Navigating the Deferred Like-Kind Exchange Rules... [ read ]
Are you interested in obtaining §1031 like-kind exchange treatment upon disposition of a property but have not located suitable replacement property? You may be able to qualify for deferred exchange treatment under Reg. §1.1031(k)-1 but the Regulations will keep you on a very short leash.
Think You're Too Wealthy for a ROTH IRA? Think Again.... [ read ]
Excluding pensions and defined benefit retirement plans, there are two basic schemes for retirement accounts: one in which dollars are contributed pre-tax, grow tax deferred and are subject to income tax on withdrawal, and the other, where dollars are contributed after-tax, grow tax free and are not subject to tax upon withdrawal.
Captive Insurance and the 5th Amendment... [ read ]
An IRS summons enforcement recommendation was issued by a federal magistrate judge in Massachusetts on April 19th, where the summonsed witness appeared as required, but asserted his 5th Amendment privilege against self-incrimination in response to questions by the IRS. The case has a couple of interesting issues.
Does a Long-Term Relationship Indicate a Taxpayer's Reliance on a Tax Preparer was Reasonable?... [ read ]
Yes, in Vandenbosch v. Commissioner, the Tax Court listed the taxpayers' long-term relationship with their tax preparer as one of the facts supporting its decision that the taxpayer acted with reasonable cause.
Supreme Court Limits the Government's Ability to Freeze Untainted Funds Pre-Conviction... [ read ]
On March 30, 2016, in Luis v. United States, the Supreme Court issued an opinion that could have far reaching effects on both asset forfeiture law and a criminal defendant's ability to hire counsel in fraud cases. The Court concluded that the pretrial restraint of legitimate, untainted assets needed to retain counsel violates the Sixth Amendment.
IRS Commissioner Makes Shocking Admission on the Effects of Congressional Budget Cutbacks - the IRS Will Lose $5 Billion in Tax Revenue Per Year... [ read ]
The IRS called the complicated tax plans offered by international accounting and law firms to their wealthy clients in the late 1990s and early 2000s "tax shelters". The IRS shut down that type of planning through aggressive enforcement and a revamping of the requirements for written tax advice. Since those "tax shelters" are long gone, it is disturbing that in March of 2016, IRS Commissioner Koskinen has admitted defeat to a $5 billion a year tax revenue loss.
IRS Delays Basis Consistency Reporting Due Date (again)... [ read ]
The IRS issued Notice 2016-17 (a link to the Notice will be provided when available), effective March 23, 2016. The notice extends the initial filing deadline for the new Form 8971 to June 30, 2016.
IRS Report Shows Increase in Partnership and S Corporation Examinations... [ read ]
The Internal Revenue Service ("IRS") recently issued its Fiscal Year 2015 Enforcement and Service Results report (the "Report"), which contains interesting information, particularly for owners of Subchapter K partnerships and Subchapter S corporations.
Time to Celebrate -- The IRS Issued Temporary & Proposed Regs Detailing Consistency Basis Reporting Requirements!... [ read ]
On 3/2/14, the IRS issued proposed and temporary regulations addressing the basis consistency requirements under §§ 1014 and 6035 of the Code. As discussed in my prior post on the subject, regulation § 1.6035-2T(b) reiterates the March 31, 2016 due date for filing Form 8971 that would otherwise have been due prior to then.
Wealth Transfer Planning: What Your Investment Banker Didn't Tell You... [ read ]
Just like real estate brokers will help you stage your home before they list it, investment banks and commercial banks will advise you to perform a corporate house cleaning before you begin to market your company. A few common "due diligence" questions you may want to ask yourself include:
