Please find below a model sample client letter regarding the 2010 Tax Act, which you may use by selecting this entire post and copying it into a Word document. The only thing we ask is that if you see...
December 2010 Archives
According to an article by Tax Analysts, section 1022 modified carryover basis rules are the area most in need of guidance. Even though practitioners have a nine-month window to file the estate tax return, many practitioners worry that the issues...
David Herzig (Valparaiso) has published Am I the Only Person Paying Taxes? The Largest Tax Loophole for the Rich -- Exchange Funds, 2009 Mich. St. L. Rev. 503. Here is the abstract: President Obama is faced with a national debt...
Continue reading "Herzig: The Tax Treatment of Exchange Funds"
Robert Anglen recently published a new article In the Valley, Heirs Embroiled in Disney Feud, The Arizona Republic, Oct. 8, 2010.Sometimes even the most careful estate planning cannot prevent vicious court battles from erupting among family members. This is the...
According to Anne R. Carey & Veronica Salazar, Americans with wills by age, USA Today, Dec. 22, 2010, at A1, the odds of a person having a will increase significantly with age. Here are the statistics they reported: Age 18-34...
Vic Preisser, published a new article The Children of the Wealthy Fire Their Parents' Advisors--Most of the Time, Registered Rep, Nov. 1, 2010.A recent study showed that the heirs of wealthy people retain mom and dad's advisors only 10% of...
Continue reading "Heirs of the Wealthy Fire Their Parents' Advisors 90% of the Time"
Carolyn B. R. Decker published in the October issue of the Agent's Sales Journal and was re-printed here with the author's permission.The most common reasons someone with a net worth of $100 million purchases life insurance are liquidity, wealth transfer,...
Continue reading "Purchasing Life Insurance for the Ultra-Wealthy"
The IRS has corrected guidance given in Rev. Rul. 2011-2 concerning January AFR's. The new guidance includes a table 6 regarding deemed rate of returns for transfers to pooled income funds in existence for less than 3 taxable years.Posted by...
In SBSE 04-1210-069, the IRS reissued interim guidance from SBSE 04-0710-037 regarding no change reports for estate tax attorneys.Posted by James G. Haskell, Senior Associate Editor, Wealth Strategies Journal....
Continue reading "IRS Reissues No Change Reports Interim Guidance for Estate Tax Attorneys"
In a series of private letter rulings (PLR 201051002, 201051003, 201051004, 201051023) the IRS ruled that there would be no adverse transfer tax consequences under a proposed settlement agreement.Posted by James G. Haskell, Senior Associate Editor, Wealth Strategies Journal....
Alexander A. Bove, Jr. (attorney, Boston, MA) recently published his article entitled Using the Power of Appointment to Protect Assets--More Power than You Ever Imagined, 36 ACTEC L.J. 333 (Fall 2010). The introduction is below: Of all the sophisticated tools...
Continue reading "Using the Power of Appointment to Protect Assets"
In the case Citizens Business Bank v. Carrano, 117 Cal. Rptr. 3d 119 (Cal. Ct. App. 2010). Parents created an inter vivos trust giving their son income for life, remainder to his "issue." Parents amended the trust several times to...
Continue reading "Extrinsic Evidence Not Admissible to Vary the Meaning of Unambiguous Term"
Robert Pear, Obama Returns to End-of-Life Plan That Caused Stir, N.Y. Times, Dec. 25, 2010.When a political storm arose over "death panels," Democrats dropped the proposal to encourage end-of-life planning from the health care legislation. Starting January 1, the Obama...
Continue reading "Obama Returns to End-of-Life Plan That Caused Political Storm"
Tracy Morgan Kidney Transplant: '30 Rock' Star Recovering from Surgery, The Huffington Post, Dec. 20, 2010.Tracy Morgan, star of NBC's "30 Rock," was diagnosed with diabetes in 1996, but didn't take it seriously until he got very sick years later....
Continue reading "Tracy Morgan Recovers From Kidney Transplant"
In a recent teleconference sponsored by the American Bar Association, the American Law Institute, and the American College of Trust and Estate Counsel, practitioners expressed satisfaction with short term fixes to transfer tax uncertainties, but continued to voice concern over...
Continue reading "Tax Cut Extensions Help, But Only in the Short Term"
House Republicans released a series of proposed changes to rules for the 112th Congress. The proposals include requirements to post bills online at least three days before being voting on, a statement describing the constitutional basis for proposed legislation and...
Continue reading "House Republicans Announce Rules for 112th Congress"
Writing for The Huffington Post, former New York City Mayor Ed Koch mused on some of the recent, last-minute accomplishments of the 110th Congress; notably, he lamented the defeat of the DREAM Act which would have provided undocumented immigrant minors with...
Continue reading "Ed Koch Reflects on the Last Days of the 110th Congress"
In Forbes Magazine, Ashlea Ebeling has published an article that discusses the impact of state-imposed estate taxes; she said that, "despite the new and generous federal estate tax exemption of $5 million per estate and $10 million per couple, many...
Continue reading "Forbes: State Estate Taxes Loom As Big 2011 Issue"
Revenue Ruling 2011-2 provides various prescribed rates for federal income tax purposes for January 2011 (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....
Comedian Larry David has published a column in the New York Times that lampoons the Congress's recent tax deal which extended the Bush tax cuts accross all income tax brackets. David stated: To begin with, I was planning a trip to Cabo...
In a recent report by the Heritage Foundation, the group criticizes the use of a value added tax to solve deficit problems arguing that the tax will "hammer private saving for an extended period" while consumers save less to maintain...
Incoming Senate Finance Ranking Member Orrin Hatch (R-UT) has announced several positions to the minority staff on the Senate Finance Committee. The list include Everett Eissenstat as Chief International Trade Counsel, Jay Khosla as Chief Health Counsel, and Mark Prater...
Continue reading "Hatch Announces Minority Finance Committee Staff"
In an analysis of the recent tax cut extensions, the Center on Budget and Policy Priorities claims that measures of the legislation favored by Democrats, including an extension of unemployment benefits and a cut in payroll taxes, will help the...
Continue reading "CBPP Claims Democrats Help and Republicans Hurt"
Revenue Ruling 2011-2 provides various prescribed rates for federal income tax purposes for January 2011 (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...
James Paris published an article entitled, "The Bottom Line on Taxes for 2011." The article provides a quick summary of the major points regarding the tax cut deal.Posted by Shahzeb Gaziani, Senior Associate Editor, Wealth Strategies Journal.http://www.examiner.com/your-money-in-orlando/the-bottom-line-on-taxes-for-2011...
Continue reading "James Paris: The bottom line on taxes for 2011"
Amy Hoak published an article for the Wall Street Journal entitled, "End Near for Best Energy Tax Deal." The article examines the energy tax credits that are available in the tax deal that recently passed congress and concludes that they...
Continue reading "Amy Hoak: End Near for Best Energy Tax Deal"
NPR ran a story in their program "all things considered" entitled, "Beyond the Tax Deal: Targeting the Code Itself." The program analyzes the need for a complete revamping of the tax code by eliminating certain exemptions and taxing certain transactions.Posted...
Continue reading "Beyond The Tax Deal: Targeting The Code Itself"
The New York Times published an editorial entitled, "The Tax-Cut Deal." The article begins with a quote by President Obama pointing to the the tax deal as proof that both parties could work together. The editorial goes on to question...
Tim Rutten published an article entitled, "And the Rich Get Richer." The article discusses the origination of the estate tax by Theodore Roosevelt and points out the irony that he was a highly regarded republican.Posted by Shahzeb Gaziani, Senior Associate...
Michael M. Gleeson published an article entitled, "Dems: Tax cut package will kill Social Secuirty." The article discusses concerns by congressional democrats that the payroll tax cut will be a "trojan horse" for ending social security.Posted by Shahzeb Gaziani, Senior...
Continue reading "Michael M. Gleeson: Dems: Tax cut package will kill Social Security"
Robert W. Wood published an article entitled, "AMT Tax Nicely Embroidered." The article examines the AMT tax and gives a summary of what the tax calculations would look like under different scenarios. Posted by Shahzeb Gaziani, Senior Associate Editor, Wealth...
Continue reading "Robert W. Wood: AMT Tax Nicely Embroidered"
Reinout M. Wibier (Professor of Law, Tilburg University) recently published his article entitled Can a Modern Legal System do Without the Trust?, Tilburg Law School Research Paper No. 025/2010 (Sept. 2010). The abstract is below:This article will argue that it...
Continue reading "Keeping Trusts Out of Private Law is Impossible"
Tim Rutten published a new article And the Rich Get Richer, Los Angeles Times, Dec. 18, 2010.Conservative Republicans have attempted to abolish the estate tax since the 1940s, so it's easy to forget that its modern champion was Theodore Roosevelt,...
Continue reading "The Modern Champion of the Estate Tax was a Republican"
A new court decision on trust account is released in California Araiza v. Younkin, 116 Cal. Rptr. 3d 315 (Cal. Ct. App. 2010). The decedent created a trust account naming his step-daughter as the beneficiary. The decedent later created an...
Continue reading "Assignment of Trust Account to Inter Vivos Trust Revokes Beneficiary Designation"
A pair of bills introduced in the House were referred to the House Ways and Means Committee. One bill (H.R. 6522) sponsored by Michele Bachman (R-MN) seeks to make the recently extended tax cuts permanent while repealing the alternative minimum...
Continue reading "Tax Bills Introduced to Make Tax Cuts Permanent"
A new article GRATs Dodge Regulatory Bullet is published on Financial Advisor Magazine on December 20, 2010. A popular kind of trust that lets people pass money to family members free of federal gift tax is likely to get...
John Dedon recently published a new article called Congress delivers an estate-planning present to business owners on Virginia Business. When the president signed into law a two-year extension of the Bush Tax cuts, most Americans were focused on the income...
Continue reading "Ho Ho Ho - Congress delivers an estate-planning present to business owners"
The American Bar Association's Section of Real Property, Trusts and Estates has released a short paper by attorneys Michelle M. Wade and Dillon L. Strohm of Jackson & Wade LLC. The paper explains new obligations for Trustees who own a private airplane; it...
Continue reading "Trusts, Fiduciary Obligations and the Family Jet"
The American Bar Association's Section of Real Property, Trusts and Estates has submitted a letter to Congress that urges lawmakers to "address the limbo that legislative inaction has created for the nation's taxpayers" before adjourning for the holidays. The letter also includes several...
The text of the recent tax cut bill has been posted along with the Joint Committee on Taxation's technical explanation, estimated budget effects and the Senate Finance Committee's summary of the law. The text and summary of the law can...
On December 17, President Obama signed the tax compromise bill after it passed both chambers of Congress by wide margins. The bill extends the Bush tax cuts for an additional two years as well as unemployment benefits.See " Tax Cuts,...
In three private letter rulings (PLR 201050005; 201050006; 201050008) the IRS ruled that there would be no adverse tax consequences for two trusts merging into one. Posted by James G. Haskell, Senior Associate Editor, Wealth Strategies Journal....
Continue reading "PLR 201050005; 201050006; 201050008: Allows Two Trusts Merging Into One"
In PLR 201050011 the IRS ruled that an entity created to provide disability, old age and/or death benefits to covered employees and their beneficiaries will be classified as a trust.Posted by James G. Haskell, Senior Associate Editor, Wealth Strategies Journal....
Continue reading "PLR 201050011: Foreign Entity Characterized as a Trust"
Madoff Trustee Makes it Halfway with $7.2 Billion Deal, Financial Advisor, Dec. 17, 2010. As of September 30, Irving Picard, the trustee liquidating Bernard Madoff's failed investment firm, approved 2,232 investor claims for recovery. He rejected 11,171 other claims because...
Continue reading "Madoff Trustee Collects $7.2 Billion from One Estate"
The National Business Institute is sponsoring a 90-minute national teleconference on December 20 entitled Estate Planning Basics. The program information is below:Do you have the skills to ensure your clients are well taken care of in case of incapacity? Can...
Deborah L. Jacobs published a new article Congress' Gift to Billionaire Heirs and Those Who Envy Them, Forbes, Dec. 17, 2010. Under the new tax bill, less than .5% of people who die in 2011 will owe estate taxes. But...
Continue reading "Issues to Consider Over the Next Two Years"
The Taxation Section of the American Bar Association has announced that its annual Midyear Meeting will be held January 20-22, 2011 in Boca Raton, FL at the Boca Raton Resort and Club; the Taxation Section announcement reads: With CLE programs focused on...
Continue reading "ABA Taxation Section to Hold Midyear Meeting: "Network, Educate, and Learn""
The New York Times published the differing opinions four noted financial experts, who responded to the following questions: "What is the social value, or social cost, of having an estate tax? Can the same policy goals be achieved with other kinds of taxes?" The...
Continue reading "New York Times Experts Debate: Do Estate Taxes Matter? "
Publisher McGraw-Hill is offering a free e-book titled What's Next 2011: Leading Minds in Business on the People, Trends, and Challenges Ahead. According to the publisher, What's Next 2011 includes what leading authors in economics, investing, leadership, and innovation have to say...
Continue reading "Free eBook Explores How To Do Business in 2011"
Janet Novack recently published a new article Under Obama Tax Deal, 2011 Could be Best Year for the Rich, Forbes, Dec. 12, 2010.Although there were no estate taxes in 2010, 2011 might be an even better year for wealthy families...
Continue reading "Tax Deal May Actually Benefit Wealthy More Than the 2010 Estate Tax Lapse"
The tax compromise bill (H.R. 4853) extending Bush tax cuts for an additional two years passed the House yesterday. The bill passed 277 in favor and 148 against in an uncharacteristic show of bipartisanship including 139 Democrats and 138 Republicans...
Continue reading "Tax Bill Passes House, On to President's Desk"
The U.S. attorney's office for the Southern District of Florida brought charges against Renzo Gadola, a former USB banker, for aiding a taxpayer conceal assets offshore. The press release can be found at http://www.justice.gov/usao/fls/PressReleases/101215-01.html.Posted by James G. Haskell, Senior Associate...
Continue reading "Swiss Banker Charged With Aiding Tax Evasion"
The U.S. Congress passed an $858 billion bill extending for two years all Bush-era tax cuts and including provisions relating to the estate tax, sending the measure to President Obama for his signature. See coverage at the following links:Congress Sends $801...
The U.S. Congress passed an $858 billion bill extending for two years all Bush-era tax cuts and including provisions relating to the estate tax, sending the measure to President Obama for his signature. See coverage at the following links:Congress Sends $801...
Ray D. Madoff published an op-ed in the New York Times entitled, "Give Up on the Estate Tax." The author argues that democrats would be better off giving up the estate tax and concentrating on taxing wealth transfers as part...
Donald H. Kelley published an article entitled, "Planning Perspectives: One-stop shopping for the charitable gift or charitable organization planner." The article discusses a website which provides an online template for charities to coordinate charitable gifts with donors.Posted by Shahzeb Gaziani,...
Holland & Knight issued its December 15, 2010 business and tax alert issue. On December 6, 2010, President Obama announced an agreement with Senate Republicans that would extend for two years the Bush-era tax rates - including the 15 percent...
Continue reading "Understanding Key Provisions of the Tax Bill Passed By the Senate"
Jonathan Allen, House Dems Focusing on an Amendment to the Estate Tax Provision, Politico, Dec. 13, 2010.House Democrats are currently focusing on an amendment to the estate tax provision of President Obama's tax deal. The House estate tax proposal, which...
Continue reading "House Democrats Prepare Their Amendments to Estate Tax Portion of Tax Deal"
Today, December 15, 2010, the United States Senate approved the tax plan worked out between President Obama and Republican leaders by an overwhelming vote of 81 to 19. The bill now goes to the House where it is expected to...
Chris Good recently published a new article Will Democrats Buy the Deal? on Atlantic on December 7, 2010. Although congressional aides said their Democratic leaders like much of the proposed package, they still weren't sure they could sell it to...
The tax compromise bill that largely reflected what was negotiated between the White House and Congressional Republicans passed the Senate yesterday. In response to the bill's passage Senator Orrin Hatch (R-UT) called it the "right thing to do" and Senator...
Continue reading "Tax Bill Passes Senate; Still Faces Hurdles"
Chris Good published an article entitled, "Will Democrats Buy the Deal?" The article examines whether congressional democrats will scuttle President Obama's compromise deal with the congressional republican leadership.Posted by Shahzeb Gaziani, Senior Associate Editor, Wealth Strategies Journal.http://www.theatlantic.com/politics/archive/2010/12/will-democrats-buy-the-deal/67623/...
Dan Murphy published an article entitled, "Wrong Tack on Estate Tax." The piece argues that agriculture and farm groups should not fight for the wholesale repeal of the estate tax. Instead they should ask for an exemption to farmland in...
WealthCounsel will host a complimentary webinar on Tuesday, December 28th, 2010 from 1:00 PM to 2:00PM EST. Out of consideration for the holiday season, WealthCounsel is offering a repeat session on January 3, 2011 from 1:00PM to 2:00PM EST. Description: Nationally recognized estate...
Continue reading "Webinar: The 2011 Tax Update and Its Impact on Your Practice"
American Bar Association presents Teleconference and Live Audio WebcastThe Estate Tax-What Is Going On and What To Do Before 2011 (Or, Wandering Through Alice's World)Thursday, December 16, 20101:00PM - 2:30PM EasternProgram InformationMajor changes to the estate, gift, and GST taxes were...
Continue reading "SAVE THE DATE: The Estate Tax-What is Going On and What To Do Before 2011"
The article titled "Advisors Predict Obama Tax Deal Will Hurt Trust Business" and published in The Trust Advisor Blog discusses the implications of the new 35% estate tax rate and $5 million individual exemption, a $10 million for a...
Continue reading "The Trust Advisor Blog: Advisors Predict Obama Tax Deal Will Hurt Trust Business"
If the Obama-Republican compromise passes the Congress, it could be the best year for the wealthy. If the deal that was negotiated by President, while excluding House Democrats from the negotiations, goes through as proposes, it would mean that for...
The Heritage Foundation has outlined its top five problems with the tax code. The solutions include making the Bush tax cuts permanent, lowering the corporate tax rate and abolishing the alternative minimum tax. The full article can be found at...
Continue reading "Heritage Foundation Top 5 Tax Code Problems"
Professor George S. Jackson, professor of accounting in the Walter R. Davis School of Business and Economics at Elizabeth City State University in Elizabeth City, N.C., wrote a recent article regarding the benefits of qualified disclaimers to help some families...
Continue reading "Qualified Disclaimers To Minimize Current Estate Tax"
House Democrats met late last night to discuss alternatives to the proposed tax bill. Unhappy with many provisions, members are deliberating splitting the provisions into separate bills in hopes of passing middle-income tax cut extensions alone. The estate tax provision...
WTAS published its December 2010 edition of For The Record, it's online newsletter. The following are the articles in the newsletter:Tax Planning in Uncertain Times2010 California Legislative UpdatePulling the Plug on Estate and GST Tax SavingsUnderstanding the Alternative Minimum Tax...
The CCH Group published a special report of their tax briefs on the Tax Relief/Job Creation Act of 2010. The report highlights and summarizes the impact of the compromise tax bill that President Obama and the GOP negotiated. Posted by...
Continue reading "CCH Group: Tax Relief/Job Creation Act of 2010"
The Tax Foundation has updated its online calculator to include provisions of the new tax proposal. The calculator can be found at http://www.mytaxburden.org.Posted by James G. Haskell, Senior Associate Editor, Wealth Strategies Journal....
Continue reading "Tax Foundation Tax Calculator with Compromise Updates"
David L. Starbuck, partner in the Denver office of Baker Hostetter, reviews the uncertainties surrounding 2010 and 2011 estate, gift, and GST taxes. In his article, Hostetter analyzes how the uncertainties will likely play out in a few common fact...
Continue reading "The Confusing Future of the Estate, Gift and GST Taxes"
A tax cut extension bill has passed a procedural vote in the Senate, yet continues to generate criticism. House Majority Leader Steny Hoyer (D-MD) criticized the legislation as being too costly for its minimum impact on short term employment. Fellow...
The National Business Institute is sponsoring a national live video webcast on December 14 entitled 22nd Annual Advanced Estate Planning Techniques. The program description is below: Join our distinguished attorney faculty for an insightful analysis and discussion of the latest...
Continue reading "22nd Annual Advanced Estate Planning Techniques"
Tom Cohen, Estate Tax Emerges as Key Democratic Beef in Obama's Compromise, CNN, Dec. 12, 2010.Despite last week's threat by House Democrats to prevent Obama's tax compromise from reaching the floor, House Democrats will allow a vote on the bill....
Continue reading "House Democrats Will Vote on Tax Bill; Estate Tax Emerges as Main Concern"
David M. Herszenhorn, Senate Advances Tax Cut Package, NY Times, Dec. 13, 2010, this action "virtually assur[es] that the Senate will approve the bill on Tuesday and send it to the House, where Democrats are threatening to make changes to a provision...
Kathleen Pender recently published a new article Loss of Estate Tax Leaves Hole in State Budget on December 14, 2010, San Francisco Chronicle. The proposed tax deal in Congress would fail to deliver about $2.7 billion in estate tax revenues...
Continue reading "Loss of estate tax leaves hole in state budget "
Wright Bryan recently published a new article How We Got From Estate Tax to "Death Tax" on December 13, 2010 at NPR. President Teddy Roosevelt got the estate tax in its current form through Congress in 1916, just three years...
Continue reading "How We Got From Estate Tax To 'Death Tax'"
TaxProf posted a series of videos on the Obama-GOP Tax compromise.Posted by Shahzeb Gaziani, Senior Associate Editor, Wealth Strategies Journal....
Jaclyn H. Schottenstein published an article entitled, "Is Bank Secrecy Still Bankable?: A Critical Review of Bank Secrecy Law, Tax Evasion and UBS." In light of the financial crisis and the push for tax revenue by shuttering tax shelters, offshore...
Steve Akers, Associate Fiduciary Counsel, Bessemer Trusts, provides the following summary of legislation currently pending on the floor of the U.S. Senate. Steve R. Akers, Associate Fiduciary CounselAkers@bessemer.comDecember 13, 2010 On December 9, the Senate released actual proposed statutory language to implement...
On Friday, Senator Sanders (I-VT) launched a filibuster in which he discusses the many reasons why he believes the estate tax proposal in the Obama deal is "a horrendous proposal." The description of the 8.5-hour speech from Senator Sanders'...
Continue reading "Senator Sanders Filibusters Obama's Estate Tax Deal"
Joanna Macaluso has launched a new website that should prove to be a valuable resource for prospective graduate students interested in accounting. According to Macaluso, the website's purpose is to offer "an unbiased and updated list of every school that offers an...
The Senate is expected to take action on the tax compromise bill that approximates the agreement reached between congressional Republicans and the White House. The U.S. Chamber of Commerce called for the bill's quick passage and the White House lauded...
The Joint Committee on Taxation in report JCX 54-10 estimated the cost of the Senate tax bill at $857.8 billion. The Congressional Budget Office also released similar estimates in a report that can be found at http://www.cbo.gov/ftpdocs/120xx/doc12020/sa4753.pdf.Posted by James G....
Continue reading "JCT and CBO Estimate Senate Tax Bill Cost: $857.8 Billion"
In PLR 201049012, the IRS granted an estate an extension to allocate the GSTT exemption.Posted by James G. Haskell, Senior Associate Editor, Wealth Strategies Journal....
Continue reading "PLR 201049012: IRS Grants GSTT Exemption Allocation Extension"
Michele A.W. McKinnon and Kelly L. Hellmuth published an article entitled, "Senate Tax Bill Extends IRA Charitable Rollover." The article examines the Tax Relief, Unemployment Insurance Reauthorization, and Job Creation Act of 2010 and the effect on the IRA charitable...
David O'Leary posted an article entitled, "ESOPs - A Way to Provide Liquidity for Minority Shareholders: ESOPs can provide a closely held company with a market for its stock and resolve its shareholders' liquidity needs." The article examines how to...
R. Scott Johnston published an article entitled, "2010: A Year of Opportunities and Uncertainties." The article examines the tax and estate planning benefits that exist in 2010. As well, he previews the future of wealth planning in 2011.Posted by Shahzeb...
Continue reading "R. Scott Johnston: 2010: A Year of Opportunities and Uncertainties"
John D. McKinnon and Laura Saunders published a new article Estate-Tax Passage is Likely, W.S.J., Dec. 9, 2010.the House Democrats rejected the Obama deal on December 9 in a non-binding vote. Some think that the estate tax reform under the...
On Thursday, Senate Majority Leader Harry Reid introduced legislation for the Obama deal titled as the "Tax Relief, Unemployment Insurance Reauthorization, and Job Creation Act of 2010." The relevant portion of the summary of the bill, which has several...
Continue reading "Harry Reid Introduces Legislation for Obama-Republican Deal"
Writing for the ABA Journal, Martha Neil has published a short article that reports on the developments in a tax case against Wesley Snipes; Neil stated: Actor Wesley Snipes had sought a month's delay before he begins serving a three-year sentence for...
The ABA Journal has reported on developments in a disturbing case of elder abuse; a household pet may help convict the woman believed to be responsible for the neglect of 98-year old woman. The author of the article, Martha Neil, stated:...
Continue reading "ABA Journal: Parrot's Chilling Comments Aid Police in Elder Abuse Case"
The TaxProf Blog published a recent post that discussed the tax implications for the heirs of a recently deceased family patriarch; the Blog stated: John Eluthere du Pont, an heir to the du Pont chemical fortune, is the latest plutocrat to...
Continue reading "TaxProf: Latest "Plutocrat" Dies, Winning "Estate Tax Lottery""
A report by the Congressional Research Service examines the possible economic effects of allowing the tax cuts to expire. The report can be found at http://assets.opencrs.com/rpts/R41443_20101005.pdf.Posted by James G. Haskell, Senior Associate Editor, Wealth Strategies Journal....
Continue reading "CRS Reports on Effects of Expiring Tax Cuts"
In United States v. Kulhanek, a federal court found the government's claim for unpaid estate taxes was timely. The court cited the defendants election to defer payment under section 6166 and noted that the statute of limitations only began to...
Senate Majority Leader Harry Reid (D-NV) introduced the Tax Relief, Unemployment Insurance Reauthorization and Job Creation Act of 2010. The bill extends many of the expiring tax cuts temporarily, including an estate tax capped at 35 percent with a $5...
The Jewish Federation of Greater Washington has posted an article that addresses a report from Administration officials Erskine Bowles and Alan Simpson. In the article, the Federation stated: The Co-chairmen of President Obama's "National Commission on Fiscal Responsibility and Reform" ......
Continue reading "White House Deficit Reduction Panel Issues "Moment of Truth" Report"
The Jewish Federation of Greater Washington has posted an article that discusses "Investing in America's Economy - A Budget Blueprint for Economic Recovery and Fiscal Responsibility"--a jointly issued report from Demos, the Economic Policy Institute and The Century Foundation. In...
Ann Louise Bardach published a new article New Clue in Chasen Murder, Sexy Beast, Dec. 6, 2010.Ronni Chasen's brother thought that Ronni's 2006 will was in her safe deposit box. Late last week, Larry opened her safe deposit box to...
Continue reading "Ronni Chasen's 2006 Will Still Not Located"
L'Oreal Heiress Bettencourt and Daughter 'End Feud' was recently published on BBC News, Dec. 6, 2010.Liliane Bettencourt and her feuds with her daughter, Francoise Meyers-Bettencourt. Francoise tried to have Liliane declared incompetent, and Liliane accused Francoise of abuse. The two...
Continue reading "Liliane Bettencourt Ends Feud with Daughter, Cuts Ties with Banier"
Stephen Colbert on his show The Colbert Report makes a parady of President Obama's tax cut deal with the Republican leadership.Posted by Shahzeb Gaziani, Senior Associate Editor, Wealth Strategies Journal....
Continue reading "Colbert on President Obama's Tax Deal With the Republicans"
Industry Reacts to Tax DealLife insurance agent trade groups had a guarded reaction to the proposed compromise tax cut unveiled by President Barack Obama late Monday. How The Tax Compromise Might Affect Estate PlanningAs part of the tax cut deal...
A new article is published recently New Oklahoma Law Puts Control of Deceased's Social Media Accounts in Estate Executors, International Business Times, Dec. 2, 2010. Oklahoma recently passed House Bill 2800, a law giving executors or administrators the power to...
Continue reading "Oklahoma Gives Executors Right to Control Deceased's Online Social Media Accounts"
Yoga Master, 92, Still Dancing, Defying Gravity, msnbc.com, Nov. 29, 2010; See also 90-Year-Old Marathoner Races to Old Age, msnbc.com, Nov. 22, 2010; See also 106-Year-Old Man Quits Smoking--For Love, msnbc.com, Dec. 3, 2010. Yoga master Tao Porchon-Lynch is still...
The Tax Policy Center has issued a report on the distributional effects of the tax cut agreement reached between the White House and Congressional Republicans. The report also includes a comparison to the Middle Class Tax Relief Act of 2010.The...
Continue reading "Tax Policy Center Reports on Distributional Effects of Tax Agreement"
A recent tax cut agreement brokered by the White House is meeting stiff resistance from just about everyone. While Senate Majority Leader Harry Reid described the agreement as merely a framework, Senate Minority Leader Mitch McConnell said the deal was...
The American Institute of Certified Public Accountants sought guidance from the IRS on the mechanics of the carryover basis rules for the estates of 2010 decedents. The group's call for guidance arises from the peculiarities unique to 2010 decedents and...
Continue reading "AICPA: We Need Estate Carryover Basis Guidance"
The Department of Treasury and IRS have released the 2010-11 Priority Guidance Plan. The full plan can be found at Normal 0 false false false 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...
Continue reading "Treasury Releases 2011 Guidance Priority List"
Hani Sarji published an article entitled, "Two Sections of The American Bar Association Urge Congress To Act On Pending Estate & GST Tax Legislation." The article discusses a letter written by the ABA Real Property, Trust, and Estate Section and...
The IRS published their special edition tax tip. In their December 7, 2010 issue, they inform their readers to follow them on twitter.Posted by Shahzeb Gaziani, Senior Associate Editor, Wealth Strategies Journal...
Continue reading "December 7, 2010: Special Edition Tax Tip"
The Walking Death Tax: Without Congressional action, it returns with a 55% rate vengeance in 26 days
The Wall Street Journal posted an article in the Review & Outlook section entitled, "The Walking Death Tax: Without Congressional action, it returns with a 55% rate vengeance in 26 days." The article examines the tax debate in congress as...
Deloitte LLC published their Tax News & Views newsletter. The following are the articles in the December 3, 2010 issue:Senate schedules Saturday procedural vote on Democratic tax cut alternativesIRS issues guidance for deferred compensation plans, defined benefit plansIRS guidance allows...
Continue reading "December 3, 2010: Deloitte Tax News & Views"
The Wealth Strategies Journal has posted a new article entitled, "Finding the Silver Lining in the Dark Cloud of Continued Uncertainty," by Lewis Dymond of Wealth Counsel LLC.You may find the article by clicking here....
Continue reading "Finding the Silver Lining in the Dark Cloud of Continued Uncertainty"
Steve Akers, Associate Fiduciary Counsel, Bessemer Trusts, provides the following comments regarding some of the proposals featured in a recently-defeated Senate amendment titled "Middle Class Tax Cut Act of 2010."Steve R. Akers, Associate Fiduciary CounselAkers@bessemer.comDecember 6, 2010Senate Finance Committee Chair Max Baucus on December...
In Publications 1437 and 1438, the IRS gives guidance on requirements and procedures for using the e-file program.Posted by James G. Haskell, Senior Associate Editor, Wealth Strategies Journal....
Continue reading "IRS Issues Guidance on Estate Tax E-Filing"
The Center for American Progress issued a recent report with several methods to reduce the federal deficit. The variations include different proportions of spending cuts and tax increases. In the version the group deems the most reasonable, spending would be...
Continue reading "Center for American Progress Suggests Deficit Reduction Plan"
President Obama agreed to a two-year tax cut extension for all income levels. The agreement included an estate tax of 35% with a $5 million exemption. Also in the agreement are an extension of unemployment insurance, the earned income credit,...
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In Notice 2010-92, the IRS gives guidance as to whether section 902 corporations' taxes will be suspended under section 909.Posted by James G. Haskell, Senior Associate Editor, Wealth Strategies Journal. ...
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In a recent article Doug H. Moy (dougmoy@msn.com) discusses the gift tax treatment of property transferred by gift to a trust under section 2511(c).See "Gift Tax Treatment of Transfers in Trust," 2010 TNT 234-8, (November 2, 2010).Posted by James G....
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The wait is finally over. On Monday, President Obama unveiled a compromise deal to extend all expiring Bush-era tax cuts for all Americans for two years and to renew benefits for the long-term unemployed for 13 additional months. The...
Scott Martin published a new article Wilmington's Wealthy Clients Rattled as Loan Loss Scandal Unfolds on The Trust Advisor Blog, December 4, 2010. While shareholders complain that merging with M&T destroys the legendary trust bank's reputation, the jury's still out...
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Marc Lacey published a new article Arizona Cuts Financing for Transplant Patients, N.Y. Times, Dec. 2, 2010.Beginning in October, Arizona ceased financing certain transplant operations under its version of Medicaid. Among the discontinued procedures are liver transplants for hepatitis C...
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Morris, Nichols, Arsht & Tunnell LLP sent out a Delaware Trusts, Estates, & Tax Law Update (Dec. 2010). The newsletter addresses the Chancery Court's holding in Paradee v. Paradee, C.A. No. 4988-VCL (Oct. 2010). The introduction is below:This Delaware Court of...
Donald Kozusko, Rashad Wareh, Miles Padgett, and George N. Harris, Jr., of Kozusko Harris Vetter Wareh LLP, have submitted comments to the SEC in response to the agency's recently issued proposed exemption on family offices:Prior to the Dodd-Frank Wall Street...
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In a letter to the chairs and ranking members of the Senate Finance and House Ways and Means Committees, the Tax Section of the American Bar Association urged lawmakers to address estate tax issues and resolve the uncertainty that is...
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In an email, the IRS advised that there is "nothing in the Code, the regulations, or the IRM that requires the Service to apply a minority interest discount in discharge cases." The email clarified that judicial review is available under...
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The IRS in PLR 20109032 ruled that a judicial reformation of a trust that was reformed due to scrivener's error will not disqualify a charitable remainder unitrust nor will it be deemed an act of self-dealing.Posted by James G. Haskell,...
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In PLR 20108647, the IRS allowed a claim for the rehabilitation tax credit under 47(a)(2) even though the building had already been rehabilitated and placed in service.Posted by James G. Haskell, Senior Associate Editor, Wealth Strategies Journal....
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In the Estate of Mary V. Allison v. Commissioner, the Fourth Circuit affirmed the reasoning of the tax court and upheld the tax court's imposition of sanctions and determination of deficiency in the estate's gift tax.Posted by James G. Haskell,...
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In the Estate of Mary V. Allison v. Commissioner, the Fourth Circuit affirmed the reasoning of the tax court and upheld the tax court's imposition of sanctions and determination of deficiency in the estate's gift tax.Posted by James G. Haskell,...
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In his Wealth Matters column for the New York Times, Paul Sullivan published an interesting article titled "Thinking Ahead for Pets, Including Insurance and Trusts". Sullivan wrote about the high costs of pet care and cautiioned about pet insurance policies; he said,...
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The ABA Journal published several articles this week that reported that seem to indicate that the legal industry can expect to undergo major changes in the coming years. In the article, "As 1L Ponders Cost-Benefit Ratio of Dropping Out Now,...
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Kelly Phillips Erb recently published a new article Nine Tips for Tax-Smart Charitable Giving on Frobes.com on December 2, 2010. Making a gift does more than put many in the holiday spirit: Making a donation to a qualified charitable organization...
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After attending the University of Colorado for interior design, William Nicholas Roos moved to New York City where he immersed himself in the arts. His love for art and Broadway made him many friends in New York, including Esther DuPont,...
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Wendy C. Gerzog (Professor of Law, University of Baltimore School of Law) recently published her article entitled Caering About the Credit for Prior Transfers, 129 Tax Notes No. 9 (2010). The conclusion is below:When both spouses die within a short...
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Senator Max Baucus (D-MT), chairman of the Senate Finance Committee, introduced legislation to permanently reduce tax rates on middle income earners. The rates would drop from 15, 29, 31 and 36 percent to 10, 15, 25, 28 and 33 percent. ...
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In Estate of Meyer Levy v. United States, the Fifth Circuit affirmed the judgment for the government denying an estate tax refund that arose out of a property value dispute.Posted by James G. Haskell, Senior Associate Editor, Wealth Strategies Journal....
The House approved H.R. 4853, the Middle Class Tax Relief Act of 2010 yesterday. The vote passed 234-188. The bill extends tax cuts for taxpayers making less than $200,000 and families making less than $250,000.Posted by James G. Haskell, Senior...
On November 30, the Congressional Research Service issued an updated report on the effects of the expiring tax cuts. The updated report includes changes offered by Senate Finance Committee Chair Max Baucus (D-MT) under extender bill S. 3793.Posted by James...
In a recent publication (JCX 52-10), the Joint Committee on Taxation issued a technical explanation of an amendment to the Senate amendment to H.R. 4853, "Middle Class Tax Relief Act of 2010" which was scheduled for consideration by the House...
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In Travelers Casualty and Surety Company of America v. United States, a federal magistrate judge granted summary judgment to the company. The court held the company to be the sole owner of funds awarded by a bankruptcy court order that...
The IRS announced that it will send more than 10,000 targeted letters to paid tax preparers emphasizing the obligation of accuracy and reminding them to register with the IRS.See "IRS Continues Efforts to Ensure Accurate Return Preparation; Reminds Tax Prepareres...
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In a letter to Speaker of the House Nancy Pelosi (D-CA), a group of lawmakers endorsed extending tax cuts for everyone temporarily, and for middle income earners permanently. The lawmakers said the middle-income tax cuts were excepted under statutory paygo...
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In In re Estate of Hendler, 316 S.W.3d 703 (Tex. App.--Dallas 2010, no pet. h.), Testator executed a valid will in 1990 leaving his entire estate to Brother. Thereafter, Testator had two children. In 1999, he signed a holographic...
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Lauren McNitt published a new article recently Estate Tax Issue Hampers Compromise on Bush Tax Cuts, Producersweb.com, Nov. 29, 2010.The President will meet with Democratic and Republican leaders this week to discuss the Bush-era tax cuts. Republicans want to extend...
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Stephen R. Alton (Professor of Law, Texas Wesleyan School of Law) recently published his article entitled The Game is Afoot!: The Significance of Gratuitous Transfers in the Sherlock Holmes Canon, Working Paper Series (Sept. 2010). The abstract available on SSRN...
The Department of Treasury has called for comments on guidance it issued under Section 664(c) regarding the effect of unrelated business taxable income on charitable remainder trusts. The call is part of its effort to reduce paperwork and respondent burdens....
A recent publication from the Joint Committee on taxation outline the historic development and present state of the federal tax system. The report can be found at http://www.jct.gov/publications.html?func=startdown&id=3711. Posted by James G. Haskell, Senior Associate Editor, Wealth Strategies Journal. ...
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Acting House Ways and Means Committee Chair Sander M. Levin (D-MI) introduced the Middle Class Tax relief Act of 2010 (H.R. 6467) which would extent tax cuts for middle-income earners and patch the alternative minimum tax. The bill also extends...
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In a letter to lawmakers, IRS Commissioner Douglas Shulman reiterated that a delay in the patch for the alternative minimum tax would affect the entire filing seasons and tens of millions of taxpayers. See "IRS Chief Urges Congress to Act...
In floor remarks on November 30, Senator Minority Leader Mitch McConnell (R-KY) said there should be "no tax hikes on anybody -- period." McConnell criticized a new Democratic proposal that would extend tax cuts to all earners making less than...
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Speaker of the House Nancy Pelosi (D-CA) expressed concern about increased deficits if tax cuts are extended for all earners. Pelosi said Democrats support "tax cuts for America's middle class in a way that is consistent with pay-as-you-go." See "Pelosi...
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In a recent article from Benjamin H. Harris, senior research associate with the Brookings Institution and Daniel Baneman, a research assistant with the Urban Institute, the authors conclude that AMT reform can lead to greater progressivity and efficiency while lessening...
A recent report from the Treasury Inspector General for Tax Administration (TIGTA) said the IRS could better use currency report data to idenitfy suspicious activity and discover underreporters. TIGTA estimated that better use of the reports could result in $1.3...
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University of Baltimore Professor Wendy Gerzog analyzes issues arising when spouses die near in time to each other. Specifically examining the benefit of the first dying spouse forgoing the marital deduction to take advantage of the credit on prior transfers....
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The Taxation Section of the American Bar Association will host a teleconference on Wednesday, December 8th from 1:00PM - 2:30PM. Depending on their state of residence, attorneys can earn either 1.5 or 1.8 CLE credits for their attendence. The Teleconference will discuss how the 2010...
PR Newswire published an article reporting that with the release of Revenue Ruling 2010-29, the IRS has reduced the interest rate used to value certain split-interest trusts created in December 2010 to 1.8%, an all time low. As a result,...
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Market Watch article by Rial Moulton titled "Year-End Harvesting," examines the anomaly in this year end actions of investors and their financial and tax advisors. Usually, this time of year is spent looking through portfolios for investments with losses, called...
The ABA has published its November 2010 E-News. The following articles are in the E-News:Power Your Practice with Free Tools from GoogleSeven Tips for Dealing wiht Deadbeat ClientsAlternatives to Billable Hour Work, say ABA PanelistsBuilding Credibility When You Look "too...