis: Loan Repayment"
As part of the Taxation Section of the California State Bar's Annual Washington D.C. Delegation, Patrick W. Martin presented his article titled "Proposed Guidance on FBARs and Foreign Persons" to the U.S. Department of Treasury. In the article, Martin discusses...
Continue reading "Martin: Proposed Guidance on FBARs and Foreign Persons"
Dennis I. Leonard, attorney with Ramsbacher Prokey LLP, and Alison I. Brosnan, law clerk for the Taxation Section of the State Bar of California, recently presented the U.S. Department of Treasury with a proposal titled "Section 4941's Self-Dealing Traps for...
In Zeffie Surgick v. Acquanetta Cirella, the U.S. District Court for the District of New Jersey dismissed a suit filed against the IRS by two siblings seeking tax records regarding their late father's estate. In dismissing the action, the court...
The U.S. Court of Appeals for the First Circuit has released its decision in the Estate of Noordin M. Charania v. Commissioner of IRS. The First Circuit agreed with the Tax Court decision holding that Citigroup stock acquired by the...
Continue reading "Estate of Noordin M. Charania v. Commissioner of IRS"
Michigan attorney, Alex Miller, writes that the definition of retirement is a hot topic. In an unpublished opinion in the matter of Nardi v. Satellite Servs., Inc., the Court of Appeals took on the issue of defining retirement. As a...
Continue reading "What Does it Mean to Retire - a/k/a The Dangers of Imprecise Contracts "
In a floor speech, Senate Finance Committee ranking minority member Chuck Grassley attacked the senate's inaction on estate tax reform. Posted by Neil I. Rumbak, Associate Editor, Wealth Strategies Journal. ...
Continue reading "Grassley Attacks Senate's Failure to Address the Estate Tax"
An individual has requested guidance regarding the application of 1022(b)(2) to assets acquired from a decent dying after December 31, 2009 if those assets were held in decedent's qualified revocable trust on the date of death. Posted by Neil I. Rumbak, Associate...
Continue reading "Individual Requests Guidance in Regards to Section 1022"
Pricing guru Rafi Mohammed recommends providers in trust-friendly states to charge higher fees for services not available elsewhere. The article states the the services include dynasty trusts and self-settled asset protection trusts.Posted by Chait Kamireddy, Associate Editor, Wealth Strategies Journal....
Continue reading "South Dakota and Delaware Trust Companies Should Raise Prices"
Jeffery A. Cooper, associate professor at Quinnipiac University School of Law, has posted an article on SSRN titled "Ghosts of 1932: The Lost History of Estate and Gift Taxation." In the article, Cooper examines the specific estate and gift tax...
Continue reading "Cooper: Ghosts of 1932: The Lost History of Estate and Gift Taxation"
A recent Wall Street Journal article reports on an IRS ruling requiring same-sex couples to be treated the same as heterosexual couples under California tax law. Pursuant to California community property law, registered domestic partner as well as married individuals...
Business Week has a piece regarding the death of the Estate Tax (1916-2010). Unless Congress acts this year, the estate tax will revert to the pre-Bush rules on January 1, 2011, with a $1 million exclusion amount and a 55%...
Revenue Ruling 2010-18 provides various prescribed rates for federal income tax purposes for July 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...
Price Waterhouse Coopers has concluded in the latest volume of Personal Finance Perspectives that in order to pay for the healthcare initiatives included in the new health care laws, there will be significant increases to the tax burden of high-net-worth...
The Center on Budget and Policy Priorities recently published a report examining the federal estate tax titled "Policy Basics: The Estate Tax." According to the report, a permanent repeal of the estate tax would increase the federal deficit by $698...
The Congressional Research Service has published a report titled "The Statutory Pay-As-You-Go Act of 2010: Summary and Legislative History." Earlier this year, President Obama established a budget enforcement mechanism by signing the Statutory Pay-As-You-Go Act of 2010 (Statutory PAYGO Act)...
Continue reading "CRS: The Statutory Pay-As-You-Go Act of 2010: Summary and Legislative History"
Revenue Procedure 2010-25 provides issuers of qualified mortgage bonds with (1) average area purchase price safe harbors for residences located in statistical areas in each state, the District of Columbia, Puerto Rico, the Northern Mariana Islands, American Samoa, the Virgin...
Continue reading "IRS Releases RP 2010-25 Relating to Mortgage Bonds "
TD 9487 contains final regulations that apply to loss corporations that have undergone an ownership change within the meaning of section 382. These regulations provide guidance regarding the treatment of prepaid income under the built-in gain provisions of section 382(h)....
TD 9488 contains final regulations under section 6404(g)(2)(E) of the Internal Revenue Code on the suspension of any interest, penalty, addition to tax, or additional amount with respect to listed transactions or undisclosed reportable transactions. The final regulations reflect changes...
The Internal Revenue Service announced today that under the Affordable Care Act health care professionals who received student loan relief under state programs that reward those who work in underserved communities may qualify for refunds on their 2009 federal income tax returns...
On June 15, 2010, the House passed the Small Business Jobs Tax Relief Act of 2010 (H.R. 5486) which provides tax incentives to small businesses and makes several other changes to the Internal Revenue Code of 1986. According to the...
Continue reading "House Passes Small Business Jobs Tax Relief Act of 2010 (H.R. 5486)"
The Congressional Research Service updated a report so that it could address recent proposals that deal with reinstatement of the estate tax. The following is the full text of the update of the report: Jane G. Gravelle Senior Specialist in...
Continue reading "Congressional Research Service Updates Report on Estate Tax"
William Sweetnam, Jr., and Louis T. Mazawey of Groom Law Group, Chartered, have issued to the IRS the correspondence below that requests that the IRS include on its 2010-2011 Guidance Priority List guidance that exempts tax exempt retirement plans from...
The Investment Company Institute issued to Treasury and the IRS the correspondence below. This correspondence requested guidance for the IRS's 2010-2011 Guidance Priority List on issues affecting regulated investment companies and their shareholders. The following is the text of the...
The Wealth Strategies Journal has just posted a new article, "Far-Reaching IRS Victory in Ludwick," by Ori Bash, ASA of Pluris Valuation Advisors LLC on the impact of the recent Ludwick decision favoring the IRS.Continue reading at Far-Reaching IRS Victory...
Forbes has published a helpful article titled "How to Pass Down Your Family Vacation Retreat." The article looks at Qualified Personal Resident Trusts (QPRTs) and discusses when QPRTs can be used to help reduce gift or estate tax on the...
Continue reading "Forbes: How to Pass Down Your Family Vacation Retreat"
Revenue Ruling 2010-17 provides that for purposes of determining the new markets tax credit allowable under § 45D, the amount of the qualified equity investment made by an LLC classified as a partnership includes cash from a recourse loan to...
Continue reading "IRS Makes Ruling Relating to New Market Tax Credit "
Notice 2010-49 invites public comments relating to possible modifications to the regulations under § 382 regarding the treatment of shareholders who are not 5-percent shareholders, Notice 2010-50 provides guidance under IRC 382 for measuring owner shifts of loss corporations where...
Notice 2010-47 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 on the corporate bond monthly yield curve...
On June 8, 2010, Commissioner of Internal Revenue Douglas H. Shulman discussed international tax administration, offshore tax compliance and information exchanges before the Business and Industry Advisory Committee to the Organization for Economic Co-operation and Development. Shulman emphasized that the...
The Joint Economic Committee of the U.S. Congress has published its Weekly Economic Digest dated June 14, 2010. The current digest discusses the following:Economic growth is widespread, although modest, according to Beige BookRetail sales slow with drop in sales of...
The IRS has requested comments for the final Qualified Domestic Trust Regulations.Posted by Brian Beck, Associate Editor, Wealth Strategies Journal...
In PLR 201023050, the IRS ruled that two transfers would not cause GST tax. Posted by Brian Beck, Associate Editor, Wealth Strategies Journal...
Continue reading "PLR 201023050: IRS Rules on Proposed Transfer"
In PLR 201023015, the IRS granted an extension to a trust to take a deduction for a charitable gift under section 301.9100 of the Regulations. The gift was timely made but the trustee failed to make a timely election under...
Continue reading "PLR 201023015: Extension Granted for Late Election to Take Charitable Deduction"
In PLR 201023006, the IRS ruled that division of a GST-exempt trust into 4 non-pro rata trusts does not make the trust lose its GST exemption; that the severance of a trust is not an exchange of property for other...
Continue reading "PLR 201023006: Clarification on the Division of Exempt Trusts"
In PLR 201023005, the IRS ruled that division of a GST-exempt trust into 4 non-pro rata trusts does not make the trust lose its GST exemption; that the severance of a trust is not an exchange of property for other...
Continue reading "PLR 201023005: Clarification on the Division of Exempt Trusts"
In PLR 201023004, the IRS ruled that division of a GST-exempt trust into 4 non-pro rata trusts does not make the trust lose its GST exemption; that the severance of a trust is not an exchange of property for other...
Continue reading "PLR 201023004: Clarification on the Division of Exempt Trusts"
In PLR 201023003, the IRS ruled that division of a GST-exempt trust into 4 non-pro rata trusts does not make the trust lose its GST exemption; that the severance of a trust is not an exchange of property for other...
Continue reading "PLR 201023003: Clarification on the Division of Exempt Trusts"
In PLR 201023002, the IRS ruled that division of a GST-exempt trust into 4 non-pro rata trusts does not make the trust lose its GST exemption; that the severance of a trust is not an exchange of property for other...
Continue reading "PLR 201023002: Clarification on the Division of Exempt Trusts"
In PLR 201023001, the IRS ruled that division of a GST-exempt trust into 4 non-pro rata trusts does not make the trust lose its GST exemption; that the severance of a trust is not an exchange of property for other...
Continue reading "PLR 201023001: Clarification on the Division of Exempt Trusts"
An article published by the New York Times discusses the estate of Dan L. Duncan, a Texas energy tycoon, and shows the real-life implications of the federal estate tax repeal in 2010. When Mr. Duncan met with his estate planners...
Continue reading "NYT: Legacy for One Billionaire: Death, but No Taxes"
The Tax Court issued a memorandum that held nondeductible certain deductions that taxpayer sought in regards to his rental activities.See also Tax Court Denies Deductions Related to Individual's Rental Activities, 2010 TNT 112-9, June 11, 2010.Posted by Neil I. Rumbak,...
Continue reading "Tax Court Denies Rental Activity Deductions "
The IRS has asked for comments on Form 706, United States Estate (and Generation-Skipping Transfer) Tax Return. Posted by Neil I. Rumbak, Associate Editor, Wealth Strategies Journal. ...
Senate Finance Committee member John Kyl says that he is very close to gathering sixty necessary votes to pass a bill that would establish the estate tax top rate at 35 percent and the exemption level at $5 million. See Sam...
The Wealth Counsel will be hosting the following free webcast:Planning for Physicians: How to Attract Physician Clients and What to Do When You Get ThemJuly 14, 20101:00 - 2:00 EasternTo register, click here.Posted by Wesley J. Bailey, Associate Editor, Wealth...
Tax Notes has published an article by Meg Shreve. The article announces that House Majority Leader Steny Hoyer said on June 9 that the Small Business Jobs Tax Relief Act of 2010 (H.R. 5486) could move this week. The measure...
Continue reading "Movement possible on bill limiting GRATs to a minimum of 10 years"
Taxpayers with income that is not subject to withholding may have to make estimated tax payments four times a year. (Payment dates and deadlines are available here.) You generally have to make estimated tax payments if you expect to owe...
Continue reading "How to Know if You Should Be Making Estimated Tax Payments "
The battle over Gary Coleman's estate continues. The dispute involves Coleman's ex-wife, Shannon Price, and Coleman's former manger, Dion Mial. A 1999 will, filed for probate in Utah's 4th District Court, names Mial as the executor of Coleman's estate and...
The IRS operates a Fishing Tax Center on its website. The center provides links to the most common tax-related topics in the fishing industry, including:Income from FishingRecord-keeping Guidelines for FishermanEstimate Taxes for FishermanFishing Penalties and Notices Posted by Joshua Hock,...
Continue reading "IRS Runs Resource for Those with Income from Fishing"
The Mirror has published an article reporting on Michael Jackson's estate. According to the article, Jackson's estate has earned almost $1 billion since the singer's death.Posted by Wesley J. Bailey, Associate Editor, Wealth Strategies Journal....
Continue reading "Mirror: Michael Jackson's Estate Has Earned Nearly $1 Billion Since His Death"
H.R. 5495, the Family Farm and Estate Tax Relief Act of 2010, would exempt land that is in use from the estate tax. It would also increase the amount excluded from gross estate to $5 million for land that is...
Steve Akers, Associate Fiduciary Counsel, Bessemer Trust, provides the following summary of Ludwick v. Commissioner, T.C. Memo. 2010-104 (May 10, 2010): The court addressed the valuation discounts for undivided 50% interests in a Hawaiian vacation home. Judge Halpern determined the...
An article published by the New York Times shows the real-life implications of the federal estate tax repeal in 2010. When Dan L. Duncan, a Texas energy magnate, died several months ago with an estate worth $9 billion his heirs...
Continue reading "NYT: Legacy for One Billionaire: Death, but No Taxes"
The 2011 Low Income Tax Payer Clinic (LITC) grant application process is now open. Applications must be submitted no later than July 16, 2010. The LITC grant program is a federal program that serves individuals who have problems with the...
Continue reading "Low Income Taxpayer Clinic Grant Applications Become Available"
Notice 2010-47 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 on the corporate bond monthly yield curve...
Revenue Ruling 2010-17 provides that for purposes of determining the new markets tax credit allowable under § 45D, the amount of the qualified equity investment made by an LLC classified as a partnership includes cash from a recourse loan to...
Continue reading "IRS Releases RR-2010-17 Also Relating to the New Markets Tax Credit"
Revenue Ruling 2010-16 provides that for purposes of determining the new markets tax credit allowable under § 45D, the amount of the qualified equity investment made by an LLC classified as a partnership includes cash from a recourse loan to...
Continue reading "IRS Releases RR-2010-16 Relating to the New Markets Tax Credit"
According to a Business Week article, Blackstone Group LP and other investment partnerships plan on protesting the carried interest tax included in the jobs bill based on an exemption for family farmers. (For our previous coverage on the carried interest...
Continue reading "Business Week: Blackstone, Venture Firms Protest Tax Break for Family Farmers"
The New York Times recently published an intriguing article detailing the fight over C.C. Wang's $50 million estate. When C.C. Wang moved to New York in 1949 he brought with him ancient works of art that he had been collecting...
Continue reading "NYT: Siblings' Two Worlds Collide in War Over Chinese Art Trove"
In emailed advice, the IRS ruled that not all estates have to file federal tax returns. Nevertheless, an executor who paid taxes and did not receive a refund from the service may be reimbursed by the estate. The following is...
In PLR 201022003, the IRS granted an extension to a married couple so that they could allocate their generation-skipping transfer tax exemptions to several trusts. See also Extension Granted to Allocate GSTT Exemptions, 2010 TNT 108-37, June 7, 2010.Posted by Neil I. Rumbak, Associate...
In PLR 201022002, the IRS granted an estate an extension of time to elect to deduct qualified family owned business interests under Section 2057(b)(1)(B). See also Extension Granted to Elect to Deduct Qualified Family-Owned Business Interests, 2010 TNT 108-36, June 7, 2010.Posted by Neil...
In PLR 201022001, the IRS ruled that a testamentary trust established for the benefit of charitable organizations and a political subdivision will qualify for an estate tax charitable deduction under Section 2055. See also Trust Will Qualify for Estate...
Continue reading "PLR 20122001: Testamentary Trust Qualifies for Charitable Deduction"
In PLR 201022004, the IRS ruled that for federal estate, gift, and generation-skipping transfer tax purposes, a qualified terminable interest property election was null and void.See also QTIP Election Is Voided for Estate, Gift, GST Tax Purposes, 2010 TNT 108-34, June 7, 2010.Posted...
Continue reading "PLR 201022004: QTIP Election Null and Void"
The May 2010 issue of Private Wealth includes an article by Diana S.C. Zeydel titled "A Phantom Estate Tax." In the article, Zeydel discusses the current estate tax situation and explains why the absence of the estate tax in 2010...
The Joint Economic Committee of the U.S. Congress has published its Weekly Economic Digest dated June 07, 2010. The current digest discusses the following:Payrolls are boosted by census hiringUnemployment edged down in MaySigns point to continued economic expansionPosted by Wesley...
Continue reading "JEC Weekly Economic Digest: Employment Gains Continue for Fifth Straight Month"
Speakers at the Federal Bar Association's 22nd annual Insurance Tax Seminar mentioned that lawmakers are struggling to address the U.S.'s growing deficit, while providing tax benefits to taxpayers. The speakers added that potential tax reform is a low priority for...
Continue reading "Tax Notes Article: Practitioners Do Not Foresee Tax Reform Until 2011"
The IRS has released a message saying that Connecticut taxpayers who were unable to meet federal tax obligations because of severe storms and flooding March 12 may qualify for tax relief. For more information or to find out if you qualify, please...
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Mark E. Powell, adjunct professor at Chapman University School of Law, has posted an article titled "The Generation-Skipping Transfer Tax: A Quick Guide" on SSRN. Below is the SSRN abstract of the article:Sooner or later, every estate planner comes face-to-face...
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The IRS has requested from the public comments concerning LR-209-76 (TD 7491), Special Lien for Estate Taxes Deferred Under Section 6166 or 6166A (Section 301.6324A-1)Posted by Neil I. Rumbak, Associate Editor, Wealth Strategies Journal....
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Senator Finance Committee Ranking Minority Member Chuck Grassley (R-IA), in a conference call with reporters, blamed Senate Majority Leader Harry Reid (D-NV) for uncertainty regarding the future of the estate tax. Senator Grassley mentioned that the Senate Finance Committee would...
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The Spring 2010 issue of ACTEC Journal includes an article by Benjamin H. Pruett titled "Tales from the Dark Side: Drafting Issues from the Fiduciary Perspective." In the article, Pruett offers drafting advice based on issues he encountered after leaving...
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The Internal Revenue Service has announced that it will host a special nationwide open house on Saturday, June 5 to help taxpayers solve tax problems and respond to notices from the IRS. Approximately 200 IRS offices, at least one in every...
Elder Law Answers (ELA) recently posted an article examining the Wealth Counsel's 3rd Annual Industry Trends Survey. For the survey, Wealth Counsel asked estate planners what practice area they would most like to add to their business model. The second...
Continue reading "ELA: Client Maintenance Programs: Not a Significant Revenue Source - - Yet"
McGuire Woods has included N.K.S. Distributors Inc. v. Tigani in its latest update on "Recent Fiduciary Cases of Interest to Corporate Fiduciaries." In N.K.S. Distributors Inc. v. Tigani, the Delaware Court of Chancery rejected the successor beneficiary's motion to compel...
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McGuire Woods has included First Charter Bank v. American Children's Home in its latest update on "Recent Fiduciary Cases of Interest to Corporate Fiduciaries." In First Charter Bank v. American Children's Home, the North Carolina Court of Appeals affirmed the...
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Revenue Procedure 2010-24 modifies the inflation adjusted amounts in Revenue Procedure 2009-50 that apply to taxpayers who elect to expense certain property under § 179 to reflect changes enacted as part of the HIRE Act. Revenue Procedure 2010-24 will be...
McGuire Woods has included Bank of America v. Carpenter in its latest update on "Recent Fiduciary Cases of Interest to Corporate Fiduciaries." In Bank of America v. Carpenter, the Illinois Appellate Court reversed the trial court's ruling that accelerated the...
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McGuire Woods has included Karo v. Wachovia Bank in its latest update on "Recent Fiduciary Cases of Interest to Corporate Fiduciaries." In Karo v. Wachovia Bank, the U.S. District Court for the Eastern District of Virginia grated summary judgment in...
The Internal Revenue Service will soon begin accepting applications for the Tax Counseling for the Elderly (TCE) and Volunteer Income Tax Assistance (VITA) grant programs, which will allow some organizations to apply for annual funding for up to three years. ...
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The Internal Revenue Service's Advisory Committee on Tax Exempt and Government Entities (ACT) will hold a public meeting on June 9 and submit its latest round of recommendations to the IRS Commissioner Doug Shulman and other senior executives. Posted by...
In an email, the IRS suggested that in order for the brother of a decedent to obtain the amount assessed to the decedent, the brother must "open an estate for the decedent and have the brother seek appointment as executor/administrator....
In PLR 201021045, the IRS ruled that ownership of voting common stock by an organization described in Section 501(c)(3) and classified as a foundation in Section 509(a) will not constitute excess business holdings under Section 4943 if the organization distributes...
In PLR 201021012, the IRS granted an extension pursuant to Section 2642(g) to allocate GST exemptions to transfers to trusts.Posted by Neil I. Rumbak, Associate Editor, Wealth Strategies Journal....
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In PLR 201021037, the IRS granted a waiver of the 60-day rollover requirement in Section 402(c)(3) for a distribution from a qualified retirement plan. Posted by Neil I. Rumbak, Associate Editor, Wealth Strategies Journal....
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Financial Advisor recently reported on an upcoming change in the information the IRS's Office of Professional Responsibility publishes on disciplinary cases. In the past, the OPR has been criticized for not providing enough information about how it conducts investigations and...
Continue reading "FA: IRS Shines Light on Faulty Tax Advice"
In a series of recent Private Letter Rulings, the IRS ruled that the division and modification of a trust into four separate trusts and a transfer of the trust's assets won't affect the GST tax exempt status of the trusts under section 2601,...
In a letter dated May 28, 2010, the American Bar Association urges the IRS to withdraw recent proposals that would require certain business taxpayers to disclose uncertain tax positions. The ABA is concerned that the proposals, requiring disclosure of uncertain...
The Tax Foundation has issued a new report on the status of the Federal estate tax. The report concludes that the estate tax is likely to return from the dead in 2011 and Congress will make the 2009 levels permanent. Posted by...
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On May 27, IRS Commissioner Doug Shulman discussed information reporting at a program hosted by the American Payroll Association. While discussing a change in the law that requires reporting on payments made from businesses to corporations, the Commissioner explained that...
In recognition of National Small Business Week, the Internal Revenue Service has sent out a release calling attention to recent legislation offers special tax incentives for small businesses to provide health care and hire new workers. Specifically, the IRS highlighted (among...
Revenue Procedure 2010-23 provides bond issuers with the United States median gross income figure, one of the figures required for determining high housing cost areas under § 143(f)(5)(D), and informs them of the availability from HUD of the state and...
The Wills, Trusts & Estates Prof Blog recently posted on Washington Post's article discussing the mystery surrounding Hattie McDaniel's Oscar. When Hattie McDaniel was named Best Supporting Actress in 1940, she became the first African American to receive an Academy...
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