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IRS Holds Private Foundation’s Investment in Corporation as Not Self-Dealing Although It is Funded by Disqualified Persons

In a ruling letter, the Internal Revenue Service (“IRS”) held that an otherwise tax exempt organization’s investment in a corporation will not be a self-dealing activity even though the organization is funded by disqualified persons.

Under section 4941(d) of the Internal Revenue Code, self-dealing between a disqualified person and a … Continue reading

IRS Revokes Tax Exempt Status of Trust for Serving Private Interests of Creators

The Internal Revenue Service (“IRS”) revoked an organization’s tax exempt status under section 501(c)(3) for serving the private interests of the organization’s creators.

The decision, which was made in 2009 and released on November 21, 2014, explained that tax exempt organizations must be organized and operate exclusively for the exempt … Continue reading

Congressional Research Service Updates Federal Tax Overview

Exemptions, deductions, tax credits, revenue collection estimates, tax rate schedules, and other tax-related statistics were updated through 2014 by the Congressional Research Service in a November 21 update of a federal tax system overview.

According to the Congressional Research Service, analysis of tax statistics from the federal tax system as … Continue reading

Tax Court Grants Individual Innocent Spouse Relief

In Andrea Rae Demeter et al. v. Commissioner, T.C. Memo No. 2014-238, the Tax Court held that an individual is entitled to relief from a joint tax liability with her former husband, finding that several factors weigh in favor of granting relief, including the fact that she would suffer … Continue reading

Payment to LLCs Exempt from Information Reporting Only When Classified as Corporations

In a memorandum of the IRS, it addressed the issue of whether payments to limited liability companies (LLCs) were exempt from section 6401 information reporting requirements. The IRS concluded that payments to LLCs were only exempt when the LLC was classified, for tax purposes, as corporation filing Form 8832. The … Continue reading

Funding Agreement Interest is Included in Policy Interest

A memorandum on the topic of whether interest paid on funding agreements is qualified as policy interest was released by the IRS earlier. According to this memorandum, the IRS concluded that interest paid on funding agreement issued by a life insurance company qualified as policy interest, for the reason that … Continue reading

College Abacus: A Web Tool that Compares College Costs

Co-founded by two Rhodes scholars, Abigail Seldin and Whitney Haring-Smith, College Abacus is a web tool that provides people applying to college with an easier way of comparing college costs. After entering financial and personal data, users can receive estimates of the price they may actually pay after scholarships and … Continue reading

Minority Groups Become Niche Market for Private Banking

Wealth management firms are approaching to wealthy African Americans, women and LGBT people for new opportunities.

The New York Times reported that such groups have “some special needs” in wealth management, even though the firms approach them as individuals. According to the Times report, wealthy African Americans tend to be … Continue reading

Estate Planning Advice for Marrieds Without Child

For childless couples to plan their estate, there are two main tasks: disposition of property, and assignation of power-of-attorney. Generally if there are no wills or trusts, the estate is inherited by the living spouse, and then by the spouse’s relatives after his or her death, which leaves no interest … Continue reading

Using Metaphors In Presentations

In a recent article, Nancy Duarte explains that metaphors in presentations can act as a shortcut when learning difficult concepts. The article suggests holding a brainstorming session in order to think of as many ideas as possible. Do not narrow down potential metaphors until there is a critical mass … Continue reading

IRS Releases 2012 Partnership Returns Line Item Estimates and International Boycott Statistics

The Internal Revenue Service published two tax statistics on its IRS Tax Stats Dispatch on November 19. In the Partnership Returns Line Item Estimates for 2012, the IRS Statistics of Income Division used the sample selected from the 2012 Partnership Returns Study to create the line item estimates.

Also, in … Continue reading

District Court Orders to Enforce IRS Summons

The United States District Court for the Northern District of California ruled in a recent matter and ordered an individual to company with IRS summons, namely, to appear before the IRS, to give testimony and to produce books, papers, records or other data in an investigation of corporation tax liability.… Continue reading

The Eleventh Circuit Rules Amount Received through Assignment Agreement to be Capital Gains

The United States Court of Appeals for the Eleventh Circuit heard the case about a real estate developer challenging the decisions by the United States Tax Court of the nature of amount he received from the assignment of his rights as plaintiff in a lawsuit. The petitioner entered into an … Continue reading

Where Should You Retire?

In a recent New York Times article, Ann Carrns highlights various aspects that soon-to-be retirees should consider in their search for a suitable retirement community. She emphasizes the fact that there is more to finding a good fit than local tax rates and general climate levels. Other important factors include … Continue reading

Baby Boomers Retire but Financial Planners Are Unsure How to Manage Them

According to a survey conducted by Russell Investment, although six out of ten financial advisors in the U.S. have baby boomers who are about to retire as the majority of their clients, they differ in how to develop retirement plan for the clients.

The survey shows that while 25 percent … Continue reading

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