Master Limited Partnerships and Cancellation of Indebtedness Income... [ read ]
A Master Limited Partnership ("MLP") is an investment vehicle used in oil and gas, and several other industries. MLPs are designed to avoid corporate level taxation; however, this comes at a price that many investors have not anticipated.
Texas Bar Tax Section Issues Comments Regarding New Partnership Audit Rules... [ read ]
On April 26, 2016, the Tax Section of the State Bar of Texas ("Tax Section") submitted to the Internal Revenue Service comments (the "Comments") regarding the implementation of the new partnership audit regime (the "Partnership Audit Rules") that was enacted as part of the Bipartisan Budget Act of 2015. Stephen Beck of Meadows Collier participated as a principal drafter of the Comments in his capacity as Vice Chair of the Tax Section's Partnerships and Real Estate Committee.
The Clock is Ticking: U.S. Government Officials Investigate Panama Papers... [ read ]
Panama has long been known as a favorite country for many taxpayers on account of its low tax rates and strict confidentiality laws, the latter of which serve to protect the identities of Panamanian corporate shareholders and bank account holders in the case of frivolous civil litigation. Accordingly, it should come to no one's surprise that many non-Panamanian citizens take advantage of these low rates and confidentiality laws by creating Panamanian entities and utilizing the Panamanian banking system. Until recently, no one really knew how prolific the use of these entities was by non-Panamanian citizens or the extent to which they may be used by persons to avoid detection by taxing authorities and other governments. However, on April 3, 2016, the world got a glimpse of all of the above when a treasure trove of business records and documents relating to the formation and operation of Panamanian companies was released by hundreds of journalists from across the globe.
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.
