Category Archives: Tax News & Comment

Interest Abatement Denial Subject to Judicial Review

The 5th Circuit Court of Appeals has held that in amending IRC § 6404(e), which grants IRS the authority to abate an assessment of interest attributable in whole or in part to any error or delay by the IRS in … Continue reading

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1999 Regs, IRS Rulings & Pronouncements

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2006 REGS, IRS RULINGS & PRONOUNCEMENTS

Printer-friendly PDF version: 2006 Regs., Rulings, & IRS Pronouncements.wpd Since IRA accounts often reflect a lifetime of retirement savings, their inclusion in a QTIP trust is important. Rev. Rul. 2000-2 stated that IRA proceeds may qualify for a QTIP election … Continue reading

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Tax Outlook for 2007

Printer-friendly PDF: 2007 Tax Outlook.wpd Although Democrats significantly outnumber Republicans on the House Ways and Means Committee, and hold a 31 member majority in the full House, legislation raising marginal, capital gains or dividend rates in 2007 is not likely … Continue reading

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9th Circuit Holds Actuarial “Bet” Voided by Step-Transaction Doctrine

The 9th Circuit, in Brown v. U.S., 91 AFTR 2d 2003-2085 (5/1/03) upheld the IRS interposition of the step-transaction doctrine to derail an estate plan involving the creation of a life insurance trust to fund a future estate tax liability. … Continue reading

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2006 REGS, RULINGS & IRS PRONOUNCEMENTS

Since IRA accounts often reflect a lifetime of retirement savings, their inclusion in a QTIP trust is important. Rev. Rul. 2000-2 stated that IRA proceeds may qualify for a QTIP election if the surviving spouse may compel a trustee to … Continue reading

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Tax Outlook for 2008

Printer-friendly PDF:  Tax Outlook for 2008.wpd A.             Income Tax Personal income tax rates reached a historic low of 28% under President Reagan in 1988. Pre-EGTRRA rates were increased in 1993 to 39.6%. Under EGTRRA, the highest personal income … Continue reading

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ADVANCE RULING ON CO-OWNERSHIP PRESENTS TAX-PLANNING OPPORTUNITIES

Ownership in real estate through a partnership as opposed to mere co-ownership (tenancy-in-common) can result in vastly divergent estate and income tax consequences. Either classification may at times be preferable to the other. Rev. Proc. 2002-22 provides guidance for taxpayers … Continue reading

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President Bush Proposes Further Tax Cuts

President Bush has proposed a $674 billion stimulus package featuring marginal rate tax cuts and an exclusion from gross income of most dividends. Both provisions would be retroactive to January 1, 2003. The exclusion would apply only to dividends already … Continue reading

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2002 Gift and Estate Tax Decisions of Note

The viability of and the discounts attributable to interests in family entities were again the subject of considerable litigation in 2002. The Fifth Circuit in Estate of Strangi, 293 F.3d 279, affirmed the Tax Court’s holding that Strangi’s estate planning … Continue reading

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2002 Regs., IRS Rulings & Pronouncements

EGTRRA now permits a retroactive allocation of GST exemption. For example, assume parent creates a trust for child which provides for outright distribution to child at age 30. Normally, parent would not allocate GST exemption to such a transfer, because … Continue reading

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Supreme Court Upholds NYC Tax Liens Against India

The Supreme Court has held that the Foreign Sovereign Immunities Act (FSIA) does not immunize a foreign government from a New York City declaratory judgment action brought to declare the validity of real property tax liens asserted against India. Permanent … Continue reading

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Recent IRS Rulings and Pronouncements — October 2007

The IRS has granted return preparers transitional relief from the revised IRC §6694 penalties enacted under the Small Business and Work Opportunity Tax Act of 2007. The Act made significant changes to return preparer penalties under IRC § 6694, effective … Continue reading

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PRESIDENT BUSH URGES CONGRESS TO MAKE TAX CUTS PERMANENT

President Bush has urged Congress to make permanent various tax relief provisions which include (i) the $1,000 per child tax credit; (ii) the 15% dividends and capital gains tax rates, expiring after 2008; (iii) “bonus” depreciation provisions applicable to qualifying … Continue reading

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Estate Fails to Qualify for Innocent Spouse Relief

The 10th Circuit Court of Appeals has held that a decedent’s estate cannot initiate an innocent spouse claim for relief under IRC Sec. § 6015(c). Jonson, CA-10 (12/30/03). [The spouses claimed deductions attributable to the husband’s interest in a limited … Continue reading

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