Category Archives: Tax News & Comment

Clinton’s Tax Agenda for 2nd Term (May 1996)

President Clinton’s 1996 tax proposal draws significantly from Congress’ 1995 legislation which he vetoed, especially with respect to individuals and pension reform. Mr. Clinton will likely resist long-standing Republicans efforts to enact a capital gains tax cut to 14%, citing … Continue reading

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U.S. v. Adlman, 95-2 USTC

The Court of Appeals for the 2nd Circuit has affirmed a district court decision finding the attorney-client privilege inapplicable, and enforcing an IRS summons directed to Sequa Corporation (Sequa), to produce a memorandum prepared by Arthur Anderson (AA) at the … Continue reading

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2007 Regs., Rulings and Pronouncements

A. New Regs Govern Estate Deductions All federal circuits, except the Eighth, have long adhered to the view that post-mortem events must be ignored in valuing claims against an estate. Ithaca Trust Co. v. U.S., 279 U.S. 151 (1929) held … Continue reading

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Qualified State Tuition Programs Enhanced

IRC Section 529 plans (“529 plans”) permit parents – or anyone else – to establish and fund an account administered by individual states to pay future college expenses. Like a Roth IRA, contributions are not deductible, but neither is investment … Continue reading

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Determining Whether Exchange Property is of “Like Kind”

A.     Introduction Determining whether exchange property is of “like kind” necessitates a review of IRS pronouncements, decisional case law, and the Regulations.  Regs. § 1.1031(a)-1(b) provides that the words “like kind” [h]ave reference to the nature or character of the … Continue reading

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IRS and NYS Announce Disaster Relief

In the wake of the terrorist attacks, the IRS has announced that all taxpayers in the five boroughs of NYC, as well as other taxpayers “directly affected” by the attacks, regardless of where they reside, will be entitled to tax relief. Continue reading

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Senators McCain and Obama Offer Differing Tax Visions

Senators McCain and Obama offer starkly differing tax philosophies. Mr. Obama favors a middle-class tax cut but not “a permanent tax cut for Americans who don’t need them.” Citing the inequity of  hedge fund managers who pay less tax than … Continue reading

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Repeal Sharpens Need for Estate Planning

On January 1, 2002, the gift and estate tax exemption amounts will each increase to $1 million. The estate and GST exemptions will increase again to $1.5 million in 2004, to $2 million in 2006, and to $3.5 million in … Continue reading

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Unanimous Supreme Court Bars Tax Refund Suit

Reversing the Court of Federal Claims, the Supreme Court held that the Claims Court was without jurisdiction to hear the taxpayer’s refund claim since the taxpayer had not complied with refund procedures articulated in the Internal Revenue Code. U.S. v. … Continue reading

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Recent IRS Developments — June 2008

Steven T. Miller, Commissioner of the IRS Tax Exempt and Government Entities Division, stated that the IRS will ensure that charities are furthering a charitable purpose in a manner commensurate with their financial resources. Public charities, unlike private foundations, are … Continue reading

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PRESIDENT BUSH SIGNS $1.35 TRILLION TAX CUT

In an early triumph for his administration, President Bush has signed a 10-year, $1.35 trillion tax measure which by 2006 will reduce the 39.6% rate to 35%, and the 36%, 33% and 31% rates by 3 percentage points each. The … Continue reading

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Ninth Circuit Reverses Tax Court in Estate of Simplot

In a terse and unusually critical opinion, the Ninth Circuit Court of Appeals, over a dissent, has reversed the Tax Court’s controversial decision in Estate of Simplot (see Tax News, Oct. 1999), remanding the case and ordering that judgment be entered in favor of the estate, annulling the deficiency of $2.16 million. 87 AFTR 2d ¶2001-2165 (5/14/2001). Continue reading

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Estate Planning in 2001

The first issue discussed at the University of Miami School of Law’s 35th Annual Heckerling Institute on Estate Planning at the Fontaintebleau a in January, which this writer attended (in down ski parka), was whether the President Bush would repeal … Continue reading

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Calculation of Federal Estate Tax Liability (October 1996)

In general, a Form 706 estate tax return need only be filed if the value of the gross estate exceeds the $600,000 exemption equivalent. If required, the form must be filed within 9 months after the date of the decedent’s … Continue reading

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Short Stock Sales

Currently, taxpayers can sell short securities which they own, and in so doing lock in economic gain but defer taxable gain indefinitely. Stocks exhibiting significant downside potential may be attractive candidates for short sales. To consummate a short sale, an … Continue reading

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