A post on The Economist's website quantified the reductions necessary in a number of developed countries in order to reduce gross debt to 60% of GDP by 2026. Japan would have to reduce debt by about 31%, and the US by about...
Continue reading "Debt Reduction in the Developed World Will Require Substantial Restructuring"
The TrustAdvisor Blog has published its list of the best and worst trust and accounting software for 2011. It includes a chart comparing 11 different trust accounting systems. The chart was created by polling trust operations personnel, consultants, and the users...
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Tax Notes has posted H.R. 2320, introduced by Rep. Don Young, R-Alaska. The Bill would permanently extend the existing elective tax treatment for Alaska Native Settlement Trusts.See "H.R. 2320 Would Permanently Extend Elective Treatment For Alaska Native Settlement Trusts," TNT...
Tax Notes has published Daniel I. Alvarado's, CPA, letter to the IRS regarding Proposed Regulation 154159-09. Mr. Alvarado's letter points out that proposed regulations (REG-154159-09) on discharge of indebtedness income of a grantor trust do not address whether the fair...
T.D. 9531 provides an automatic five-month return filing extension for partnerships, trusts and estates. Practitioners note that the extensions don't remove the time pressure for filers who depend on tax information from other entities. "See, Automatic Filing Extension Regs Get Mixed...
Continue reading "Automatic filing extension regs get mixed reception from practitioners"
In IRS Letter Ruling 201124024, the IRS stated that supporting organizations that amended or revised their Articles of Incorporation to identify its supported organizations by class or purpose rather than name would still have Type 1 supporting organization status under...
Continue reading "IRS Letter Ruling on Supporting Organizations"
Tara Siegel Bernard has published an article discussing how New York's new law allowing marriage between gays will affect their financial planning. The article discusses how the law will effect a variety of financial matters for gay couples such as...
Continue reading "The Effect Gay Marriage will have on their Financial Planning"
Revenue Ruling 2011-14 provides various prescribed rates for July 2011 for federal income tax purposes including the applicable federal interest rates, the adjusted federal long-term rate, the adjusted federal long-term tax-exempt rate. These rates are determined as prescribed by section...
Financial Advisor has published an article titled "Using Managed Futures In Client Portfolios." The article discusses how managed futures, which have performed well in recent years, can be used to diversify portfolios in volatile times.Posted by Brian Spring, Associate Editor,...
Continue reading "Managed Futures Offer A Hedge Against Volatile Markets"
FPA Practice Management Center Blog has posted "Say 'Thank You' More Than 'Please.'" The post discusses how learning to surprise and delight clients can not only help build a better practice, but can increase overall job satisfaction.Posted by Brian Spring,...
Continue reading "Showing Gratitude To Your Clients Is A Surefire Way To Expand Your Business"
Financial Planning has published an article by Ruthie Ackerman titled "Status Quo in Wealth Management Shifting." The article discusses PwC's 2011 report "Anticipating a New Age in Wealth Management" and how established firms are being replaced by new competitors because...
The Wall Street Journal has published an article by Veronica Dagher titled "Advisors Worry Younger Clients Are Playing It Too Safe." The article discusses how clients below the age of 40 are risk adverse and are opting for safe investments...
Continue reading "Planners Try to Persuade Younger Clients To Take More Risk"
The Court of Appeals for the DC Circuit affirmed the US Tax Court's ruling. The court affirmed that the value of conservation easements on real property given as charity are tax deductible and satisfy the pertinent regulation in Treas. Reg....
YourABA has published its July 2011 Newsletter. Articles include the following:Employee Misclassification Can Lead to Big Penalties For EmployersDesigning a Compliance Program for Antitrust Enforcement Regimes Begins With Identifying commonalitiesSEC Recognizes Importance of Attorney-Client Privilege in Final Whistleblower Rules following...
Representative Jim Gerlach, House Ways and Means Committe member, has introduced the Conservation Easement Incentive Act of 2011 (H.R. 1964). If enacted, the bill would make permanent the special rule for contributions of qualified conservation contributions under sections 170(b)(1)(E) and 170(b)(2)(B) of...
The Giving USA Foundation, in its annual report on philanthropy, reported that the total estimated chartiable giving in the United States rose by 3.8 percent in 2010. The report attributes the increase to the modest economic recovery achieved in 2010...
The American Bar Association (ABA) has published its June 2011 Smart Soloing Newsletter. Articles include the following: How to Generate Business with Twitter, LinkedIn, and Facebook Quick Tips for Effective Social Networking SaaS: What Is It, and Why Should You Care? Privacy...
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Catherine Hughes, attorney-adviser in Treasury's Office of Tax Legislative Counsel, announced that once guidance addressing carryover basis under section 1022 is completed, a new Form 8939, "Allocation of Increase in Basis for Property Acquired from a Decedent" would be produced....
Continue reading "Long-Awaited estate planning guidance still in the works, treasury official says."
The Department of Justice announced that California residents, Sean and Nadia Roberts, plead guilty to a criminal information charging them with filing a false tax return related to an undisclosed Swiss bank account that they maintained at UBS, as well as...
Continue reading "California UBS clients plead guilty to filing false tax return"
In PLR 201125007, the IRS ruled that the judicial reformation of a trust will be deemed qualified under section 2055(e)(5) and that an estate tax charitable deduction is allowable under section 2055(a) for the present value of the charitable remainder...
In PLR 201125009, the IRS ruled that an individual's disclaimer of the balance of a retirement account satisfies the requirements for making a qualified disclaimer under section 2518.Posted by Brian Spring, Associate Editor, Wealth Strategies Journal....
Continue reading "PLR 201125009: IRS Rules On Disclaimer Of Balance of Retirement Account"
The IRS has released a draft of Form 8938, "Statement of Specified Foreign Financial Assets." The draft form separates foreign financial assets into basic categories: deposit and custodial accounts, and other assets.See "Draft FATCA Reporting Form Released" 2011 TNT 124-3,...
Continue reading "IRS Releases Draft Of Form 8938 "Statement of Specified Foreign Financial Assets""
According to the New York Times in A UBS Customer Pleads Guilty to Tax Evasion, the sixth person (out of seven charged in April) charged with evading taxes through hiding assets in Swiss bank accounts pled guilty this morning in...
Continue reading "6th UBS Customer - Former Attorney - Charged with Tax Evasion Pleads Guilty"
Gail Buckner, a retirement and financial planning specialist, recently published an article titled "To Give or Not to Give? The 2-Year Estate Planning Oppurtunity." The article discusses how the Tax Relief Act only applies to amounts passed through gifts or estates...
Continue reading "The 2010 Tax Relief Act: Two Year Estate Planning Oppurtunity"
The Internal Revenue Service has issued final regulations shortening the automatic extension time period for partnership, trust and estate tax returns from six to five months. The final regulations in TD 1931 enacted temporary and proposed regulations which reduced the...
SPONSORED POST___________________________________Special Interview with Guest Expert:Steven J. Oshins, Esq. onNevada Restricted LLC/LP The Ultimate Estate Planner, Inc. will be hosting a teleconference on Nevada Restricted LLCs and LPs to be presented by Steve Oshins on Wednesday, June 29th at 9am Pacific...
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In PLR-138574-10 the IRS ruled in favor of the taxpayer regarding a taxpayer's request for an extension following a failure to allocate the GST exemption. Taxpayers in question were married with three children and established four irrevocable trusts (one family...
McGuireWoods posted an article New Guidance Regarding FBARS and Offshore Voluntary Disclosure Initiative, June 21, 2011. In Notice 2011-54, Treasury extended the FBAR filing deadline for persons having signature authority over, but no financial interest in, a foreign financial account. ...
Continue reading "New guidance regarding FBARs and Offshore Voluntary Disclosure Initiative"
The IRS has announced (Rev. Rul. 2011-14) the applicable federal interest rates for July 2011. "See, IRS Announces Applicable Federal Rates for July, 2011 TNT 118-14" Posted by Adam Fleischer, Associate Editor, Wealth Strategies Journal...
Continue reading "IRS announces applicable federal rates for July"
Conn Caroll posted an article How a no-tax hike pledge makes K Street even richer, The Washington Examiner, June 19, 2011. Thirty of the thirty-three Republicans who voted to end a federal tax credit for ethanol production. However, they also previously...
Continue reading "How a no-tax hike pledge makes K Street even richer"
In the Washington Post article "The Tax Law That Could Make Your Grandchildren Super Rich" Karen Hube describes how Congress' expansion of the generation-skipping transfer (GST) tax exemption to $5 million until 2013 plus the lifting of...
Martin D. Begleiter, the Ellis and Nelle Levitt Distinguished Professor of Law at Drake University Law School, recently published an article entitled Trust Code--The Iowa Trust Code After Ten Years, 59 Drake L. Rev. 265 (2011). The article discusses how the Iowa...
The Tax Court recently upheld the defined value formula clauses that set the fair market value of transfers of private company stock in a gift/sale transaction (Hendrix v. Commissioner, T.C. Memo. 2011-133 (June 15, 2011)). The Court found that the...
Continue reading "Tax Court Ruling on Defined Value Formula Clauses"
The Law Firm of Caplan & Drysdale recently published an article titled "The Gift Tax and Contributions to Section 501(c)(4) Organizations: Less than Meets the Eye?" The article discusses news reports stating that the IRS has opened federal gift tax examinations...
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Arden Dale posted an article Tips for Solving the Cost-Basis Mystery, The Wall Street Journal, June 20, 2011.It may be challenging to determine the basis of gifted stock. To determine cost basis, the donee of the stock may want to track...
Shomari Hearn posted an article Do Incentive Trusts Encourage Responsibility, Palisades Hudson Financial Group LLC, June 2011.With a $5 million lifetime exemption, parents are transferring a large amount of money to their descendants. At the same time, many of these parents...
Continue reading "Do incentive trusts encourage responsibility?"
Arden Dale published an article entitled, "Why Your CPA Might Blab." The article discusses the limited protection that accountants who work with lawyers have in not revealing conversations they had with their client. Specifically, the article discusses the recent trend...
MIchael Sisk published an article entitled, "How to Keep the Kids." The article discusses the frustration of financial advisors for losing accounts when their clients children inherit the funds and pull it out. The article goes on to discuss the...
In "Wisconsin Court Upholds Domestic Partner Benefits", Eric Roldan wrote for Lamba Legal about a legal challenge to the benefits granted to Wisconsinite couples in same-sex domestic partnerships. The Wisconsin court held that the benefits were in line with Wisconsin's...
Continue reading "Domestic Partnership Benefits Upheld in Wisconsin Court"
In "Wisconsin Court Upholds Domestic Partner Benefits", Eric Roldan wrote for Lamba Legal about a legal challenge to the benefits granted to Wisconsinite couples in same-sex domestic partnerships. The Wisconsin court held that the benefits were in line with Wisconsin's...
Continue reading "Domestic Partnership Benefits Upheld in Wisconsin Court"
The Tax Court, in the Estate of Coaxum v. C.I.R., held that a taxable estate included the value of annuities and the value of life insurance policies in which the decedent retained incidents of ownership. The Court also held that it lacked...
In "Estate Tax Revisions Leave Some Issues Unsettled Until 2013", Jerry Gleeson writes on tax legislation from late 2010. Lawmakers enacted a 35% maximum tax rate and a $5 million estate tax exemption for 2011. Executors of estates of 2010...
Continue reading "Revisions in Estate Tax Leave Ambiguities Until 2013"
Individuals with signature authority over, but no financial interest in, a foreign financial account in 2009 or prior calendar years for which the reporting deadline was extended by Notice 2009-62 or Notice 2010-23 now will have until November 1, 2011,...
Continue reading "Treasury Notice 2011-54 extends FBAR filing deadline for some individuals"
Justin P. Ransome, CPA, J.D. and Frances Schafer, J.D. recently published an article in the Journal or Accountancy titled "Estate Tax or Carryover Basis?" The article discusses how the Tax Relief Act repealed the Economic Growth and Tax Relief Reconciliation...
Continue reading "Effect of Tax Relief Act on 2010 Decedent Estates"
Tax Notes has published Robert Stricof's, Tax Partner at Deloitte Tax LLP, testimony at the June 23, 2011 House Ways and Means Select Revenue Measures Subcommittee hearing. Mr. Stricof testified that complexity and lack of transparency in Section 163(j) earnings...
Continue reading "Deloitte Tax Partner Testifies on Foreign Investment"
The Tax Court recently held that an estate was not liable for section 6662 accuracy-related penalty because it acted reasonably and in good faith by relying on appraiser to value its partnership interest in a land and timber limited partnership.See...
Continue reading "Tax Court Holds Estate Not Liable For Accuracy-Related Penalty"
Tax Notes has published an article by Kip Dellinger, CPA and Partner at Kallman and Co. LLP. The article comments on the IRS's treatment of political contributions and its recent inquiry into donors to section 504(c)(4) organizations engaged in electioneering...
SPONSORED POST___________________________________Special Interview with Guest Expert:Steven J. Oshins, Esq. onNevada Restricted LLC/LP The Ultimate Estate Planner, Inc. will be hosting a teleconference on Nevada Restricted LLCs and LPs to be presented by Steve Oshins on Wednesday, June 29th at 9am Pacific...
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Ike Devji, J.D., wrote a piece on his website entitled "How to Pick an Asset Protection Lawyer - Key Due Diligence Questions and Caveats". Mr. Devli bemoans the rapidly increasing number of unqualified attorneys claiming to be asset protection experts....
Continue reading "Advice For Clients in Picking an Asset Protection Lawyer"
Steve R. Akers, Esq., Bernard E. Jones, Esq., and R.J. Watts, Esq. recently published a book titled "Wills Road Map: Practical Considerations in Will Drafting." The book is intended for both general practitioners who occasionally prepare wills for their existing clients...
The American Family Business Institute (AFBI) hosted a luncheon on June 20th to discuss death tax policy with Congressional staffers. The luncheon was held to help staffers to expand their knowledge and understanding of the current death tax policy, as...
Continue reading "American Family Business Institute Hosts Death Tax Luncheon on Capitol Hill"
Arden Dale at the Dow Jones Newswires has published an article titled "Estate Tax Returns to Shrink Sharply For 2011 - Tax Policy Group" in the Wall Street Journal. The Tax Policy Group stated that new regulations regarding who is...
Continue reading "Tax Policy Group Predicts Sharp Decline in 2011 Estate Tax Returns"
Arden Dale at the Dow Jones Newswires has published an article titled "California Court Gives 'Rogue' Wills More Validity". In "Estate of Stoker", a CA court granted Steven Stoker's estate to his children, whose names were misspelled on a will...
Continue reading "Informal "Rogue" Wills Given More Credence By a California Court"
Deidre Wheatley-Liss, shareholder of the Law Firm of Fein, Such, Kahn & Shepard, P.C., published an article titled "Did your favorite non-profit just lose its tax exempt status?" The article discusses how the IRS recently revoked the tax exempt status...
In the Forbes article "Can IRS Force Your Accountant to Talk?" Robert W. Wood discusses what information the IRS can obtain from an accountant with a summons, subpoena, or search warrant. The article discusses the statutory "tax preparation" privilege for...
Continue reading "IRS Power to Request Documents from Accountants"
In the San Francisco Chronicle article "Swiss Tax Haven Lures Rich From Emerging Markets" Dylan Griffiths and Klaus Wille report that deposits in Swiss Banks from Latin America, the Middle East, and Africa are expected to exceed European and North...
Continue reading "Swiss Banks Viewed as Attractive Tax Havens to Rich from Developing Countries"
In Cooper v. Commissioner of Internal Revenue, 136 T.C. No. 30 (June 20, 2011), the United States Tax Court ("Court") granted the Respondent's Summary Judgment motion. The Court found that their jurisidiction in a whistleblower action is different from their jurisdiction to review...
Continue reading "United States Tax Court's Whistleblower Jurisdiction"
In the article "Senators Urge IRS to Provide Taxpayers With Free Software", USNWR's Paul Bedard reports that Illinois Senators Durbin and Kirk have called for the IRS to "eliminate the middle man" and develop free tax preparation software. Sen. Durbin...
Continue reading "Senators Kirk and Durbin Ask the IRS to Provide Free Tax Prep Software"
Bob Carlson has published an article titled "Finding Your Classic Estate Plan." Mr. Carlson's article provides advice for choosing an estate plan and states that although every estate is unique, each estate can be placed in a category with similar estates. ...
Steve Akers, Associate Fiduciary Counsel, Bessemer Trust, provides the following summary of Hendrix v. Commissioner, T.C. Memo. 2011-133 (June 15, 2011):In a long awaited opinion (issued about 2 ½ years after the trial), the Tax Court has approved transfers with...
SPONSORED POST___________________________________Special Interview with Guest Expert:Steven J. Oshins, Esq. onNevada Restricted LLC/LP The Ultimate Estate Planner, Inc. will be hosting a teleconference on Nevada Restricted LLCs and LPs to be presented by Steve Oshins on Wednesday, June 29th at 9am...
Continue reading "SPECIAL INTERVIEW: Steven J. Oshins, Esq. on Nevada Restricted LLC/LP"
The Wealth Strategies Journal has published an interview of Steven J. Oshins, author of a new law in Nevada, which creates two new business entities, called Restricted Limited Liability Companies and Restricted Limited Partnerships.Posted by Matthew Engler, Managing Associate Editor. ...
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Protect and Serve: What Advisors Should Know About Women and Long-Term CareBY WENDY BOGLIOLILong term care cost inflation is creating new challenges for financial professionals and their clients, as uncertainty about equities, a soft housing market and rising health...
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Anna K. Pfaehler, CFP, has published an article titled "Same Sex Couples Must Plan Carefully." Ms. Pfaehler's article provides general advice for same-sex couples regarding issues couples should consider ranging from hospital visits to signing birth certificates. Posted by Brian...
In Trust of McManus v. McManus, 18 A.3 550 (R.I. 2011), the Supreme Court of Rhode Island upheld summary judgment against a daughter because the bank account at issue did not specifically provide for survivorship rights on the signature card...
Gerry W. Beyer published a post entitled, "Court Holds that a Will Lacking a Residuary Clause Covered Non-Gifted Property." The post summarizes that the First District Court of Appeals in Florida affirmed summary judgment in the case of Basile v....
AICPA requests that Treasury's Financial Crimes Enforcement Network (FINCEN) reduce or eliminate foreign bank account report filing requirements for 2009 and earlier for individuals with statutory authority but no financial interest in a foreign bank account of financial account. "See, AICPA...
The parties in Hendrix v. C.I.R. disputed whether defined value formula clauses set the fair market value of stock to various family trusts and to a charitable foundation. The Tax Court decided tht the formula clauses were reached at arm's length...
In PLR 201124003, the IRS granted a couple an extension to elect out of the automatic allocation of generation-skipping transfer tax for post-2000 transfers to their revocable trust. The couple, who were not informed by the drafter of the trust...
According to The New York Times in After Snips to the Budget, A Thicket Looms, bipartisan budget talks have remained indecisive. The article states that, while there is a general consensus of how to trim the federal budget, more work...
The New York Times has published an article, by Paul Sullivan, titled "Financial Advice Gleaned From a Day in the Hot Seat." In the article, Mr. Sullivan discusses what he learned about spending and saving money from members of millionaire...
Forbes.com has published an article by Caleb Melby titled "Brutally Honest Accountants Confess To Being Boring." The article discusses how Macias Gina & O'Connell LLP, a California CPA firm, differentiated itself from the competition by marketing that it is proud...
The IRS issued announcement 2011-36 entitled, "IRS Seeks Comments on Form 990 (Annual Return for Tax-Exempt Organizations)." The announcement invites public comments on the proposed redesign to the Form 990.Posted by Shahzeb Gaziani, Senior Associate Editor, Wealth Strategies Journal.http://www.irs.gov/pub/irs-drop/a-11-36.pdf...
House Ways and Means Committee Chair Dave Camp, R-Mich., released a letter he sent to IRS Commissioner, Douglas Shulman, requiring the IRS to explain its recent investigation of five donors who didn't pay the 35% gift tax when they made...
Tax Notes published an article by Curtis Dubay, "The 2010 Tax Deal: A Chance for Congress to Lay the Groundwork for Tax Reform," The Heritage Foundation, June 13, 2011.The Heritage Foundation recommends the elimination of several tax reducing policies commonly...
Continue reading "Tax Notes Article, "Heritage Foundation Calls for Elimination of Tax Extenders""
The IRS has advised (CCA_2011051307555350) that generic legal advice (AM 2007-017), which concluded that there was no limitations period applicable to the assessment of a section 6695A penalty, was drafted before 2007 amendments to section 6696(d)(1) and, thus, is no longer...
Swiss and U.S. officials are negotiating a multi-billion dollar tax evasion settlement. The Swiss banks involved would pay a fine, stop undeclared offshore banking activities, and would name the banks' U.S. clients who have hid taxable assets. In return, the...
Arden Dale of Dow Jones Newswires posted an article Estate Tax Returns to Shrink Sharply for 2011 Tax Policy Group, The Wall Street Journal, June 9, 2011. Estate taxes will generate only 10 billion dollars in revenue in 2011 compared...
Continue reading "Estate tax returns to shrink sharply for 2011 tax policy group"
Ashlea Ebeling posted an article Ohio About to Repeal Its Estate Tax, Forbes, June 10, 2011. Ohio legislators in both the House and the Senate have voted to repeal the state estate tax as of January 1, 2012. Posted by Adam Fleischer,...
Margaret Collins posted an article Deficit May Clip 12-Year Tax Streak for Top Earning Americans, Bloomberg News, May 25, 2011. The wealthy can expect to pay more taxes by 2013 due to expiring tax cuts. The extra revenue should help pay down the...
Continue reading "Deficit may clip 12-year tax streak for top earning Americans"
Christopher R. Hoyt published an article, "Charitable Gifts Made by S Corporations: Opportunities and Challenges," 36 ACTEC L.J. 477 (Winter 2010). The article focuses on the opportunities and hazards when S corporations make charitable gifts. It demonstrates that a gift...
Continue reading "Article on Charitable Gifts by S Corporations"
In an article for his "Your Money" column in the New York Times, titled "Revealing Hidden Costs of Your 401(k)," Ron Lieber discusses important administrative fees that reduce long-term returns. Among the costs discussed, Lieber contextualizes and explains the hidden...
In an article for his "Your Money" column in the New York Times, titled "Revealing Hidden Costs of Your 401(k)," Ron Lieber discusses important administrative fees that reduce long-term returns. Among the costs discussed, Lieber contextualizes and explains the hidden...
Patricia A. Cain, Santa Clara Law Inez Mabie Distinguished Professor of Law, has published "Planning for Same-Sex Couples in 2011." The article provides citations to tax authorities regarding issues same-sex couples may encounter under the estate and gift tax code.HAT...
The Tax Court imposed the accuracy-related penalty on a married couple whose tax preparers understated $3.4 million dollars of income from the couple's federal income tax return. The couple argued they relied on the preparer's advice and should not be...
Continue reading "Tax Preparer Omits Income And Tax Court Imposes Accuracy-Related Penalty "
The Tax Court has held that a nonresident alien's U.S. gambling winnings are not exempt from income by either the Treaty of Friendship, Commerce of Navigation, or the income treaty between the United States and Petitioner's country of residence, South...
The Washington Examiner published an article entitled, "Retirement: Tax-smart ways to help your grandkids." The article discusses various options for grandparents to receive a tax break by being generous to their grandchildren.Posted by Shahzeb Gaziani, Senior Associate Editor, Wealth Strategies...
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Robert W. Wood published an article entitled, "IRS Penalties Despite Reliance on Adviser." The article advises taxpayers that reliance upon a tax adviser may not be enough to avoid liability.Posted by Shahzeb Gaziani, Senior Associate Editor, Wealth Strategies Journal.http://blogs.forbes.com/robertwood/2011/06/13/irs-penalties-despite-reliance-on-adviser/...
Continue reading "Robert W. Wood: IRS Penalties Despite Reliance on Adviser"
The Wealth Strategies Journal has posted a new article entitled, "Recent Developments in Asset Protection Law - June 2011," by Jay Adkisson, Esq.Mr. Adkisson surveys recent case law regarding asset protection and summarizes pertinent changes for practitioners in that...
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Frederick R. Franke, Jr., practicing attorney, has published "Resisting the Contractarian Insurgency: The Uniform Trust Code, Fiduciary Duty, and Good Faith in Contract," 36 ACTEC L.J. 517 (Winter 2010). Mr. Franke's article compares and contrasts the relationships between contract law,...
Continue reading "Relationship Between Contracts, Trusts, and Fiduciary Duty"
In an article posted to The Mississippi Fiduciary, a beneficiary's request for a discretionary distribution for an emergency implant was denied. The beneficiary's request was denied because he failed to demonstrate that his need for an implant was an emergency.HAT...
Continue reading "Beneficiary Denied Discretionary Distribution For A Medical Implant"
In a column for the Wall Street Journal Small Business section, titled "How to Raise an Entrepreneur," Barbara Haislip outlines several key traits that parents should help their children develop, including a sense of adventure, dependability, an observant and creative...
In PLR 201123014, the IRS ruled that two court orders approving settlement of litigation over distributions of trust principal would not result in the loss of GST tax exempt status. With negotiations and litigation having persisted for more than 50...
Continue reading "PLR 201123014: Court's Orders Won't Cause Trust to Lose GSTT Exempt Status"
Tax Notes Today has published an article by Jeremiah Coder, an attorney and contributing editor to Tax Analysts. The article discusses recent statements made by IRS counsel that taxpayers disclosing offshore accounts will be evaluated under the "offshore voluntary disclosure...
The 3rd Circuit has held, in Appleton v. Commissioner (No. 10-4522, Filed 6/10/11), that the Tax Court abused its discretion when it denied the U.S. Virgin Islands' government permission to intervene in a case where an individual claimed he did...
The IRS published a News Release (IR-2011-66) reminding Americans living and working abroad that their 2010 federal income tax returns are due by June 15, following their automatic 2-month extension.Hat Tip: Tax Analysts Posted by Jessica Rebarber, Associate Editor, Wealth...
Continue reading "IRS Reminds Americans Living and Working Abroad of June 15 Deadline"
The IRS, as apart of a paperwork reduction effort, has asked for public comment on final regulations (T.D. 9092) on the income, employment, and gift taxation of split dollar life insurance arrangements, comments are due by August 8, 2011. 2011...
Pinank Desai of the Investment Company Institute in response to a request for items to include on the 2011-2012 guidance priority list (Notice 2011-39), has asked for clarification for clarification on the effective date of changes to the section 1212...
SPONSORED POST __________________________________ SPECIAL TELECONFERENCE - Portability: What Every Professional Should Knowwith Martin M. Shenkman, CPA, MBA, JD, Esq. and Robert S. Keebler, CPA, MST, AEPJoin two of the nation's leading experts on a special 90-minute teleconference on the topic,...
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Tom Herman posted an article The Federal Estate Tax, The Wall Street Journal, June 5, 2011. The IRS has not provided the due date for IRS Form 8939 for decedents who died in 2010. The IRS will provide hopefully provide guidance later this...
Albert Hunt posted an editorial Deluded Parties Taste Victory Without Deficit Cuts, Bloomberg, June 5, 2011. The Republican and Democratic parties each have their own strategy to gain political support on debt reduction and taxation issues. Each side will focus on recent...
Continue reading "Deluded parties taste victory without deficit cuts"
The IRS, in a recent Revenue Ruling, addressing the proposed early distribution of trust principal to the remainder beneficiaries of a trust, has ruled that the trust won't recognize any gain as a result of the early distribution, that the trust...
McGuire Woods, LLP has released Part 4 of its Recent Cases of Interest to Fiduciaries - Funding, Construction, and Creation of Trusts. The Update includes the following cases:Kucker et al. v. Kucker (California)Schmidt v. Hart (Oregon)Conserve Community, LLC etc. v....
WTAS has published its June 2011 Newsletter. Articles include the following:Using LIFO to Ease the Sting of InflationLessons Learned from a Case of Bad DebtIs that K-1 Income Subject to Self-Employment Tax?Section 409A Valuation ConsiderationsRevisiting Municipal BondsBusiness Activity Simplification Act...
Jesse Eggert, an attorney-adviser in the Treasury's Office of International Tax Counsel addressed transition issues related to the Foreign Account Tax Compliance Act (Doc 2011-12628) on June 9. He stated that Treasury recognizes the need for comprehensive transition guidance.Hat Tip:...
SPONSORED POST __________________________________ SPECIAL TELECONFERENCE - Portability: What Every Professional Should Knowwith Martin M. Shenkman, CPA, MBA, JD, Esq. and Robert S. Keebler, CPA, MST, AEPJoin two of the nation's leading experts on a special 90-minute teleconference on the topic,...
Continue reading "SPECIAL TELECONFERENCE - Portability: What Every Professional Should Know"
Janet L. Brewer, practicing attorney, has published an article discussing her legal fee structure for preparing estate planning documents. Ms. Brewer has also posted the general range of her fees. For estate planning she generally charges between $2,100 to $5,000...
Deidre R. Wheatley-Lis, practicing attorney, has posted an article entitled "Gifts of Real Estate really are Gifts - and the IRS is looking for them." The article discusses how even if there is no tax due Form 709 must be...
Continue reading "IRS focusing on the gifting of real estate"
In an article published on Forbes.com titled "The 10 Steps To Make Your Kid A Millionaire," William Baldwin provides ten tactics to help parents plan their children's financial future. The article provides parental advice - ranging from education, IRA's, credit...
Kim Zetter published an article entitled, "Bank Not Responsible for Letting Hackers Steal $300K From Customer." The article discusses a case where the court found that a bank is not legal liable for not implementing the "best" security available. The...
Continue reading " Kim Zetter: Bank Not Responsible for Letting Hackers Steal $300K From Customer"
The Daily Finance published an article titled "The 10 Most Infamous Family Inheritance Feuds" by Douglas McIntyre. McIntyre's list, compiled from the 24/7 Wall St. list, is based on the size of the estates as well as the notoriety of...
In an article published on CNNMoney and titled "Tax Cuts Push Debt to New Milestone," Jeanne Sahadi discusses a recent Treasury report estimating that the total national debt to gross domestic product ("GDP") will exceed 102%. The article highlights two...
Douglas Cook has created an animation giving an overview of asset protection. The animation provides how liabilities can put assets at risk and the permitted methods of protecting those assets.HAT TIP: Wills, Trusts and Estates Prof BlogPosted by Brian Spring,...
In a column published on Market Watch and titled "Grading the Pawlenty Tax Plan," tax attorney Jack Nutter, former tax counsel to the Senate Finance Committee, discusses some of the details of former Republican Governor Tim Pawlenty's proposed tax plan. Nutter gives...
In his weekly column for the Monterey County Herald, titled "Protecting Yourself in a Divorce," Barry Dolowich offers practical advice for individuals expecting to divorce. Dolowich discusses tax debts, innocent spouse relief, and provides a list of useful questions to...
Nick Rosen published an article and video interview entitled, "China's billionaires: Zong Qinghou, Boss of Wahaha." The article and interview examines billionaire Zong Qinghou's business ventures and philanthropic philosophy.Posted by Shahzeb Gaziani, Senior Associate Editor, Wealth Strategies Journal.http://www.bbc.co.uk/news/business-13427392...
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SPONSORED POST __________________________________ SPECIAL TELECONFERENCE - Portability: What Every Professional Should Knowwith Martin M. Shenkman, CPA, MBA, JD, Esq. and Robert S. Keebler, CPA, MST, AEPJoin two of the nation's leading experts on a special 90-minute teleconference on the topic,...
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SPONSORED POST__________________________________SPECIAL TELECONFERENCE - Portability: What Every Professional Should Knowwith Martin M. Shenkman, CPA, MBA, JD, Esq. and Robert S. Keebler, CPA, MST, AEPJoin two of the nation's leading experts on a special 90-minute teleconference on the topic, "Portability: What Every...
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Republican Governor (Minnesota) and Presidential hopeful Tim Pawlenty gave a speech entitled A Better Deal: Governor Tim Pawlenty's Economic Policy Remarks, in which he proposed support for tax reform. His reforms included reducing income tax rates, eliminating tax expenditures, and...
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Politico has published an article entitled "Pawlenty: Flatten tax code." Politico is reporting that Pawlenty is advocating a reduction in the corporate tax rate from 35% to 15%, reducing the maximum individual income tax rate to 25% and getting rid...
Annuities: The Secure Retirement Solution BY CHRIS CONKLIN The conventional wisdom, espoused by the popular financial press, is that people should invest the bulk of their retirement savings in mutual funds that invest in stocks and bonds. Over time, the...
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The Wealth Strategies Journal has posted a new article entitled, "Portability Versus Bypass Trust: Practical Planning Tips," by Martin M. Shenkman, CPA, MBA, JD, Esq. and Robert S. Keebler, CPA, MST, AEP.This article was adapted from an upcoming Special Teleconference...
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Tom Walker, of the Taxpayer Advocacy Panel, submitted projects for inclusion in the IRS's 2011-2012 guidance priority list. The projects include a range of topics, including compromise, executive compensation, and fringe benefits. Hat Tip: Tax AnalystsPosted by Jessica Rebarber, Associate...
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IRS Commissioner Douglas Shulman sent Senate Finance Committee member John Thune (R-S D) a letter, responding to Senator Thune's original letter, and reinforcing the IRS's position that its recent decision to begin examining five donors to section 501(c)(4) organizations was...
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In the recent article "Senate eyes compromise on estate tax," New York Post columnist Josh Kosman reports that Senate Republicans, rather than holding out for repeal, are working with Demotracts on a compromise estate tax bill that appears to be...
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Laura Medigovich, a certified financial planner, has published an article entitled "Your Finances: Credit shelter trust worth consideration." The article discuses whether the "Tax Act of 2010" changed the estate tax so as to make credit shelter trusts a waste. ...
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According to The Trust Advisor Blog, Arnold Schwarzenegger's assets might take a hit to the tune of $200 million, especially if there was no prenuptial agreement between himself and Maria Shriver. The existence of one remains unclear.Posted by Jessica Rebarber,...
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Bonnie Kraham, a practicing attorney, has published an article entitled "Protecting your Future: Elder law estate planning has own terminology." In the article Ms. Kraham defines a variety of terms that have special meaning when used in the context of...
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In February, 2011 the IRS issued a Private Letter Ruling (PLR 20100101) which granted an executor of an estate an extension to make an alternate valuation election under 2032 of the Estate Tax Code.Hat Tip: Tax AnalystsPosted by Jessica Rebarber,...
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The IRS ruled in February, 2011, that income beneficiaries' shares in electing a small business trust, as modified by a court order, should each qualify as a qualified subchapter S trust. For each of these, a separate QSST election can...
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The Wealth Strategies Journal has published a new article entitled, "Trends in Commercial Real Estate Loan Guaruntees," by Susan C. Tarnower of Thompson Hine LLP.Have you ever personally guaranteed a commercial real estate loan? Can you remember what your...
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Treasury's Financial Crimes Enforcement Network (FinCEN) has announced (Notice 2011-1) that some individuals without financial interest in a foreign financial account who are required to file foreign bank account reports will receive a one-year extension beyond the June 30, 2011, filing...
Accounts held by U.S. persons in foreign branches of domestic banks are subject to foreign bank account reporting requirements, an IRS official said during the question-and-answer session of an IRS-sponsored webcast June 1. 2011 TNT 106-2 Posted by Adam...
Heather Timmons posted an article Legal Outsourcing Firms Creating jobs for American Lawyers, The New York Times, June 2, 2011. For American lawyers, outsourced jobs pay $50,000 to $80,000 which is better than temp jobs or no work at all. Posted by Adam...
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Proposals to reduce or eliminate incentives for saving with section 401(k) plans rely on "faulty math" that overestimates the incentives' cost, so cutting the incentives would raise less revenue than often projected and burden low- and middle-income families, the American Society of...
The Supreme Court in Damra vs. U.S. denied certiorari to an individual challenging his conviction for tax evasion and fraud and denied certiorari to a group of officers and directors challenging their liability for trust fund recovery penalties. The individual had transferred...
The IRS on May 31 issued Rev. Proc. 2011-35, which updates the procedures used by corporations to determine their carryover basis in target stock acquired in a tax-free section 368(a)(1)(B) reorganization. Rev. Proc. 2011-35 replaces Rev. Proc. 81-70, 1981-2 C.B. 729, modifies and expands on the...
Laura Zwicker posted an article Tips for Estate Planning and Tax Law Compliance in a Global Economy, SmartBusiness, June 1, 2011. The author discusses tax isssues relating to the following scenarios: homes in Mexico, overseas bank accounts, non-U.S. citizen spouse,...
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Michael Fischer posted an article IRS Issues Corrected Instructions for 2010 Gift Tax Return, AdvisorOne, May 31, 2011. The IRS has revised instructions to Form 709 which is used to report transfers subject to the federal gift and certain generation-skipping transfer (GST) taxes and...
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Kelly Greene posted an article, Driving a Bargain for Long-Term Care, The Wall Street Journal, May 28, 2011. Most people are unaware that they can haggle over the price of long term care. The article provides valuable sources of information...
Jim Rutenberg posted an article The Long Goodbye, The New York Times, May 27, 2011. NBC and actor Ryan O'neal engaged in a legal battle with Farah Fawcett's production partner, Craig Nevius, over a documentary relating to Fawcett's ordeal with late-stage cancer. They...
The former IRS commissioner disagrees with taxing passthrough entities similar to corporations, as part of a proposed tax reform. Rather, the reform should concentrate on the double taxation of corporations. The former commissioner stated, "The income of regular corporations is taxed twice if...
The Texas appellate court ruled in Guyton vs. Monteau (Tex. Ct. of Appeals, 2011) that the trial court abused its discretion in determining a beneficiary was unsuitable to become personal representative. The alleged discord, hostility and potential conflict of interest between this beneficiary and her...
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Lauren Foster posted an article The Five Biggest Ways to Bungle a Trust, Barrons, May 21, 2011. Trustees make mistakes in the following ways: keeping faulty records, failing to diversity investments, having a bias towards current beneficiaries, expecting reasonable trustee...
Stephen J. Dunn posted an article "Where have all the estate planning lawyers gone?", Forbes, May 29, 2011. Mr. Dunn asserts that estate planning attorneys practices are seeing their business "dry up" due to the five million dollar exemption and...
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McGuireWoods LLP posted an article CBO Study Examines Options for Charitable Giving and Tax Consequences, May 27, 2011 Members of Congress have made various proposals to alter the charitable deduction in order to reduce foregone revenues to the government. Some...
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Nancy J. Knauer recently published "Gay and Lesbian Elders: Estate Planning and End-of-Life Decision Making" (12 Fla. Coastal L. Rev. 163 (Fall 2010). The article discusses challenges for gay and lesbian couples for estate planning. Posted by Jessica Rebarber, Associate...
According to Private Letter Ruling 201119003, not all settlement transactions trigger transfer tax consequences. Specfically, this fact set included a QTIP trust which purchased ownership interests in entities owned by the children (remaindermen) of the trust. The children then bought...
On June 2, 2011, the IRS released more FAQs (and answers) regarding the 2011 Offshore Voluntary Disclosure Initiative. Hat Tip:Tax Analysts Posted by Jessica Rebarber, Associate Editor, Wealth Strategies Journal...
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On June 1, 2011, the IRS issued guidance on how a taxpayer should proceed both before and after opting out or is removed from the civil settlement structure of the 2009 offshore voluntary disclosure program and the 2011 offshore voluntary...
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Bob Carlson, accountant and attorney, has published an article explaining why it still makes sense for individuals that now are under the amount exempted under federal estate tax. Some of these reasons include state estate taxes, charitable gifts, and certain...
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Forbes has published an article describing bizarre bequests made by the rich and famous. For example, Gene Roddenberry, creator of Star Trek, requested that his ashes be scattered into space (his ashes were sent up with a satellite and scattered...
Robert Frank's article "Millionaires Control 39% of the World's Wealth" published in the Wall Street Journal details how the very wealthy are slowly accumulating a greater and greater percentage of the world's wealth in what Mr. Frank describes as a...
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On May 31, 2011, (IR-2011-57) Treasury and the IRS determined that certain individuals working as financial professionals, mainly those with only signature authority, will receive a one-year extension beyond the 6/30/11 filing date to file their foreign financial accounts reports....
On May 31, 2011 (Doc. 2011-11713), the IRS released its final rules regarding the minimum tax preparation standards. The IRS adopted a reasonable basis standard. The final rules also further specify who is subject to the Circular 230 ethical rules.Hat...
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