2000 Articles

2000 Federal Tax Conference August 2000 Presented by the ISBA Federal Taxation Section Friday, October 20 , 2000 ISBA Regional Office, 20 South Clark Street, Suite 900, Chicago

Center for Law and Human Services By Karen V. Kole April 2000 The Center for Law and Human Services, one of the largest VITA (volunteer income tax assistance) 501(c)(3) in the country, has received funding to establish a law income taxpayer clinic.

Chairman’s corner By John B. Truskowski October 2000 At the September 8, 2000 meeting of the section council, we discussed a number of topics.

Chairman’s corner August 2000 As we begin a new year, I am very privileged and excited to serve as the chairman of the Federal Taxation Section Council.

Changes to the innocent spouse provisions: something old, something new By Carlos A. Saavedra February 2000 Code section 6013(d)(3) establishes joint and several liability for married taxpayers filing a joint income tax return. "Innocent Spouse" provisions refer to those Code provisions that create exceptions to this joint and several liability.

Corporate partnership update By Michael L. English October 2000 The Service, in Letter Ruling 200030018, ruled that a trust created for the purpose of holding non-voting stock of an S corporation was an eligible shareholder under section 1361(c)(2)(A)(i).

Editor’s note By Michael L. English February 2000 At the December 9, 1999 meeting of the Federal Taxation Section Council, it was announced that one of the members of the section council, Professor Karen V. Kole had accepted the position of Director of the Federal Tax Clinic of the Center for Law and Human Services (CLHS).

Estate and gift tax update By David R. Reid October 2000 The innocent spouse provisions of IRC section 6015 provide relief to "innocent spouses."

Estate and gift tax update By Karen V. Kole April 2000 Decedent created a revocable living trust which became irrevocable when he died.

Final Gift Tax regulations: of limitations and “adequate disclosure” By James S. Zmuda June 2000 On December 3, 1999, the Internal Revenue Service ("IRS") issued final regulations regarding the adequate disclosure of gifts.

Individual income tax update By James S. Zmuda August 2000 In Notice 2000-32, 2000-26 I.R.B., the IRS issued additional guidance and relief from the rule excluding certain hardship distributions from the definition of an "eligible rollover distribution."

Individual income tax update By James S. Zmuda February 2000 The Internal Revenue Service ("IRS") has announced that for business travel after 1999, the optional mileage allowance for owned or leased vehicles will be 32.5 cents a mile.

New rules for partnership mergers By Beverly M. Helm June 2000 On January 11, 2000 the Treasury Department issued proposed regulations on federal income tax consequences of partnership mergers and divisions.

Procedure update By Carlos A. Saavedra August 2000 U.S. Supreme Court confirms that, for refund purposes, remittances of wage withholding and estimated tax are deemed paid as of the normal due date of the income tax return.

Procedure updates By Carlos A. Saavedra April 2000 On December 7, 1999, the United States Supreme Court issued its opinion in Drye v. United States (No. 98-1101), 68 U.S.L.W. 4010 (Dec. 14, 1999), holding that a probate disclaimer did not defeat the reach of the federal tax lien over the disclaimed property.

Recent developments and trends for not-for-profit corporations By David R. Reid April 2000 Exempt organizations now constitute over 12 percent of the nation's gross domestic product.

Recent developments in estate and gift tax August 2000 In Letter Ruling 200013041, the Service ruled that the personal representative of a taxpayer who died shortly after his wife properly disclaimed his interest in her IRA.

Recently enacted legislation could adversely effect partnerships that sell property in exchange for an installment obligation By Edward J. Hannon April 2000 On December 17, 1999, President Clinton signed the Ticket to Work and Work Incentive Improvement Act of 1999 (the "1999 Act") into law.

Transfers to trust not included in gross estate February 2000 The Ninth Circuit has reversed a Tax Court decision and held that property transferred by a decedent was excludable from his gross estate pursuant to IRC 2036(a).

The treatment of cancellation of indebtedness income for shareholders of insolvent S corporations should be resolved by the Supreme Court in the near future. August 2000 Generally, cancellation of indebtedness ("COD") income may be excluded from income only to the extent the taxpayer is insolvent.

Update on innocent spouse provisions By Carlos A. Saavedra October 2000 The innocent spouse provisions of the Internal Revenue Code provide relief to a spouse from the joint and several liability of a joint return under Code section 6013(d)(3).