Tax Returns

The donors, Thomas and Kim, a married couple, transferred a substantial quantity of the stock of Dell Corp. to a newly formed FLP and then made gifts of limited partnership units to a custodian for one of their children and the trustee of a…

In certain cases, an estate is required to file a return for New York State estate tax but is not required to file a federal return. This may occur if there is no federal estate tax in effect on the decedent’s date of death or if the…

This article considers newly issued proposed regulations under section 6694 of the Internal Revenue Code, which imposes tax return preparer penalties. The article discusses new rules and differences from existing authority concerning such…

Since the Tax Reform Act of 1976, Code Sec. 6694 has imposed penalties on those who prepare income tax returns for compensation, whether or not they are lawyers or CPAs. Code Sec. 10.34 of Circular 230, which is not limited to income tax…

Circular 230 sets forth ethical rules that lawyers and CPAs who practice before the IRS must follow. Violations of Circular 230 may result in severe disciplinary action, including disbarment from practice before the IRS and monetary…

The Small Business and Work Opportunity Tax Act of 2007 (the "Act"), which was contained in the Iraq Appropriations Act and was signed by the president May 25, 2007, made substantial changes in the standards applicable under Section 6694(a)…

Gift-Splitting Decision Tree

A trust is a "grantor trust" for income tax purposes to the extent that under the rules articulated in subpart E (sections 671 through 679) of part 1 of subchapter J of chapter 1 of the Internal Revenue Code of 1986, as amended, the trust's…

The Alaska Community Property Act, signed into law in May, allows a married Alaskan or an Alaskan married couple to elect for some or all of his, her or their property to become community property, and permits married persons not resident…

This Article discusses how litigation relating to the administration of estates and trusts might be reduced through by careful planning prior to the property owner’s transfer of wealth during lifetime or at death. As the article details,…