Tax Law

Recent Posts

What the Upcoming Midterm Election Means for the Estate Tax
Posted on 20 Oct 2010 by Patricia Tyler

As practitioners are well aware, due to Congress' inaction the federal estate tax is temporarily repealed in 2010 and is scheduled to return in 2011 with a 55 percent top rate and a $1 million exemption. Congress' lack of action pertaining to... Read More

Reporting Specified Financial Assets and Form 8938
Posted on 3 Apr 2012 by Neil Aragones

U.S. taxpayers with assets overseas and their advisers should be mindful of new Form 8938, Statement of Specified Foreign Financial Assets , as they prepare the taxpayers' federal income tax returns for 2011. Temporary Regulations issued in December... Read More

Final Regs Guide Large Employer Health Care Plan Compliance
Posted on 22 May 2012 by Patricia Tyler

As large employers are now well aware, beginning January 1, 2014, employers with more than 50 full-time employees must offer to all full-time employees and their dependents the opportunity to enroll in minimum essential coverage (MEC) under an eligible... Read More

IRC § 409A and Changes in Control: Must Option Cash-Outs Be “All-or-Nothing”?
Posted on 16 Nov 2012 by Deanne Morton

IRC Section 409A was enacted post-Enron to stem the abuse of corporate executives who accelerated payments under their deferred compensation plans before the company went bankrupt. IRC Section 409A sets strict guidelines for private companies issuing... Read More

GOP Hopefuls Call for Shift to Territorial Tax System
Posted on 12 Sep 2011 by Neil Aragones

Republican presidential candidate Mitt Romney has released his "Believe In America" economic plan, laying out his proposals to stimulate the U.S. economy and create jobs. Among Governor Romney's tax reform proposals is a U.S. transition... Read More

SCOTUS Oral Argument: Does Overstated Basis = Omission from Gross Income?
Posted on 22 Dec 2011 by Peter Miller

Editor's Note: View blog discussion on this site of, and hyperlink to, the January 17th oral arguments before the Supreme Court : SCOTUS Showdown: Oral Arguments Heard in Home Concrete Case ... For some time now, the tax bar has been wringing... Read More

U.K., U.S. Agree on Compliance, Information Reporting, Withholding Provisions (FATCA)
Posted on 18 Sep 2012 by Karen Yip

According to Treasury Department News Release TDNR TG-1711 (September 14, 2012), the United Kingdom and the United States have entered into an agreement to implement the information reporting and withholding tax provisions known as the Foreign Account... Read More

Deadline to Amend Plans for Funding-Based Benefit Limitations Extended
Posted on 17 Dec 2012 by Patricia Tyler

The IRS has extended the deadline originally provided in Notice 2011-96 to amend a defined benefit plan to satisfy the requirements of IRC Section 436 and has provided relief from the requirements of IRC Section 411(d)(6) . In general, Notice 2012... Read More

Fraud Prevention Update
Posted on 28 Feb 2011 by David T. Soborski

[ Editor's Note: The following is an excerpt from Financial Management and Accounting for the Construction Industry (Matthew Bender) by David L. Sauerman, Managing Director; Architecture, Engineering and Construction Division; The PrivateBank; Chicago... Read More

Guidance Needed on 1-Year Holdout Rule Elective Deferrals
Posted on 28 Dec 2012 by Deanne Morton

When an employee is rehired by a company, the granting or vesting of benefits under certain retirement plans may be delayed until the employee has been re-employed for a period of at least one year. The applicability of this "Holdout Rule" is... Read More

Definition Added to FATCA Requirements Landscape
Posted on 27 Feb 2012 by Neil Aragones

Proposed Regs Revise FATCA's Due Diligence Procedures: Pre-existing Individual Accounts and Electronic Searches The much-anticipated proposed regulations under the Foreign Account Tax Compliance Act (FATCA) have been issued by the Treasury, and... Read More

Attorneys, Accountants Beware: SEC Guidance on Rendering Tax Opinions
Posted on 21 Dec 2011 by LexisNexis Tax Law Community Staff

By Karen Yip, Lexis Federal Tax Analyst The U.S. Securities and Exchange Commission ("SEC") has promulgated regulations regarding tax opinions filed in connection with registered offerings of securities. SEC Staff Legal Bulletin No. 19 [... Read More

Proposed Regs Clarify Charitable Hospital Organization Requirements
Posted on 17 Jul 2012 by Patricia Tyler

The Patient Protection and Affordable Care Act added IRC Section 501(r) , which imposes detailed conditions on a hospital organization seeking exemption under IRC Section 501(c)(3) . In addition to satisfying the requirements of IRC Section 501(c)(3)... Read More

In the Wake of Dim Sum Scandal, POTUS to Sign Payroll Tax Cut Extension
Posted on 17 Feb 2012 by Deanne Morton

On February 16, 2012, President Obama (or, as is becoming the trend in internet slang, the "POTUS") was photographed in San Francisco picking up a lunch of dim sum from a famous Chinese eatery . In town for a fundraising event, the President... Read More

IRS, Treasury Release Proposed Regs to Implement FATCA
Posted on 9 Feb 2012 by David T. Soborski

The proposed regulations were released as a 388-page document, now available on the IRS website: http://www.irs.gov/pub/newsroom/reg-121647-10.pdf . From IRS.gov : The regulations lay out a step-by-step process for U.S. account identification, information... Read More

  • Blog Post: What the Upcoming Midterm Election Means for the Estate Tax

    As practitioners are well aware, due to Congress' inaction the federal estate tax is temporarily repealed in 2010 and is scheduled to return in 2011 with a 55 percent top rate and a $1 million exemption. Congress' lack of action pertaining to the estate tax is largely due to the current political...
  • Blog Post: Group Health Plan Reporting Requirements: Delays, Rumors, Cadillacs Under Attack

    Included as part of the Patient Protection and Affordable Care Act (PPACA) (signed into law by President Obama on March 23, 2010) was new IRC Section 6051(a)(14) . A very small change to a preexisting code section and subsection, the one line addition imposes new Form W-2 information reporting requirements...
  • Blog Post: GOP Hopefuls Call for Shift to Territorial Tax System

    Republican presidential candidate Mitt Romney has released his "Believe In America" economic plan, laying out his proposals to stimulate the U.S. economy and create jobs. Among Governor Romney's tax reform proposals is a U.S. transition from a worldwide tax system to a territorial tax system...
  • Blog Post: Filing an IRC Section 254 Protective Claim for Refund

    Generally, a deduction cannot be taken for a claim against the estate while it remains a potential or unmatured claim. Claims that later mature can be deducted on a timely claim for a refund. A protective claim for a refund may be filed pursuant to Treasury Regulation Section 20.2053-1(d)(5) to preserve...
  • Blog Post: Taxation of Employer-Provided Cell Phones: Who Benefits?

    When I was practicing law in the 1990s, the large private law firm I worked for decided to follow the lead of the technology-based Silicon Valley firms and issue what was likely the first generation of Blackberry smartphones to associates and partners. It seemed like such a perk initially: A firm-provided...
  • Blog Post: Transportation Bill Defeat: Congressional Business as Usual

    Following a familiar pattern, and to the surprise of no one, the Long-Term Surface Transportation Extension Act of 2011 (S. 1786) was defeated this week by six votes. Only Joe Manchin (D-WV) and Olympia Snowe (R-ME) broke from party ranks in this instance, yet another display of partisan posturing and...
  • Blog Post: IRS Issues Proposed Rules Clarifying Alternate Valuation Rules

    The executor can elect to value property in the decedent's estate at the alternate valuation date in an effort to reduce the estate's tax liability. IRC § 2032 . The alternate valuation election is provided solely to mitigate the hardship on an estate due to declining market values. A voluntary...
  • Blog Post: IRS Issues Final "Hot Stock" Regulations

    The IRS recently issued final regulations regarding the distribution of stock of a controlled corporation acquired in a transaction under IRC Section 355(a)(3)(B) . TD 9548, 76 FR 65110 . The final regulations adopt the substantive rules of the temporary regulations without change. TD 9435, 73 FR 75946...
  • Blog Post: IRC § 162(m)(6): A Game Changer in the Healthcare Insurance Arena

    Update on "Obamacare" and the Individual Health Insurance Mandates Judicial challenges to the Patient Protection and Affordable Health Care Act of 2010, P.L. 111-148 have been plentiful pretty much since its enactment and I discussed this briefly in a commentary earlier this year. See "Group...
  • Blog Post: IRS Adds Flexibility to Trusts

    As estate planning practitioners are well aware, IRC Section 2042 includes in the gross estate: insurance proceeds on the life of the decedent receivable by the executor; and insurance proceeds on the life of fhe decedent received by others, where the decedent possessed any incident of ownership...
  • Blog Post: U.K., U.S. Agree on Compliance, Information Reporting, Withholding Provisions (FATCA)

    According to Treasury Department News Release TDNR TG-1711 (September 14, 2012), the United Kingdom and the United States have entered into an agreement to implement the information reporting and withholding tax provisions known as the Foreign Account Tax Compliance Act (FATCA) (enacted as part of the...
  • Blog Post: TE/GE Fast-track Settlement Program Becomes Permanent

    In December 2008, the IRS announced a pilot program for entities with issues under examination by the Tax Exempt and Governmental Entities Division (TE/GE), providing such entities an opportunity to use Fast Track Settlement (FTS) to expedite case resolution. Announcement 2008-105 . FTS allows entities...
  • Blog Post: Family Limited Partnership Still Useful in Estate Planning

    Over the years family limited partnerships (FLPs) have experienced their fair share of scrutiny by the IRS and the courts. However, as evidenced by the Fifth Circuit's opinion in Keller v. United States , 2012 US App LEXIS 20119 , FLPs can be a very useful tool for protecting assets and reducing...
  • Blog Post: IRC § 409A and Changes in Control: Must Option Cash-Outs Be “All-or-Nothing”?

    IRC Section 409A was enacted post-Enron to stem the abuse of corporate executives who accelerated payments under their deferred compensation plans before the company went bankrupt. IRC Section 409A sets strict guidelines for private companies issuing stock options and other forms of non-qualified deferred...
  • Blog Post: Utilizing the New Market Tax Credit

    The Internal Revenue Code contains various tax incentives for taxpayers willing to invest in low-income communities. IRC Section 45D provides once such incentive for taxpayers who make qualified equity investments in a selected community development entity ("CDE"). The new market credit entitles...
  • Blog Post: Deadline to Amend Plans for Funding-Based Benefit Limitations Extended

    The IRS has extended the deadline originally provided in Notice 2011-96 to amend a defined benefit plan to satisfy the requirements of IRC Section 436 and has provided relief from the requirements of IRC Section 411(d)(6) . In general, Notice 2012-70 extends the deadline to adopt an interim amendment...
  • Blog Post: Guidance Needed on 1-Year Holdout Rule Elective Deferrals

    When an employee is rehired by a company, the granting or vesting of benefits under certain retirement plans may be delayed until the employee has been re-employed for a period of at least one year. The applicability of this "Holdout Rule" is becoming more common as the economy makes a recovery...
  • Blog Post: January 31 IRA Deadline Nears for 2012 Qualified Charitable Contributions

    The Pension Protection Act of 2006 added IRC Section 408(d)(8) , providing that owners of an IRA who were 70 ½ or older may donate an otherwise taxable distribution from an IRA to an eligible charitable organization. Each year, the IRA owner could exclude from gross income up to $100,000 of these...