No Fifth Amendment Protection for Foreign Account Records, Government Prevails in the Third Circuit... [ read ]
On July 17th, a panel for the U.S. Court of Appeals for the Third Circuit held there is no Fifth Amendment protection for foreign bank account records. U.S. v. Chabot, No. 14-4465 (3d Cir. July 17, 2015).
Offshore Voluntary Disclosures: The IRS Continues to Add New Foreign Banks to the "Bad" Bank List... [ read ]
The IRS continues to add to its list of "bad" banks, having added eight banks since June and counting. Taxpayers with undisclosed accounts at foreign banks on the list face a heightened 50-percent penalty under the IRS's Offshore Voluntary Disclosure Program.
Combating the Growing Problem of Tax Fraud and Identity Theft... [ read ]
Identity theft in which a taxpayer's name and tax identification number are stolen and used in order to obtain fraudulent refunds continues to be a growing problem for the IRS and the victim taxpayers.
Is Time Running Out on Discounts on Transfers of Family Entity Interests? Now May Be The Time to Act.... [ read ]
The IRS may be close to issuing new regulations on valuation that could significantly increase transfer tax costs. As a result, it is prudent for families who are contemplating gifts of family entity and limited partnership interests to make the gifts now, while the valuation discounts are still available.
The U.S. Department of Labor's Proposed Fiduciary Standard Rule... [ read ]
The U.S. Department of Labor is considering a rule under the Employee Retirement Income Security Act of 1974 (ERISA) that would, in a nutshell, assign "fiduciary status" to those who provide financial advice about employee retirement – for example advice about your 401(k) account.
The IRS Voluntary Disclosure Program... [ read ]
The federal tax system is a voluntary system that relies on taxpayers to file complete and accurate tax returns. However, the IRS released a study reporting that individuals and businesses underpay their taxes by an estimated 17% each year, resulting in almost $450 billion of lost tax revenues each year.
Tax Court Holds that Owner of Variable Life Insurance Policy is Taxable on ‘Inside Buildup' based on Investor Control... [ read ]
In the first judicial decision on investor control in thirty years, the IRS scores a landmark victory that poses a material threat to owners of variable life insurance policies and the perceived tax deferral benefits of such policies.
Supreme Court Rules in Favor of the Affordable Care Act (Again)... [ read ]
On June 25, 2015, the Supreme Court ruled that the Affordable Care Act ("ACA") individual tax credit, codified in Code § 36B, extends to those who purchase coverage on the Federal exchange as well as those who purchase coverage on a state exchange. The plain language of Code § 36B provides a tax credit to middle- and low- income taxpayers who purchase insurance through "an exchange established by the state." However, the IRS' regulations under § 36B extended the tax credit to taxpayers who purchase coverage through a state or Federal exchange.
IRS Announcement Casts a Cloud of Uncertainty on the Tax Treatment of Intentionally Defective Grantor Trusts... [ read ]
Intentionally Defective Grantor Trusts, or IDGTs, are popular estate planning tools. For estate tax purposes, the value of the assets transferred to the IDGT are treated as removed from the taxpayer's gross estate. But for income tax purposes, the taxpayer is still treated as the owner of the transferred assets and must pay taxes on the income derived therefrom. This differing treatment begs the question: are assets held in an IDGT subject to adjustment under Section 1014 (marking the bases in those assets up to fair market value) when the taxpayer passes away, despite the non-inclusion of those assets in the taxpayer's gross estate?
Three Questions... [ read ]
Does your Will benefit charity? Is your estate small enough to avoid an estate tax? Do you trust your family? If you answer yes to these questions, you may want to revise your Will and estate plan to enhance the income tax benefits of your charitable bequest.
