Once again, the Treasury and the IRS have delayed the filing deadline for Form 8971 now required under 26 USC 6035 (along with 26 USC 1014(f)), new provisions enacted under the Surface Transportation and Veterans Health Care Choice Improvement Act of 2015. Those new provisions require “basis consistency” between what is reported on a decedent’s…
Tag: Tax
Deadline Extended for Basis Reporting
Under the Surface Transportation and Veterans Health Care Choice Improvement Act of 2015, signed into law on July 31, 2015, Congress enacted new provisions requiring “basis consistency” between what is reported on a decedent’s federal estate tax return and what the beneficiaries of the estate can use as their cost basis for assets inherited from…
Radical LLC and Partnership Changes
On November 2, 2015, the President signed into law the Bipartisan Budget Act of 2015. That statute makes significant changes governing federal tax audits of entities that are treated as partnerships for US federal income tax law. In other words, the statute affects all LLCs and partnerships. Some LLCs are disregarded entities, not taxed as…
Highway Funding Bill
Income Tax Basis Effective 8-1-2015 On July 30, 2015, I issued a Special Alert regarding “basis consistency provisions” which were buried in the Highway Funding Bill. At that time, the House of Representatives was considering the bill. They passed it and the Senate took it up in short order, passed it, and sent it to…
Special Alert – Basis Consistency Provision Passes House
The US House of Representatives has passed the Highway Funding Bill, H.R. 3038. Buried in the text of the Bill is a “basis consistency provision.” Basically, that means a law that would require that a beneficiary who receives assets from a decedent must use the value the decedent’s executor puts on the federal estate tax…
Follow-Up: Special Alert – FLPs in Danger
Recently, I sent out an alert that the IRS was on the verge of issuing regulations that would have a significant and drastic impact on family limited partnerships. What is at stake is taxes – gift taxes, estate taxes and generation-skipping taxes. All of those sorts of taxes – gift taxes, estate taxes and generation-skipping…
Special Alert – FLPs in Danger
At the American Bar Association Tax Section meeting in May, Cathy Hughes of Treasury/IRS announced that Treasury and the IRS are on the verge of issuing regulations under Section 2704(b) that will restrict substantially the ability of holders of family limited partnership interests to get the discounts in valuation those interests have so long held…
Is the Wrong Form Effective with the IRS?
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…
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…