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Category: Taxation (page 1 of 11)

IRS Addresses Disclosure of Tax Return Info to Heirs in Email Advice

The IRS, in an email advice, addressed disclosure of tax return information to heirs.  It’s advice was as follows:

The estate stuff would be covered by 6103(e)(1)(E) and the gift tax (now that the donor is dead) would be covered by 6103(e)(3). Under 6103(e)(1)(E) and (3), the only people other … Continue reading

Espen Robak: Holliday FLP Transfer Runs Afoul of Sec. 2036

By: Espen Robak

In Estate of Holliday, decided March 17, 2016, the IRS won a small (dollar-wise) yet meaningful victory on the Sec. 2036 retained interest issue. The case is instructive, since the facts were not particularly bad for the taxpayer. Thus, and especially in conjunction with recent cases, it … Continue reading

Understanding The IRC Section 691(c) Income In Respect Of A Decedent (IRD) Deduction For The Beneficiary Of An Inherited IRA

Michael Kitces writes about mitigating the combined income and estate taxation of pre tax assets, such as IRAs, by using the IRD deduction under Code Sec. 691(c).  Michael’s article begins as follows:

Pre-tax assets like IRAs can face a significant income tax burden as their value grows, a challenge that

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Federal Register | Guidance Under Section 529A: Qualified ABLE Programs

The Internal Revenue Service on June 22, 2015 released proposed regulations implementing a new federal law authorizing states to offer specially-designed tax-favored ABLE accounts to people with disabilities who became disabled before age 26.

The Achieving a Better Life Experience (ABLE) account provision was signed into law in December 2014. Recognizing … Continue reading

U.S. Legal Profession Efforts to Combat Money Laundering and Terrorist Financing by Laurel S. Terry

Laurel S. Terry, The Pennsylvania State University Dickinson School of Law, has made available for download his article, “U.S. Legal Profession Efforts to Combat Money Laundering and Terrorist Financing,” published at 59 New York Law School Law Review 487 (2015). The Abstract is as follows:

This article was prepared for the

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US Tax Court: Failure to Report Gross Income of IRA Distribution

In Morris v. Commissioner of Internal Revenue, the United States Tax Court sought an answer to “whether [the] petitioners failed to report during 2011 taxable distributions from an individual retirement account (IRA).” While the petitioners were under a belief that the money they obtained from their father’s estate would … Continue reading

Controversies in Tax Law: A Matter of Perspective by Anthony C. Infanti

Anthony C. Infanti has made available his research paper, “Controversies in Tax Law: A Matter of Perspective.”  The Abstract is as follows:

This volume presents a new approach to today’s tax controversies, reflecting that debates about taxation often turn on the differing worldviews of the debate participants. For instance, a central

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Written Testimony of Ray D. Madoff before the Select Revenue Measures Subcommittee Hearing on the Burden of the Estate Tax on Family Businesses and Farms by Ray D. Madoff

Ray Madoff has made available for download his written testimony before the Select Revenue Measures Subcommittee Hearing on the Burden of the Estate Tax on Family Businesses and Farms.  The Abstract is as follows:

Congressional testimony focusing on (1) the importance of the estate tax, particularly in supporting the fairness

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Taxable or Nontaxable Gift? – IRS Tips Help You Determine

The general rule that any gift, money or property, is taxable under federal gift tax has a few exceptions that make the gift nontaxable. For example, gifts that are within annual exclusion of $14,000, gifts that are expenses paid directly to a medical or education institution, gifts to spouses, gifts … Continue reading

IRA Required Minimum Distribution Reminder to Retirees

The Internal Revenue Service reminded retirees who turned 70.5 during the 2014 tax year that they must start receiving the required minimum distribution from their Individual Retirement Accounts (IRA) or their work-related retirement plans such as a 401(k), 403(b), and 457 plans by April 1st of 2015. This deadline does not apply to … Continue reading

IRS Issues Fact Sheet On Taxpayers’ Right to Confidentiality

On March 17, 2015, the Internal Revenue Service (IRS) released a fact sheet on the rights of taxpayers, specifically about confidentiality of information. In this fact sheet, the IRS restructured and grouped taxpayers’ rights in existing tax code into 10 broad categories to make it easier for taxpayers to find … Continue reading

IRS Tips for Home Mortgage Debt Cancellation

A tax payer usually has to pay taxes on cancelled debt regardless of whether all or part of the debt was cancelled. However, certain exclusions may apply to those whose mortgage debt was cancelled in the 2014 tax year making the cancelled debt not taxable. For example, if the cancelled … Continue reading

Questions to Ask When Hiring a Tax Preparer

The National Society of Accountants writes about the questions individuals should ask when hiring a tax preparer.  Their list includes the following questions:

  • Are you registered with the Internal Revenue Service (IRS) with a Personal Tax Identification Number (PTIN)? (Every paid tax preparer is required to have a PTIN so
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Field Presents Aggressive Tax Planning and the Ethical Tax Lawyer Today at Toronto

Professor Paul Caron, on the Tax Prof Blog, reports that Heather Field (UC-Hastings) presents Aggressive Tax Planning and the Ethical Tax Lawyer at Toronto today as part of its James Hausman Tax Law and Policy Workshop Series.  Professor Caron includes the following abstract for Professor Field’s presentation:

[H]ow should a tax

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An Individual Cannot Defer Recognition of Gain in 9th Circuit

Ralph E. Holmes appealed a decision from Tax Court that considered the deficiencies and penalties associated with his tax returns from 2000 to 2004. The court below held, under section 1045, that an individual could not defer recognition of gain on the sale of stock. The Ninth Circuit found no clear error in … Continue reading

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