James G. Haskell

A Federal Grand Jury for the Eastern District of Virginia indicted Felix M. Mathis, a partner for a Swiss law firm barred in New York, for alleged actions involving the use of sham trusts and concealed money transfers to evade... Read More

The IRS issued guidance for non-resident sellers of U.S. Property in a recent email.  The IRS concluded that if a non-resident seller of U.S. property can provide substantial evidence that the buyer withheld 10% of the purchase price as required... Read More

It appears that the Small-Business Act will pass the Senate without the Estate Tax amendment offered by Senator's Lincoln and Kyl.  The amendment offered would have capped the estate tax rate at 35% with a $5 million inflation-adjusted exemption.&... Read More

The U.S. Bankruptcy Court denied equitable estoppel and subrogation claims by Employee Benefits Plans against the IRS.  The Plans sought to subrogate the claims of the IRS to unpaid taxes to make distributions from the plan.See Timothy J. Mahoney,... Read More

Keith Lawson of the Investment Company institute wrote a letter to the Treasury regarding proposed regulations for cost basis reporting (REG-101896-09) with ways to ensure proper and simple reporting of holding periods on gifted shares.See ICI Comments... Read More

The Royal Bank of Canada, through Anne Norges, offered comments to the IRS regarding the Foreign Account Tax Compliance Act provisions and how regulations could be developed to ease burden on foreign financial institutions while satisfying compliance n... Read More

An article from the UK Telegraph casts doubt on living wills.  A man indicated he did not want heroic efforts just weeks before a devastating crash left him unable to speak and paralyzed from the neck down.  However, when asked... Read More

The Senate rejected Sen. Jim Demint's (R-S.C.) proposal to abolish the estate tax offered as an amendment to a bill extending unemployment benefits which passed the Senate.  Senators Blanche Lincoln (D-AR) and Ben Nelson (D-NE) supported the measu... Read More

Wendy C. Gerzog, Professof of Law at the University of Baltimore School of Law, recently wrote on the IRS's victory in Estate of Morgens v. Commissioner in which the Tax Court applied Section 2085(b) to gift taxes paid by qualified... Read More

The United States District Court for the Northern District of California denied Sussex Financial Enterprises, Inc. motion for partial summary judgment against Bayerische Hypo-und Vereinsbank AG ("HVB") and granted HVB's motion for summary judgment.&nbs... Read More

Ellen McCarthy of the Securities Industry and Financial Markets Association offered comments to the Treasury regarding proposed regulations (REG-101896-09) for reporting sales of securities and determining basis.See SIFMA Responds to Concerns Voiced at... Read More

In opposing pieces, the Heritage Foundation and United for a Fair Economy offered opposing views on the estate tax repeal.  The Heritage Foundation argues that the estate tax slows growth and penalizes entrepreneurship.  United for a Fair Eco... Read More

Deloitte will host several webinars.  Topics include:July 29, 2010 at 2:00 p.m. EDT Risk Intelligence: How to capitalize on social networking sites while minimizing risks to your company;August 3, 2010 at 2:00 p.m. EDT Financial Reporting: Discuss... Read More

Uncertainty regarding the future of the estate tax persists in the Senate.  An amendment offered by Senators Blanche Lincoln (D-AR) and Jon Kyl (R-AZ) that would have phased in a top estate tax rate of 35% with a $5 million... Read More

The IRS has issued guidance on who is appropriately penalized under IRC 6702 for frivolous business returns.See IRS Addresses Questions on Frivolous Business Return Penalty Procedures, 2010 TNT 142-21 (June 22, 2010).Posted by James G. Haskell, Associa... Read More

The IRS has recently ruled that a Charitable Remainder Trust under IRC 664 may be divided into two Charitable Remainder Trusts without either trust being disqualified as such.See IRS Rules on Division of Trust, 2010 TNT 142-48 (April 14, 2010).Posted... Read More

The IRS has rule on appointment powers and their impact on the Generation-Skipping Transfer Tax (GSTT).  The IRS did not include property in a decedent's estate that she inherited from her father because the decedent exercised a power of appointme... Read More

The IRS recently ruled that for the passive activity loss rules to apply in the context of a trust, "material participation" is only met if the trustee is involved in the activity on a regular, continuous and substantial basis.See Trustee's... Read More

Karen Lau Givian of the Investment Company Institute has offered comments on proposed regulations regarding the reporting of stock basis (REG-101896-09).  Her letter specifically cites concerns regarding average cost, gifted and inherited shares, ... Read More

Despite inaction from Congress with regard to the current sunset and looming sunrise of the estate tax, Catherine Hughes from Treasury's Office of Tax Legislative Counsel says that Treasury is working on issues that arise from this year's extinct gift... Read More

A recent case before the Tax Court denied deductions taken by a couple regarding an off-shore trust and mortgage related deductions.See Joseph H. Gale, Tax Court Denies Depreciation Deductions and Other Unsubstantiated Deductions, 2010 TNT 144-15 (July... Read More

Raymond H. Young of Young & Bayle sent a recent letter to Catherine Hughes at the U.S. Treasury in support of a two-generation limit on the Generation Skipping Transfer Tax (GSTT) exemption and shared his belief that many other practitioners... Read More

Americans for a Fair Estate Tax sent a letter on July 26 supporting the Responsible Estate Tax Act (S. 3533) introduced by Senators Bernard Sanders (I-VT) Tom Harkin (D-IA), Sheldon Whitehouse (D-RI), Sherrod Brown (D-OH) and Al Franken (D-MN) . ... Read More

WSJ's Robert Frank blogged on The Wealth Report recently how Young, Affluent Investors Feel Burned reporting on a recent poll of 1,000 investors with $250,000 or more in invested assets.  The survey found that 18-34 year-olds were about as risk... Read More

Stuart M. Lewis, Chairman of the Taxation Section of the American Bar Association, recommended a list of areas for the Treasury to issue guidance.  The list was compiled from various members of the Taxation Section in hopes that Treasury will... Read More

The Treasury Inspector General for Tax Administration issued its annual report detailing various reasons why tax collections fell 15% in 2009.See TIGTA Studies Fiscal 2009 Trends in Compliance Activities, 2010 TNT 146-28 (June 10, 2010).Posted by James... Read More

The Tax Policy Center has just released estimates of the distribution of estate tax by gross estate comparing outcomes under current law and under proposals that would extend the 2009 estate tax.See Tax Policy Center Estimates Estate Tax Distribution f... Read More

The Tax Policy Center has released estimates comparing revenue for the extension of the Bush tax cuts for the next decade to President Obama's proposed plan to extend the cuts to all but the earners in the top two marginal... Read More

WTAS offers some insight on converting retirement investments into Roth IRA's.  This brief article summarizes the requirements and restrictions of converting and illustrates the tax-free growth benefits of conversion.See Roth IRA's: Life After Con... Read More

WTAS has posted a great summary of the taxation of gold holdings.  The tax treatment varies considerably depending on the form your gold investments are in (e.g. gold coins, ETFs, future contracts, etc.), and this brief article gives a good... Read More

The U.S. Tax Court has ruled that Illinois state law leaves beneficiaries liable for the tax bill of their benefactor to the extent of the bequest.  Beyond a zero-sum game, the Tax Court held that the amount of the bequest... Read More

A federal district court judge in New Jersey refused to dismiss a case against an attorney for legal malpractice in a tax shelter case allowing litigation to continue.  The judge did conclude that the defendant owed no duty to the... Read More

The Congressional Research Service (CRS) has issued a report on the Organization for Economic Cooperation and Development's (OECD) efforts to eliminate international tax havens.  The report describes a shift by the OECD from improving transparency... Read More

Robert Half Legal offers a report on how law firms can adapt their firm to the changing legal environment.  The report includes findings from leading legal groups, firms and executives from major corporations.Posted by James G. Haskell, Associate ... Read More

A federal district court judge in the Eastern District of Louisiana dismissed claims of malpractice, fraud and conspiracy to commit fraud against an attorney and his firm for work with abusive tax shelters in the case Conwill v. Greenberg Traurig,... Read More

Citizens for Tax Justice released a report criticizing the Economic Freedom Act (H.R. 5029) for cutting tax bills for the top 1 percent of earners by $150,000 while adding almost $7 trillion to the national debt over the next decade. ... Read More

Macroeconomic Advisers LLC reported their analysis of the impact of allowing all of the Bush Tax Cuts to Expire compared with extending the cuts indefinitely and extending the cuts to all but high-income individuals.  The report, in light of the... Read More

The Jewish Federation of Greater Washington posted a letter from one of Senate Majority Leader Harry Reid's constituents which the Senator forwarded to the Treasury.  The letter urges Congress to make the same requirements of appraisers for estate... Read More

A new bill (S. 3760) introduced by Senator Jeff Bingaman (D-NM) would require companies with ten or more employees to provide automatic IRAs to employees if the company does not offer a qualified retirement plan.  The proposed bill includes tax... Read More

Senator Chuck Grassley (R-IA), ranking member of the Senate Finance Committee, urged Committee Chair Max Baucus (D-MT) to markup a tax relief bill in a Finance Committee Meeting rather than outside the committee with only Democrats.  The bill is m... Read More

A recent article by Marie Sapirie of Tax Analysts outlines the Government's tactics in the suit against UBS for helping U.S. taxpayers shelter assets and income abroad.  The article details how the IRS used a John Doe suit allowing the... Read More

A recent ruling (T.C. Memo. 2010-182) by the US Tax Court rebuked the IRS for unsubstantiated discount calculations that led to an increased tax assessment.  The discount related to the decedent's interest in a corporation that owned and operated ... Read More

A federal court in Missouri has enjoined a Missouri attorney from advising clients on tax plans.  The suit came in light of what the court found was a career of abusive tax advice that cost the U.S. between $100 and... Read More

Professor Lawrence W. Waggoner added to the list of individuals encouraging the Treasury to limit the Generation Skipping Transfer Tax Exemption to two generations.  Professor Waggoner contends that unless Congress acts, "the unwarranted loss of t... Read More

Congressman Richard E. Neal (D-MA) introduced the Automatic IRA Act of 2010.  The bill is a companion to one introduced in the Senate (S. 3760) that would require automatic IRA accounts by employees with 10 or more employees.  The bill... Read More

A U.S. district court in Massachusetts held that a man who disclaimed his interest from a Qualified Personal Residence Trust (QPRT) in favor of his sister was invalid because it was disclaimed within nine months of when the trust term... Read More

The Tax Policy Center has released estimates of extending the Estate Tax to the 2009 levels.  The results can be found at  Normal 0 false false false MicrosoftInternetExplorer4 /* Style Definitions */ table.MsoNormalTable {mso-style-name:"Tab... Read More

Revenue Ruling 2010-27 provides various prescribed rates for federal income tax purposes for September 2010 (the current month) including the applicable federal interest rates, the adjusted applicable federal interest rates, the adjusted federal long-t... Read More

Congresswoman Linda T. Sanchez (D-CA), a member of the House Ways and Means Committee, introduced H.R. 5764, the Responsible Estate Tax Act.  The bill seeks to reinstate both the estate and generation-skipping taxes.  The bill adjusts the tax... Read More

Republicans from the House Ways and Means Committee issued a press release that criticizes Democrats for looming tax hikes that stem from the expiration of the Bush Tax Cuts.  The release is one of a series of releases that detail the ef... Read More

The IRS wrote a memorandum concluding that the authority to apply the equitable recoupment doctrine granted to the Tax Court in 2006 does not apply to the gift tax.  As such, estates may deduct gift taxes paid or payable even... Read More

The IRS ruled on a proposed trust severance and determined that the severance would not trigger gain or loss to the trusts or beneficiaries and the asset holding periods would tack from the old trust. See IRS Rules on Tax... Read More

The IRS denied a request to extend the time to make an alternate valuation election.  In the case, the estate requested the extension 18 months after the deadline and claimed the CPA hired to file the estate tax return neglected... Read More

The Treasury has sent a letter responding to a constituent of Senate Majority Leader Harry Reid (D-NV).  The constituent had written to Reid urging that the Treasury require the use of qualified appraisers for estate tax purposes.  ... Read More

McGuire Woods LLP and Fiduciary Education Center, LLC are hosting a conference regarding issues facing corporate fiduciaries.  The conference will be held on Thursday, October 21, 2010 at the Mid-America Club in Chicago.  The cost is $150 per... Read More

A recent case from the Easter District of Virginia (United States v. J. Bryan Williams) gives hope to taxpayers facing possible FBAR penalties.  The Court denied the government civil penalties for failure to report foreign interest income.  T... Read More

A recent tax court opinion (In re Estate of Caer) limited the tax credit for taxes paid an estate could take to that specified in Internal Revenue Code Section 2013 (b) and (c).  The court also denied an untimely QTIP... Read More

The United States Court of Appeals for the Federal Circuit ruled that securities purchased on margin by a Cornell University tax-exempt trust qualified as debt-financed property subjecting the income to the unrelated business income tax (UBIT).  T... Read More

In Theresa Beat v. United States, the U.S. District Court for the District of Kansas ruled there was insufficient evidence to establish a common law marriage and denied the executrix the marital tax deduction claimed on the estate tax return. ... Read More

In an interview aired on C-SPAN, Assistant Treasury Secretary for Tax Policy Michael Mundaca suggested that the Obama Administration was considering an election to apply the 2009 estate tax to 2010 decedents.  The election could allow estates valu... Read More

In Marshall Naify Revocable Trust et al. v. United States, the U.S. District Court for the Northern District of California denied deductions for state capital gains tax finding that "the value of the disputed claim was not ascertainable with reasonable... Read More

In Estate of Cederloff v. United States, the U.S. District Court for the District of Maryland found the Estate failed to show that the IRS erroneously imposed a penalty.  The Estate argued that the decedent's multiple residences, business and cont... Read More

Senator Joe Lieberman (I-CT) in remarks to the Middlesex Chamber of Commerce in Connecticut endorsed extending the Bush tax cuts for another year and working to "prevent the estate tax from rising back to where it was."See Lieberman: Raising Taxes... Read More

The group Citizens for Tax Justice issued a report purporting to reviewing "myths and facts" about tax cuts.See Myths and Facts About Tax Cuts.Posted by James G. Haskell, Senior Associate Editor, Wealth Strategies Journal.... Read More

Thirty-one House Democrats signed a letter to Speaker of the House Nancy Pelosi (D-CA) urging the Speaker to extend tax cuts for all earners including those who make more than $250,000.  President Obama and House Majority Leader Steny Hoyer (D-MD)... Read More

The Ninth Circuit Court of Appeals in Pacific Fisheries v. United States upheld an appeal from the Western District of Washington denying a Freedom of Information Act request.  Pacific Fisheries sought the documents supporting deficient summonses ... Read More

In Shanna Thornton et al. v. Crazy Horse Inc., the Federal Court for the District of Alaska refused to compel the disclosure of income tax returns sought by an employer in a Wage and Hours Act case.Posted by James G.... Read More

The Nichols Accounting Group, P.C. wrote a letter to the IRS endorsing the registration portion of proposed regulations REG-139343-08 but opposing the registration fee.Posted by James G. Haskell, Senior Associate Editor, Wealth Strategies Journal.... Read More

Peter V. DeGregori, CPA of Vertical Advisors, LLP wrote a letter to the IRS urging the delay of an exam requirement for preparers under proposed regulations (REG-139343-08).  The letter also opposed requiring non-signing preparers to register.Post... Read More

In comments on the floor of the Senate, Senator Chuck Grassley (R-IA) sought changes to the Alternative Minimum Tax (AMT).  Grassley offered several fixes including permanent repeal or a permanent "patch".See Grassley Statement: Lack of AMT Patch ... Read More

In comments on the Senate Floor, Senator Max Baucus (D-MT) praised the Small Business Jobs Act of 2010 for providing $12 billion in targeted tax relief.  Senator Chuck Grassley (R-IA) countered that the relief was not sufficiently targeted toward ... Read More

The Washington Post reports on a new challenge from Bill Gates and Warren Buffet.  In the wake of a recent trip to China, Gates and Buffet decided to return to China to extend the same philanthropic challenge they issued domestically... Read More

Martin Sullivan writes that tax cuts alone are incapable of stimulating the economy.  Sullivan argues that without credible steps towards deficit reduction, any tax cut will not overcome the uncertainty surrounding large debt levels.  As a co... Read More

Jeremiah Coder looks at the guidance issued by the IRS and suggests that perhaps it is time to shift more resources to general guidance and issue fewer private letter rulings.  Such a shift would allow for greater guidance that would... Read More

Kip Dellinger, CPA criticizes the tax preparer registration proposals for adding substantial costs and complications that will hurt the industry with little of the hoped for benefit.  Dellinger offers a few suggestions to help the proposals includ... Read More

Kenneth J. Kies, Managing Director of the Federal Policy Group, wrote a letter correcting a reading of an August 2, 2010 letter written by 22 U.S. businesses and sent to Senate leaders.  The letter objected to the use of revenue... Read More

In Buzzell v. Internal Revenue Service, the Fourth Circuit in an unpublished per curiam opinion affirmed a district court's decision dismissing a suit against the IRS attempting to stop collection actions.  The Fourth Circuit found no reversible e... Read More

In a legal memorandum from Nancy L. Rose, Senior Counsel for Procedure & Administration, the IRS has concluded that it can seek backup withholding liabilities from employers who fail to obtain a W-9 even if the three-year period for retaining... Read More

The Texas Society of Certified Public Accountants sent a letter to Representative Jeb Hensarling (R-TX) calling for Congress to immediately repeal expanded 1099 reporting requirements.  The group argues that the cost of compliance will significant... Read More

Senator Finance Committee Chair Max Baucus (D-MT) will convene a hearing ("Tax Reform: Lessons from the Tax Reform Act of 1986") Thursday, September 23 at 10:00 a.m. to discuss lessons from the Tax Reform Act of 1986.  The hearing will... Read More

Karen M. Moore of the American College of Trust and Estate Counsel sent a letter to Michael Mundaca, Assistant Secretary of the Treasury for Tax Policy, with proposals for guidance with respect to the coordination of the Foreign Corporation Anti-Deferr... Read More

Daniel B. Evans, a tax software consultant to Leimberg & LeClair, Inc, wrote a couple of emails to Catherine V. Hughes of the Treasury asking for clarification on issues regarding the gift tax and whether 2010 rates should apply to... Read More

Alan Einhorn of the American Institute of Certified Public Accountants has requested an exception from the requirement to file Form 1041-Afor trusts that claim IRC 642(c) charitable deductions, but only for flow-through contributions from partnership a... Read More

The Center for Tax Justice issued a new report comparing the Obama Tax Plan to Senate Republicans' Tax Plan showing state by state impacts.The report can be found at http://ctj.org/taxjusticedigest/archive/2010/09/new_data_from_ctj_shows_how_ob.phpPost... Read More

Professor David S.Goldberg, professor of law at the University of Maryland School of Law, wrote a recent report promoting an electronic value added tax (e-VAT) that is progressive and allows for automatic point-of-sale collection.  The report comp... Read More

Senator Chuck Grassley (R-IA), ranking member of the Senate Finance Committee, urged the Senate to vote on the estate tax before it reverts to a maximum 55% rat with a $1 million exemption.  In his September 27, 2010 comments on... Read More

The Tax Policy Center has released a report estimating the number of tax units for 2011 in each tax bracket.  The full report can be found here.Posted by James G. Haskell, Senior Associate Editor, Wealth Strategies Journal.... Read More

In a recent article on NPR, Phil Kerpen, vice president for policy at Americans for Prosperity, argues that Democrats and Republicans are wrong on the estate tax.  Kerpen argues that while Republicans have been on the better side of the... Read More

The Tax section of the District of Columbia Bar held a luncheon on September 29 where at least some practitioners believe the uncertainties surrounding the GSTT are more complicated than those surrounding the estate tax, both of which have sunset... Read More

In light of the recent announcement by the IRS to treat tax preparation as practice before the agency, Karen Hawkins, director of the IRS Office of Professional Responsibility, discouraged tax professionals from employing individuals who have been disc... Read More

House Republicans criticized House Democrats after the announcement of House Majority Leader Steny Hoyer (D-MD) on September 29th that the House would adjourn without voting on the fate of the 2001 and 2003 tax cuts.  Democrats countered the criti... Read More

The Plain Language Act of 2010 (H.R. 946) has passed both chambers of Congress.  The Senate voted for the bill on September 27, and on September 29 the House adopted all of the Senate's amendments.  The bill requires the IRS... Read More

Steve Akers, Managing Director at Bessemer Trust, provides the following summary of Keller v. U.S., 106 AFTR 2d 2010-XXX (S.D. Tex. September 14, 2009) and 106 AFTR 2d 2010-XXXX (S.D. Tex. September 15, 2010):These opinions address the amounts of deduc... Read More

In PLR 20109312-10, the IRS ruled that a trust is a permitted S corporation shareholder under 1361(c)(2)(A)(i) and that the individual is treated as the owner of the trust under section 678, as long as gifts made to the trust... Read More

In PLR 20108707, the IRS ruled that an agreement to modify an existing trust will not result in a gift by any beneficiary of a separate trust, and both trusts and distributions from the trusts will not be subject to... Read More

In PLR 20103715, the IRS granted an extension to allocate available generation-skipping transfer tax exemption to a trust.Posted by James G. Haskell, Senior Associate Editor, Wealth Strategies Journal.... Read More

In PLR 20100709, the IRS ruled that as long as certain requirements are met, a settlor's sons will be transferring a term interest in a residence by gift under section 2501 and therefore, section 2702(a)(1) and (2) won't apply to... Read More

In an email, the IRS gave guidance qualifying a grantor trust as a partner under section 6231(a)(2)(A) as opposed to 6231(a)(2)(B) for natural persons.See IRS Addresses Grantor Trust Qualification as a Partner, 2010 TNT 191-69 (August 31, 2010).Posted ... Read More

David Kendall and Jim Kessler from Third Way recently issued a sample itemized receipt for an average tax payer.  The authors of the report argue that many Americans are uninformed about budget matters and that an itemized receipt for their... Read More

Ryan J. Monmoyer wrote on Bloomberg that 2,840 households that reported 2009 income in excess of $1 million collected unemployment benefits.  The article explains that unemployment checks are insurance claims based on whether an insured event has ... Read More

Ex-Kansas City Chief Joe Bruner was sentenced by a Florida judge to 11 months and 29 days for punching his CPA, Wayne Montgomery, for failing to get him a larger tax return.  Bruner was also sentenced to drug testing, anger... Read More

At an October 6th tax reform roundtable, Senate Finance Committee member Ron Wyden (D-OR) said that 2011 could be the "best chance" for Congress to pass a tax reform bill.  The prediction was made despite strong possibilities of a congressional... Read More

Professional educators are voicing concerns over proposed changes to Circular 230.  Foremost of those worrisome changes is new section 10.9 that requires OPR approval for "each program to be qualified as a qualified continuing education program."&... Read More

Professor Calvin H. Johnson, Professor of Law at the University of Texas, has published a paper called "Don't Let Capital Accounts Go Negative" that proposes a new system to prevent negative capital accounts.  The system is part of the larger... Read More

Criticism continues against the proposed changes to Circular 230.  Paul White of White Accounting Services argues that the proposed continued education and proposed licensing requirements are burdensome, costly, and targeted at experienced profess... Read More

The IRS sent a letter explaining that distributions from a U.S. IRA that holds interests in a Canadian Trust are subject to a 15 percent tax that is remitted to Canada.  The letter explains that the U.S./Canadian tax treaties determines... Read More

The IRS has called for comments regarding regulations that require information reporting for gift tax purposes.  Comments are due by December 6, 2010.Posted by James G. Haskell, Senior Associate Editor, Wealth Strategies Journal.... Read More

In the Estate of Tatum, et al v. United States, the United States District Court for the Southern District of Mississippi found that a decedent's estate was liable for gift taxes after failing to make a qualified disclaimer of his... Read More

In a recent article, Stephen K. Vetter, partner at Kozusko Harris Vetter Wareh LLP, reviews proposals that the American College of Trust and Estate Counsel made to the Treasury Department regarding foreign nongrantor trusts and how foreign corporation ... Read More

In United States v. James A. Simon, the United States District Court for the Northern District of Indiana denied the defendant various evidentiary motions the defendant filed in the criminal case against him.  The case against the defendant arose ... Read More

The Family Business Estate Tax Coalition wrote a letter on October 12 to U.S. Senators urging the Senate to "pass permanent estate tax relief with a $5 million exemption and 35 percent rates."Posted by James G. Haskell, Senior Associate Editor,... Read More

President Obama at a town hall meeting for youth sponsored by Black Entertainment Television said he believed "the best way" to keep Social Security solvent is to raise the level of wages subject to Social Security.  The President's remarks can... Read More

In Tribin v. Commissioner, the Tax Court held that a $5,000 loan to a closet designer from her sister for a car was not includable as income.  However, the Court found other unaccounted for deposits in her bank account should... Read More

In Maes v. United States, the United States District Court for the District of Montana found that payments made to a woman from her ex-husband were alimony payments and as such were taxable to her.  The Court found that despite... Read More

The Tax Foundation issued a report that analyzes the effects 2011 tax changes will have on 11 different "typical tax returns."  The report analyzes the returns under three different scenarios: a full expiration of the Bush tax cuts; the Republican... Read More

Revenue Ruling 2010-26 provides various prescribed rates for federal income tax purposes for November 2010 (the current month) including the applicable federal interest rates, the adjusted applicable federal interest rates, the adjusted federal long-te... Read More

The IRS has re-issued interim guidance memorandum SBSE-04-0509-009 under SBSE-04-1010-044 clarifying its applicability for all estate tax attorneys and paraprofessionals.  The guidance addresses return preparer penalty procedures for estate and gi... Read More

In an October 20 report, Citizens for Tax Justice find that President Obama's estate tax proposal would impact fewer individuals than the 0.6 percent of decedents who had estate tax liability in 2009.  The group prefers the Responsible Estate... Read More

National Taxpayer Advocate Nina Olson said that the Taxpayer Advocate Service is "swamped" with "more cases this year than we have had in the entire history of the Taxpayer Advocate Service."  Olson cited the 2008 economic stimulus payments and fi... Read More

National Taxpayer Advocate Nina Olson said that the Taxpayer Advocate Service is "swamped" with "more cases this year than we have had in the entire history of the Taxpayer Advocate Service."  Olson cited the 2008 economic stimulus payments and fi... Read More

In Rev. Proc. 2010-41, the IRS gives guidance to taxpayers without a social security number as to how to obtain a preparer tax identification number and what to do in case that process takes too long.Posted by James G. Haskell,... Read More

Senate Finance Committee Chairman Max Baucus (D-MT) pledged to "closely monitor" efforts to crack down on tax evasion.  His comments came after a report released by GAO concerning the effectiveness of the IRS at finding complex tax evasion schemes... Read More

Christopher Wagner, commissioner of the IRS Small-Business/Self-Employed Division in recent comments said that even though an estate may not owe any estate tax due to the 2010 repeal of the estate tax, IRC 6018 may still require filing an information... Read More

In Diebold v. Commissioner, the Tax Court held that a widow was not liable for a holding company's tax liability after the company sold and transferred stock to a marital trust.Posted by James G. Haskell, Senior Associate Editor, Wealth Strategies... Read More

Mike Ogline of Geiger, Teeple, Smith & Hahn requested clarification from the IRS as to whether small estates with gross values of less than $1.3 million get an automatic allocation of a stepped-up basis.Posted by James G. Haskell, Senior Associate... Read More

The CBO has recently released a report that estimates that by 2020, the Federal Government will collect $2.5 trillion in individual income taxes and a total of $3.2 trillion in tax receipts.The full report can be found here.Posted by James... Read More

Gary Hermann, partner in the San Fransisco office of Morgan, Lewis & Bockius LLP, commented on Notice 2010-6.  Hermann wrote on behalf of Suva, an independent body established by the Swiss government and "the exclusive provider of ma... Read More

Robert Foley of State Street Bank and Trust Company commented on Notice 2010-60 regarding the Foreign Account Tax Compliance Act.  The letter emphasized the need for prompt guidance. See "Bank and Trust Company Voices Concerns With Preliminar... Read More

Kenneth Jimenez, a CPA with Jones & Kolb wrote a letter to the Treasury seeking guidance on how IRC Section 1022 interacts with Section 469 for suspended passive losses under the estate tax laws of 2010.  The letter also sought... Read More

Analyzing the effect of the GOPs large gains in Congress, Jeremy Scott of Tax Analysts argues that the tone of the debates may change, but there will be little substantive difference in legislative outcomes.  Scott argues that 2011 will be... Read More

In United States v. Malcolm C. Winsper, the U.S. District Court for the Western District of Kentucky refused the government's foreclosure on a property jointly owned by a taxpayer and his wife.  The government sought to foreclose to satisfy a... Read More

In a recent letter (LTR 201044021), the IRS revoked a trust's tax exempt status citing its lack of charitable activity and the structure that benefits the organization's insiders.Posted by James G. Haskell, Senior Associate Editor, Wealth Strategies Jo... Read More

TD Bank Financial Group commented on preliminary guidance issued regarding the Foreign Account Tax Compliance Act.  In the comments submitted, TD Bank sought an exception to the reporting and withholding requirements for accounts in countries subj... Read More

The Tax Policy Center has issued a new report analyzing an extension of the Bush tax cuts for all those making less than $1 million a year.  The full report can be found at http://www.taxpolicycenter.org/publications/url.cfm?ID=1001462.Posted by J... Read More

In response to a letter from Congresswoman Lacy Clay(D-MO), Treasury Secretary Timothy Geitner said that the Treasury would "carefully consider" guidance from legislators concerning the implementation of FATCA.  The letter specifically cites conce... Read More

The Congressional Research Service has recently issued a state-by-state report on the alternative minimum tax for 2007, 2008 and estimates for 2010.See "CRS Provides AMT Statistics by State," 2010 TNT 217-21 (November 8, 2010).Posted by James G. Haskel... Read More

In a letter to IRS Commissioner Douglas Shulman, leaders from both parties on the House Ways and Means and Senate Finance Committees promised to enact alternative minimum tax relief for 2010.  In response, Commissioner Shulman cited the need for q... Read More

Tara Siegel Bernard in a NY Times article titled "Become the Guardian of a Parent With Alzheimer's" gives a good discussion of preparing for and becoming a guardian of an aging relative.  The article addresses temporal, physical and emotional conc... Read More

Senator Max Baucus (D-MT), chairman of the Senate Finance Committee, introduced a bill that would repeal newly enacted 1099 reporting requirements.  The requirements came under scrutiny for the compliance burden it would place on businesses in a s... Read More

President Obama, in response to comments made by senior advisor David Axelrod, clarified that he did not endorse a full extension of the expiring tax cuts.  Axelrod's comments to the Huffington Post were interpreted as a willingness of the Obama... Read More

The National Commission on Fiscal Responsibility and Reform has received mixed reviews on its recently issued draft proposal.  Senate Majority Leader Harry Reid (D-NV) said he did not agree with everything in the proposal but that the draft was a... Read More

Jeffrey Chatfield, a San Diego client of UBS, plead guilty to filing a false tax return in the U.S. District Court for the Southern District of California.  The plea related to income from Swiss bank accounts maintained at UBS.See "California... Read More

Andrew Zuckerman, director of rulings and agreements for employee plans in the IRS Tax-Exempt and Government Entities Division, said that the first guidance on in-plan rollovers allowed under the Small Business Jobs Act of 2010 (P.L. 111-240) should be... Read More

In recent comments, House Majority Leader Steny H. Hoyer (D-MD) promised a vote on extending the expiring tax cuts to just middle-income taxpayers.  A spokesman for Senate Majority Leader Harry Reid (D-NV) said that extending the tax cuts for midd... Read More

The Tax Policy Center released a report analyzing the effects of a tax reform proposal issued by the Bipartisan Policy Center.  Under the proposal, the alternative minimum tax, the standard deduction, itemized deductions and several tax credits ar... Read More

In a November 18 C-SPAN interview, House Democratic Whip James E. Clyburn (D-SC) said he favored extending tax cuts for middle-income taxpayers, but noted deficit reductions if the cuts expired.See "Newsmakers with Representative James Clyburn," (Novem... Read More

In remarks at the National Tax Association's annual conference in Chicago, Congressional Budget Office Director Douglas Elmendorf said that specific policies that narrow budget deficits must be enacted before the fiscal outlook of the nation improves.&... Read More

In D.N. v. United States, the Ninth Circuit Court of Appeals affirmed a district court decision finding the secondary beneficiary of the decedent's 401(k) account was liable for taxes on the account.  The beneficiary was the minor son of the... Read More

In a recent article, Diana Furchtgott-Roth, senior fellow at the Hudson Institute and former chief economist at the Department of Labor, argued that Congress must provide tax certainty especially in the areas of individual income tax rates, taxes on ca... Read More

Jay A. Soled, professor at Rutgers University School of Business, wrote a one-page letter to the editor to resolve estate tax legislation.  Soled proposes limiting or eliminating current deduction and capping the estate tax rate at 40% with a $4... Read More

In a July 20 legal memorandum, the IRS ruled that beneficiaries of an estate were not entitled to the use of capital loss carryovers unused by the estate because they are not "beneficiaries succeeding to the property of the estate"... Read More

The IRS has concluded that it cannot require "payment of the sum that otherwise would be applied to junior real estate transfer taxes" as a condition for the issuance of a certificate of discharge in a short sale scenario.See "IRS... Read More

The Treasury Inspector General for Tax Administration issued a report assessing policies and guidelines concerning information gathered with filings of Report of Foreign Bank and Financial Accounts (FBAR) and "to determine how the IRS is monitoring and... Read More

University of Baltimore Professor Wendy Gerzog analyzes issues arising when spouses die near in time to each other.  Specifically examining the benefit of the first dying spouse forgoing the marital deduction to take advantage of the credit on pri... Read More

A recent report from the Treasury Inspector General for Tax Administration (TIGTA) said the IRS could better use currency report data to idenitfy suspicious activity and discover underreporters.  TIGTA estimated that better use of the reports coul... Read More

In a recent article from Benjamin H. Harris, senior research associate with the Brookings Institution and Daniel Baneman, a research assistant with the Urban Institute, the authors conclude that AMT reform can lead to greater progressivity and efficien... Read More

Speaker of the House Nancy Pelosi (D-CA) expressed concern about increased deficits if tax cuts are extended for all earners.  Pelosi said Democrats support "tax cuts for America's middle class in a way that is consistent with pay-as-you-go." See ... Read More

In floor remarks on November 30, Senator Minority Leader Mitch McConnell (R-KY) said there should be "no tax hikes on anybody -- period."  McConnell criticized a new Democratic proposal that would extend tax cuts to all earners making less than... Read More

In a letter to lawmakers, IRS Commissioner Douglas Shulman reiterated that a delay in the patch for the alternative minimum tax would affect the entire filing seasons and tens of millions of taxpayers. See "IRS Chief Urges Congress to Act... Read More

Acting House Ways and Means Committee Chair Sander M. Levin (D-MI) introduced the Middle Class Tax relief Act of 2010 (H.R. 6467) which would extent tax cuts for middle-income earners and patch the alternative minimum tax.  The bill also extends... Read More

A recent publication from the Joint Committee on taxation outline the historic development and present state of the federal tax system.  The report can be found at http://www.jct.gov/publications.html?func=startdown&id=3711. Posted by James G.... Read More

The Department of Treasury has called for comments on guidance it issued under Section 664(c) regarding the effect of unrelated business taxable income on charitable remainder trusts.  The call is part of its effort to reduce paperwork and respond... Read More

The IRS announced that it will send more than 10,000 targeted letters to paid tax preparers emphasizing the obligation of accuracy and reminding them to register with the IRS.See "IRS Continues Efforts to Ensure Accurate Return Preparation; Reminds Tax... Read More

In Travelers Casualty and Surety Company of America v. United States, a federal magistrate judge granted summary judgment to the company.  The court held the company to be the sole owner of funds awarded by a bankruptcy court order that... Read More

In a recent publication (JCX 52-10), the Joint Committee on Taxation issued a technical explanation of an amendment to the Senate amendment to H.R. 4853, "Middle Class Tax Relief Act of 2010" which was scheduled for consideration by the House... Read More

On November 30, the Congressional Research Service issued an updated report on the effects of the expiring tax cuts.  The updated report includes changes offered by Senate Finance Committee Chair Max Baucus (D-MT) under extender bill S. 3793.Poste... Read More

The House approved H.R. 4853, the Middle Class Tax Relief Act of 2010 yesterday.  The vote passed 234-188.  The bill extends tax cuts for taxpayers making less than $200,000 and families making less than $250,000.Posted by James G. Haskell, S... Read More

In Estate of Meyer Levy v. United States, the Fifth Circuit affirmed the judgment for the government denying an estate tax refund that arose out of a property value dispute.Posted by James G. Haskell, Senior Associate Editor, Wealth Strategies Journal.... Read More

Senator Max Baucus (D-MT), chairman of the Senate Finance Committee, introduced legislation to permanently reduce tax rates on middle income earners.  The rates would drop from 15, 29, 31 and 36 percent  to 10, 15, 25, 28 and 33 percent. ... Read More

In the Estate of Mary V. Allison v. Commissioner, the Fourth Circuit affirmed the reasoning of the tax court and upheld the tax court's imposition of sanctions and determination of deficiency in the estate's gift tax.Posted by James G. Haskell,... Read More

In the Estate of Mary V. Allison v. Commissioner, the Fourth Circuit affirmed the reasoning of the tax court and upheld the tax court's imposition of sanctions and determination of deficiency in the estate's gift tax.Posted by James G. Haskell,... Read More

The IRS in PLR 20109032 ruled that a judicial reformation of a trust that was reformed due to scrivener's error will not disqualify a charitable remainder unitrust nor will it be deemed an act of self-dealing.Posted by James G. Haskell,... Read More

In an email, the IRS advised that there is "nothing in the Code, the regulations, or the IRM that requires the Service to apply a minority interest discount in discharge cases."  The email clarified that judicial review is available under... Read More

In a letter to the chairs and ranking members of the Senate Finance and House Ways and Means Committees, the Tax Section of the American Bar Association urged lawmakers to address estate tax issues and resolve the uncertainty that is... Read More

In a recent article Doug H. Moy (dougmoy@msn.com) discusses the gift tax treatment of property transferred by gift to a trust under section 2511(c).See "Gift Tax Treatment of Transfers in Trust," 2010 TNT 234-8, (November 2, 2010).Posted by James G.... Read More

In Notice 2010-92, the IRS gives guidance as to whether section 902 corporations' taxes will be suspended under section 909.Posted by James G. Haskell, Senior Associate Editor, Wealth Strategies Journal. ... Read More

President Obama agreed to a two-year tax cut extension for all income levels.  The agreement included an estate tax of 35% with a $5 million exemption.  Also in the agreement are an extension of unemployment insurance, the earned income credi... Read More

The Center for American Progress issued a recent report with several methods to reduce the federal deficit.  The variations include different proportions of spending cuts and tax increases.  In the version the group deems the most reasonable,... Read More

In Publications 1437 and 1438, the IRS gives guidance on requirements and procedures for using the e-file program.Posted by James G. Haskell, Senior Associate Editor, Wealth Strategies Journal.... Read More

The Department of Treasury and IRS have released the 2010-11 Priority Guidance Plan.  The full plan can be found at  Normal 0 false false false MicrosoftInternetExplorer4 /* Style Definitions */ table.MsoNormalTable {mso-style-name:"Table Nor... Read More

The Tax Policy Center has issued a report on the distributional effects of the tax cut agreement reached between the White House and Congressional Republicans. The report also includes a comparison to the Middle Class Tax Relief Act of 2010.The... Read More

Senate Majority Leader Harry Reid (D-NV) introduced the Tax Relief, Unemployment Insurance Reauthorization and Job Creation Act of 2010.  The bill extends many of the expiring tax cuts temporarily, including an estate tax capped at 35 percent with... Read More

In United States v. Kulhanek, a federal court found the government's claim for unpaid estate taxes was timely.  The court cited the defendants election to defer payment under section 6166 and noted that the statute of limitations only began to... Read More

A report by the Congressional Research Service examines the possible economic effects of allowing the tax cuts to expire.  The report can be found at http://assets.opencrs.com/rpts/R41443_20101005.pdf.Posted by James G. Haskell, Senior Associate E... Read More

In PLR 201049012, the IRS granted an estate an extension to allocate the GSTT exemption.Posted by James G. Haskell, Senior Associate Editor, Wealth Strategies Journal.... Read More

The Joint Committee on Taxation in report JCX 54-10 estimated the cost of the Senate tax bill at $857.8 billion.Posted by James G. Haskell, Senior Associate Editor, Wealth Strategies Journal.... Read More

The Senate is expected to take action on the tax compromise bill that approximates the agreement reached between congressional Republicans and the White House.  The U.S. Chamber of Commerce called for the bill's quick passage and the White House l... Read More

A tax cut extension bill has passed a procedural vote in the Senate, yet continues to generate criticism.  House Majority Leader Steny Hoyer (D-MD) criticized the legislation as being too costly for its minimum impact on short term employment.&nbs... Read More

David L. Starbuck, partner in the Denver office of Baker Hostetter, reviews the uncertainties surrounding 2010 and 2011 estate, gift, and GST taxes.  In his article, Hostetter analyzes how the uncertainties will likely play out in a few common fac... Read More

The Tax Foundation has updated its online calculator to include provisions of the new tax proposal.  The calculator can be found at http://www.mytaxburden.org.Posted by James G. Haskell, Senior Associate Editor, Wealth Strategies Journal.... Read More

House Democrats met late last night to discuss alternatives to the proposed tax bill.  Unhappy with many provisions, members are deliberating splitting the provisions into separate bills in hopes of passing middle-income tax cut extensions alone.&... Read More

Professor George S. Jackson, professor of accounting in the Walter R. Davis School of Business and Economics at Elizabeth City State University in Elizabeth City, N.C., wrote a recent article regarding the benefits of qualified disclaimers to help some... Read More

The Heritage Foundation has outlined its top five problems with the tax code.  The solutions include making the Bush tax cuts permanent, lowering the corporate tax rate and abolishing the alternative minimum tax.  The full article can be foun... Read More

The tax compromise bill that largely reflected what was negotiated between the White House and Congressional Republicans passed the Senate yesterday.  In response to the bill's passage Senator Orrin Hatch (R-UT) called it the "right thing to do" a... Read More

The U.S. attorney's office for the Southern District of Florida brought charges against Renzo Gadola, a former USB banker, for aiding a taxpayer conceal assets offshore.  The press release can be found at http://www.justice.gov/usao/fls/PressRelea... Read More

The tax compromise bill (H.R. 4853) extending Bush tax cuts for an additional two years passed the House yesterday.  The bill passed 277 in favor and 148 against in an uncharacteristic show of bipartisanship including 139 Democrats and 138 Republi... Read More

In PLR 201050011 the IRS ruled that an entity created to provide disability, old age and/or death benefits to covered employees and their beneficiaries will be classified as a trust.Posted by James G. Haskell, Senior Associate Editor, Wealth Strategies... Read More

In three private letter rulings (PLR 201050005; 201050006; 201050008) the IRS ruled that there would be no adverse tax consequences for two trusts merging into one.  Posted by James G. Haskell, Senior Associate Editor, Wealth Strategies Journal.... Read More

On December 17, President Obama signed the tax compromise bill after it passed both chambers of Congress by wide margins.  The bill extends the Bush tax cuts for an additional two years as well as unemployment benefits.See " Tax Cuts,... Read More

The text of the recent tax cut bill has been posted along with the Joint Committee on Taxation's technical explanation, estimated budget effects and the Senate Finance Committee's summary of the law.  The text and summary of the law can... Read More

A pair of bills introduced in the House were referred to the House Ways and Means Committee.  One bill (H.R. 6522) sponsored by Michele Bachman (R-MN) seeks to make the recently extended tax cuts permanent while repealing the alternative minimum... Read More

Revenue Ruling 2011-2 provides various prescribed rates for federal income tax purposes for December 2010 (the current month) including the applicable federal interest rates, the adjusted applicable federal interest rates, the adjusted federal long-ter... Read More

In an analysis of the recent tax cut extensions, the Center on Budget and Policy Priorities claims that measures of the legislation favored by Democrats, including an extension of unemployment benefits and a cut in payroll taxes, will help the... Read More

Incoming Senate Finance Ranking Member Orrin Hatch (R-UT) has announced several positions to the minority staff on the Senate Finance Committee.  The list include Everett Eissenstat as Chief International Trade Counsel, Jay Khosla as Chief Health ... Read More

In a recent report by the Heritage Foundation, the group criticizes the use of a value added tax to solve deficit problems arguing that the tax will "hammer private saving for an extended period" while consumers save less to maintain... Read More

House Republicans released a series of proposed changes to rules for the 112th Congress.  The proposals include requirements to post bills online at least three days before being voting on, a statement describing the constitutional basis for propo... Read More

In a recent teleconference sponsored by the American Bar Association, the American Law Institute, and the American College of Trust and Estate Counsel, practitioners expressed satisfaction with short term fixes to transfer tax uncertainties, but contin... Read More

In a series of private letter rulings (PLR 201051002, 201051003, 201051004, 201051023) the IRS ruled that there would be no adverse transfer tax consequences under a proposed settlement agreement.Posted by James G. Haskell, Senior Associate Editor, Wea... Read More

In SBSE 04-1210-069, the IRS reissued interim guidance from SBSE 04-0710-037 regarding no change reports for estate tax attorneys.Posted by James G. Haskell, Senior Associate Editor, Wealth Strategies Journal.... Read More

The IRS has corrected guidance given in Rev. Rul. 2011-2 concerning January AFR's.  The new guidance includes a table 6 regarding deemed rate of returns for transfers to pooled income funds in existence for less than 3 taxable years.Posted by... Read More

According to an article by Tax Analysts, section 1022 modified carryover basis rules are the area most in need of guidance.  Even though practitioners have a nine-month window to file the estate tax return, many practitioners worry that the issues... Read More

Reviewing 2010, Tax Analysts has named IRS Large Business and International Division Commissioner Heather Maloy as its person of the year.  Maloy was cited for her leadership of "an evolving organization that is greatly expanding its interaction w... Read More

In a recent Tax Analysts article by Meg Shreve, Shreve details how most believed 2010 would be a promising year for tax reform.  The large deficits combined with the expiring Bush tax cuts were largely believed to be guarantees that... Read More

In Judith F. Lang v. Commissioner, the Tax Court held that the taxpayer was entitled to deductions for medical expenses and real estate taxes that were paid by the taxpayer's mother.  The Court held that the payments constituted a gift... Read More

Jack Brister of the Society of Trust and Estate Practitioners commented on Notice 2010-60 regarding withholding and reporting provisions of the Foreign Account Tax Compliance Act.  The comment included requests for guidance on family trusts and pe... Read More

In PLR 201052002 the IRS ruled that an agreement by the decedent's great grandchildren will not trigger generation skipping transfer taxes, will not constitute a gift, and will not force realization of gain from the exchange of trust assets.Posted by... Read More

The IRS through an email said that a taxpayer who timely files Form 706 but fails to make an alternate valuation election may get an extension by taking corrective action as described in section 301.9100-2(c).  The email can be found... Read More

Jane G. Gravell, Senior Specialist in Economic Policy for the Congressional Research Service, issued a December 23 report reviewing the changes to the estate tax.See "CRS Reviews Estate Tax," 2011 TNT 2-46 (December 23, 2010).Posted by James G. Haskell... Read More

In the case of United States v. James A. Simon, the U.S. District Court for the Northern District of Indiana found sufficient evidence to uphold Simon's conviction for fraud, filing false federal income tax returns, and failure to file foreign... Read More

The IRS has released fact sheets regarding tax law changes, free IRS tax help and the IRS's presence on social media applications.  The fact sheets include:FS-2011-01: 2010 Changes Offer Expanded Tax BenefitsFS-2011-02: Tax Changes for Small Busin... Read More

In her annual report to Congress, National Taxpayer Advocate Nina E. Olson said that tax reform is the number one priority for tax administration.  Olson describes the compliance burden on taxpayers and notes that one of the greatest challenges to... Read More

House Republicans voted January 5 to adopt new cut-as-you-go procedural rules.  The new rules replace the old pay-as-you-go rules.  Under the old system, any tax cut or budget expenditure had to be offset by tax increases or expenditure cuts ... Read More

Rep. Dave Camp (R-MI) was elected as House Ways and Means Committee Chair.  Camp said that job creation and economic growth will be his highest priorities.  Camp focused on tax reform and replacing last year's health reform bill as his... Read More

Tax Analysts reports that Americans Standing for Simplification of the Estate Tax (ASSET) has hired Arent Fox LLP.  ASSET is looking for support from small businesses.  Phil English, former House Ways and Means Committee member is among Arent... Read More

In Estate of Tinken v. United States, the Supreme Court denied certiorari to the estate's challenge to its tax liability assessed by the IRS.  The District Court found the grandfathering exemption of the GSTT, under which the estate was challengin... Read More

The IRS has released a new publication, Selling Your Home, detailing the home sale exclusion and the first-time home buyer credit.  The publication is intended to help 2010 filers.Posted by James G. Haskell, Senior Associate Editor, Wealth Strateg... Read More

IRS Commissioner Douglas Shulman has said that the IRS is considering a second round of voluntary offshore disclosure amnesty.  The first program which ended October 15, 2009 allowed companies to correct dubious offshore disclosures at reduced pen... Read More

The Congressional Research Service has issued several new reports of interest to the tax community.  The reports include a report on new rules for revenue legislation including "pay as you go" House budget rules; a report on the patenting of... Read More

The IRS has issued Publication 537: Installment Sales for use in preparing 2010 returns.Posted by James G. Haskell, Senior Associate Editor, Wealth Strategies Journal.... Read More

The IRS has called for comments regarding 501(c)(3)s; the Patient Protection and Affordable Care Act; Regulated Investment Companies; and real estate income and expense of pass through entities.  The call for comments can be found at http://www.fe... Read More

A Senate Finance Committee Democratic staff member has reiterated Committee Chair Max Baucus' (D-MT) interest in sweeping tax reform.  The staffer who spoke at a January 18th meeting of the Worldwide Employee Benefits Network in Washington noted t... Read More

Wells Fargo has hired JDM Public Strategies LLC to track developments in tax law reform. See "Lobby Lookout:  Wells Fargo Tracking Tax Reform, Estate Tax," 2011 TNT 13-6 (January 19, 2011). Posted by James G. Haskell, Senior Associate Editor, Weal... Read More

Revenue Ruling 2011-4 provides various prescribed rates for federal income tax purposes for February 2011 (the current month) including the applicable federal interest rates, the adjusted applicable federal interest rates, the adjusted federa... Read More

The Treasury's Financial Crimes Enforcment Network has issued its annual report for 2010.  The report touts interagency successes amending foreign bank account reporting regulations and work with the IRS's Criminal Investigation division.  Th... Read More

Steven M. Harris, a tax attorney in Miami, has published a recent article on mitigating the effects of a criminal conviction in an IRS-investigated case.  Harris details the importance of minimizing issue preclusion and collateral estoppel during ... Read More

A new report issued by the Congressional Research Service found that farm assets accounted for 3.25% of the total value of taxable estates that filed returns in 2009.  The same report found that business assets accounted for 13.86% of taxable... Read More

The Congressional Research Service has issued a recent report looking at the history of the wealth transfer taxes including the estate, gift and GST taxes.  The history includes the recent changes to the transfer taxes that will expire at the... Read More

Robert W. Wood of Wood & Porter in San Fransisco offers 10 tips to young tax practitioners including "how to manage the scope of tax return preparer liability, understand opinion standards, deal with tax shelters, and minimize penalties with disclo... Read More

In Estate of Axel O. Adler v. Commissioner, the Tax Court held that the decedent's estate should not include fractional interest discounts in valuing the gross estate because the decedent controlled the entire property by retaining a life interest and... Read More

Several ABA sections including the Real Property, Trust and Estate and Taxation sections submitted comments on draft Form 8939, "Allocation of Increase in Basis for Property Acquired From a Decedent."  The comments seek further guidance to accurat... Read More

A recent bill (H.R. 390: Family Farm Preservation and Conservation Estate Tax Act) reintroduced by Congressman Mike Thompson (D-CA) seeks to defer estate taxes for family farms as long as the property is still farmed or left as open space.Posted... Read More

The new IRS oversight program governing tax preparers will not be fully operational until 2014 according to a new report issued by the Treasury Inspector General for Tax Administration.  The new oversight includes paid preparer registration, testi... Read More

The Office of Professional Responsibility at the IRS recently announced that individuals who have been disbarred or suspended for Circular 230 violations will not be automatically prohibited from registering for a preparer tax identification number.&nb... Read More

A recent patent law reform bill (S. 23) introduced by Patrick Leahy (D-VT) would prohibit patents for tax planning strategies.  The measure was quickly supported by "15 national organizations representing consumer, taxpayer, charitable, financial ... Read More

The Senate passed a measure repealing the new 1099 reporting requirements that were included in the health care bill.  The Senate voted 81-17 and now awaits action from the House of Representatives where Congressman Daniel E. Lungren (R-CA) has in... Read More

In Michael P. Schwab v. Commissioner, the Tax Court held that a couple must include distributions from a life insurance policy based on the fair market value as of the date of distribution from an employee benefit plan.  In determining... Read More

The American College of Trust and Estate Counsel has addressed comments regarding Notice 2010-60 regarding the Foreign Account Tax Compliance Act.  The comments emphasize the need for rules that are "administrable, understandable, and as consisten... Read More

The Swiss government has recently expressed concerns over new reporting requirements under the Foreign Account Tax Compliance Act.  The report notes the unilateral imposition of the requirements and the extensive financial activity Switzerland has... Read More

The Obama administration delivered its annual budget plan quickly stirring debate on the matter.  Some Republicans criticized the budget for failing to meet the President's own deficit reduction goal by failing to reduce spending, imposing taxes a... Read More

In a recent letter to the editor, Meg E. Dodge examines the impact of recent estate tax law changes on art collectors, auction houses and museums.  The letter notes the death of Roy Neuberger, wealthy financier and art collector who... Read More

Edward Gurary, an Ohio businessman living in Switzerland was charged with failing to report interest income on an account held with UBS.  The charges stem from Gurary's alleged failure to file FBAR's from 2004-2008.  During those years, the D... Read More

In a recent analysis, Martin A. Sullivan looks at the IRS Statistics of Income Division's report on taxes paid by resident's of Manhattan's Helmsley Building.  The building was purchased by Leona Helmsley who resold it in 1998 fro $250 million.&nb... Read More

The IRS has announced a new program to disclose offshore accounts that have avoided being taxed.  The Offshore Voluntary Disclosure Initiative is less generous than the previous offer from IRS.  The new program imposes a 25 percent penalty.&n... Read More

A recent review by Bruce Bartlett, a former Treasury deputy assistant secretary for economic policy, looks at taxation changes under Ronald Reagan both as governor of California and as President of the United States.  Bartlett notes tax increases ... Read More

In a recent article, Kip Delliner CPA in Santa Monica, California, offers a primer on how to view the current coverage of tax policy.  Delliner suggests that the beratement of the rich is overcharged and the current tax system hurts... Read More

The U.S. Treasury's Financial Crimes Enforcement Network has issued final rules regarding Foreign Bank and Financial Accounts Report Responsibilities.  The rules explain how an account is classified as foreign, revises the definition of signature,... Read More

The Justice Department has indicted four Swiss bankers for facilitating tax evasion.  The indictment alleges that the bankers opened undeclared accounts sheltering $3 billion in assets.  The indictments come shortly after the IRS announced a ... Read More

Jeffrey Maine, professor of law at the University of Maine School of Law, and Xuan-Thao Nguyen, professor of law at Southern Methodist University Dedman School of Law, offer a look at the disparate tax treatment of similar intellectual property in... Read More

A recent article by Tax Analysts discusses the struggle that practitioners have with the recent Canal Corp. v. Commissioner decision.  In Canal the Tax Court classified a leveraged partnership transaction as a disguised sale and applied an accurac... Read More

In Edith Schlain WIndsor v. United States, a surviving same-sex spouse is suing for a refund of estate taxes paid on her spouse's estate.  The suit claims the Defense of Marriage Act is unconstitutional and the estate taxes that would... Read More

Congressman Mike Pence (R-IN) introduced H.R. 696, the Tax Relief Certainty Act of 2011.  The bill seeks to make the Bush tax cuts of 2001 and 2003 permanent.  The bill would also provide permanent relief to the alternative minimum tax... Read More

The U.S. Senate voted 87-3 to end debate to S.23, the Patent Reform Act of 2011.  The Act would make tax strategies ineligible for patent protection.  Voting to end the debate sets up a final vote on the bill later... Read More

As part of the ongoing efforts under the Paperwork Reduction Act, the IRS is soliciting comments concerning From 8925, Report of Employer-Owned Life Insurance Contracts.See http://www.federalregister.gov/articles/2011/03/07/2011-5000/proposed-collectio... Read More

Steven J. Mopsick, partner at Mopsick & Williams LLP in Sacramento and long time veteran of the IRS wrote a recent article arguing for voluntary disclosure of offshore accounts.  Mopsick argues that those who do not take advantage of the... Read More

Bridget Crawford, professor of law at Pace University School of Law, reviewed her top 10 estate and gift tax related law review articles from 2010.See "Law Review Articles You Should've Read (But Probably Didn't," 2011 TNT 45-10, (February 9, 2011).Pos... Read More

The IRS has called for comments on Form 8939 "Allocation of Increase in Basis for Property Acquired From a Decedent."  The call for comments is part of the continued efforts under the Paperwork Reduction Act.See http://www.federalregister.gov/arti... Read More

In Bradley et al. v MDC Credit Corp et al., the U.S. District Court for the District of South Dakota ruled that a purchasing company which agreed to pay the outstanding tax liabilities from a family-owned business must indemnify the... Read More

A recent report from the Treasury Inspector General for Tax Administration said that higher scrutiny is needed for returns that report losses from rental real estate property.  The report predicted that greater scrutiny could lead to over $27 mill... Read More

Senators Saxby Chambliss (R-GA), Tom Coburn (R-OK), and Mike Crapo (R-ID) sent a joint letter to Grover Norquist of Americans for Tax Reform.  The letter challenges Norquist's claim that the GOP plan to reform the tax code would violate Americans... Read More

According to a recent article by Tax Analysts, more taxpayers are seeking out professionals to help with tax preparation this year.   The article attributes the growth to increased enforcement efforts by the IRS and confusion about tax law.See "Ec... Read More

A recent article by David Weisbach (professor at the University of Chicago) and Brian Gale (attorney with Sidley Austin LLP) compares the rules governing tax advice in 1990 to those governing today.  They conclude that current regulations look muc... Read More

The IRS has released Publication 519, U.S. Tax Guide for Aliens.  The publication is intended to help both resident and nonresident aliens to determine their filing obligations.Posted by James G. Haskell, Senior Associate Editor, Wealth Strategies... Read More

The Congressional Research Service has released a new update to its overview of the federal tax system.  The updates include changes to tax cut extensions and proposed changes under President Obama's 2012 budget plan.See "CRS Updates Overview of F... Read More

The IRS has released Publication 536, Net Operating Losses for Individuals, Estates and Trusts.  The publication gives taxpayers guidance on how to determine, when to use, how to claim and how to carryover net operating losses.Posted by James G. H... Read More

The IRS has released Publication 559, Survivors, Executors, and Administrators.  The publication gives guidance to those in charge of a decedents estate.  It details the process and responsibilities associated with filing and paying taxes ari... Read More

The Tax Policy Center has released new estimates based on the provisions of President Obama's 2012 budget.  The estimates include distributional impacts on individual and corporate income, capital gains and transfer taxes.  It also estimates ... Read More

A recent report by the Heritage Foundation claims that President Obama's 2012 budget will slow the economy with unnecessary taxes.  Heritage says that efforts should be placed on reforming individual and corporate taxes rather than burdening consu... Read More

The IRS has issued seven frequently asked questions regarding Form UTP required to be filed by certain corporate filers for uncertain tax positions.  The seven questions issued address common problems with filing the form.  The IRS said that ... Read More

In an email to tax professionals, the IRS warned that some returns for filers claiming the Home Buyer Credit may be delayed.  Processing difficulties could delay returns for joint filers who received a 2008 home buyer credit and for other... Read More

In Conwill v. Greenberg Traurig, the United States District Court for the Eastern District of Louisiana dismissed, with prejudice, RICO allegations against an attorney for claims in an opinion letter regarding a tax shelter.  The taxpayer engaged ... Read More

H.R. 1058, Seniors' Tax Simplification Act of 2011 introduced by Rep. John Fleming (R-LA) would create a new Form 1040SR simplifying filing requirements for seniors by making social security benefits, distributions from retirement plans and other incom... Read More

H.R. 1069 would require the Treasury Department to prepare tax returns for unmarried taxpayers who do not itemize.  The bill was introduced by Rep. Jim Cooper (D-TN).Posted by James G. Haskell, Senior Associate Editor, Wealth Strategies Journal.... Read More

In Schrimsher v. Commissioner, the Tax Court denied a charitable contribution deduction for a facade easement that a taxpayers granted to a historical commission.  The court noted the failure to discuss any consideration received from the commissi... Read More

The United States Patent Office has published several patent applications of interest to tax planners.  They include:-Managing Investment Assets - a method for tax advantaged real property investments-Roth Aware Financial Advisory Platform - a sys... Read More

According to IRS Return Preparer Office Director David Williams, the IRS will begin testing return preparers in September.  The IRS will soon seek comments on what to include on the test but said there will not be any materials published... Read More

A recently introduced House version of the America Invents Act (S.23) would prohibit tax strategy patents but offers more extensive provisions on tax matters than its Senate counterpart.Posted by James G. Haskell, Senior Associate Editor, Wealth Strate... Read More

The Heritage Foundation criticized President Obama's 2012 budget for raising taxes on wealthy taxpayers and limiting itemized deductions.  Heritage says that the changes will limit the amount of wealth available for transfer to charities, effectiv... Read More

A recent article by Wendy Gerzog, Professor at the University of Baltimore School of Law, claims the Ninth Circuit's recent ruliing in Linton reversing the summary judgment ruling in favor of the government and remanding for further findings of fact... Read More

The U.S. Tax Court affirmed its partial summary judgment in the case of Kaufman v. Commissioner.  The Court denied a charitable deduction for a facade easement for its lack of perpetuity.  The Court also disallowed deductions for conditional ... Read More

The IRS issued a recent press release reminding taxpayers of the April 18 filing deadline.  The IRS also said that so far, 82 million returns have been filed.  The number is roughly what is expected for this point in the... Read More

In remarks to the National Press Club, IRS Commissioner Douglas Shulman clarified that federal tax returns are due by April 18th whether or not the federal government shuts down.  Shulman also elaborated on plans to change tax administration deali... Read More

Senate Finance Chairman Max Baucus (D-MT) and House Ways and Means Committee Chair David Camp (R-MI) said they are working on creating a "set of principle and ideas" to start a tax reform effort.  Senator Baucus explained "We want to... Read More

Attorneys Robert W. Wood and Christopher A. Karachale, both of Wood & Porter, authored a recent article regarding the Tax Court's recent decision in WE Acquisition.  "The Tax Court's recent decision in WE Acquisition reviews the factors used t... Read More

In the case of Pamela B. Russell v. Commissioner, the Tax Court imposd penalties on taxpayer for unreasonable reliance on her tax attorney.  The taxpayer failed to timely file a 2001 tax return on the advice of her tax attorney... Read More

In Jose B. Magno v. Commissioner, the Tax Court disallowed losses relating to real estate leasing activities that a financial planning service provider had claimed for his work maintaining residential properties that the taxpayer had alternately leased... Read More

In a paper by University of Delaware professors Laurence Seidman and Kenneth Lewis propose replacing both the AMT and the estate tax with an 8% surtax on adjusted gross incomes above $1 million.  The authors argue that the surtax would... Read More

The IRS recently issued proposed regulations regarding the exclusion from gross income under section 108(a) of discharge of indebtedness income of a grantor trust or an entity that is disregarded as an entity separate from its owner.See http://www.fede... Read More