AICPA Tax Insider (June 11, 2020): student loan tax incentives; remote signatures; Notice 2020-23; and more

New tax incentive for employers to help with student loans By Dave Strausfeld, J.D. Employers can make tax-free contributions in 2020 to help employees with their student loan payments, under a provision in the CARES Act. Here's how. IRS permits remote signatures for plan loan consents In another response to the COVID-19 pandemic, the IRS … Continue reading AICPA Tax Insider (June 11, 2020): student loan tax incentives; remote signatures; Notice 2020-23; and more

James C. Nelson v. Commissioner, T.C. Memo 2020-81 (June 10, 2020): valuation of limited partnership interests gifted to a trust

James C. Nelson v. Commissioner, T.C. Memo 2020-81 (June 10, 2020), a donor transferred limited partnership interests equal to percentage interests that were calculated by an appraiser following a gift and a sale to a trust. The limited partnership’s primary asset was common stock of a family-owned holding company. The holding company owned 100 percent … Continue reading James C. Nelson v. Commissioner, T.C. Memo 2020-81 (June 10, 2020): valuation of limited partnership interests gifted to a trust

TD 9394: Correcting amendment to final regulations: Withholding related to foreign partners for effectively connected taxable income (June 11, 2020).

Treasury and the IRS have published a correcting amendment to final regulations related to foreign partners for effectively connected taxable income on June 11, 2020. The summary for the amendment is as follows: This document contains corrections to Treasury Decision 9394, which was published in the Federal Register on Tuesday, April 29, 2008. Treasury Decision 9394 contained … Continue reading TD 9394: Correcting amendment to final regulations: Withholding related to foreign partners for effectively connected taxable income (June 11, 2020).

Proposed Regs Issued Clarifying Definition of “Qualifying Relative” and personal exemption amount

The U.S. Treasury Department and IRS have released a notice of proposed rulemaking (REG-118997-19) that is intended to clarify the definition of a “qualifying relative” for purposes of various Code provisions for tax years 2018 through 2025. With the release, part of the regulations proposed in January 2017, that address the support test for a … Continue reading Proposed Regs Issued Clarifying Definition of “Qualifying Relative” and personal exemption amount

Rev.Proc. 2020-15: Updated list of countries, deposit interest paid to nonresident aliens

Rev. Proc. 2020-15, included in Internal Revenue Bulletin 2020-23 (June 1, 2020), updates prior IRS guidance regarding the list of countries with which the United States has in force an information exchange agreement for purposes of reporting payments of deposit interest of $10 or more made by U.S. financial institutions to nonresident alien individuals. See … Continue reading Rev.Proc. 2020-15: Updated list of countries, deposit interest paid to nonresident aliens

Thomas P. Gallanis: Commercial Trusts in U.S. Legal Thought: Historical Puzzles and Future Directions

Thomas Gallanis has made available for download his article, Commercial Trusts in U.S. Legal Thought: Historical Puzzles and Future Directions.  The Abstract is as follows: The law of commercial trusts has been taught in universities in London and Cambridge, Sydney and Melbourne, Hong Kong and Singapore, but it is absent from the law schools of the … Continue reading Thomas P. Gallanis: Commercial Trusts in U.S. Legal Thought: Historical Puzzles and Future Directions

Theron E. Johnson v. Commissioner, T.C. Memo. 2020-79 (June 8, 2020): Conservation Easement Value Calculated

In Theron E. Johnson v. Commissioner, the Tax Court ruled on the value of a conservation easement. The taxpayer believed that granting a conservation easement over his ranch would allow him in effect to create a private wildlife reserve. The court heard evidence from the taxpayer’s expert and the IRS’s expert on the value and … Continue reading Theron E. Johnson v. Commissioner, T.C. Memo. 2020-79 (June 8, 2020): Conservation Easement Value Calculated

IRS Urges Taxpayers to Remain Vigilant Against Coronavirus-Related Tax Fraud (IR-2020-115),(Jun. 9, 2020)

The IRS reminded taxpayers to guard against tax fraud and other related financial scams related to COVID-19. In the last few months, the IRS Criminal Investigation division (CI) has seen a variety of Economic Impact Payment (EIP) scams and other financial schemes looking to take advantage of unsuspecting taxpayers. CI continues to work with law enforcement … Continue reading IRS Urges Taxpayers to Remain Vigilant Against Coronavirus-Related Tax Fraud (IR-2020-115),(Jun. 9, 2020)

Treasury Secretary Steven T. Mnuchin and SBA Administrator Jovita Carranza Issue Joint Statement Re Enactment of the Paycheck Protection Program Flexibility Act

Treasury and SBA issued a joint statement re the Paycheck Protection Program Flexibility Act. The key portion of the statement addresses updated PPP procedures, which are as follows: SBA, in consultation with Treasury, will promptly issue rules and guidance, a modified borrower application form, and a modified loan forgiveness application implementing these legislative amendments to … Continue reading Treasury Secretary Steven T. Mnuchin and SBA Administrator Jovita Carranza Issue Joint Statement Re Enactment of the Paycheck Protection Program Flexibility Act

Lee-ford Tritt & Ryan Scott Teschner: The Rise of Business Trusts in Sustainable Neo-Innovative Economies

Lee-ford Tritt & Ryan Scott Teschner have made available for download their article, The Rise of Business Trusts in Sustainable Neo-Innovative Economies, published in the University of Cincinnati Law Review. The Abstract is as follows: Business trusts have been commonly used in the United States as an organizational form for over 100 years. Historically, entrepreneurs … Continue reading Lee-ford Tritt & Ryan Scott Teschner: The Rise of Business Trusts in Sustainable Neo-Innovative Economies

Charles Rubin, Rubin on Tax: Court Retains Ability to Remove Trustee Regardless of the Terms of the Trust [Florida]

Chuck Rubin, on his blog, Rubin on Tax, reports on Wallace v. Comprehensive Personal Care Services, Inc., 45 Fla.L.Weekly D1318a, 3rd DCA (June 3, 2020), which addresses whether a court retains the ability to remove a trustee regardless of the trust terms. His post begins as follows: An irrevocable trust included provisions for the removal … Continue reading Charles Rubin, Rubin on Tax: Court Retains Ability to Remove Trustee Regardless of the Terms of the Trust [Florida]

Stanford Business (June 7, 2020): “I learned to just tell it like I see it.”

As we confront a legacy of racism in America and its impacts on the Black community, Stanford Business has curated a selection of stories that reflects our community’s ongoing commitment to creating meaningful change. VoiceRukaiyah Adams, MBA ’08: The Pivot Point' “I learned to just tell it like I see it.”Read More ImpactProtests Can Swing Elections A study shows that both … Continue reading Stanford Business (June 7, 2020): “I learned to just tell it like I see it.”

AICPA Tax Insider (June 4, 2020): Tax Rules for Real Estate Professionals; Exempt Org Reporting Regs Finalized; Electronic Amended Returns and More

E-filing of Form 1040-X coming this summer The IRS announced that taxpayers will be able to electronically file Forms 1040-X, Amended U.S. Individual Income Tax Return, later this summer. Tax rules for real estate professionals By Barbara Bryniarski Determining whether a taxpayer involved in real estate activities qualifies as a real estate professional establishes whether the … Continue reading AICPA Tax Insider (June 4, 2020): Tax Rules for Real Estate Professionals; Exempt Org Reporting Regs Finalized; Electronic Amended Returns and More

Sage v. Commissioner, 154 T.C. 121 (June 2, 2020): No Loss on Transfer of Property to Grantor Trust

In Jason B. Sage v. Commissioner, the Tax Court held that a developer's transfer of property to a liquidating trust for the benefit of his creditors, which was a grantor trust, did not trigger a loss on the transfer of property to the trust. The opinion synopsis is as follows: P, a real estate developer, … Continue reading Sage v. Commissioner, 154 T.C. 121 (June 2, 2020): No Loss on Transfer of Property to Grantor Trust

Law.com: BigLaw Associate Hourly Billing Rates Surge Past $1K

Law.com reports that associate billing rates at big law firms has surged past $1,000/hour. The article begins as follows: The coronavirus pandemic quickly upended the economy and sent already struggling companies into free-fall, with retailers such as J.Crew, Neiman Marcus and J.C. Penney among those filing for Chapter 11 protection in recent weeks.Recent court filings highlight the avalanche of … Continue reading Law.com: BigLaw Associate Hourly Billing Rates Surge Past $1K

Politico: Millions of paper tax returns go unopened at short-staffed IRS (May 29, 2020)

Politico reports that millions of paper tax returns remain unopened at IRS offices due to staffers remote working due to the COVID pandemic. The Politico article begins as follows: The IRS estimates that nearly 5 million unopened paper tax returns had piled up at the agency by mid-May amid the closure of its offices nationwide … Continue reading Politico: Millions of paper tax returns go unopened at short-staffed IRS (May 29, 2020)

Bloomberg News: IRS Fails to Pursue Thousands of Rich Tax Cheats, Watchdog Says (June 1, 2020)

Bloomberg News reports that the Treasury Department has released a report stating that the IRS fails to pursue thousands of "Rich Tax Cheats." The article begins as follows: The Internal Revenue Service is letting hundreds of thousands of high-income individuals duck their tax obligations, according to a government watchdog report.The Treasury Inspector General for Tax … Continue reading Bloomberg News: IRS Fails to Pursue Thousands of Rich Tax Cheats, Watchdog Says (June 1, 2020)

TAXATION OF TANGIBLE PERSONAL PROPERTY

By Laura Angel-Lalanne & G. Warren Whitaker Clients frequently make their choices regarding the disposition of their tangible personal property based on emotional considerations.  Nevertheless, they must be aware of the tax costs and benefits associated with the various methods of disposition they may be considering, so they can make fully informed decisions.  This article … Continue reading TAXATION OF TANGIBLE PERSONAL PROPERTY

G. “Warren” Whitaker

G. "Warren" Whitaker assists high net worth individuals and multinational families with complex domestic and international estate planning and related income tax, corporate and personal financial planning. Clients seek his experience with sophisticated international transactions; trust and estate issues, both domestic and international; family office needs; and trust services and fiduciary compliance. He is a … Continue reading G. “Warren” Whitaker