The Service has ruled privately that rental income derived by a charitable organization from the use of real property will be excluded from the definition of unrelated business income under section 514(b)(1)(A), will not constitute income from an unrelated trade...
Continue reading "Rental income not unrelated business income"
A bipartisan group of six senators released a summary of a plan consistent with the recommedations of the Bowles-Simpson fiscal commission. The plan intends to reduce the nations's deficits by 3.7 trillion over ten years under CBO's March 2011 baseline. ...
Continue reading "Gang of Six summarizes budget and tax reform proposals"
Fixed Annuities: The Whole Picture BY LAURA HAHN If you could only see a portion of an artist's painting, would you be able to guess the story he or she was trying to tell? It's highly unlikely, right? The...
Is this the end of CMBS 2.0 or just a few careers on Wall Street?On July 27, Standard & Poor's withdrew the ratings it had given to a $1.5 billion commercial mortgage offering from Goldman Sachs Group Inc. and...
Continue reading "Is this the end of CMBS 2.0 or just a few careers on Wall Street? "
Bloomberg has published an article by Ezra Klein titled "Democrats Can Lose Debt Fight, Win on Bush Tax Cuts." In his article, Mr. Klein discusses how the Democrats are going to lose the debt ceiling battle and whatever deal emerges,...
Continue reading "Democrats Can Lose Debt Fight, Win on Bush Tax Cuts"
The Montana State Tax Appeal Board has held that sales of prepaid cards by a reseller of wireless telecommunications services were not subject to Montana retail telecommunications excise tax, and the reseller was not legally required to collect any tax...
Continue reading "Montana: Sales of Prepaid Cards That Add Airtime To Handsets Not Subject To Tax"
Connecticut has issued a reminder to taxpayers, who are required to electronically pay or file any Connecticut tax for the period ending June 30, 2011, and are using the Taxpayer Service Center to pay or file electronically, that they must...
Continue reading "Connecticut: Electronic Filing and Payment Deadline Reminder Issued"
The Arkansas Department of Finance and Administration has updated the state's Streamlined Sales and Use Tax (SST) taxability matrix and certificate of compliance.Posted by Brian Spring, Associate Editor, Wealth Strategies Journal....
A banking institution, not the IRS, had the burden of proving at a summons enforcement hearing that its tax accrual workpapers (TAWs) were covered by the work product privilege and, therefore, the IRS summons should be quashed.Wells Fargo & Company,...
Continue reading "Prima Facie Case for Summons Enforcement Established"
A banking institution, not the IRS, had the burden of proving at a summons enforcement hearing that its tax accrual workpapers (TAWs) were covered by the work product privilege and, therefore, the IRS summons should be quashed.Wells Fargo & Company,...
Continue reading "Prima Facie Case for Summons Enforcement Established"
Final regulations have been released that amend Reg. §1.280C-4 concerning the election to claim the reduced research credit. The final regulations simplify how taxpayers make the Code Sec. 280C election by requiring that the election be made on Form...
Continue reading "Final Regulations Issued Regarding Election of Reduced Research Credit"
Paula Cruickshank, Jeff Carlson, and Stephen Cooper recently wrote an article titled "Boehner Plan Draws Veto Threat." The article discusses how President Obama has repeatedly said he will not sign a short-term increase in the debt ceiling, maintaining it would...
In an article titled "Size Matters: Yet Another Reason To Go Solo," Valerie Katz discusses a new model of career development suggested by Thomas Friedman of the New York Times. Mr. Friedman suggests that a lawyer should treat their career...
In a New York Times article titled, "When You Want to Collect Social Security vs. When You Should," Tara Siegel Bernard discusses when you should collect social security. She discusses a new calculator called MaximizeMySocialSecurity, that helps people decide when...
The IRS will be revising regulations under Code Secection 6015 so that individuals who request equitable relief under Code Sec. 6015(f) will no longer be required to submit the request within two years of the IRS's first collection activity against...
Continue reading "Two-Year Limitation No Longer Applies to Many Innocent Spouse Relief Requests"
The IRS has revised Notice 2011-53 to clarify that the withholding implementation schedule described in the initial release postpones withholding with respect to payments made to nonfinancial foreign entities under Code Sec. 1472(a), as well asCode Sec. 1471(a) withholding.The IRS...
Steve Akers, Associate Fiduciary Counsel, Bessemer Trusts, provides the following summary of developments in estate planning over the last several months. Steve R. Akers, Fiduciary CounselAkers@bessemer.comJuly 26, 2011The ACTEC 2011 Summer Meeting was held June 22-25, 2011 in Atlanta, Georgia. A summary of my...
Continue reading "Steve Akers: ACTEC 2011 Summer Meeting Musings"
The Wealth Strategies Journal has just posted a new article entitled, "The Art of Diversification" by Andrew J. Reynolds of Boardman Wealth Planning, Inc.In this article, Mr. Reynolds discusses the evolution and advantages of modern portfolio theory when it...
In a CNN Money article titled "Dividing the Estate Among Three Adult Children," Amanda Gengler answers a question from a reader concerning dividing their estate among three adult children. Ms. Gengler discusses what factors to take into account when deciding how to divide the estate....
The United States Court of Appeals for the Eleventh Circuit has upheld a district court ruling that the court had jurisdiction in a case involving a failure to disclose an interest in a foreign financial account.In United States v. Martin...
Continue reading "FBAR Form Instructions Gave Jurisdiction To District Court"
Kristine S. Knaplund, a Professor of Law at Pepperdine University School of Law, recently published an article titled "Schafer v. Astrue: The 4th Circuit Weighs in On 'Who is a Decendent's Child?'" The article discusses the issue of whether a child...
Continue reading "Article on Implications of Schafer v. Astrue"
Ronald D. Aucutt recently published an article titled "Making a Deal in Washington." Mr. Aucutt is an attorney at McGuire Woods. The article discusses what the current debt ceiling debate and the debate over estate tax repeal have in common. Posted...
Sagit Leviner and Kyle Richison authored an article, "Tax Preparers and the Role They Play in Taxpayer Compliance: An Empirical Investigation with Policy Implications" The paper underscores the growing need to shed better light on tax preparers and their effect...
In PLR 201129016, the IRS ruled that a proposed transfer of farmland held in trust for a qualified heir to a limited liability company won't result in additional estate tax under section 2032A(c)(1)(A) and that the subsequent lease of the...
In PLR 201129026, the IRS granted a trust an extension of time to file an election to have a distribution deemed paid or credited under section 663(b).Posted by Brian Spring, Associate Editor, Wealth Strategies Journal....
Continue reading "PLR 201129026: Trust Granted Extension To Make Distribtuion Election"
In PLR 201129049, the IRS ruled that a private foundation's receipt of promissory note payments from a privately held corporation after a period of estate administration terminations will not constitute self-dealing because the transaction satisfies the estate administration exception of...
In PLR 201129033, the IRS ruled that a transfer of stock by a taxpayer and his spouse to a charity will be a transfer of the entire interest in the property, not a split interest under section 2522, and that...
Continue reading "PLR 201129033: Gift of Non-Voting Stock Not a Split Interest "
In PLR 201129014, the IRS ruled that the proposed reformation of a trust and a bank's resulting power to adjust between principal and income won't result in gain or loss by the trust, won't hurt the trust's status as exempt...
Continue reading "PLR 201129014: IRS Ruling on Proposed Reformation of Trust"
In PLR 201129017, the IRS ruled that sections 2702(a)(1) and 2702(a)(2) of the Code won't apply to the modification and proposed amendment and restatement of a trust and that upon the execution of the amendment and restatement, the settlor's children...
Continue reading "PLR 201129017: IRS Ruling on Transfer of Interests in Trusts"
In PLR 201129021, the IRS ruled that the consolidation of two trusts won't constitute a generation-skipping transfer (GST), that any subsequent GST from the consolidated trust will remain exempt from the GST tax, and that no gain or loss will...
Continue reading "PLR 201129021: IRS Ruling on Generation-Skipping Transfer Tax"
In PLR 201129018, the IRS ruled that a proposed transfer of farmland held in trust for a qualified heir to a limited liability company (LLC) won't result in additional estate tax under section 2032A(c)(1)(A) and that the subsequent lease of...
Continue reading "PLR 201129018: IRS Ruling on Proposed Transfer of Farmland"
Forbes has published an article titled "Beer, Taxes and Baseball: Can You Get Any More American Than That?" The article discusses Christian Lopez's tax liability for baseball memorabilia and box seats given to him, by the New York Yankees, in...
Tax Notes has published a Department of Justice release that reported that Swiss financial adviser Beda Singenberger was indicted for conspiring with U.S. clients to conceal more than $ 184 million in Swiss bank accounts and for helping clients...
Continue reading "Tax Notes Article: Tax Charge Indictment Against Swiss Financial Adviser"
The Wall Street Journal has published an article titled "GETTING PERSONAL: Retirement Savings New Focus For Tax Advisers." The article discusses how tax planners are spending more time working with clients to reduce the potential future tax impact for heirs...
Continue reading "Retirement Savings New Focus For Tax Advisers"
In an ABA Journal article titled "Institute Claims Rosa Parks' Estate Drained by Fees for Lawyers Who Also Got Licensing Rights," Debra Cassens Weiss discusses An institute co-founded by Rosa Parks alleges in a Michigan Supreme Court filing that two...
Continue reading "Institute Claims Rosa Parks' Estate Drained by Fees"
Adam J. Hirsh, William & Catherine VanDercreek Professor, Florida State University College of Law) recently published an article entitled "Freedom of Testation/Freedom of Contract." The article argues that lawmakers should recategorize inheritance law and contracts law as cognate bodies of...
In a Wall Street Journal article titled "Will British Millionaires Flee to U.S.?" Robert Frank discusses how many British millionaires are considering relocating the U.S. The article reports that lower taxes, a higher standard of living, and better weather are...
Continue reading "Will British Millionaires Flee to the U.S.?"
David Segal posted an article Law School Economics: Ka-Ching, The New York Times, July 16, 2011. Law school tuitions and law school students continue to increase at an alarming rate even though there has been a decrease in lawyer jobs and salary. ...
Richard Thaler posted an article Getting the Most Out of Social Security, The New York Times, July 16, 2011. Thaler suggests that by delaying the start date of social security benefits a person can convert a portion of his wealth into...
Thomas Friedman posted an article The Start-Up of You, The New York Times, July 12, 2011. Friedman argues that today's college graduates need to develop an entrepreneurial attitude and to think about what value they can add to a business in finding...
Foundation Source, a foundation management firm, has published a booklet titled "Private Foundations, Community Foundations & Donor Advised Funds: A Comparison." The booklet compares private foundations and donor advised funds.HAT TIP: Wills, Trusts and Estates Prof BlogPosted by Brian Spring,...
Continue reading "Comparing Private Foundations, Community Foundations, and Donor Advised Funds"
Darin Christensen, attorney, has published an article titled "Oregon Replaces Inheritance Tax With Estate Tax." The article discusses Governor Kitzhaber's signing of a bill that replaces Oregon's inheritance tax with an estate tax. Posted by Brian Spring, Associate Editor, Wealth...
Continue reading "Oregon Replaces Inheritance Tax With Estate Tax"
Forbes has published an article titled "Should You Use Life Insurance as an Investment? 3 Things to Consider." The article discusses how much insurance individuals need, how long they will need it, and whether the tax benefits outweigh the costs.Posted...
The New York Times has posted an article by Carl Richards, certified financial planner, titled "Why You Avoid Your Most Important Financial Task." The article discusses how budgeting gets pushed to the bottom of many individuals' financial priorities and gives...
Continue reading "Why You Avoid Your Most Important Financial Task"
Revenue Ruling 2011-16 provides various prescribed rates for August 2011 for federal income tax purposes. These include the applicable federal interest rates, the adjusted federal long-term rate, and the adjusted federal long-term tax-exempt rate. These rates are determined as prescribed...
Dominick Lioce of the Florida Bar Tax Section has submitted comments on a draft of new Form 8938, "Statement of Specified Foreign Financial Assets," suggesting that the IRS limit the applicability of the new reporting requirement to individuals who are...
Continue reading "Florida Bar Tax Section Comments On Draft FATCA Reporting Form"
The Estate was unable to deduct expenses paid to the decedent's caregiver son based on a self serving agreement not put in writing. However, the Estate was able to deduct the son's fees as an attorney, accountant, and administrator. ...
Peter J. Reilly posted an article, "Tax Simplification Proposal", Forbes, July 12, 2011.Reilly suggests integrating the income tax with the estate and gift tax by eliminating the estate and gift tax and and removing subsection 102(a) of the income tax. ...
A July report from the American Citizen's Abroad said the Foreign Account Tax Compliance Act "FATCA" will have a devastating impact on the U.S. economy and called on Congress to repeal the law."See, American Citizens Abroad Lists Dangers of ATCA,...
Continue reading "American Citizens Abroad lists dangers of FATCA"
The Tax Court held that a decedent's gross estate did not include the value of assets in a trust of which she was co-trustee and beneficiary. The assets were excepted from inclusion under section 2014 because her power of appointment...
Continue reading "Trust assets not includable in decedent's gross estate, Tax Court holds"
In a recent article in Forbes titled "Ten Rules for Asset Protection Planning," Jay Adkisson advises that ten general rules should be followed when planning your asset protection plan. In his artilce, Mr. Adkisson provides a brief explanation for each rule. Posted...
According to a Justice Department release, Anton Ginzburg of New York has pleaded guilty to concealing his ownership of a Swiss UBS bank account by willfully failing to file a report of foreign bank and financial accounts (FBAR). See "Justice...
Continue reading "Anton Ginzburg Pleads Guilty To Hiding Swiss Bank Account From The IRS"
The IRS has issued an audit technique guide to help examiners audit an attorney's tax returns, noting that examiners may need to address different issues depending on an attorney's area of expertise and depending on the ownership structure through which...
Continue reading "IRS Releases Audit Technique Guide For Attorneys' Returns"
Tax Notes has published an article by Marie Sapirie. The article discusses the Treasury's Financial Crimes Enforcement Network (FinCEN) July 18th announcement that Form TD F 90-22.1, "Report of Foreign Bank and Financial Accounts," can now be electronically filed. See...
In PLR 201128013 and PLR 201128014, the IRS ruled that the proposed reformation of a trust and a bank's resulting power to adjust between principal and income won't result in gain or loss by the trust, won't hurt the trust's status...
Annuity News Now has posted an interview with Robert Wood, attorney, titled "IRS Ruling on Annuities Held in Trusts." The interview discusses PLR 201124008 which employed the "agent for a natural person" exception to allow a trust to purchase annuities...
Bloomberg has published an article titled "Koch Brothers Spread Influence Via Blueberry Farmer." The article discusses how Americans for Prosperity, founded by David H. Kock and Charles G Koch of Koch Industries, has become one of the fastest-growing lobbying forces...
Continue reading "Americans for Prosperity: Koch Brothers Spread Influence Via Blueberry Farmer"
Sponsored Post_______________________________SPECIAL TELECONFERENCE: How to Get Clients & Prospects to Act in Today's Financial Uncertainty with Jeffrey A. DunhamYou may have noticed that it's a lot harder these days to get clients and prospects to act on your financial and...
In a July 11 floor statement, Senate Budget Committee Chair Kent Conrad, said the budget plan developed by Senate Democrats takes a balanced approach between cutting spending and increasing revenue through tax reform, extension of tax relief, repeal of tax...
Continue reading "Conrad says Senate Democratic budget balances revenues spending."
Kelly Greene posted an article Headaches for Same-Sex Couples, The Wall Street Journal, July 9, 2011. Same-sex couples cannot file a joint tax return, share retirement benefits, shield each other's assets from estate taxes or benefit from many other tax...
Debra Cassens Weiss posted an article Average Starting Pay for Law Grads is on a Downward Shift; Drop is Largest for Law Firm Jobs, ABA Journal, July 6, 2011. The NALP stated that the national median salary for 2010 law...
Hannah D'Apice posted an article June Jobs Report: Legal Industry Continues to Shrink, The AMLAW Daily, July 8, 2011. The legal industry lost 2,600 jobs in the month of June, the fourth month this year during which the legal sector...
Continue reading "June jobs report: Legal industry continues to shrink"
A recent issue of the Columbia Business Law Review contains the note "The Tax Lawyer's Dilemma: Recent Developments Heighten Tax Lawyer Responsibilities and Liabilities" by Charles A. Rose. The article raises several issues facing tax lawyers that contribute to the...
Continue reading "Problems Facing Tax Lawyering As An Occupation"
Private Wealth Magazine's "Foreigners And The Gift Tax", written by Beth Tractenberg and Kathryn von Matthiessen, describes some strategies and advice for wealthy US resident non-citizens. The article discusses the distinctions between and criteria for domiciled and non-domiciled foreigners, location...
In "Default Panic Would Be Worse Than Lehman", Bloomberg writer Juliann Francis describes Larry Summers' prediction that a default would cause more financial panic than 2008's bank collapses. Summers predicts the dissolution of established financial institutions and major runs on...
Continue reading "Larry Summers States that Default Would Trigger More Panic Than Lehman Bankruptcy"
CCH will be hosting a webinar on July 19th titled "Understanding Foreign Partnerships and Form 8865," available at 1:00 PM EST. The July 19th webinar also offers two hours of CPE credit for those who are eligible. For more information...
Dr. Peter Schwarz, an Economics Professor at the University of North Carolina at Charlotte, has recently published an arctile titled "Money Launderers and Tax Havens: Two Sides of the Same Coin?" 31 Int'l Rev. L. & Econ. 37 (2011). The article...
Sponsored Post_______________________________________SPECIAL TELECONFERENCE: What Every Estate Planner Should Know About Matrimonial Issues with Martin M. Shenkman, Esq., MBA, CPA & Wendy S. Goffe, Esq. Statistics tell us divorce is more than a possibility - - it is a probability! Various...
WMUR Channel 9 of New Hampshire has posted an interview with Marc Herbert, president of The Harbor Group, Inc., a registered investment advisor, titled "Money Matters: Pros, Cons of Custodial Accounts." The article discusses how setting up a custodial account...
Forbes has published an article titled "How To Pass On Your Frequent Flyer Miles." The article discusses how individuals with loyalty program points may be able to pass those points on to their relatives and heirs.HAT TIP: Wills, Trusts and...
Continue reading "Passing on Loyalty Program Points After Death"
Private Wealth has published an article titled "Tough Love." The article discusses the increase of wealthy parents choosing to leave their estates to charities rather than their children and the increase in the number of parents leaving inheritances to their...
Continue reading "Tough Love: Wealthy Parents Choose Charities Over Children "
Investopedia has published an article titled "Can You Trust Your Trustee?" The article discusses why beneficiaries of insurance trusts should actively monitor their trustees.HAT TIP: Wills, Trusts and Estates Prof BlogPosted by Brian Spring, Associate Editor, Wealth Strategies Journal....
The IRS, finding a married couple met the conditions of Section 302.9100-3, granted extensions to allocate the couple's available generation-skipping transfer tax exemptions to a transfer to a trust. (PLR-149437-10)"See, Extensions Granted to Allocate GSTT Exemptions, 2011 TNT 132-32"Posted by Adam...
Continue reading "Extensions granted to allocate GSTT exemptions"
Presidential candidate Rep. Michele Bachman, R-Minn, a former IRS attorney, seeks to lower taxes and streamline the the tax code if elected in 2012."See, Tax Background Key to Bachmann's Presidential Pitch, 2011 TNT 132-2"Posted by Adam Fleischer, Associate Editor, Wealth Strategies...
Continue reading "Tax background key to Bachmann's presidential pitch"
In an ABA Journal podcast titled "Shy Lawyer's Guide to Becoming a Rainmaker," Stephanie Francis Ward discusses how shy lawyers can overcome their business development anxieties and discover that they are much better at networking than they think they are.Posted...
Sponsored Post_______________________________SPECIAL TELECONFERENCE: How to Get Clients & Prospects to Act in Today's Financial Uncertainty with Jeffrey A. DunhamYou may have noticed that it's a lot harder these days to get clients and prospects to act on your financial...
The Wealth Strategies Journal has published a new article entitled, "Annuities: The Advisor's Conundrum" by David F. Sterling, JD.This is the first in a series of articles on annuities by Mr. Sterling. These articles will be published monthly here at the Wealth...
Peter J. Reilly posted an article Tax Court Values Regional Media Empire, Forbes, July 6, 2011. Reilly discusses the court's valuation approach of a regional media empire in the Estate of Gallagher v. C.I.R. (TC Memo 2011-148). In valuing the...
Richard Murphy posted an article Closing the Tax Gap is in the Interest of Every Honest Business, Forbes, July 7, 2011. Murphy wishes that the UK would be able to collect the total tax that should be paid if the...
Continue reading "Closing the tax gap is in the interests of every honest business"
The Tenth Circuit (Green v. U.S.) affirmed a district court's dismissal of an estate tax refund suit on grounds that the estate failed to submit a timely refund claim to the IRS. "See, Tenth Circuit Affirms Dismissal of Estate Tax...
Continue reading "Tenth Circuit affirms dismissal of estate tax refund suit"
Sponsored Post_______________________________________SPECIAL TELECONFERENCE: What Every Estate Planner Should Know About Matrimonial Issues with Martin M. Shenkman, Esq., MBA, CPA & Wendy S. Goffe, Esq. Statistics tell us divorce is more than a possibility - - it is a probability! Various...
The IRS has asked for comments on Rev. Proc. 2005-24, which provides a safe harbor procedure for determining whether a charitable remainder annuity trust or charitable remainder unitrust satisfies the requirements of section 664(d), and Notice 2006-15, which extends the...
In a Wall Street Journal article titled "State Estate Tax Changes Make Plans Trickier," Arden Dale discusses how Ohio and Connecticut have changed their respective estate tax laws. Ohio recently repealed its estate tax and Connecticut recently lowered its estate tax...
Scott Martin at "The Trust Advisor Blog" posted "Zsa Zsa's Heirs from Past Marriages Line Up at Deathbed, Get Ready for Probate Court". The 94 year old socialite has had a litany of divorce filings and a legion of heirs...
Continue reading "Zsa Zsa Gabor's Predictably Convoluted Estate"
Arden Dale at the Wall Street Journal published "State Estate Tax Changes Make Plans Trickier". Certain states are increasing taxes on estates and inheritances, while others are decreasing them. Estate planners must be vigilant of the changes in their jurisdictions. Posted...
Continue reading "Alterations to Estate Tax Structures a Potential Source of Confusion"
Kelly Philips Erb at Forbes has posted "IRS Drops Investigations Into Contributions (Tax World Drops Jaw)" in which she discusses the IRS' recent decision to cease investigating contributions made to 501c(4) organizations suspected of being political advocacy groups (which would...
Continue reading "IRS Abandons Investigation into Politically Motivated 501c(4) Contributions"
The American Institute of Certified Public Accountants has asked for clarification of foreign bank account reporting requirements. The Institute states the Treasury's Financial Crimes Enforcement Network's adoption of certain narrow exceptions could impose undue hardship on many officers and employees....
The Tax Court recently upheld the IRS's assertion of the accuracy-related penalty against a taxpayer. The Court ruled that the taxpayers' reliance on their return preparer did not constitute reasonable cause for his omission of a $3.4 million income item...
The Wall Street Journal has published an article by Saabira Chaudhur titled "Read This Before You Die." The article, which is a follow-up to Chaudhur's July 2, 2011 article "The 25 Documents You Need Before You Die," discusses how individuals...
Colorado has become the seventeenth state to adopt the Uniform Disclaimer of Property Interest Act. The Act was signed into law on May 23, 2011.See Co. St. ss 15-11-1201 to 1218.HAT TIP: Wills, Trusts and Estates Prof BlogPosted by Brian...
Continue reading "Colorado Adopts the Uniform Disclaimer of Property Interest Act"
The IRS has issued a directive suspending further examination activity on the gift tax treatment of contributions to 501(c)(4) organizations. See "Guidance for SB/SE Estate and Gift Tax and TE/GE Exempt Organizations." Chairman of the House Ways and Means Committee,...
The New York Times has published an article by Ron Lieber titled "Seeking Investment Flexibility In a 401(k)." In his article, Mr. Lieber discusses ways to improve plans through self-directed options, also known as a brokerage or mutual fund window,...
Continue reading "Seeking Investment Flexibility in a 401(k)"
In an interview with CNBC, Warren Buffett stated he could end the deficit in 5 minutes. In the interview, Mr. Buffett stated he could end the deficit by passing a law that says anytime there is a deficit of more...
Continue reading "Warren Buffett: I Could End the Deficit in 5 minutes."
In an article titled "Foreigners and the Gift Tax," Beth D. Tractenberg and Kathryn von Matthiessen, partners at Katten Muchin Roseman LLP, discuss a major change in U.S. estate and gift tax law that provides a two-year window, through the end of 2012,...
In an article titled "New Guidance Issued for the 2009 Offshore Voluntary Disclosure Program and the 2011 Offshore Voluntary Disclosure Initiative," Gretchen Woods of Deloitte Tax LLP discusses recent guidance issued by the IRS concenring the 2009 Offshore Voluntary Disclosure...
In an article titled "FBAR Extensions for Certain Filers with Signature Authority," Gretchen Woods of Deloitte Tax LLP discusses how certain individuals with signature authority over foreign financial accounts may be able to take advantage of an extended filing due...
Continue reading "Filing Due Date Extended for Report of Foreign Bank and Financial Accounts"
In Seven W. Enterprises v. Commissioner, 136 T.C. No. 26, the United States Tax Court held that taxpayers were liable for accuracy related penalties except in a year when their returns were prepared by an outside consultant. The Tax Court opined...
Continue reading "Tax Court Ruling: Accuracy Related Penalties"
The IRS has ruled in Private Ltr. Rul. 201126007 (Dec. 15, 2010) that a Charitable Remainder Annuity Trust (CRAT) can include a provision granting the trustee discretion to provide for the annuity payment by purchasing, with trust money, a commercial...
The Tax Court decided in Didonato v. Commissioner, T.C. Memo 2011-153, No. 10801-09 (Jun. 29, 2011) that a couple's separation agreement cannot substantiate their claims for charitable deductions under section 170(f)(8) of the code.Posted by Jessica Rebarber, Associate Editor, Wealth...
According to the Planned Giving Design Center, the IRS, in Private Letter Ruling 201126031 (Apr. 5, 2011) ruled that scholarship awards from a private foundation are not taxable expenditures under section 4945(g)(1) and are excluded from recipients' gross income.Posted by...
According to Robert W. Wood in Will Ohio Estate Tax Repeal Trigger More?, it is important to consider state death taxes when estate planning. Wood postulates that Ohio's repeal of its estate tax, along with reductions in other states, will...
H.R. 2382, the Tax Return Due Date Simplification and Modernization Act of 2011, proposes a new due date for partnership, S corporation and C corporation tax returns, and allows corporations a statutory automatic six-month return extension. "See, H.R. 2382 Would...
Continue reading "H.R. would adjust business return due dates"
The Global Organization of People of Indian Origin made suggestions to the IRS regarding the tax amnesty Voluntary Disclosure Program. As information about the Program was unavailable to the general public, the group argues that individuals who have less than...
Continue reading "Indian Group Suggests Publicizing Voluntary Disclosure Program"
Sponsored Post_______________________________________SPECIAL TELECONFERENCE: What Every Estate Planner Should Know About Matrimonial Issues with Martin M. Shenkman, Esq., MBA, CPA & Wendy S. Goffe, Esq. Statistics tell us divorce is more than a possibility - - it is a probability! Various...
In "Treasury Issues Consultation Paper on Statutory Residence Test" from STEP Journal, the suggestions issued by HM Revenue and Customs to revise the statutory residence test are described. These include day-count tests, family-ties tests, and employment tests weighed on a...
Continue reading "UK Treasury Suggests Revisions on Statutory Residence Test"
Forbes has published an article by Peter J. Reilly titled "Tax Court Values Regional Media Empire." The article discusses the recent Tax Court summary (Gallagher v. Commissioner, TC Memo. 2011-148) in which IRS attorneys objected to an adjustment that their own expert...
First-Class Financing BY BOB CALANDRA For many insurance agents, premium financing must seem like the industry's equivalent of a riddle wrapped inside of an enigma. Premium financing is, after all, a notoriously niche solution. Most agents will probably only...
The Wealth Strategies Journal has posted a new article entitled "Premarital Agreements: Validity Is Not Enough," by Linda J. Ravdin.Excerpt: "The thesis of this article is that it is not enough for a premarital agreement to meet the minimum standards...
Continue reading "Premarital Agreements: Validity Is Not Enough"
Sponsored Post_______________________________________SPECIAL TELECONFERENCE: What Every Estate Planner Should Know About Matrimonial Issues with Martin M. Shenkman, Esq., MBA, CPA & Wendy S. Goffe, Esq. Statistics tell us divorce is more than a possibility - - it is a probability! Various...
According to Kevin Spafford in Select the Right Adviser on AgWeb, it is very important for farmers, and others with family businesses, to create a succession plan in addition to any estate planning they undertake. A key part of creating...
Continue reading "Choosing the Correct Succession Plan Adviser"
A New York Court of Appeals has ruled that a mother was not eligible for Medicaid benefits because she had transferred funds to her daughter from a revocable trust for less than fair market value. In In Matter of Komanoff...
Continue reading "Transfer to Daughter Without Written Agreement Triggers Medicaid Penalty"
The Wall Street Journal has published an article by Saabira Chaudhuri titled "The 25 Documents You Need Before You Die." The article discusses the documents everyone needs to have signed, sealed, and delivered to ensure their loved ones can one...
Continue reading "Twenty-Five Documents to Leave Behind For Loved Ones"
The Trust Advisor Blog has posted an article titled "Hawaii Amends New Asset Protection Law in Bid to Grab Trusts from Other States." The article discusses Hawaii's elimination of its 1% excise tax on all asset protection transfers and its trust...
Sponsored Post_______________________________________SPECIAL TELECONFERENCE: What Every Estate Planner Should Know About Matrimonial Issues with Martin M. Shenkman, Esq., MBA, CPA & Wendy S. Goffe, Esq. Statistics tell us divorce is more than a possibility - - it is a probability! Various...
The Tax Court recently held that an individual who paid rent toward mortgage may not deduct mortgage interest. In Wheeler v. Commissioner, the court, in a summary opinion, sustained the IRS's determination that an individual was not entitled to deduct...
Tax Notes has published an article by John F. Dean, Special Trial Judge of the United States Tax Court. The article discusses a recent U.S. Tax Court summary opinion (Jende v. Commissioner) which denied deductions for losses from a couple's...
In an article titled "After NY Gay Marriage Law, IRS Needs to Clarify Tax Consequences," Janet Novak discusses a petition circulated by William Stevenson, president of National Tax Consultants, calling on the IRS to clarify the tax treatment of same...
Continue reading "New York Same-Sex Marriage Law: What are the Tax Consequences?"
According to the New York Times in More Law Firms Raid Competitors to Poach Rainmakers, many large law firms, including DLA Piper and Paul Weiss, are building specific teams of lawyers around the largest of their clients. Factors precipitating this...
Continue reading "Law Firms Build Teams Around Large Clients"
The Journal of Financial Planning has published an article titled "Data Security in a Tech-Crazed World." The article discusses topics ranging from cloud computing and data encryption to privacy issues and password safety.Posted by Brian Spring, Associate Editor, Wealth Strategies...
FPA Practice Managment Center Blog has posted "7 Rules of Effective Goal Setting." The post provides advice ranging from basing goals on mission statements to showing flexibility when moving toward goals.Posted by Brian Spring, Associate Editor, Wealth Strategies Journal....
Bloomberg has published an article titled "Investors May Lose as Congress Saves Money on Advisor Oversight." The article discusses how Congress is considering replacing the U.S. Securities and Exchange Commission with the Financial Industry Regulatory Authority as a regulator of...
Continue reading "Investors May Lose as Congress Saves Money On Advisor Oversight"
AdvisorOne has published an article titled "Obama Challenges Republicans to Raise Taxes to Cut Debt." The article discusses President Obama's call for an increase on levies for wealthy CEOs and hedge fund managers as part of the deal needed to...
Continue reading "Obama Challenges Republicans to Raise Taxes to Cut Debt"
Smart Business has published an interview with Laura Zwicker, attorney, titled "Tips for Estate Planning and Tax Law Compliance in a Global Economy." The interview discusses topics ranging from homes in Mexico and overseas bank accounts to naming foreigners as...
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Christopher M. Reimer, attorney, has published an article titled "The Undiscovered Country: Wyoming's Emergence as a Leading Trust Situs Jurisdiction," 11 Wyo. L. Rev. 165 (2011).Mr. Reimer's article discusses how Wyoming is outpacing other trust situs states in attracting new...
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Jeanne Bernick has published "A Retirement Plan You Can Bank On" on AgWeb, describing retirement planning for a family with substantial agricultural assets. She lists 5 important goals for retirement planning. They are;Analyze retirement income and expenses, including noncash benefits...
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In Accounting Today, Michael Cohn's "Rockefeller Proposes Eliminating Tax Breaks For the Wealthy" describes Sen. Rockefeller's ideas for raising taxes on the wealthy. Among his proposals are a return of capital gains tax to 28% and a slightly higher income...
Continue reading "Sen. Jay Rockefeller Discusses Deficit Reduction Through Higher Taxes"
A post on Drovers entitled "Repeal of Ohio Estate Tax Concerns Transition Planning Professionals" discusses some of the concerns that those in agriculture have with the estate tax. Of particular concern is the notion of asset (i.e. land, livestock, equipment)...
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In "Follow The Rules When Giving The Gift of Stock" in the Nevada Appeal, John Bullis, CPA, describes ways to gift stock without incurring unnecessary tax levies.Posted by Michael Nissenbaum, Assocaite Editor, Wealth Strategies Journal. ...
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In an article titled "Clients Need to Act Fast to Benefit From Congress" Sweet Estate Planning Deal," IRA expert Ed Slott advises that grandparents should take advantage of the current $5 million dollar exemption from the generation-skipping tax before it...
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In an article titled "10 Fees That Kill Retirement Savings," John Sullivan discusses how there are a host of unknown costs and fees associated with different types of retirement accounts. The article lists the 10 worst fees and costs that...
In a Wall Street Journal article titled "A College-Savings Strategy That Could Flunk Out," Mary Pilon and Leslie Scism discuss the pros and cons of investing in a variable life insurance policy. The article discusses how the plan's saivngs account is typically excluded from...
In an article titled "Asset Allocation R.I.P.?" Evan Cooper discusses a report, prepared by Putnam Invetsments, that shows Americans who worked with retirement planners had higher retirement incomes on average. The report also suggests that most people would be better...
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According to Scott Martin in Hawaii Amends New Asset Protection Law in Bid to Grab Trusts from Other States, Hawaii has upgraded its trust code to attract more business. However, the initial amendment still included restrictions and fees, so the...
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The Wealth Strategies Journal has posted a new article entitled, "I DIG IT Divorce," by Martin M. Shenkman.In this article, Mr. Shenkman discusses the benefits and consequences of having Intentionally Defective Irrevocable Grantor Trusts (IDIGTs), especially as they apply to...
The Wealth Strategies Journal has posted a new article entitled, "Ode to the Trust -1st Sonata," by Martin M. Shenkman, CPA, MBA, JD.In this article, Mr. Shenkman lays the groundwork for managing trusts after their creation.Posted by Matthew Engler, Managing Associate...
In a New York Times blog post titled "Making a Portfolio, and More, at Money Camp," Paul Sullivan discusses Summer camps that aim to teach children money skills. The Summer camps teach children about investing and starting a business. The...
In a New York Times blog post titled "Richer People Want Fewer Children," Catherine Rampell discusses a controversial report compiled by economist Justin Wolfers that argues that children are "inferior goods." The article also discusses a recent Gallup poll reporting that America's preference for...
In the Forbes article "More Business Travel / Vacation Tax Treats," Robert W. Wood discusses business travel and low cost vacation time. He disusses how taking a spouse or companion when travelling or travelling home over a weekend can be tax...
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In an article titled "Consultant Backtracks: Lawyer Surplus in Nearly Every State," Debra Cassens Weiss discusses how in a new report, Economic Modeling Specialists reports that there may not be any states with a shortage of lawyers. Posted by William...
William D. Henderson and Rachel M. Zahorsky recently published an article in the American Bar Association Journal titled "Law Job Stagnation May Have Started Before the Recession--And It May Be a Sign of Lasting Change." The article discusses how the...
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Case in Point: Why Clients Need Agents BY NAHU The thing many people don't know about our industry is that health insurance agents are in the business of saving lives. Like family physicians or ER surgeons, agents are intimately...
Gregory Gallagher of Kirkland & Ellis LLP suggested that proposed regulations on discharge of indebtedness income of a grantor trust or disregarded entity be clarified to indicate how the liabilities of a disregarded entity should be taken into account for...
The Tax Court (DiDonato vs. C.I.R.) held that a property owner who donated a land conservation easement to a New Jersey county could not take a charitable deduction for the contribution because it was not substantiated in the manner required by...
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The IRS (Ltr. Rul. 201122023) revoked an organization's tax-exempt status based on findings the president of the organization and his wife used the organization's bank account for personal purposes and paid the president's personal cell phone bill. The organization also failed...
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The IRS (ECC 201120022) stated in a email that a taxpayer who makes a charity gift and fails to obtain a contemporaneous written acknowledgment from the charitable donee cannot claim an income tax charitable deduction even if the donee subsequently...
The IRS (Ltr. Rul. 201125007) ruled that a reformation of a testamentary trust to a charitable remainder trust is a qualified reformation and qualifies for an estate tax deduction provided the reformation is effective under State law. HAT TIP: Planned Giving Design...
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The IRS (Ltr. Rul 201120035) has denied tax-exempt status for a trust that sought to become a Type III supporting organization for the benefit of a church. The trust failed the operation test because it is not operated exclusively for the...
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The IRS ruled that a dedecent's IRA won't be treated as an inherited IRA under section 408(d), that the decedent's spouse is eligible to roll over or transfer the proceeds of the IRA into an IRA set up and maintained...
The IRS issued a reminder (IR 2011-70) to everyone who has a bank or other financial account in a foreign country, or who has signature authority over such an account, that they may be required to report the account to the...
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Robert W.Wood posted an article Great Business Auto Write-Offs, Forbes, June 25, 2011. A car over 6,000 pounds, used for business and purchased between September 8, 2010 and January 1, 2012 can be a significant tax write-off. Taxpayers can also deduct...
