Neil I. Rumbak

Forbes, in Ashlea Ebeling's article entitled "States Race To Clean Up Congress' Estate Tax Mess," reports that state legislators in several states are addressing state law issues that could arise due to the repeal of the federal estate tax.  Poste... Read More

The New York Times, in Nicholas Kulish's "Bank Data May Unveil German Tax Evaders, Finance Official Says," reports that the German government has warned Germans with unreported Swiss accounts that they would face punishment if their names appeared on a... Read More

Martin W. O'Toole, partner at Harter Secrest & Emery LLP, has published an article entitled "Trusts & Estates," in the Syracuse Law Review.  According to Wills, Trusts & Estates Prof Blog, "this article is part of a 2007-2008 Survey of... Read More

The New York Times, in Edward Wyatt's "Behind Film's Drama, a Tale Like a Country Song," reports that songwriter Stephen Bruton's will is being contested by his friend, a music producer, and his wife, from whom Bruton filed for divorce. ... Read More

Gerry W. Beyer, Governor Preston E. Smith Regents Professor of Law at Texas Tech University School of Law, and Kimberly Sias, J.D. Candidate at Texas Tech University School of Law, have published an article entitled "What Estate Planners Need to... Read More

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Tax Notes has published an article by Robert W. Wood, attorney with Wood & Porter.  This article examines the "relations-back" election, which retroactively allows for a qualified settlement fund.Posted by Neil I. Rumbak, Associate Editor, Wea... Read More

Tax Notes has published an article by Meg Shreve.  The article explains that Senate Majority Leader Harry Reid has introduced his jobs creation package with "offsets drawn from proposed changes to foreign account reporting rules."  It address... Read More

The United States Tax Court has issued Estate of Oscar Goldberg, Deceased et al. v. Commissioner, a Memorandum Opinion by Judge Mary Ann Cohen.  The Tax Court held that (1) a decedent and his wife owned property as tenants by... Read More

The Department of Justice issued a press release, in which it announced a guilty plea from a Virginia doctor to conspiracy involving an undeclared Swiss bank account.   The press release explained that the doctor pleaded guilty to conspiracy to... Read More

The Tax Policy Center has issued tables that provide the estimates on federal tax distributions for 2010 of income and estate tax cuts for 2001 through 2008 with the alternative minimum tax patch.See also Tax Policy Center Releases Estimates on... Read More

The Tax Policy Center has issued tables that provide, according to Tax Analysts, "estimates of the impact on federal tax distribution of Obama administration budget proposals affecting individual and corporate taxation, including extending the earned i... Read More

Tax Notes has published an article by Wendy C. Gerzog, Professor of Law at the University of Baltimore School of Law.  The article analyzes Pierre V. Commissioner and discusses the relationship between check-the-box regulations and the gift tax.Se... Read More

The Senate has approved the Hiring Incentives to Restore Employment (HIRE) Act, which is composed of $15.billion in tax incentives that are intended to encourage employment.  The House of Representative's passage of the HIRE Act seems improbable.&... Read More

Tax Notes has published an article by Jay Starkman, CPA.  The article emphatically states that retroactive tax law is constitutional, and provides historical support and case precedent for this premise.    See Jay Starkman, "Can an Estat... Read More

Phillip Karpel, of Olincy & Karpel, wrote a correspondence to the IRS in response to Notice 2010-19 and in response to Conrad Teitell's February 5, 2010 correspondence to the IRS.  The correspondence stresses the discouragement that Notice 201... Read More

Max Baucus, Senate Finance Committee Chair, commended the Senate for the passage of the Hiring Incentives to Restore Employment (HIRE) Act.  Baucus said that the HIRE Act is a "targeted approach that will cut taxes for businesses, helping them gro... Read More

Erik Dryburgh, principal at Adler & Colvin, wrote a correspondence to the IRS in response to Notice 2010-19.  The correspondence mentions that Notice 2010-19 does not address Section 2511(c)'s impact on charitable remainder trusts.  It pr... Read More

The IRS has issued Announcement 2010-16.  Announcement 2010-16 suspends for persons who are neither U.S. citizens, U.S. residents, nor domestic entities (corporations, partnerships, trusts, and estates) the requirement to file a Report of Foreign ... Read More

The IRS has released Notice 2010-23.  Notice 2010-23 provides administrative relief in regard to Form TD F 90-22.1, Report of Foreign Bank and Financial Accounts ("FBAR") filings for certain persons.  First, a person having signature authorit... Read More

According to Richard E. Neal, House Ways and Means Select Revenue Measures Subcommittee Chair, the House Ways and Means Select Revenue Measures Subcommittee will conduct in 2010 a study on transfer pricing.  See Chuck O'Toole, "Select Revenue Meas... Read More

In a letter to the IRS and to the Financial Crimes Enforcement Network, Department of Treasury, Jordan Weiss of Roll International Corporation has requested to expand the exemption, noted in Notice 2009-62, from filing a Report of Foreign Bank and... Read More

The Congressional Budget Office (the "CBO") has prepared a report to House Budget Committee ranking minority member Paul Ryan.  In the report, the CBO maintains that if (i) the tax provisions of EGTRRA and JGTRRA, except for those related to... Read More

The Congressional Budget Office (the "CBO") has prepared a report to House Budget Committee ranking minority member Paul Ryan.  In the report, the CBO maintains that if (i) the tax provisions of EGTRRA and JGTRRA, except for those related to... Read More

The Senate has prepared an Amendment to H.R. 4154, the American Workers, State, and Business Relief Act of 2010. Posted by Neil I. Rumbak, Associate Editor, Wealth Strategies Journal.... Read More

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The IRS and Treasury have extended and revised rules regarding who must file a TD F 90-22.1, Report of Foreign Bank and Financial Accounts ("FBAR").  In addition, the IRS continued the suspension of filing an FBAR for anyone who is... Read More

Steve Akers, Associate Fiduciary Counsel, Bessemer Trust, provides the following summary of Estate of Shurtz v. Commissioner, T.C. Memo 2010-21 (February 3, 2010): "In a case involving the creation of a family limited partnership to hold undivided inte... Read More

The Court of Federal Claims, in Curtin et al. v. U.S., has dismissed a claim brought by two executors of an estate for the issuance of a replacement check from the IRS for a refund that the two executors claim... Read More

The IRS has asked for public comment on Form 1041.  See also Comments Requested on Estate Income Tax Return, 2010 TNT 43-54, March 5, 2010.Posted by Neil I. Rumbak, Associate Editor, Wealth Strategies Journal.... Read More

The U.S. Congress Joint Economic Committee's Weekly Economic Digest reports on the stabilization of the U.S. labor market.  It reports that "payrolls essentially unchanged, despite winter storms," "unemployment rate hold steady," and "underutiliza... Read More

Richard Nenno, Managing Director and Trust Counsel, Wealth Advisory Services, Wilmington Trust Company, wrote a correspondence to the Treasury and IRS.  The correspondence requests that the Treasury or IRS issue a notice or regulation exempting ap... Read More

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Normal 0 false false false EN-US X-NONE X-NONE MicrosoftInternetExplorer4 Gail Chapman Haynes of the Pension Real Estate Association, has issued a correspondence to the IRS and Treasury.  The correspondence requests the following from the IRS and... Read More

Gail Chapman Haynes of the Pension Real Estate Association, has issued a correspondence to the IRS and Treasury.  The correspondence requests the following from the IRS and Treasury: "(A) The following specific guidance:   Normal 0 false fals... Read More

Gail Chapman Haynes of the Pension Real Estate Association, has issued a correspondence to the IRS and Treasury.  The correspondence requests the following from the IRS and Treasury: "(A) The following specific guidance: Normal 0 false false false... Read More

Gail Chapman Haynes of the Pension Real Estate Association, has issued a correspondence to the IRS and Treasury.  The correspondence requests the following from the IRS and Treasury: "(A) The following specific guidance: Normal 0 false false false... Read More

Jay Bruno of Bruno American Tax Services has written a letter to IRS Commissioner Douglas H. Shulman in response to requests for comments in Announcement 2009-51 and Notice 2009-62.  This letter criticizes the Treasury Department's enforcement of ... Read More

An individual has issued a correspondence to the IRS.  The correspondence requests advice in regards to filing a Form TD F 90-22.1 ("FBAR") for a prior year if no understatement of income exists.  See also Individual Seeks Guidance on FBAR... Read More

The IRS has requested from the general public and Federal agencies comments regarding Form 706-QDT, Estate Tax Return for Qualifying Domestic Trusts. See also Comments Sought on Qualified Domestic Trust Return, 2010 TNT 49-84, March 15, 2010.Posted by ... Read More

Acting Ways and Means Committee Chair Sander M. Levin spoke to reporters at a question-and-answer session.  Levin noted that this year, the Ways and Means Committee will address abusive tax havens, and not deferral.  He also mentioned his des... Read More

Tax Notes has published an article by Milford B. Hatcher Jr. and Edward F. Koren of Holland & Knight.  The article addresses "which types of defined value clauses are likely to prevail and which still involve significant risks of being... Read More

Alan R. Einhorn, Chair of the AICPA Tax Executive Committee, thanked the IRS for issuing interim guidance--Notice 2008-32 and Notice 2008-116--under Section 67 regarding the 2-percent floor on miscellaneous itemized deductions for estates and non-grant... Read More

The IRS and Treasury have updated the 2009-2010 Priority Guidance Plan.  See also Updated 2009-2010 Guidance Priority List Contains 31 New Items, 2010 TNT 51-28, March 17, 2010.Posted by Neil I. Rumbak, Associate Editor, Wealth Strategies Journal.... Read More

The United States Court of Appeals for the Second Circuit (the "Court"), in a summary order, affirmed an order by the Tax Court to hold liable an estate for accuracy-related penalties under Section 6662.  It found that the Tax Court... Read More

The IRS has released Publication 559, Survivors, Executors, and Administrators, For use in preparing 2009 Returns.  The introduction to Publication 559 mentions that " Normal 0 false false false EN-US X-NONE X-NONE MicrosoftInternetExplorer4 /* St... Read More

The IRS has released Publication 559, Survivors, Executors, and Administrators, For use in preparing 2009 Returns.  The introduction to Publication 559 mentions that "this publication is designed to help those in charge of the property (estate) of... Read More

Revenue Ruling 2010-11 provides various prescribed rates for federal income tax purposes for April 2010 (current month) including the applicable federal interest rates, the adjusted applicable federal interest rates, the adjusted federal long-term rate... Read More

Sander M. Levin, Acting House Ways and Means Committee Chair, issued the following statement in response to President Obama's signing of the Hiring Incentives to Restore Employment Act: "This law will give businesses, especially small businesses, a boo... Read More

In PLR 201011002, the IRS ruled that a proposed division and later merger of trusts (a) will not constitute a sale or other taxable division of assets under Section 1001; (b) will not result in  a transfer that is subject... Read More

In PLR 201011008, the IRS ruled that a proposed division and later merger of trusts (a) will not result, under Section 1001, in the realization of any gain or loss from a sale or other disposition of assets; (b) will... Read More

In PLR 201011002, the IRS ruled that a proposed division and later merger of trusts (a) will not result, under Section 1001, in the realization of any gain or loss from a sale or other disposition of assets; (b) will... Read More

Edward M. Polansky, CPA, Chair, Federal Tax Policy Committee, Texas Society of Certified Public Accountants, has written a letter to the IRS.  The letter urges the IRS to issue for taxable years beginning on or after January 1, 2009 interim... Read More

Tax Notes has published the March 2010 issue of Taxwise Giving, Charitable Contributions--Gift Tax Reporting Essentials, by Conrad Teitell of Cummings & Lockwood LLC.  This issue elaborates on gift tax reporting rules for charitable gift annui... Read More

Tax Notes has published the March 2010 issue of Taxwise Giving, Charitable Contributions--Gift Tax Reporting Essentials, by Conrad Teitell of Cummings & Lockwood LLC.  This issue elaborates on gift tax reporting rules for charitable gift annui... Read More

Robert Greenstein, Executive Director, Center on Budget Policy and Priorities, delivered testimony before the House Ways and Means Select Revenue Measures Subcommittee.   The testimony addressed three points: While current budget deficits are not ... Read More

The U.S. Court of Appeals for the Eleventh Judicial Circuit upheld the obligation of a decedent's estate to pay income taxes that arose from a sale occurring before the decedent's death of the decedent's farm.  The Court held that because... Read More

The New York Times, in Paul Sullivan's "Assemble a Paper Trail, and Make Sure Your Heirs Can Follow It," addresses the importance of possessing up to date wills, trusts, beneficiary designation forms, and health care proxies and guardianship, and... Read More

Tax Notes has published an article by Calvin H. Johnson of the University of Texas at Austin School of Law.  The article examines and critiques common trust funds, and suggests solutions to their problems, including a repeal of their form.See... Read More

The American Bar Association Section of Taxation, in the following April 5, 2010, letter to the Senate Finance Committee and to the House Ways and Means Committee, addressed the urgency of Congress's attention to the estate and generation-skipping tran... Read More

Tax Notes has published an article by Amourae Riggs, a student at the Woodbury School of Business at Utah Valley University and Sheldon R. Smith, a professor of accounting at the Woodbury School of Business at Utah Valley University.  The... Read More

Tax Notes has published an article by Calvin H. Johnson of the University of Texas at Austin School of Law.  The article examines and critiques common trust funds, and suggests solutions to their problems, including a repeal of their form.See... Read More

Tax Analysts has reported that David Gannaway, director in the Litigation and Corporate Financial Advisory Services Group at Marks Paneth & Shron LLP, told Tax Analysts that U.S. taxpayers undergoing voluntary disclosures may want to challenge the ... Read More

A Congressional Research Service report reviews tax reform proposals in the 111th Congress.  Normal 0 false false false EN-US X-NONE X-NONE MicrosoftInternetExplorer4 See also CRS Reviews Tax Reform Proposals in 111th Congress, 2010 TNT 68-18, Apr... Read More

A Congressional Research Service report reviews tax reform proposals in the 111th Congress.  Normal 0 false false false EN-US X-NONE X-NONE MicrosoftInternetExplorer4 See also CRS Reviews Tax Reform Proposals in 111th Congress, 2010 TNT 68-18, Apr... Read More

A Congressional Research Service report reviews tax reform proposals in the 111th Congress.  See also CRS Reviews Tax Reform Proposals in 111th Congress, 2010 TNT 68-18, April 8, 2010.  Posted by Neil I. Rumbak, Associate Editor, Wealth Strat... Read More

The IRS has released Publication 536, Net Operating Losses (NOLs) for Individuals, Estates and Trusts for use in preparing 2009 returns.See also IRS Releases Publication on Net Operating Losses, 2010 TNT 69-29, April 9, 2010.Posted by Neil I. Rumbak, A... Read More

Tom Daley has written a letter to the editor of Tax Analysts in response to recent commentary on Delaware Incomplete Nongrantor Trusts ("DING Trusts") submitted to Tax Analysts by David Cay Johnston.   Daley explains how an application of Section... Read More

The United States District Court for the Southern District of Mississippi, Southern Division, in in the Matter of the Estate of Jerry Wayne Young, Sr., Deceased,  dismissed an estate's objection to an IRS proof of claim in regards to its... Read More

In PLR 201014045, The IRS ruled income from a trust that provides health benefits to retired employees of an entity that is funded by the state excludable under Section 115 from gross income.  It also ruled that no requirement exists... Read More

In PLR 201014043, the IRS ruled that the judicial reformation of a trust to delete compliance with Section 170(b)(1)(A) as a requirement of eligibility to be a charitable remainder beneficiary under the trust will not cause the trust to fail... Read More

In PLR 201014043, the IRS ruled that the judicial reformation of a trust to delete compliance with Section 170(b)(1)(A) as a requirement of eligibility to be a charitable remainder beneficiary under the trust will not cause the trust to fail... Read More

In PLR 201014032, the IRS granted a married couple an extension to allocate the married couple's generation-skipping transfer tax exemption to a transfer to a trust.  See also Extension Granted to Allocate GSTT Exemption, 2010 TNT 69-51, April 12,... Read More

In PLR 201014044, the IRS ruled that if certain conditions are met, Section 2702(a)(1) and 2702(a)(2) will not apply to the trust modification at issue.See also IRS Addresses Gift Tax Consequences of Proposed Trust Modification, 2010 TNT 69-52, April 1... Read More

The U.S. Department of Justice said in a release that Harry Abrahamsen has pleaded guilty to failure to file a Report of Foreign Bank or Financial Accounts.Posted by Neil I. Rumbak, Associate Editor, Wealth Strategies Journal.... Read More

A press release from House Majority Leader Steny Hoyer praised Democratic involvement in the American Recovery and Reinvestment Act and lists tax benefits that the American Recovery and Reinvestment Act provides.  Posted by Neil I. Rumbak, Associa... Read More

Tax Notes has published an article by Joseph E. Tierney III, Shareholder at Meissner Tierney Fisher & Nichols S.C.  The article explains that Section 2511(c) was intended to stop incomplete gifts, which before the repeal of the estate tax were... Read More

Tax Notes has published an article by Professor Stephen B. Cohen.  This article replies to Professor Douglas Kahn's assertions of the correctness of Supreme Court Chief Justice John Roberts's criticism of Supreme Court Justice (but, at the time, J... Read More

IRS Commissioner Douglas Shulman provided written testimony before the House Small Business Committee.  In the written testimony, Commissioner Shulman expressed the IRS's ongoing commitment to assist small business.  See also Shulman Describe... Read More

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The United States District Court for the Western District of Michigan held that federal tax liens against a prior owner remain on property purchased in a county tax foreclosure proceeding.See also Federal Tax Liens Remain on Property Sold in County... Read More

In PLR 201015025, the IRS ruled that trust modifications in a proposed agreement will not prevent trusts from maintaining their generation-skipping transfer tax exempt status.  In addition, the trust modifications usually will not cause any portio... Read More

In PLR 201015003, the IRS ruled that an estate is allowed to elect special use valuation under Section 2032A for farm property, that the estate may elect to have the farm property treated as Qualified Family-Owned Business Interest under Section... Read More

The American Bar Association Section of Taxation submitted a letter to Senator Max S. Baucus and Senator Charles E. Grassley.  The letter requested that the Senate Finance Committee hold a hearing on wealth transfer taxes. See also ABA Tax Section... Read More

The U.S. government has filed a complaint against Kenneth Heller for tax evasion and failure to Forms TD F 90-22.1, Report of Foreign Bank and Financial Accounts.  Posted by Neil I. Rumbak, Associate Editor, Wealth Strategies Journal.... Read More

A federal grant jury has indicted Shmuel Sternfeld for conspiracy to defraud the United States, for filing false tax returns, and for failure to file Forms TD F 90.22.1, Reports of Foreign Bank and Financial Accounts.  Posted by Neil I.... Read More

A federal grant jury has indicted Sybil Nancy Upham for conspiracy to defraud the United States, for filing false tax returns, and for failure to file Forms TD F 90.22.1, Reports of Foreign Bank and Financial Accounts.  Posted by Neil... Read More

A federal grant jury has indicted Sybil Nancy Upham for conspiracy to defraud the United States, for filing false tax returns, and for failure to file Forms TD F 90.22.1, Reports of Foreign Bank and Financial Accounts.  Posted by Neil... Read More

A federal grant jury has indicted Richard Werdiger for conspiracy to defraud the United States, for filing false tax returns, and for failure to file Forms TD F 90.22.1, Reports of Foreign Bank and Financial Accounts.  Posted by Neil I.... Read More

A criminal information has been filed against UBS account holder Jules Robbins.  The criminal information alleges that Mr. Robbins used a sham corporation to hide his accounts with UBS AG, filed false tax returns, and failed to file Forms TD... Read More

A criminal information has been filed against UBS account holder Federico Hernandez.  The criminal information alleges that Mr. Robbins used sham corporations to hide his accounts with UBS AG, filed false tax returns, and failed to file Forms TD F... Read More

The U.S. Department of Justice announced that that seven UBS clients were charged in hiding assets in Swiss bank accounts.Posted by Neil I. Rumbak, Associate Editor, Wealth Strategies Journal.... Read More

Steve Akers, Associate Fiduciary Counsel, Bessemer Trust, provides the following summary of Holman v. Commissioner 105 AFTR 2d ¶ 2010-721 (8th Cir. April 7, 2010):The Eighth Circuit Court of Appeals has affirmed the Tax Court's decision (at 130 T.C. 17... Read More

Dan Danner, President and CEO of the National Federation of Independent Business, issued a statement expressing concern about tax compliance for small businesses.  Posted by Neil I. Rumbak, Associate Editor, Wealth Strategies Journal.... Read More

House Ways and Means Committee Chair Sander M. Levin delivered at the National Press Club remarks regarding economic recovery and tax reform.  Posted by Neil I. Rumbak, Associate Editor, Wealth Strategies Journal.... Read More

The IRS wrote to Congressman Tom Latham the following letter, which, in response to a question from Congressman Latham's constituents, provides a general explanation of Section 36 and the homebuyer tax credit: Normal 0 false false false EN-US X-NONE X-... Read More

The IRS issued to Congressman Tim Holden the following letter in response to Congressman Holden's constituents' inquiry about whether they could claim a first-time homebuyer credit for a home they purchased from their parents: Normal 0 false false fals... Read More

The IRS addressed the following letter to an individual who requested advice on whether the individual qualified for the first-time homebuyer credit:" Normal 0 false false false EN-US X-NONE X-NONE MicrosoftInternetExplorer4 Normal 0 false false false ... Read More

A survey conducted by RSM McGladrey Inc. found "significant concern among small and mid-sized companies about potential tax increases."  Posted by Neil I. Rumbak, Associate Editor, Wealth Strategies Journal.... Read More

Senate Budget Committee Ranking Minority Member Judd Gregg delivered remarks at the Senate Budget Committee Mark-Up of the Proposed Fiscal Year 2011 Budget Resolution.  Posted by Neil I. Rumbak, Associate Editor, Wealth Strategies Journal.... Read More

The American Action Forum issued a report that analyzed tax policies and the tax system. Posted by Neil I. Rumbak, Associate Editor, Wealth Strategies Journal.... Read More

The American Action Forum provided an outline that provided suggested for tax reform including "replacing the income, corporate, payroll and estate taxes with a single, simple taxwith a broad base and only two rates."See also American Action Forum Outl... Read More

The Senate Budget Committee, in its Chair's Mark, Normal 0 false false false EN-US X-NONE X-NONE MicrosoftInternetExplorer4 /* Style Definitions */ table.MsoNormalTable {mso-style-name:"Table Normal"; mso-tstyle-rowband-size:0; mso-tstyle-colband-size:... Read More

The IRS has requested comments on Rev. Proc. 2004-18, which deals with average area purchase price safe harbors and nationwide purchase prices under Section 143.  Posted by Neil I. Rumbak, Associate Editor, Wealth Strategies Journal. Normal 0 fals... Read More

The IRS has requested comments on Rev. Proc. 2004-18, which deals with average area purchase price safe harbors and nationwide purchase prices under Section 143.Posted by Neil I. Rumbak, Associate Editor, Wealth Strategies Journal.... Read More

Ranking Member of the Senate Budget Committee Judd Gregg issued a release that criticizes the Senate Democrats' fiscal year 2011 budget resolution. Posted by Neil I. Rumbak, Associate Editor, Wealth Strategies Journal.... Read More

Republicans on the Senate Budget Committee issued a release criticizing Obama's budget.  Posted by Neil I. Rumbak, Associate Editor, Wealth Strategies Journal.... Read More

A report from Citizens for Tax Justice claims that Republican proposals to make permanent the tax cuts enacted under Bush are unfair.Posted by Neil I. Rumbak, Associate Editor, Wealth Strategies Journal.... Read More

The Senate Budget Committee voted to pass a budget resolution for 2011.  This article mentioned that Budget Committee Chair Kent Conrad expects the House to pass its own budget resolution.  It adds that republicans were able to gain approval ... Read More

The United States District Court for the Southern District of Illinois granted summary judgment to the United States on its claim to foreclose on a couple's property.  The Court held that the trust to which the couple transferred property was... Read More

In PLR 201010633, the IRS ruled that a proposed trust reformation will not violate Section 664.  In addition, the trust reformation will not affect the trust's qualification as a charitable remainder unitrust if it otherwise meets the requirements... Read More

In PLR 201016006, the IRS granted an extension of time to a personal representative of an estate to make an alternate valuation election under Section 2032.  See also Extension Granted to Make Alternate Valuation Election, 2010 TNT 79-70, April 26... Read More

The IRS provided the following emailed advice on income distribution deductions: Normal 0 false false false EN-US X-NONE X-NONE MicrosoftInternetExplorer4 /* Style Definitions */ table.MsoNormalTable {mso-style-name:"Table Normal"; mso-tstyle-rowband-s... Read More

The IRS has submitted various forms for OMB review and comments.  See also Forms Submitted for OMB Review, 2010 TNT 79-127, April 26, 2010 Posted by Neil I. Rumbak, Associate Editor, Wealth Strategies Journal.... Read More

Tax Notes has published an article by Wendy C. Gerzog, Professor at University of Baltimore School of Law.  The article examines Estate of Black v. Commissioner and family limited partnership issues in it.   See Wendy C. Gerzog, "FLP in... Read More

The U.S. Tax Court has issued a memorandum that denies innocent spouse relief to a surviving spouse whose husband's estate paid her joint tax liabilities.  The Court held that the surviving spouse cannot be treated as the payor of the... Read More

The Congressional Research Service analyzed the estate tax.  The analysis reported that the estate tax is responsible for only a small percentage of revenue.  It also claimed that proposed revisions to estate tax rates and exemption amounts w... Read More

ExecSense is hosting the a webinar titled How and Why to Create a Personal Brand as a Tax Lawyer.  For more information and to register for the webinar, visit this page. Posted by Neil I. Rumbak, Associate Editor, Wealth Strategies... Read More

Douglas A. Kahn, Paul A. Kauper Professor of Law at the University of Michigan Law School, submitted a letter to the editor of Tax Notes in response to a recent article (previously discussed in this journal) by Professor Stephen B.... Read More

CPA Kip Dellinger debuted a new Tax Notes column.  In the first column, Dellinger examines the effects of disproportionately taxing wealthy taxpayers and proposes the enforcement of existing laws under Section 527 in regards to political organizat... Read More

Evan Liddiard, senior tax policy advisor to Senator Orrin G. Hatch, said at the S Corporations session of the ABA Section of Taxation meeting that a proposal in the extenders package to categorize carried interest as ordinary income (instead of... Read More

Catherine Hughes, attorney-adviser in the Treasury's Office of Tax Legislative Counsel, mentioned at an Estate and Gift Taxes session of the ABA Section of Taxation meeting that practitioners should be aware of changes that result in some provisions of... Read More

Senate Finance Committee Ranking Member Chuck Grassley expressed concern that the compliance burden for many business will be increased by healthcare reform, by IRS asssessment of the penalty for failure to include reportable transaction information wi... Read More

HR 5109, the Small Business Bill of Rights, if passed, will provide small business many types of tax relief, including capital gain and alternative minimum tax relief, benefits for start-up companies, postponement of estate tax elimination, and tax inc... Read More

Ranking minority member Sam Graves, R-Mo., spoke at a May 5, 2010, House Small Business Committee hearing.  In the statement, Graves supported estate tax repeal and the permanent extension of the 2001 and 2003 tax cuts, but opposed a compliance... Read More

The Associated Builders and Contractors sent a letter dated May 5, 2010, to the House Small Business Committee.  The letter claimed that small businesses could expand jobs through many means including tax cuts, estate tax repeal,and extension of 1... Read More

Heritage Foundation analyst Curtis S. Dubay, in testimony before the Committee on Small Business, U.S. House of Representatives, mentioned that small businesses could be assisted through cuts in capital gains taxes, estate tax repeal, and permanent ext... Read More

A May 5, 2010 Congressional Research Service report examined the expiration and extension of 2001 and 2003 individual income tax cuts.  The following is the text of the report:" Normal 0 false false false EN-US X-NONE X-NONE MicrosoftInternetExplo... Read More

According to James Hogan, Branch 4 Chief, IRS Office of Associate Chief Counsel (Passthroughs and Special Industries, who spoke at a Fiduciary Income Tax session at the meeting of the ABA Tax Section, the IRS and Treasury is close to... Read More

The U.S. Tax Court has issued a memorandum.  In the memorandum, the tax court determines the value of a couple's interests in a vacation home transferred to a qualified personal residence trust, and it agrees with the IRS that the... Read More

Conrad Teitell, principal at Cummings & Lockwood LLC, in a letter to the Senate Finance Committee, expressed his concern regarding, and provided specific examples of, the uncertainty of the current state of the estate and gift tax law.  He als... Read More

The Tax Court has issued a memorandum that held that a group of warehouse companies are not includible in a decedent's estate.  Though the decedent help run the companies, which his brother owned, he had neither the financial burdens of,... Read More

HR 5029, the Economic Freedom Act of 2010, if enacted will offer numerous tax breaks.  Posted by Neil I. Rumbak, Associate Editor, Wealth Strategies Journal.... Read More

According to House Ways and Means Committee member Chris Van Hollen, Congress may consider temporarily extending the 2001 and 2003 tax cuts for those taxpayers with incomes under $250,000.  See Eric Kroh, "Middle-Income Tax Extension May Be Tempor... Read More

The Tax Court issued a memorandum that held that the step transaction doctrine applied in a situation in which a donor transferred interests in an LLC.  The Court also determined valuation discounts.See also Step Transaction Doctrine Applies in Gi... Read More

Lobbyists told Tax Analysts that Congressmen are searching for at least $60 million in savings from the "estate tax code" to offset lower estate tax rates and a higher exemption amount.  The article also mentions that John Kyl, Chuck Grassley,... Read More

The IRS has released the Spring 2010 issue of the Statistics of Income Bulletin. Posted by Neil I. Rumbak, Associate Editor, Wealth Strategies Journal.... Read More

In PLR 201019002, the IRS granted an extension to an estate's executor to make an alternate valuation election under Section 2032.Posted by Neil I. Rumbak, Associate Editor, Wealth Strategies Journal.... Read More

Citizens for Tax Justice issued a release that argued that extending the 2001 and 2003 tax cuts would help the richest taxpayers but would not assist job creation.Posted by Neil I. Rumbak, Associate Editor, Wealth Strategies Journal.... Read More

In PLR 201019006 and PLR 201019007, the IRS ruled that Sections 2702(a)(1) and 2702(a)(2) will not apply to a proposed amendment and restatement of trusts.  It also ruled that upon executing the amendment and restatement of the trust, the grantors... Read More

In PLR 201019012, the IRS ruled that Sections 2702(a)(1) and 2702(a)(2) will not apply to a proposed amendment and restatement of trusts.  It also ruled that upon executing the amendment and restatement of the trust, the grantor's daughters will e... Read More

Senate Finance Committee Member John Kyl said that he reached an agreement with Finance Committee Chair Max Baucus on some of the details of a proposal for estate tax reform.  Kyl said that they have agreed that the top rate... Read More

Gary True of Summers Compton Wells requested guidance from the IRS on "handling estates of decedents dying during 2010 and prior to the reenactment of the estate tax, if that occurs."  Mr. True specifically requested guidance on how to "record... Read More

Alan Einhorn, on behalf on the American Institute of Certified Public Accountants, corresponded with the Treasury's Financial Crimes Enforcement Network ("FinCEN") in regards to foreign bank account reporting requirements.  Einhorn specifically re... Read More

A report by the U.S. Securities and Exchange Commission recommended twelve tax modifications.  See also SEC Report Recommends Tax Modifications, 2010 TNT 95-31, May 18, 2010. Normal 0 false false false EN-US X-NONE X-NONE MicrosoftInternetExplorer... Read More

Ways and Means Committee Chairman Sander Levin and Senate Finance Committee Chairman Max Baucus released the text of the American Jobs and Closing Tax Loopholes Act.  The Act goal is to achieve the following: Provide tax relief to businesses ... Read More

A report by the U.S. Securities and Exchange Commission recommended twelve tax modifications.  See also SEC Report Recommends Tax Modifications, 2010 TNT 95-31, May 18, 2010.Posted by Neil I. Rumbak, Associate Ed... Read More

Americans for a Fair Estate Tax, in a letter to senators, argued that reducing the estate tax is the "wrong policy priority and the wrong fiscal policy."  The following is the text of the letter: Normal 0 false false false... Read More

The Center on Budget and Policy Priorities opined that a proposal in the Senate to further raise the estate tax exemption amount from $3.5 million to $5 million for an individual and lower the maximum rate from 45 percent to... Read More

In PLR 201020002, the IRS granted an executor an extension under 2056(b)(7) to make a qualified terminable interest property election.See also Extension Granted to Make QTIP Election, 2010 TNT 99-37, May 24, 2010.Posted by Neil I. Rumbak, Associat... Read More

In PLR 201020001, the IRS ruled on the estate, gift, and generation-skipping transfer tax effects of judicial reformation of two testamentary trusts. Normal 0 false false false EN-US X-NONE X-NONE MicrosoftInternetExplorer4 /* Style Definitions */ tabl... Read More

In PLR 201020001, the IRS ruled on the estate, gift, and generation-skipping transfer tax effects of judicial reformation of two testamentary trusts.See also IRS Addresses Estate, Gift, GST Tax Consequences of Trust Reformations, 2010 TNT 99-37, May 24... Read More

Tax Notes has published an article by Robert J. Jackson and William B. Weatherford of PricewaterhouseCoopers LLP.  The article examines issues that arise regarding the IRS's allowance of some tax-exempt entities and investment partnerships to avoi... Read More

In ILM 201020009, the IRS concluded that Section 2035(b) does not apply to a non-resident, non-U.S.citizen's payment of gift tax within three years of his death, and the amount of the payment is thus not includable in his U.S. estate. ... Read More

Frank Berall of Copp & Berall LLP has submitted to Treasury comments in regards to carryover basis.  He suggests that instead of assuming zero basis for collectibles, the IRS should provide means for determining their basis.   See al... Read More

The House Ways and Means Committee has released an updated summary of the 'Extenders' Bill, H.R. 4213, the American Jobs and Closing Tax Loopholes Act of 2010.  This act would include tax relief provisions and tax credits for COBRA premiums.... Read More

The United States District Court, District of New Jersey, ruled that the IRS abused its discretion in denying an estate's extension request to file its tax return, and that the estate's extension request should have been granted for good and... Read More

In PLR 201021037, the IRS granted a waiver of the 60-day rollover requirement in Section 402(c)(3) for a distribution from a qualified retirement plan.  Posted by Neil I. Rumbak, Associate Editor, Wealth Strategies Journal.... Read More

In PLR 201021012, the IRS granted an extension pursuant to Section 2642(g) to allocate GST exemptions to transfers to trusts.Posted by Neil I. Rumbak, Associate Editor, Wealth Strategies Journal.... Read More

In PLR 201021045, the IRS ruled that ownership of voting common stock by an organization described in Section 501(c)(3) and classified as a foundation in Section 509(a) will not constitute excess business holdings under Section 4943 if the organization... Read More

In an email, the IRS advised the brother of a decedent that in order to obtain the amount assessed to the decedent, the brother must "open an estate for the decedent and have the brother seek appointment as executor/administrator.  Then... Read More

Senator Finance Committee Ranking Minority Member Chuck Grassley, in a conference call with reporters, blamed Senate Majority Leader Harry Reid for uncertainty regarding the future of the estate tax.  Grassley mentioned that the Senate Finance Com... Read More

The IRS has requested from the public comments concerning LR-209-76 (TD 7491), Special Lien for Estate Taxes Deferred Under Section 6166 or 6166A (Section 301.6324A-1)Posted by Neil I. Rumbak, Associate Editor, Wealth Strategies Journal.... Read More

Speakers at the Federal Bar Association's 22nd annual Insurance Tax Seminar mentioned that lawmakers are struggling to address the U.S.'s growing deficit, while providing tax benefits to taxpayers.  The speakers added that potential tax reform is ... Read More

In PLR 201022004, the IRS ruled that for federal estate, gift, and generation-skipping transfer tax purposes, a qualified terminable interest property election was null and void.See also QTIP Election Is Voided for Estate, Gift, GST Tax Purposes, ... Read More

In PLR 201022001, the IRS ruled that a testamentary trust established for the benefit of charitable organizations and a political subdivision will qualify for an estate tax charitable deduction under Section 2055.     See also Trust Will... Read More

In PLR 201022002, the IRS granted an estate an extension of time to elect to deduct qualified family owned business interests under Section 2057(b)(1)(B).  See also Extension Granted to Elect to Deduct Qualified Family-Owned Business Interest... Read More

In PLR 201022003, the IRS granted an extension to a married couple so that they could allocate their generation-skipping transfer tax exemptions to several trusts.   See also Extension Granted to Allocate GSTT Exemptions, 2010 TNT&n... Read More

In emailed advice, the IRS ruled that not all estates have to file federal tax returns.  Nevertheless, an executor who paid taxes and did not receive a refund from the service may be reimbursed by the estate.  The following is... Read More

H.R. 5495, the Family Farm and Estate Tax Relief Act of 2010, would exempt land that is in use from the estate tax.  It would also increase the amount excluded from gross estate to $5 million for land that is... Read More

Senate Finance Committee member John Kyl says that he is very close to gathering sixty necessary votes to pass a bill that would establish the estate tax top rate at 35 percent and the exemption level at $5 million.  See Sam... Read More

The IRS has asked for comments on Form 706, United States Estate (and Generation-Skipping Transfer) Tax Return.  Posted by Neil I. Rumbak, Associate Editor, Wealth Strategies Journal. ... Read More

The Tax Court issued a memorandum that held nondeductible certain deductions that taxpayer sought in regards to his rental activities.See also Tax Court Denies Deductions Related to Individual's Rental Activities, 2010 TNT 112-9, June 11, 2010.Posted b... Read More

The Investment Company Institute issued to Treasury and the Internal Revenue Service  the correspondence below.  This correspondence requested guidance on issues affecting regulated investment companies and their shareholders.  The follo... Read More

William Sweetnam, Jr., and Louis T. Mazawey of Groom Law Group, Chartered, have issued to the IRS the correspondence below that requests that the IRS include on its 2010-2011 Guidance Priority List guidance that exempts tax exempt retirement plans from... Read More

The Congressional Research Service updated a report so that it could address recent proposals that deal with reinstatement of the estate tax.  The following is the full text of the update of the report: Jane G. Gravelle Senior Specialist in... Read More

An individual has requested guidance regarding the application of 1022(b)(2) to assets acquired from a decent dying after December 31, 2009 if those assets were held in decedent's qualified revocable trust on the date of death. Posted by Neil... Read More

In a floor speech, Senate Finance Committee ranking minority member Chuck Grassley attacked the senate's inaction on estate tax reform.   Posted by Neil I. Rumbak, Associate Editor, Wealth Strategies Journal. ... Read More

Michigan attorney, Alex Miller, writes that the definition of retirement is a hot topic.  In an unpublished opinion in the matter of Nardi v. Satellite Servs., Inc., the Court of Appeals took on the issue of defining retirement. As a... Read More

Joseph J. Thorndike, in "Moments in Tax History: Stealing Huey's Thunder," examines President Roosevelt's plan to increase the inheritance tax and individual tax, and to provide a new graduated rate structure for the corporate tax.  See Josep... Read More

In response to IRS guidance, the ABA Section of Taxation Teaching Tax committee has undergone a project to review community property issues, and to submit to the IRS comments, related to registered domestic partnerships.See "ABA Forms Group to Exa... Read More

In PLR 201024008, the IRS, ruling on an individual's disposition of an interest in a marital trust, held that the individual, upon the distribution of trust property, will have made net gifts of the remainder interest and of his qualifying... Read More

In PLR 201024035, the IRS ruled that a qualified terminable interest property election is null and void for estate, gift, and generation-skipping transfer tax purposes.  See also QTIP Election Is Voided for Estate, Gift, GST Purposes, 2010&n... Read More

In PLR 201024026, the IRS ruled that divided trusts and divided charitable subtrusts are exempt from generation-skipping transfer tax, the division will not cause any transfer subject to gift tax, and the division will not cause assets of the divided... Read More

In PLRs 201024017; 201024018; 201024019; 201024020; 201024021; 201024022; 201024023; 201024024 the IRS ruled on the estate, gift, and generation-skipping transfer tax consequences of proposed mergers of their trusts and their subtrusts.  Posted by... Read More

In PLR 201024029, the IRS ruled on the estate, gift, and generation-skipping transfer tax consequences of the division of a trust and charitable subtrust.Posted by Neil I. Rumbak, Associate Editor, Wealth Strategies Journal.... Read More

In PLR 201024006, the IRS granted an extension to a widow and estate so that they can allocate their available generation-skipping transfer tax exemption to two trusts.See also Extension Granted to Allocate GSTT Exemptions, 2010 TNT 118-... Read More

In PLRs 201024009 and 201024010, the IRS granted extension to individuals to allocate available generation-skipping transfer tax exemptions to transfers to trusts.Posted by Neil I. Rumbak, Associate Editor, Wealth Strategies Journal.... Read More

In PLR 201024012, the IRS held that Section 2702(a)(1) and 2702(a)(2) will not apply to a proposed amendment and restatement of a trust if certain requirements are met.  Upon the execution of the amendment and restatement, the son of the... Read More

In PLR 201024005, the IRS held that a transfer of qualified replacement property by a taxpayer to his spouse in a divorce settlement constituted a gift under Section 1042(e)(3).Posted by Neil I. Rumbak, Associate Editor, Wealth Strategies Journal.... Read More

In ECC 201024059, emailed advice, the IRS held that gift tax on a transfer of closely-held business stock may be assessed at any time if information that the donor provided on the gift tax return did not meet the dislosure... Read More

In ECC 201024053, the IRS held that an irrevocable trust should file Form 1041 for years in which the irrevocable trust has income.  The IRS also held that if the irrevocable trust is a grantor trust, it may avail itself... Read More

In PLR 201024011, the IRS ruled that a state's restated deferred compensation plan constitutes an eligible deferred compensation plan as defined in Section 457(b), and the amounts of compensation deferred in accordance with the terms of the plan will b... Read More

House Majority Leader Steny H. Hoyer indicated that a permanent extension of the 2001 and 2003 tax cuts for middle income taxpayers is not certain and should be considered only after Congress agrees on a long-term deficit reduction plan.See Eric K... Read More

As the American public becomes increasingly concerned with fiscal problems, taxwriters are struggling to find ways to address these concerns without considering tax increases.See Meg Shreve, "Lobbyists See No Easy Answers for Revenue Raisers This ... Read More

In a June 22, 2010 speech, House Majority Leader Steny H. Hoyer mentioned that a serious discussion is necessary in regards to the effects of a possible permanent extension of the 2001 and 2003 tax cuts.  Posted by Neil I. Rumbak,... Read More

Senator Bernie Sanders introduced a bill that would reinstate both the estate and generation skipping transfer taxes.  He also issued a press release regarding the introduction of the bill.  Posted by Neil I. Rumbak, Associate Editor, We... Read More

A United for a Fair Economy press release expressed support for the "Responsible Estate Tax Act" that Senator Bernie Sanders introduced.  Posted by Neil I. Rumbak, Associate Editor, Wealth Strategies Journal. ... Read More

In PLR 201026005, the IRS ruled that a reformation of a charitable remainder unitrust does not constitute self dealing under Section 4941.  Posted by Neil I. Rumbak, Associate Editor, Wealth Strategies Journal.... Read More

In PLR 201026014, the IRS ruled that a proposed judicial construction of a trust will not affect the generation-skipping transfer tax-exempt status of the trust. See also IRS rules on GSTT Consequences of Proposed Judicial Construction of Tru... Read More

In PLR 201026019, the IRS granted a husband and wife an extension to allocate their available generation-skipping transfer tax exemptions to transfers to trusts.   Posted by Neil I. Rumbak, Associate Editor, Wealth Strategies Journal.... Read More

In PLR 201026018, the IRS ruled on the generation-skipping transfer tax consequences of a division and modification of a trust.Posted by Neil I. Rumbak, Associate Editor, Wealth Strategies Journal.... Read More

In PLR 201026021, the IRS granted an extension to an individual so that the individual could allocate an available generation-skipping transfer tax exemption to transfers to a trust.Posted by Neil I. Rumbak, Associate Editor, Wealth Strategies Jou... Read More

The IRS Small Business/Self Employed Division ("SB/SE") has issued guidance to SB/SE's employees on statutory notices of deficiency in cases when an estate or gift tax examination has more than 210 days remaining on the statute of limitations. &nb... Read More

An amendment to an emergency supplemental appropriations bill contains provisions that address terms for grantor-retained annuity trusts and biofuel.  The following is the text of the amendment to the emergency supplemental appropriations bill:"AM... Read More

Editor's Note: This is the first in a series of interviews conducted by Neil Rumbak (Associate Editor) of various practitioners in the fields of asset protection, estate planning, and taxation, among others.PRACTITIONER PROFILE: LISA M. STERN OF PROSKA... Read More

Practitioner Profile: Sanford J. Schlesinger of Schlesinger Gannon & Lazetera LLPInterview by Neil Rumbak, Associate Editor and Attorney at Rumbak Law, P.A.1) What do you enjoy most about your work?I enjoy the intellectual challenge of law and the ... Read More