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.
Recent Decisions Highlight the Importance of Proper Planning with Self-Directed IRAs... [ read ]
Using a self-directed IRA to operate a business or acquire real estate requires meticulous planning and careful execution. The failure to abide by these rules can cause ruinous results, as demonstrated by two recent decisions.
IRS Hints at a Permanent Safe Harbor for Missed Portability Elections... [ read ]
Earlier this week the IRS issued final rules on portability. Portability allows the surviving spouse to essentially inherit the portion of the decedent's estate-tax exclusion amounts (currently $5,430,000) that went unused.
IRS Clarifies the Year in Which a Theft Loss is Sustained... [ read ]
IRS Chief Counsel Advice 201511018 provides helpful clarification regarding the tax year in which a taxpayer is eligible to deduct a theft loss incurred in connection with a Ponzi scheme. Before addressing the new ground covered by CCA 201511018, however, this blog post briefly summarizes the prior guidance regarding the timing of deductibility of Ponzi theft losses.
IRS and DOJ representatives made presentations at the NYU's Tax Controversy Forum in New York... [ read ]
On June 5th, a number of IRS and DOJ representatives made presentations at the NYU's Tax Controversy Forum in New York. The following were of interest.
