On occasion, the IRS issues what are called “field service advice.” These are legal opinions designed to assist IRS employees in dealing with taxpayers. The opinions are not legally binding on taxpayers, but knowing what they say can be helpful. In a field service advice dated March 31, 2015, the question was raised when one…
Loss of IRA’s Exemption
One question which comes up a lot is the extent to which assets inside an IRA can be utilized by the participant in various transactions. The problem is the so-called “prohibited transaction rules” in Section 4975 of the Internal Revenue Code.The United States Bankruptcy Court for the Eastern District of Arkansas issued its opinion on…
Speaking June 12 to 500+ Texas Attorneys
For 39 years, the State Bar of Texas has presented a three-day seminar in June dealing with advanced estate planning topics. This year, I will be presenting on one of the featured topics: spendthrift clauses in trusts and the extent and limits of the protections such clauses offer with respect to creditors and in divorce….
ABA RPTE Spring Symposium – Hot Topics Breakfast
This edition is the first of a “few” which will be devoted to information gleaned from the American Bar Association’s Real Property, Trusts and Estates’ Spring Symposium in Washington, DC and will be my summary of a few selected sessions. Hopefully this will be of some interest to all of you. Hot Topics Breakfast Richard…
Income Tax Item – Charitable Deduction Fails
Sadly, Kenneth and Susan Kunkel were turned down by the United States Tax Course on April 8, 2015 in their case against the Commissioner of Internal Revenue. The bulk of their dispute revolved around non-cash donations. For all donations of $250 or more, taxpayers generally must obtain a contemporaneous written acknowledgment from the donee. Additional…
Finished Outline for Advanced Estate Planning Course
Yesterday, I finished and turned in my outline/article for the Advanced Estate Planning Course. I’ve been honored to be selected to be one of the speakers. The title of my talk is, “Extent and Limits of Spendthrift Protection – Creditors and Divorce.” For those of you who are attorneys and who will be attending the…
NOLO Riverboat Pilot Sunk by IRS
On February 18, 2015, the United States Tax Court handed down its decision in 436 Ltd. v. Commissioner, in which Robert Heitmeier, the taxpayer, was sunk by the IRS, losing his claimed deductions in a Joe Garza vintage Son-of-BOSS tax shelter. Two takeaways: Son-of-BOSS tax shelters are almost always losers, and, when you think you…
Estate Loses Entire Charitable Income Tax Deduction
On February 19, 2005, the United States Tax Court decided the case of Eileen S. Belmont v. Commissioner. Eileen Belmont’s Will gave the residue of her estate to the Columbus Jewish Foundation. The executor elected to deduct that on the Estate’s income tax return, claiming that $219,580 would go to the Foundation. But litigation ensued…
Taxpayer Unable to Recover Legal Fees from IRS
On February 2, 2015, the United States Tax Court issued an opinion in the case of Estate of Roderigo F. Fenta v. Commissioner. Mr. Fenta, the taxpayer, on the Lakeside Lounge for over 30 years until he sold it in November 2010. He was audited and the IRS proposed a deficiency of $13,180 and an…
Severe Liability Imposed on Agent When Not Using Power of Attorney – Action Needed
Severe Liability Imposed on Agent When Not Using Power of Attorney – Action Needed On January 30, 2015, the Tyler Court of Appeals handed down its decision in Jordan v. Lyles, and held that Cynthia “Cyndi” Lyles, the agent named by her step-father, Bud Jordan, in a power of attorney, was liable to return to…