At Going Concern: Five Questions with Joe Kristan... Posted on Monday, February 8, 2010 at 1:39 pm

Clarence Thomas: If Not for the Supreme Court Gig, I'd Be ... A Tax
Lawyer... Posted on Monday, February 8, 2010 at 1:39 pm

Sound tax client etiquette advice from Trish McIntire: Don't put the
preparer in the middle of a family fight. The... Posted on Monday, February 8, 2010 at 1:39 pm

The Illinois Business Law Journal is proud to share our inaugural
issue. This publication of the University of Illinois College of Law
acknowledges the work of our student body. This issue has compiled
writings from relevant areas of law related to business. We hope to
bring you a new edition of the Illinois Business Law Journal this
spring. Please click on the link below to access the Issue: The
Illinois Business Law Journal Fall 2009 Issue 1.pdf (468.23 kb) Posted on Thursday, February 4, 2010 at 4:46 am

I. Introduction Comcast's proposed takeover of NBC Universal is
expected to completely restructure the entertainment industry's
landscape. Analysts, investors, and public interest groups alike have
responded strongly to the anticipated agreement, which is expected to
be finalized imminently. The merger of the largest American cable
company with one of the largest entertainment enterprises in the world
would give the combined entity control over approximately one out of
every five viewing hours in the United Posted on Wednesday, December 23, 2009 at 3:29 pm

I. Introduction Some basic financial concepts and the facts
surrounding the 2008/9 economic crisis constitute the first stage of
this article. The analysis of certain characteristics and effects of
the Bailouts and of having Too Big To Fail Companies in the market is
what follows. Finally, I will go into different opinions and
strategies addressing main issues that are a challenge for the
regulation to be enacted in order to prevent these kind crises and
deal with the legacy of the bailouts. What to do with Posted on Wednesday, December 23, 2009 at 3:29 pm

Prolonged refusal to pay your taxes will result in an IRS bank levy.
This is a legal act in which the IRS freezes your bank accounts and
deducts what you owe them from your bank balances. This is usually
done only as a last resort after all other avenues have been
fruitless. There are a few ways to get out of an IRS levy or bank
account freeze, but you need to act fast. The most common way to
prevent a bank levy is to agree to a payment plan. Even if you cannot
afford the payment plan required by the IRS, Posted on Tuesday, February 9, 2010 at 5:41 am

Did you know the government has the authority to freeze your bank
accounts under certain circumstances? If you owe the IRS for a
prolonged period of time despite their best efforts to retrieve what
is their due, they may slap you with a tax levy. But the government
can only freeze your money for 21 days and the freeze only applies to
the money that is in your account at the time the levy is issued. Any
deposits thereafter are not frozen. It would take a second levy to
freeze deposits made after the initial Posted on Tuesday, February 9, 2010 at 5:41 am

If you want to fully discharge your tax debt, you must have made your
returns on time. However, fully discharging taxes that are from a
return that was filed late is not possible. Tardy tax returns is
likened to tax evasion; blaming a poor memory is no good, either. This
is why it is not possible to obtain a full discharge if your returns
are late. However, you may qualify for other forms of help from the
IRS. Late taxes can be partially discharged through an Offer in
Compromise. At present, there are three Posted on Tuesday, February 9, 2010 at 5:41 am

Taxpayers can avoid the Code §6662 penalty for substantial
underpayment of income tax by adequately disclosing amounts on the
income tax return. A recent Revenue Procedure provides details as to
when the inclusion of "amounts" on a return constitutes adequate
disclosure for this purpose. These rules will also apply for purposes
of avoiding preparer penalties. The following summarizes the
requirement of disclosure for "amounts" to meet the adequate
disclosure requirements: A. The money amounts entered on the Posted on Monday, February 8, 2010 at 3:41 pm

A number of readers have indicated they would like to be able to read
Rubin on Tax while waiting in lines, such as at the grocery store.
Okay, maybe not many. Maybe not any. Nonetheless, if you have an
iPhone and would like to be able to read your dose of Rubin on Tax
whenever and wherever you want, now you can do so. To get the app (its
free), on your iphone or in the App Store search for 'rubinontax' (no
spaces) and it should then be available for download and installation.
If you like it, don't be afraid Posted on Monday, February 8, 2010 at 3:41 pm

We all know the expression "blood is thicker than water." Presumably,
that is what a trust settlor had in mind when she made a class gift to
her grandchildren, and included language that such grandchildren would
only include "descendants by blood." The settlor's son married his
wife in 1966. Six months after the marriage, the son and his wife had
a child. The birth certificate listed the settlor's grandchild as the
son's child. The son and his wife divorced in 1971, and signed a
marital agreement that Posted on Saturday, February 6, 2010 at 5:41 am

Based on what appeared to be a giant "loophole" in the gift tax law
applying to gifts made in 2010, taxpayers could arguably make gifts to
a wholly-owned grantor trust free from gift tax. Last week at the
Heckerling Estate Planning Institute, commentators said this was too
good to be true, and opined that the IRS would soon close the
loophole. No sooner said than done: Yesterday the IRS published Notice
2010-19, which applies to taxpayers making gifts in trust during 2010.
Under section 2511(c), a transfer Posted on Friday, February 5, 2010 at 12:36 am

On February 2, 2010, in Ododonnabhain v. Commissioner of Internal
Revenue, the U.S. Tax Court held that a transgender woman's expenses
for hormone therapy and sex reassignment surgery were medically
necessary and therefore deductible for federal income tax purposes.
The court found that "gender identity disorder" is a disease, and
ruled that gender transition-related healthcare is non-cosmetic,
medically necessary healthcare. However, expenses for breast
augmentation were found to be cosmetic as the surgery Posted on Friday, February 5, 2010 at 12:36 am

In North Carolina it is not uncommon for persons to handle
administration of a decedent's estate without hiring a lawyer or an
accountant. Because of the complexity of the law and the likelihood
that certain requirements or opportunities will be overlooked, I
certainly don't recommend going it alone. This post is not intended to
be a do-it-yourself guide, but simply an overview of the basic
process. Complying with income tax requirements is the most complex
part of the majority of estates. A deceased Posted on Tuesday, February 2, 2010 at 4:47 am

Now that the annual -6 Revenue Procedure has been released - Rev.
Proc. 2010-6 - I'm starting to receive a lot of questions about
Section 12.07 of that Rev. Proc. Does it really say that a terminating
plan does not need to be restated??? A quick check of Section 12.07
shows that it says exactly that. It states: "Restatement not required
for terminating plan .07 A terminating plan generally does not have to
be restated. However, see .06 above." I've bolded the "However" in
Section 12.07 because it is one of Posted on Friday, January 8, 2010 at 4:44 pm

Today, the IRS released Revenue Procedure 2009-29 containing the
inflation adjusted amounts for Heath Savings Accounts (HSAs) as
determined under Code section 223 for 2010. For calendar year 2010,
the annual limitation on deductions under Code section 223(b)(2)(A) is
$3,050 for an individual with self-only coverage under a high
deductible health plan. For an individual with family coverage under a
high deductible health plan, the annual limitation on deductions under
Code section 23(b)(2)(B) for calendar Posted on Thursday, May 14, 2009 at 8:43 pm

The Dept. of Labor and the Securities and Exchange Commission have
announced a joint one-day hearing on target date or lifecycle funds
and other investment options. The hearing is scheduled for June 18,
2009. It will be held at the Dept. of Labor, 200 Constitution Ave NW,
Washington, D.C. The press release from the DOL and SEC which
announced the hearing states that witnesses will include
representatives of plan participants and beneficiaries, plan sponsors,
investor organizations, academia and the Posted on Wednesday, May 13, 2009 at 8:35 pm

By Lena Babaeva Coradini First, the Sunday Times took the Tesla
Roadster for a test drive and came away impressed. Despite the
$155,850 price tag, the Times noted that "the Tesla Roadster works
pretty much as promised. And, as such, it is worthy of a measure of
acclaim as an automotive pioneer." Later in the day during the Super
Bowl, Audi debuted its must-see Green Police commercial for the "clean
diesel" A3 TDI, which was recently named 2010 green car of the year by
GreenCar.com. Posted on Tuesday, February 9, 2010 at 10:55 am

By Lena Babaeva Coradini Republic Services, one of the largest haulers
of waste and the operator of 213 landfills, it is installing
photovoltaic solar collection strips on one of its landfills. That PV
array, combined with other waste-to-energy system on the landfill,
will produce an impressive 9 megawatts of power, enough to power 5,500
homes. It's important to differentiate what is referred to as landfill
cover. While all landfills feature a daily cover consisting of organic
material or other waste that Posted on Sunday, February 7, 2010 at 1:22 am

By Lena Babaeva Coradini The U.S. Navy is making a commitment to
increase military biofuel use, currently through sigining a Memorandum
of Understanding between the Navy and the USDA: The Navy has plans to
cut its fossil fuel use and switch everything from bases to ships and
aircraft to alternative energy. The Navy is laying out a series of
targets; most of the key goals don't take effect until 2015 or 2016,
when President Barack Obama would be at the end of his second term, if
he gets one. The memorandum Posted on Sunday, February 7, 2010 at 1:22 am

There exists an official YouTube channel of the Internal Revenue
Service. It features videos produced by the IRS on various tax
administration topics. Information is available about all kinds of
topics, including the the appeals examination process, appeals
collection process, tax tips, record keeping, choosing a tax preparer,
how to track your tax refund, how to check your tax withholding and
the homeowner credit claim. Posted on Tuesday, February 9, 2010 at 7:45 am

A post on January 23, 2010 in Wills, Trusts & Estates Prof Blog
provides a chart listing the best states for trusts. The ranking
factors considered are (1) state income tax in the state, (2) directed
trust statute, (3) asset protection trust availability, (4) dynasty
trust ability, and (5) the number of trust companies in the state. The
top four states include Alaska, Delaware, Nevada and South Dakota. The
next best include three states: Florida, New Hampshire and Wyoming.
Finally, the last group of Posted on Thursday, February 4, 2010 at 8:00 am

A recent article published in the Los Angeles Times addresses "Selling
What the Dead Leave Behind". If you die in Los Angeles County without
a will or heirs, your belongings will probably end up in a warehouse
in the City of Industry. There, the walls are stacked with hundreds of
wooden crates. County employees and private auctioneers divide the
contents into lots and sell them at daylong auctions held on the
second Saturday of the month, typically 10 times a year. Proceeds go
back into the estate and often Posted on Friday, January 29, 2010 at 1:36 am

On Thursday at the Tax Policy Colloquium, Michael Devereux presented
his paper, Taxation of Outbound Direct Investment. He, my co-convenor
Mihir Desai, and I all agree that, if you think about tax policy going
forward on a fresh start basis, exemption is the most rational system
for outbound investment by resident corporations, reflecting (in
Michael's and my way of thinking about it, more than Mihir's) the
point that newly becoming a U.S. corporation for tax purposes verges
on being an election. But I Posted on Monday, February 8, 2010 at 4:12 am

Here are their questions and my answers, the latter composed more or
less at the limit of my typing speed. My answers are shown here in
italics: 1. USA has to deal with budget problems, so does Germany,
Greece, Poland, France, Japan, Russia, etc… it seems the public
finance is now the main interest of world's politicians and economist.
You probably know of various solution proposed by different countries
(including USA, of course). How do you perceive them? Most of them are
based on simple ideas of public Posted on Friday, February 5, 2010 at 5:58 pm

One but not both of these photos is from the UNC Tax Conference last
week. I prefer the rogue, which was distributed to the group by
another conference attendee, not just for artistic and sentimental
reasons, but also because the actual photo makes me look too short. I
was down a step from people near me, creating the false impression
that I have shrunk to perhaps about 5'3". Posted on Friday, February 5, 2010 at 5:58 pm

In this age of instant information, as we all know, there is a great
deal of instant misinformation. Add to that a basic lack of
understanding in the population at large of critical economic,
budgetary and tax concepts, and it is not hard to see that it is
relatively easy for an well-funded advocacy oriented organization to
use slick materials, frequent repetition and catchy themes to convince
people about their particular position, even though it may be against
ordinary American's interest to support that Posted on Monday, February 8, 2010 at 6:54 am

Obama takes on America's banks with new Glass-Steagall act,
Guardian.co.uk, Jan. 21, 2010 President Obama came out in support of
the "Volcker rule" intended to stop depositary banks from running
hedge funds and using their money to bet on the markets. I
particularly like the part that recognizes that allowing banks to
merge into bigger and bigger consolidated enterprises is not likely to
be in the public interest. (I've actually proposed we severely
restrict tax-free reorganizations generally.) About time Posted on Friday, February 5, 2010 at 8:31 pm

Readers will recall that the Bush Congress passed an estate tax bill
that decreased the rate and increased the exempt amount from
2001-2009, leaving last year's exemption amount at 3.5 million
(meaning you wouldn't have to pay a penny of estate tax unless your
estate was worth more than $3.5 million, and then you would only pay
the statutory rate on amounts in your estate in excess of $3.5
million). Then the tax disappears for one year this year and spring
back to life in 2011 exactly as it was in 2001 Posted on Friday, February 5, 2010 at 8:31 pm

Here are some of my favorite tweets from the past week: GTak: Why
hybrid corps? Blended value missions are not protected by traditional
corp laws. Typical mission anchors are not rock solid. GTak: Vermont
BSR Legislative Initiative: For-Benefit Corporations -
http://is.gd/7JyWc GTak: Changing Ecosystem of Change: B-certified
Corp, Benefit Corp, Flexible Purpose Corp, L3C. Thanks @p2173,
@philosopher20 for the meeting. GTak: From NTEN Community Call: admin
and fundraising expenses allocations deviate widely Posted on Sunday, February 7, 2010 at 4:47 am

All too often, the issue of legal compliance receives attention from a
nonprofit corporation only after a conflict arises. Instead, a
nonprofit corporation can better prevent conflicts and protect itself
through regular legal audits. Financial audits alone, while important,
will not sufficiently account for the bigger issue of overall
compliance with state and federal laws. A legal audit will include a
wide range information-gathering, such as: Organizational and
Operation-related Documents Articles of Posted on Monday, February 1, 2010 at 4:58 pm

On January 21, 2009, the United States Supreme Court ruled in Citizens
United v. Federal Election Commission that corporations (including
nonprofit corporations and unions) may make direct expenditures on
political advertising in support of or in opposition to a candidate
for public office. While nonprofit leaders and commentators are still
analyzing what this means for the nonprofit sector, there is no doubt
that this 5-4 split decision will have tremendous impact on future
campaigns and heighten the Posted on Friday, January 29, 2010 at 2:01 pm

As you can tell from the date posts on this blog, I haven't updated in
awhile. After months of telling myself I would, I just don't think I'm
going to be able to consistently deliver content. Between the day job,
the tax business, and my growing family, I no longer have the time.
Feel free to contact me at taxplaya@gmail.com with any questions. Any
clients reading this, I'm of course still going to do the tax
business. Posted on Tuesday, March 10, 2009 at 1:17 pm

Sorry I've been slow to post--lots going on moving-wise. Posted on Monday, September 15, 2008 at 11:09 pm

Q: I have to move from my second floor condo to a ground floor because
the steps are too much for me as I have a medical issue. Are my moving
expenses tax deductible ? What if I were to install an elevator? Mary
Kate A: As a moving expense, no way. For one thing, it doesn't even
pass the distance test. However, not all is lost. It sounds to me like
the elevator might be a deductible medical expense. Here's what IRS
Publication 502, "Medical Expenses" has to say... You can include in
medical expenses amounts Posted on Tuesday, September 2, 2008 at 3:39 pm

I intentionally waited until after President Obama's State of the
Union Address to post my commentary of current state of the federal
estate tax because a part of me was hoping that either Congress or the
President would have clarified the situation by now. Unfortunately for
me, my fellow estate planning attorneys, and everyone affected or
potentially affected by the estate tax, things are no clearer today
than they were on January 1, 2010. The reality is this: At the present
time there is no federal estate Posted on Thursday, February 4, 2010 at 9:24 pm

The week before Thanksgiving 2009 was a busy one for some legislators
with an eye on our country's estate tax system. Through November 20,
2009 the tally of estate tax related bills has reached 20, including
the two newest bills discussed below. The eleventh month does not
translate into the eleventh hour, but we are quickly approaching what
we would naturally think is the last possible time to act since the
estate tax as we know it is set to change dramatically on January 1,
2010. I do not believe that the Posted on Saturday, December 12, 2009 at 4:30 am

This item can probably best be filed under the category, "News We
Expected." As reported by the Wall Street Journal online in "Tax
Credit Abuse and the Four-Year-Old Home Buyer" the Inspector General
for Tax Administration, Russell George, testified before Congress
today in regards to fraud and potential abuse of the home buyer tax
credit. Mr. George testimony comes at a time when the current home
buyer tax credit is set to expire in less than 6 six at the end of
November and with the real estate lobby Posted on Thursday, October 22, 2009 at 12:48 pm

Los Angeles Tax Attorney: Here is a quick summary of a recent US TAX
COURT case against the Internal Revenue Service . The ruling on this
case may apply to other documents filed with the tax court or the IRS
including late filed FBAR Voluntary Disclosure Program. Tax Court
Petitioners MADDOX v. COMMISSIONER OF Internal Revenue Service TAX
PROBLEM: This case seems to reflect the current trend by IRS Attorneys
when dealing with tax court petitions that they receive 90 days after
issuance of Notice of Posted on Friday, February 5, 2010 at 1:50 pm

California Tax Attorney: Last year Democrats Proposed 30% Tax on
Foreign Banks that refuse to disclose US Taxpayers as part of
continuing efforts by the IRS to quash offshore asset protection and
tax evasion strategies conjured up by various financial planners. US
Taxpayers with offshore or foreign bank account are required to
disclose this information by filing IRS Foreign Bank Account Report.
The Baucus-Rangel bill proposed to impose a thirty percent (30%)
withholding tax on income from U.S. financial Posted on Friday, February 5, 2010 at 1:50 pm

California Tax Attorney: Internal Revenue Service IRS catches another
tax evader. Another UBS client pleaded guilty today in a criminal IRS
tax case concerning FBAR and Offshore Bank Accounts. According to the
Wall Street Journal, US Taxpayer Barouh operated a watch business
since 1976 and hid some of his unreported income in various UBS
offshore accounts. A Florida man pleaded guilty to filing a false tax
return by failing to report income on money held in UBS AG (UBS) Swiss
bank accounts. In addition to Posted on Friday, February 5, 2010 at 1:50 pm

Aging: Myths, Facts and Superstitions Wednesday, February 17, 2010 4pm
until 5pm Join us! The Stony Brook Assisted Living Community is
hosting three experts in the field of aging who will discus
need-to-know issues critical to your loved one's medical, legal and
emotional health. Polypharmacy: Multiple prescriptions + multiple
medical conditions = medical disaster. Learn ways to avoid this
serious health threat. By Dr. Priti Gujar, a physician with Geriatric
Treatment Resources LLC in Pennington, NJ. Legal Posted on Saturday, February 6, 2010 at 8:08 pm

Last year was a difficult economic year for many, including the
government. As a result there will not be any cost of living
adjustment to anyone's monthly payments this year. For a detailed
lists of New Jersey payout amounts, click here. For a detailed lists
of Pennsylvania payout amounts, click here. For a detailed lists of
New York payout amounts, click here. For a detailed lists of Florida
payout amounts, click here. Posted on Friday, January 22, 2010 at 3:31 pm

If you want to sell an asset, particularly a valuable asset, no one
should do so without first understanding what the tax consequences of
that sale might be. The tax that most often affects the sale of a
valuable asset (in a non-business setting), is the capital gains tax.
To understand this capital gains tax consequence, you must first
understand and appreciate the incredible importance of "Basis". An
asset's basis is often referred to as the amount an asset cost when
you buy it. For example, if you buy Posted on Tuesday, December 29, 2009 at 8:50 am

Would you be willing to prepay estate taxes while you are alive, in
exchange for a lower tax rate? This is the idea from Washington's
own Sen. Maria Cantwell and it could lead to a permanent compromise on
the on the Federal Estate Tax. (Dow Jones Newswire) As anyone who has
studied the Roth IRA conversions can tell you, sometime pre-paying a
tax makes sense. Pre-paying estate taxes isn't a new idea. In fact we
have a special name for it. The Federal Gift Tax. Currently taxable
gifts are taxed at the same Posted on Friday, February 5, 2010 at 6:50 pm

When I reviewed the President Obama's Budget, I felt like I was in the
Bill Murray movie. Please Punxsutawney Phil, give us guidance! When it
comes to the estate tax, this year's budget is a lot like last year's
budget. They both assume that the 2009 estate tax exemption of $3.5
million and tax rates continued into the future. Just like last year
we are waiting for congressional action. And like last year, we will
see another change in the law next year if congress and the President
are unable to pass an Posted on Wednesday, February 3, 2010 at 3:32 am

Something interesting happened today. The Senate passed a paygo or
pay-as-you-go bill. The purpose of this legislation is to force some
fiscal discipline on the legislative and executive branch. Although
that sounds like a good idea, the legislation was only passed as part
of a compromise to obtain support for the debt level increase from
Senate Democrats and House Blue Dog Democrats. The Republicans are
opposed to it, calling it "swiss-cheese-go" (Republican Judd Gregg)
because of its exemptions. It is the Posted on Sunday, January 31, 2010 at 1:13 am

I was recently asked by a 3rd year law student for some advice on how
to succeed upon graduation. Basically, what I told her can be summed
up in three words: "find your niche." I realize that this isn't a
revolutionary idea, but I think too many young attorneys don't realize
the importance of marketing yourself. What unique thing do YOU as a
young attorney bring to the table? It can't just be intelligence and
hard work -- most attorneys have those qualities. So how do you find
your niche? The easiest way is Posted on Wednesday, February 3, 2010 at 11:20 am

Attention Cook County probate practitioners: Judge James W. Kennedy of
the Cook County Probate Court has retired, effective as of last Friday
the 22nd of January. To replace him, Judge Mary Ellen Coghlan has
moved over into deceased estates from guardianship, leaving the
following judges for deceased estate matters: Calendar #2: Judge
Budzinski (Chief Judge of the Probate Division), Room 1803 Calendar
#8: Judge Coleman, Room 1804 Calendar #7: Judge Coghlan, Room 1802
Calendar #11: Judge Malak, Room 1801 Posted on Thursday, January 28, 2010 at 2:24 am

Here's a question I get a fair amount: "Should we list all of our
property on a schedule attached to our living trusts?" I see trusts
(usually older ones) with schedules attached, but my answer is
typically "no." Property changes -- we buy a new house, switch our
investment accounts from one custodian to another, and change our life
insurance policies. To my mind, the schedule can raise confusion --
why does it list Schwab account #12345678 when no records for this
account can be found? A better solution is Posted on Thursday, January 28, 2010 at 2:24 am

The Health Coverage Tax Credit and the COBRA Subsidy Some people who
are eligible for the COBRA subsidy, which has been extended through
Feburary also qualify for the health coverage tax credit (HCTC) and
may want to choose this more generous benefit, instead. The HCTC pays
80 percent of health insurance premiums for those who qualify.
Eligible individuals must be receiving Trade Adjustment Assistance
benefits or be over the age of 55 and receiving pension payments from
the Pension Benefit Guaranty Posted on Wednesday, January 27, 2010 at 1:13 pm

IR-2010-6, Jan. 15, 2010 WASHINGTON - The Internal Revenue Service
today released the new form that eligible home buyers need to claim
the first-time home buyer credit this tax season and announced
processing of those tax returns will begin in mid-February. The IRS
also announced new documentation requirements to deter fraud related
to the first-time home buyer credit. The new form and instructions
follow major changes in November to the home buyer credit by the
Worker, Homeownership, and Business Posted on Wednesday, January 27, 2010 at 1:13 pm

The American Recovery and Reinvestment Act was passed in early 2009
and created the American Opportunity Credit. This educational tax
credit - which expanded the existing Hope credit - helps parents and
students pay for college and college-related expenses. Here are the
top nine things the Internal Revenue Service wants you to know about
this valuable credit and how you can benefit from it when you file
your 2009 taxes. The credit can be claimed for tuition and certain
fees paid for higher education in 2009 Posted on Wednesday, January 27, 2010 at 1:13 pm

The Year Without an Estate Tax continues. As I have previously
written, due to Congress's extreme irresponsibility and inability to
get anything done at all, the Estate and Generation Skipping taxes are
repealed in 2010, but for one year and one year only. Last December,
in a post entitled, The Real Danger of the Expiring Estate Tax:
Existing Documents, I discussed that the biggest concern among estate
planners is that none of the documents that we've been drafting for
clients make any sense. They don't Posted on Monday, February 8, 2010 at 1:11 am

President Obama released his 2011 proposed budget yesterday. In it,
the estate tax will be returned to the 2009 levels of a $3.5 million
exemption and a 45% rate. Of course, a budget proposal is just that.
Stay tuned Posted on Friday, February 5, 2010 at 2:48 pm

On February 3, 2010, the Tax Court released it's decision in Estate of
Shurtz v. Commissioner, This case is interesting for a number of
reasons. First, even though it involves a family limited partnership,
the case is not about the estate taking substantial discounts. In
fact, the word "discount" is not even mentioned in the decision. Here,
the IRS tried to argue that under section 2036, the full value of all
the underlying assets contributed by the Decedent to the partnership
should be included in the Posted on Friday, February 5, 2010 at 2:48 pm

"If you really want to hear about it, the first thing you'll probably
want to know is where I was born, and what my lousy childhood was
like, and how my parents were occupied and all before they had me, and
all that David Copperfield kind of crap, but I don't feel like going
into it, if you want to know the truth." "Catcher In The Rye" by J.D.
Salinger (who passed away on January 28, 2010 at age 91 when there is
no federal estate tax under current law) Famously reclusive, Salinger
withdrew from public life, Posted on Tuesday, February 2, 2010 at 8:35 pm

A recent California Court of Appeal decision serves as a reminder that
beneficiaries need to consider the downside if they decide to oppose
the sale of an asset and proposed distribution. In other words,
beneficiaries need to analyze whether their opposition to a proposed
sale or distribution is "objectively" in "good faith." An experienced
probate litigation attorney, trust and estate attorney or beneficiary
attorney can often help beneficiaries see the "objective" viewpoint.
Sometimes, however, emotions Posted on Wednesday, January 27, 2010 at 10:45 am

Given the uncertainty in the estate tax this year which I have written
about previously, estate planning may require new strategies for
various wealth levels. Paul Sullivan has authored an article in the
January 8, 2010 New York Times entitled "A Bizarre Year For The Estate
Tax Will Require Extra Planning." This article is a good summary of
current thinking on this issue and includes some common sense advice
such as having one's will and estate plan reviewed in these uncertain
times. The consensus among Posted on Thursday, January 21, 2010 at 3:43 pm

The post titled Federal Estate Tax in Limbo for 2010 on the OSU
Extension Farm Succession Blog provides at least three reasons why the
repeal of the federal estate tax might not provide relief for farmers
(and ranchers) in 2010: Limited step-up in basis. "[T]here will be
only a limited step-up in basis." The following reminder from the post
is important: "As a reminder, tax liability due to capital gain is not
triggered until sale of the appreciated asset." Record keeping
nightmare. "The Executor will be Posted on Sunday, January 10, 2010 at 10:58 pm

Below are a few of the many posts and articles on the federal estate
tax: Richard Behrendt,On the Money: Don't count on an estate tax
repeal, BizTimes (1/8/10). Stating, "[t]he chances that Congress will
make the repeal of the estate tax permanent beyond 2010 are somewhere
between slim and none." This statement is true, but the chances of the
federal estate tax being repealed in 2010, even temporarily, were
thought to be "between slim and none." So, at this point I think even
Congress doesn't know what its Posted on Sunday, January 10, 2010 at 10:58 pm

On January 8, 2010, the New York Times published, A Bizarre Year for
the Estate Tax Will Require Extra Planning, by Paul Sullivan. The NY
Times explains that Sullivan "writes about strategies that the wealthy
use to manage their money and their overall well-being." As indicated
by its subheadings, this article is also targeted to the wealthy, but
it also has information that has broader application. Sullivan quotes
Christopher Zander, a partner at Evercore Wealth Management, who
explains that the law in Posted on Sunday, January 10, 2010 at 10:58 pm

On January 20, 2010, the U.S. Senate took an unusual procedural step
in placing HR 4154, the "Permanent Estate Tax Relief for Families,
Farmers, and Small Businesses Bill of 2009" directly on the Senate
calendar. In taking this action, the Senate is in the position to
completely... Posted on Wednesday, February 3, 2010 at 12:33 pm

From time to time, we will publish blurbs on recent local court
opinions and state legislation: Senate Bill 238 Oregon Senate Bill 238
enacts the Uniform Adult Guardianship and Protective Proceedings
Jurisdiction Act. It is broken into five different articles that
provide a uniform procedure... Posted on Thursday, January 28, 2010 at 3:12 am

From time to time we will publish recent cases and legislation: House
Bill 3077 (pdf) House Bill 3077 completely revamps the spousal
elective share statute in Oregon. Oregon is one of several states to
enact a more modern elective share statute which attempts to account
for the... Posted on Friday, January 22, 2010 at 3:40 am

Category: Tax Law and Planning Well, the bohemoth stimulus package has
passed - what now? and how will it efftect you? A summary of the tax
law changes in the bill curtesy of JH Cohn. Economic Stimulus Bill
Contains Numerous Tax Changes On February 17, 2009 President Obama
signed The American Recovery and Reinstatement Act of 2009 into law.
The legislation commonly referred to as the economic stimulus bill is
a close to $800 billion stimulus package that includes nearly $300
billion in tax relief. The major Posted on Wednesday, February 18, 2009 at 10:59 pm

Category: Estate Planning In looking for some statistical evidence of
the extent to which Americans don't have an estate plan, I came across
this Lexis-Nexis Press Release: Majority of American Adults Remain
Without Wills, New lawyers.comSM Survey Finds. Of note: "[O]ver half
(55 percent) of all adult Americans do not have a will, a new survey
shows, a percent that has remained virtually unchanged over the past
three years." "Among non-white adults, the lack of wills is even more
pronounced. Only one in Posted on Monday, May 5, 2008 at 10:03 am

Category: Estate Planning Congratulations! Unlike the vast majority of
Americans, you have a Last Will and Testament. You have created an
appropriate distribution scheme to take into account your family,
assets, and goals. Now what? To continue to fit your needs, a Last
Will and Testament, and indeed your entire Estate Plan, need to evolve
over time. Not only does the law change, but you change - your family
situation, your financial situation, your goals. Courtesy of Florida
Estate Planning Lawyer Blog, Posted on Monday, October 8, 2007 at 2:22 am

If you live in a town in New Jersey that is having a revalution, the
deadline to file your appeal in May 1, 2009. When a town performs a
municipal revaluation, the assessment is at 100% of market value. The
date of valuation is October 1, 2008. A property owner has the right
to challange the assessor's valuation by filing an appeal by May 1,
2009. The appeal must be in the office of the County Tax Board or the
office of the Administrator of the New Jersey Tax Court located in in
Trenton, New Jersey by 4PM Posted on Saturday, February 7, 2009 at 5:56 pm

Tax assessment cards are now in the mail. Pursuant to N.J.S.A.
54:4-38.1, every municipal tax assessor, prior to February 1, shall
provide, by mail, each taxpayer with the current assessment on the
taxpayer's property and the property taxes that were levied on the
property the preceding year. Thereafter, the assessor or county board
of taxation shall notify each taxpayer by mail within 30 days of any
change to the assessment. Accordingly, all property owners should now
be on the lookout for their assessment Posted on Sunday, February 1, 2009 at 8:35 am

A Letter from New Jersey Senator Robert Singer (R-30) and New Jersey
Senate Republican Leader Tom Kean (R-21) was recently sent to New
Jersey Governor Jon Corzine which urged a state-wide reassessment of
homes. At first blush, such a proposal seems to violate the New Jersey
Constitution's Uniformity Clause (art. VIII, sec. 1, para. 1(a)), as
the proposal would irrationally treat residential and commercial
properties differently. Nonetheless, it is a novel concept and one
that only underscores the dire Posted on Thursday, January 29, 2009 at 3:54 pm

Today's sales tax opinion from the Texas Third Court of Appeals in
Austin, Combs v. Chevron USA, Inc., No. 03-07-00127-CV, is big news
for its treatment of both substantive tax law and tax procedure. The
substantive issue was whether temporary scaffolding supplied by a
third party to a refinery undergoing maintenance was a nontaxable
service or the taxable rental of tangible personal property. The
procedural question was whether a court can consider a refund issue
that was presented to the Texas Comptroller Posted on Friday, February 5, 2010 at 8:13 pm

As mentioned in a previous post captioned "Amended Comptroller rules
solve the rental income flow-through problem and make other changes,"
the Texas Comptroller of Public Accounts recently amended several
administrative rules applicable to the revised franchise tax, or
"Margin Tax." One of the amended regulations, Rule 3.584 ("Margin:
Reports and Payments"), includes a change that would double the tax
rate - from 0.5% to 1% - for any wholesaler or retailer that earns
more than half of its revenue from Posted on Saturday, January 30, 2010 at 3:00 am

Now that the New Year has begun, it's time to look into our crystal
ball and make some predictions about Texas tax developments during
2010. A few developments expected from the Comptroller of Public
Accounts, the state Courts and the Legislature are summarized below.
Future posts will cover them in more detail when - and if - they
actually occur. The Comptroller. During 2009, the agency circulated
many draft administrative rules for comment by practitioners and other
interested parties. A few of the drafts Posted on Monday, January 4, 2010 at 7:14 am

Paul L. Caron, the TaxProf blogger, provided the following chart from
a 2006 article by Joshua S. Gans and Andrew Leigh, "Toying with Death
and Taxes: Some Lessons from Down Under". The chart purports to show
that a significant number of the deaths in Australia were shifted from
the week before to the week after July 1, 1979, the date on which the
estate tax was abolished in Australia. I haven't read the article by
Gans and Leigh, and statistics and interpreting raw data are not my
areas of expertise. I was Posted on Thursday, January 21, 2010 at 8:04 pm

Surrogate Calvaruso of Monroe County issued a decision in Matter of
Feller on January 4, 2010, worth reading for its succinct summary of
some of the burdens of proof and presumptions that have to be overcome
to survive summary judgment in a will contest. In Feller, the
decedent's will left her estate to 10 charities and 4 individuals in
equal shares. Eight of her 11 distributees filed objections based upon
due execution, testamentary capacity and undue influence. The Attorney
General, on behalf of the Posted on Saturday, January 9, 2010 at 5:45 pm

The Bais HaVaad Institute of Talmudic Law is presenting a seven part
internet lecture series on halachic wills and estates. I mentioned the
introductory lecture by Rabbi Ari Marburger in my post on the Estate
of Max Feinberg. The second lecture, also by Rabbi Marburger, surveyed
the various principles that are relevant to the halachic
enforceability of wills, including whether a valid kinyan
(transaction) can be accomplished by executing a will, the extent to
which halacha incorporates domestic law (dina Posted on Friday, December 25, 2009 at 8:47 pm

If you have a security interest in a partnership or LLC interest, you
probably perfected that security interest by filing a UCC financing
statement against the debtor. And if you were the first to file
against most partnership or LLC interests, you had first priority upon
filing. However, you would probably be shocked to find out that a
party who subsequently obtains a security interest can jump your
priority. In broad terms, this problem arises if the interest in the
partnership or LLC becomes a Posted on Monday, November 2, 2009 at 10:33 am

If you are considering requesting a private letter ruling from the
IRS, there is a process which can save you significant time and
expense. Prior to submitting an extensive private ruling request, you
can first file a request for a pre-submission conference. This
procedure allows the IRS to evaluate a brief overview of the issue,
after which the IRS will recommend that you (a) schedule a conference
with IRS attorneys to discuss the matter further, (b) submit a
full-fledged private ruling request, or (c) not Posted on Monday, November 2, 2009 at 10:15 am

Los Angeles has recently seen a spate of involuntary bankruptcies.
What is an involuntary bankruptcy? An involuntary bankruptcy is a
bankruptcy filed not by the debtor, but by the debtor's creditors.
Thus the "involuntary" bankruptcy. There are certain circumstances
which must exist for a creditor or group of creditors to be allowed to
put their debtor into bankruptcy. First, these petitioning creditors
must have claims which are both (a) not contingent as to liability,
and (b) not subject to a bona fide Posted on Monday, July 27, 2009 at 11:37 am

In early October, the Finance Court of Cologne published its decision
of 7 July 2009 regarding the lawfulness of short-term tax audits. In
the case under consideration, the taxpayer was classified as a "large"
firm based on its profit and turnover. The local tax authority chose
the plaintiff for a tax audit that would cover only the year 2007. The
plaintiff appealed against the order asking for a preliminary
injunction (vorläufiger Rechtsschutz) against the conduct of the tax
audit. The court granted the Posted on Sunday, January 24, 2010 at 10:15 am

On 23 September 2009, the German Federal Fiscal Court published a
decision from 24 June 2009 in which it held that the German tax
authorities' right to request data within the scope of a tax audit
does not exceed the taxpayer's obligation to keep records and that the
tax authorities have no right to demand additional data which a
taxpayer creates voluntarily if such data is not required by law. In
the case under consideration, the taxpayer kept records to the extent
legally required and also used an Posted on Thursday, January 21, 2010 at 8:06 pm

On 9 November 2009, the German government announced a draft Act for
the Acceleration of Economic Growth (Gesetz zur Beschleunigung des
Wirtschaftswachstums or Wachstumsbeschleunigungsgesetz, hereinafter
the "Economic Growth Act". This act is intended to implement some of
the election pledges of the newly elected coalition government. The
Economic Growth Act therefore contains several amendments to recent
legislation intended to limit the negative consequences to the German
economy resulting from the current Posted on Thursday, January 21, 2010 at 8:06 pm

I'm not quite sure what to think. He seems to be moving back to the
middle, talking about things like tax cuts and competition and so
forth, and that's a good thing. But he's very, very diffuse and seems
weirdly detached from the political environment, a little bit like he
was still a candidate rather than a second-year president. I still
think he needs to reshuffle his staff so as to offload the job of
prime minister and focus on what he does best: providing a general
theme and direction to the country Posted on Wednesday, January 27, 2010 at 9:05 pm

When I went to law school in the late 70s-early 80s we learned a
pretty coherent view of the world. Religion, and values generally,
were private matters. The economy was capitalist, but that was OK,
because the long-term trend was toward more Government intervention on
behalf of the poor and defenseless and likely to stay that way.
Individual rights--the right to birth control, abortion, sexual
preference, and a virtually unlimited right of free speech--would
continue to grow, with the First Amendment, Posted on Sunday, January 24, 2010 at 8:06 pm

In the "same newspaper, same day" category: Tom Friedman has a column
today on how effectively China's leaders are managing their economy,
while page A1 of the Times has a story on how Google--not known for
political courage--may leave China in response to censorship by the
Chinese Government. It seems that someone, presumably with Government
approval, launched a sophisticated barrage of cyberattacks aimed at
shutting down the gmail [Google] accounts of political dissidents. The
Times and other news outlets Posted on Friday, January 22, 2010 at 2:05 am

Let my law office get you the best payment plan. We take care of the
details. We keep a record of contacts and email them to you. We
understand the numbers. We keep the lender honest. We negotiate the
best outcome. We give you an honest appraisal of your situation.
Share/Save Posted on Monday, December 21, 2009 at 10:06 pm

Dumont v. Ford Motor Credit Company (In re Dumont) 9th Circuit Court
of Appeals Case No. 08-60002, September 15, 2009 Ford Motor Credit
Company repossessed a Chapter 7 debtor's vehicle, without any warning,
about three months after discharge, when she was current on her
post-petition monthly payments. (The record is unclear whether she had
ever defaulted on payments pre-petition.) The balance on the loan
exceeded the value of the vehicle. The contract contained an "ipso
facto" clause, stating that debtor's Posted on Sunday, October 4, 2009 at 11:54 am

Clipped from Forbes.com with edites: 06.23.09, 6:00 PM ET Getting paid
is getting harder. Not because more customers are trying to conserve
cash by extending payment terms, but because they are going out of
business altogether. According to BankruptcyData.com, a research firm
that tracks such filings, 114 publicly held U.S. companies filed for
bankruptcy so far this year, versus 57 during the first six months of
2008, and 33 in the same period of 2007. Sadly, this year's $368
billion of write offs thus far Posted on Tuesday, July 28, 2009 at 8:53 am

Mike Berzowski discusses the importance of developing a business
succession plan. A successful business succession plan will provide
for the effective transfer of a business to future owners and an exit
strategy for the current owners. This podcast includes a discussion of
the key steps in developing such a plan. Posted on Tuesday, March 13, 2007 at 3:07 am