Estate and gift and generations gifting tax updateBy Kelli E. MadiganFederal Taxation, January 2002In two different Private Letter Rulings the IRS acknowledged two different state court orders reforming trust documents to correct a scriveners' error in the underlying document.
Chairman’s cornerFederal Taxation, October 2001Welcome to the first edition of the Federal Taxation Newsletter for the 2001-2002 year.
Estate tax repealBy Robert J. KruppFederal Taxation, October 2001Has the estate tax been repealed? It depends on what your definition of "repeal" is.
A new definition of incomeBy Kelli E. MadiganFederal Taxation, October 2001Historically, interest and dividends have been treated as income while capital gains have been treated as principal.
Recent developments in corporate and partnership taxBy Michael L. EnglishFederal Taxation, October 2001In Seggerman Farms, Inc., T.C. Memo. 2001-99, the Tax Court ruled that the shareholders of a family corporation recognized gain on the transfer of assets to their controlled corporation where the liabilities assumed by the corporation exceeded the shareholders' adjusted basis in the property transferred.
Chairman’s cornerBy John B. TruskowskiFederal Taxation, June 2001Representatives of the Federal Tax Section Council traveled to Washington, D.C. on May 10 to meet with legislative representatives of Senators Durbin and Fitzgerald and Representatives Hastert and Crane.
Individual income tax updateBy James S. ZmudaFederal Taxation, June 2001In Vinick v. United States, 205 F.3d 1 (1st Cir. 2000), the United States Court of Appeals for the First Circuit ("First Circuit") reversed a district court ruling that a corporate officer was a responsible person for purposes of Code §6672, which imposes a 100% "penalty" tax regarding the failure to withhold employment taxes.
Recent developments in estate and gift taxBy Michael L. EnglishFederal Taxation, June 20011. Service issues proposed regulations on ESBTs. The Service has issued proposed regulations on the qualification and treatment of electing small business trusts (ESBTs).
Tax planning opportunities using the new 18 percent capital gain rateBy Edward J. Hannon & Jonathan M. CesarettiFederal Taxation, June 2001The Taxpayer Relief Act of 1997 (the "1997 Act") changed the rate at which federal income tax was imposed on long-term capital gain rates. As originally enacted, the 1997 Act created three rates, a 28% rate, a 25% rate and a 20% rate
Estate and gift tax updateBy David R. ReidFederal Taxation, March 2001The estate and gift tax area is at a crossroad. President Bush has promised to repeal "the death tax."
Individual income tax updateBy James S. ZmudaFederal Taxation, March 2001In Service Center Advice 200105062, the Internal Revenue Service ("IRS") has advised service centers that they cannot abate individual estimated tax penalties resulting from income attributable to a conversion of a traditional Individual Retirement Account ("IRA") to a Roth IRA.
Individual income tax updateBy James S. ZmudaFederal Taxation, January 2001The Internal Revenue Services ("IRS") has issued Form 8869, Qualified Subchapter S Subsidiary Election, to be used by a parent S corporation to elect to treat one or more of its eligible subsidiaries as a qualified Subchapter S subsidiary ("Q Sub").
IRS and SSA announce new benefit limits for 2001By Thomas VasiljevichFederal Taxation, January 2001The Internal Revenue Service and Social Security Administration have announced the annual cost-of-living adjustments to various benefit limitations.
Recent developments on estate and gift taxBy Michael L. EnglishFederal Taxation, January 2001The Service, in REG-106511-00, issued proposed regulations relative to the filing of an application for an automatic six month extension of time to file an estate tax return.
Tax court discusses continuity of business enterprise requirementBy John B. TruskowskiFederal Taxation, January 2001In a recent decision, the U.S. Tax Court discussed the continuity of business enterprise, a judicially established and regulatory requirement for tax-free reorganizations.
Corporate partnership updateBy Michael L. EnglishFederal Taxation, October 2000The 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).
Estate and gift tax updateBy David R. ReidFederal Taxation, October 2000The innocent spouse provisions of IRC section 6015 provide relief to "innocent spouses."
Update on innocent spouse provisionsBy Carlos A. SaavedraFederal Taxation, October 2000The 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).
Chairman’s cornerFederal Taxation, August 2000As we begin a new year, I am very privileged and excited to serve as the chairman of the Federal Taxation Section Council.
Individual income tax updateBy James S. ZmudaFederal Taxation, August 2000In 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."
Procedure updateBy Carlos A. SaavedraFederal Taxation, August 2000U.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.
Recent developments in estate and gift taxFederal Taxation, August 2000In 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.
New rules for partnership mergersBy Beverly M. HelmFederal Taxation, June 2000On January 11, 2000 the Treasury Department issued proposed regulations on federal income tax consequences of partnership mergers and divisions.
Center for Law and Human ServicesBy Karen V. KoleFederal Taxation, April 2000The 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.
Procedure updatesBy Carlos A. SaavedraFederal Taxation, April 2000On 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.
