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Category: Taxation (page 1 of 12)

ABA Tax Section Requests Delay of Centralized Partnership Audit Regime Effective Date

In a July 20 letter to Senate Finance Committee and House Ways and Means Committee leaders, the American Bar Association Section of Taxation expressed support for delaying the effective date of the centralized partnership audit regime by one year, noting that the delay would give Treasury, the IRS, and taxpayers … Continue reading

Block Developers LLC et al. v. Commissioner: Indirect Partners – No Notice for You!

In Block Developers LLC et al. v. Commissioner, T.C. Memo. 2017-142, the Tax Court held that the IRS was not required to notify a partnership’s indirect partners of the beginning of administrative proceedings. In addition, it held that the partnership was used as a conduit to transfer funds to the indirect … Continue reading

PLR 201725022: C Corp Rental Income Not Passive

In PLR 201725022, the Service ruled that rental income from operations received by a C corporation, which intends to elect S Corp status is not passive investment income under Code Sec. 1362(d)(3)(C)(i).

See PLR 201725022 by clicking here.

Posted by Lewis J. Saret, Co-General Editor, Wealth Strategies Journal.… Continue reading

Exploring Contingent Fee Tax Advice

Tax Analysts, in Tax Notes Today, has published an article, Exploring Contingent Fee Tax Advice.  The abstract is as follows:

Robert W. Wood and Donald P. Board discuss contingent fees in the context of Circular 230 and Ridgely, and they explore how to approach several contingent fee scenarios.

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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:

The

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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

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