NY Times (July 8, 2021): Baby Boomers: Rich With Real Estate and Not Letting Go

Michael Kolomatsky, in his New York Times article, discusses the bulk of real estate wealth held by baby boomers and its impacts on the housing market, combined with the COVID-19 pandemic. His article, "Baby Boomers: Rich With Real Estate and Not Letting Go", begins as follows: The concept of aging in place, already growing in popularity … Continue reading NY Times (July 8, 2021): Baby Boomers: Rich With Real Estate and Not Letting Go

Edward T. Killen: Further Extended Modification of Exam Activity (June 28, 2021)

Edward T. Killen, the Deputy Commissioner of Tax Exempt & Government Entities Division, has released memorandum that supersedes the previous memorandum issued on December 15, 2020, entitled, “Extended Modification of IDR Enforcement Timelines due to COVID-19 Considerations and Resumption of Exam Activity”. It extends the guidance regarding resumption of TE/GE exam activities post July 15, … Continue reading Edward T. Killen: Further Extended Modification of Exam Activity (June 28, 2021)

Abigail Disney: I Was Taught From a Young Age to Protect My Dynastic Wealth (June 17, 2021)

Abigail Disney has made available for download her article, "I Was Taught From a Young Age to Protect My Dynastic Wealth," published in The Atlantic. The article begins as follows: When ProPublica published its report last week on the tax profiles of 25 of the richest Americans, jaws dropped across the United States. How was it possible … Continue reading Abigail Disney: I Was Taught From a Young Age to Protect My Dynastic Wealth (June 17, 2021)

Procedurally Taxing: Nuance in Determining the Taxpayers Last Known Address – Designated Orders, November 2, 2020 (June 17, 2021)

Caleb Smith, Visiting Associate Clinical Professor and the Director of the Ronald M. Mankoff Tax Clinic at the University of Minnesota Law School, discusses the recent Ninth Circuit opinion that applies the Declaratory Judgment Act and the path that led to the court’s finding that the DJA prevented the court from reaching the merits of … Continue reading Procedurally Taxing: Nuance in Determining the Taxpayers Last Known Address – Designated Orders, November 2, 2020 (June 17, 2021)

Corporate State Tax Updates – May 2021

Georgia Lo The following are recent significant State Corporate Tax developments for the month of May that may be of interest to estate and business planners, organized by state.  Alabama: On May 14, H.B. 588 was signed into law, providing credits to owners, members, partners, or shareholders of an electing pass-through entity in an amount … Continue reading Corporate State Tax Updates – May 2021

NY Times: Rich Americans Like Bezos, Musk, Buffett Paid Little or No Federal Income Taxes (June 8, 2021)

The New York Times is reporting that an analysis by ProPublica based on Internal Revenue Service documents showed billionaires like Jeff Bezos and Elon Musk benefited from vagaries in the tax code, often paying little to no federal income taxes.. That NY Times articles comes at a time when the Biden Administration is proposing significant … Continue reading NY Times: Rich Americans Like Bezos, Musk, Buffett Paid Little or No Federal Income Taxes (June 8, 2021)

Leopoldo Parada: Tax Treaty Entitlement and Fiscally Transparent Entities: Improvements or Unnecessary Complications? (January 21, 2021)

Leopoldo Parada, of University of Leeds School of Law, has made available for download his article, Tax Treaty Entitlement and Fiscally Transparent Entities: Improvements or Unnecessary Complications?, published in J. Wheeler (ed), The Aftermath of BEPS (IBFD, 2020). The abstract is as followed: This chapter analyses the recent modifications to the 2017 OECD Model Tax … Continue reading Leopoldo Parada: Tax Treaty Entitlement and Fiscally Transparent Entities: Improvements or Unnecessary Complications? (January 21, 2021)

Forbes: Tax Rules Your Lawyer Might Not Know (April 19, 2021)

Forbes has published an article, "Tax Rules Your Lawyer Might Not Know," which discusses tax rules for settlement agreement . The article begins as follows: Many lawyers are asked about tax issues, at least in a general way. For example, clients may ask whether legal fees they pay are tax deductible. Unfortunately, many tax issues … Continue reading Forbes: Tax Rules Your Lawyer Might Not Know (April 19, 2021)

Ways & Means Approves SECURE 2.0 Bill

The House Ways & Means Committee approved, on a bipartisan basis,  H.R. 2954, the “Securing a Strong Retirement Act of 2021,” sometimes referred to as SECURE 2.0 SECURE 2.0 seeks to expand retirement plan coverage and increase retirement savings, through a variety of provisions. expanding automatic enrollment, increasing the age mandatory distributions are required to … Continue reading Ways & Means Approves SECURE 2.0 Bill

Corporate State Tax Updates – March 2021

By Georgia Lo The following are recent significant State Corporate Tax developments for the month of March 2021 that may be of interest to estate and business planners, organized by state.  Alabama: The Alabama Court of Appeals recently upheld the state’s mandatory corporate income tax return requirement for passthrough entities with non-resident members. Under state law, … Continue reading Corporate State Tax Updates – March 2021

Paul Graham Op Ed: How People Get Rich Now (April 2020)

Paul Graham, founder of Y Combinator, wrote an op ed on his extensive blog, How People Get Rich Now. The article begins as follows: Every year since 1982, Forbes magazine has published a list of the richest Americans. If we compare the 100 richest people in 1982 to the 100 richest in 2020, we notice some big … Continue reading Paul Graham Op Ed: How People Get Rich Now (April 2020)

IRS Practice Unit Updated: Receipt of Dividends or Interest from a Related CFC (March 29, 2021)

The IRS has updated its practice unit on receipt of dividends or interest from a related controlled foreign corporation. The overview is as follows: Note: This Unit was revised to include the extension of the IRC 954(c)(6) look through rule for CFCs with tax years beginning before January 1, 2026. This extension was part of … Continue reading IRS Practice Unit Updated: Receipt of Dividends or Interest from a Related CFC (March 29, 2021)

IRS Updates Practice Unit on Liquidating Distributions of Partners Interest in Partnership (April 2, 2021)

The IRS has updated its practice unit on liquidating distributions of a partners interest in a partnership. The overview is as follows: All partnership distributions are either current or liquidating. A liquidating distribution terminates a partner’s entire interest in the partnership. A current distribution reduces a partner’s capital accounts and basis in his interest in … Continue reading IRS Updates Practice Unit on Liquidating Distributions of Partners Interest in Partnership (April 2, 2021)

President Biden Announces The Made in America Tax Plan proposing corporate tax changes; the American Families Plan with individual tax changes coming soon (April 1, 2021)

On March 31, 2021, President Biden announced The American Jobs Plan portion of his Build Back Better program, which contains corporate tax changes in The Made in America Tax Plan. He also announced that The American Families Plan, which will propose individual tax changes will be coming soon. See the details at the following links: … Continue reading President Biden Announces The Made in America Tax Plan proposing corporate tax changes; the American Families Plan with individual tax changes coming soon (April 1, 2021)

Senator Bernie Sanders introduces two pieces of legislation: The 99.5% Act and The Corporate Tax Dodging Prevention Act; Practitioners View These as The Vehicles Congress + Biden Admin Will Use for Ultimate EGT and Corporate Tax Increases (Mar. 29, 2021)

On Thursday, March 25, 2021, Senator Bernie Sanders co-sponsored two pieces of legislation, which many view as the vehicles for ultimate tax increases: The the 99.5% Act and The Corporate Tax Dodging Prevention Act. The effective date provision of the 99.% Act with EGT provisions provides that it applies to transfers made after December 31, … Continue reading Senator Bernie Sanders introduces two pieces of legislation: The 99.5% Act and The Corporate Tax Dodging Prevention Act; Practitioners View These as The Vehicles Congress + Biden Admin Will Use for Ultimate EGT and Corporate Tax Increases (Mar. 29, 2021)

Bloomberg: Biden Determined to Tax Rich After Windfalls From Covid Crisis (Mar. 22, 2021)

Bloomberg News is reporting that President Biden is determined to increase taxes on the wealthy, with that determination being reinforced by reported windfalls experienced by the wealthy during the pandemic during the "K-shaped" recovery. The Bloomberg article begins as follows: President Joe Biden’s economic team at the White House is determined to make good on … Continue reading Bloomberg: Biden Determined to Tax Rich After Windfalls From Covid Crisis (Mar. 22, 2021)

Probate Stars: In re Trust Created by McGregor: Nebraska Supreme Court: Nonjudicial Settlement Agreement Violated Material Purpose Of Trust By Ignoring Spendthrift Provision (Feb. 25, 2021)

Probate Stars summarizes n In Re Trust Created By McGregor, in which the Nebraska Supreme Court held that spendthrift provisions of a trust established a material purpose of the trust, and held a nonjudicial settlement agreement invalid for violating the trust’s purpose. See Probate Sources Summary by clicking Nebraska Supreme Court: Nonjudicial Settlement Agreement Violated … Continue reading Probate Stars: In re Trust Created by McGregor: Nebraska Supreme Court: Nonjudicial Settlement Agreement Violated Material Purpose Of Trust By Ignoring Spendthrift Provision (Feb. 25, 2021)

NY Times + Washington Post Op Eds Call for Increased IRS Tax Enforcement, Especially on the Wealthy

Separate Op Ed pieces in the New York Times and The Washington Post call for increased funding to increase IRS tax enforcement, especially on the wealthy. See following articles: Chye-Ching Huang, Executive Director Tax Law Center, NYU School of Law, How Biden Funds His Next Bill: Shrink the $7.5 Trillion Tax Gap (March 10, 2021).Greg … Continue reading NY Times + Washington Post Op Eds Call for Increased IRS Tax Enforcement, Especially on the Wealthy

PLR 202109002 and PLR 202109003 (Mar. 8, 2021): Investment Advisory Fees Not Treated as “Amount Received” for Code Sec. 72(e) Purposes for Annuity Contracts

In PLRs 202109002 and 202109003, the Service ruled that t certain annuity contract investment advisory fees are not treated as amounts received by the contract owner for Code Sec. 72(e) purposes. The taxpayers were insurance companies offering non-qualified deferred annuity contracts. The IRS stated observed that the fees, which were integral to the contracts, did … Continue reading PLR 202109002 and PLR 202109003 (Mar. 8, 2021): Investment Advisory Fees Not Treated as “Amount Received” for Code Sec. 72(e) Purposes for Annuity Contracts