Leimberg Weekly Digest: February 6 – 13, 2021

LISI WEEKLY DIGEST [Subscription Required]

Steve Leimberg’s Estate Planning Newsletter
· February 11 –Mary Vandenack on In re Estate of Michael R. Brinkman
· February 8 –Linas Sudzius: Key 2021 Pension and Employee Benefit Numbers, Income Tax Rates & Estate Planning Inflation Adjustments
Steve Leimberg’s Business Entities Newsletter
· February 10 –Alan Gassman & Brandon Ketron: HHS Provider Relief Rules and Deadlines Modified by the January 28 and January 15 Announcements, with a Useful Summary of Other Available Programs for All Businesses
Steve Leimberg’s Asset Protection Planning Newsletter
·  February 9 –Jay Adkisson: The Consumer Bankruptcy Reform Act
Bob LeClair’s Finance and Markets Newsletter
·  February 7 –Finance 2.6.2021 
Actual Text
·  February 12 –S. 178 Stop Subsidizing Multimillion Dollar Corporate Bonuses Act
·  February 12 –In Re Estate of Brinkman, 308 Nebraska 117 (8 January 2021) Nebraska Supreme Court Decision Illustrates Importance of Drafting in Defining Children and Issue
·  February 12 –Stephen J. Zayler v. Miken Oil Inc. et al., No. 18-06006 (29 January 2021) Trustee of Debtor S Corporation’s Estate Granted Partial Summary Judgment Avoiding $1 Million in Transfers
·  February 11 –H.R. ____ Retirement Inflation Protection Act of 2021
·  February 11 –Alan Dexter Wenk v. Commissioner, No. 3154-19S, T.C. Summ. Op. 2021-6 (10 February 2021) Retirement Plan Distribution Is Taxable
·  February 11 –JCX-4-21 Joint Committee on Taxation Description of Legislative Recommendations Relating to Pensions
·  February 10 –H.R. 942 Pandemic Health Care Improvement Act
·  February 10 –S. ____ Supporting State and Local Leaders Act
·  February 10 –S. _____ Child and Dependent Care Tax Credit Enhancement Act of 2021
·  February 10 –Kirgizia I. Grajales v. Commissioner, No. 21119-17, 156 T.C. No. 3 (25 January 2021) Individual Liable for Early Distribution Tax
·  February 10 –Soddy Creek Preserve LLC et al. v. Commissioner, No. 22271-17 (9 February 2021) Charitable Deduction for Donation of Conservation Easement Is Denied
·  February 9 –Timothy Stassi et ux. v. Commissioner, No. 4179-18S, T.C. Summ. Op. 2021-5 (8 February 2021) Settlement Funds Must Be Included in Income
·  February 9 –IR-2020-31 (8 February 2021) IRS Announces New Form for Self-Employed to Claim COVID-19 Tax Sick & Family Leave Credits under FFCRA
·  February 7 –PLR 202105005 (15 October 2020) Company’s Ineffective S Corp Election Was Inadvertent
LISI Podcasts
·  February 12 –60-Second Planner: PLR 202105005: S Corporations and Community Property
·  February 10 –60-Second Planner: Grajales: Supervisory Approval Not Required for Tax on Early Retirement Distribution
LISI Links
· February 11 –Public Pension Plan Investment Return Assumptions: NASRA
This Issue Brief from the National Association of State Retirement Administrators discusses how investment return assumptions are established and evaluated, compares these assumptions with public funds’ actual investment experience, and the challenging investment environment public retirement systems currently face. PDF, 5 pp. Updated February, 2021.
· February 10 –2021 Compensation Committee Handbook
The duties imposed on compensation committees of publicly traded companies have evolved and grown over time. This seventh edition of the Compensation Committee Handbook from the lawyers of the Executive Compensation and Benefits group at Skadden, Arps, Slate, Meagher & Flom LLP and Affiliates is intended to help compensation committee members understand and comply with the duties imposed upon them. Downloads as PDF. 120 pp., January, 2021.
· February 9 –Supports and Tools for Elder Abuse Prevention (STEAP)
From the USC Center on Elder Mistreatment and the National Center on Elder Abuse (NCEA), free and ready-to-use materials to engage and educate your community about the role everyone can play in preventing elder abuse. 
Blog Watch
·  February 10 –Scammers Target Tax Preparers in New EFIN Phishing Email
“This latest scam email says it is from ‘IRS Tax E-Filing’ and carries the subject line ‘Verifying your EFIN before e-filing.'”
· February 9 –When the “Routine” Morphs into a “Ticket to Tax Court”
“…the truly insidious part of this now all-too-common saga, is that the IRS had apparently not credited the payment to the account for Mr. and Mrs. Taxpayer, which resulted in the Statutory Notice being issued! Once the check was noted as received, I must ask why the IRS machinery wasn’t stopped?”
·  February 9 –Texas Court: Petition for Determination of Class of Descendants is Not Ripe Until Current Beneficiary Dies
Ackers v. Comerica Bank & Trust, N.A., No. 11-18-00352-CV, 2020 Tex. App. LEXIS 10442 (Tex. App.—Eastland December 31, 2020).
·  February 8 –RMDs and Rollovers — A Dangerous Blend
“Now that RMDs are back in effect, if they are paid out, they must stay paid out. There is no going back.”
·  February 8 –What Happens to a Revocable Trust When a Settlor Loses Capacity?
“A settlor’s loss of capacity does not render a trust ‘irrevocable.’ That is, the settlor’s power to revoke is “not terminated by the settlor’s incapacity” and may instead be exercised by an agent under a power of attorney, a conservator, or a guardian. UTC § 602, cmt….”
·  February 8 –Lesson From The Tax Court: When A Hotel Becomes A Tax Home
“Akeem Adebayo Soboyede v. Commissioner, T.C. Summ. Op. 2021-3 (Jan. 26, 2021) (Judge Greaves) teaches us that a tax home is not where a taxpayer actually has a home, but is rather where the taxpayer ought to have a home.”
·  February 8 –How to Apply the Gross Valuation Misstatement Penalty When a Gift is a Sham
“Under Fakiris 1 and 2 if a purported charitable contribution is disallowed due to a finding that restrictions placed on the donee effectively render an initial gift or contribution as incomplete the effect is likely an automatic 40% penalty.”
·  February 7 –Mann Case Sets Precedent For Building Material Reuse Tax Charitable Valuation
“Both these decisions [Mann and Loube] remind me a lot of what the IRS is doing with syndicated conservation easements. There are serious valuation problems, but the IRS ends going after the deduction on technical grounds.”
LISI Journals
·  February 13 –20 Recent IRS Enforcement Actions in Conservation Easement Disputes: Awareness and Preparation Are Key Hale E. Sheppard – Journal of Taxation
·  February 13 –An Estate Planner’s Guide to Specific Testamentary Gifts Gerry W. Beyer – SSRN
·  February 13 –Taxing Our Wealth Florian Scheuer and Joel Slemrod – Journal of Economic Perspectives
·  February 6 –Grantor Trust Reimbursement Statutes Kristen A. Curatolo and Jennifer Smith – Trusts & Estates
·  February 6 –Unequal Inheritances Kim Kamin and Avi Z. Kestenbaum – Trusts & Estates

Posted by Bella Hoang, Managing Associate Editor, Wealth Strategies Journal.

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