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Category: Taxation (page 1 of 12)

IRS Memo SBSE-04-0517-0030: FAQs Not Legal Authority

In IRS Memo SSBSE-04-0517-0030, the IRS reminds its field auditors that FAQs do not constitute legal authority. Therefore, the Service can take a position that differs with its FAQs. The Memo, which also states that the Internal Revenue Manual will be amended to reflect this guidance, begins as follows:


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Kevin Brady Summary of Republication Tax Proposals Issued March 3, 2017

Kevin Brady, Chair, House Ways & Means Committee, has released a summary of Republican Tax Reform Proposals. The summary appears below:

In his Joint Address this week, President Trump called for bold tax reform that will allow our country to “compete and thrive anywhere and with anyone.” That’s why House

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Tax Court Disregards Partnership As Sham: New Millennium Trading LLC et al. v. Commissioner, T.C. Memo. 2017-9

The Tax Court, in New Millennium Trading, disregarded a partnership as a sham transaction. The abstract is as follows:

Respondent issued a notice of final partnership administrative adjustment (FPAA) with respect to New Millennium Trading, LLC [*2] (NMT), for NMT’s 1999 tax year. In the FPAA respondent determined, among other

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PLR 201644006: QSST Status Recognized

In PLR 201644006 the Service ruled that where an S corporation inadvertently terminated its S election when a trust owner became an ineligible shareholder and where the trust qualified as a QSST , that the company continued to be treated as an S corp.

Posted by Lewis J. Saret, … Continue reading

[T&E Podcast 10/31] – This Week in Wealth (Transfer) with Salvatore LaMendola

Please click the play button below to listen to This Week in Wealth (Transfer) with Salvatore LaMendola (week of 10/31/16)

Past installments of this series can be found on our Podcast page and ITunes

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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

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