Doctors get socked with big tax and penalties for donations tied to consolidation of their practice Berquistist and Kendrick, et al., (2008) 131 TC No. 2 Mike Habib, EA The Tax Court has determined that doctors grossly overvalued charitable donations of stock in their medical professional service corporation (PSC) that…
No FUTA exemption for staffing company that was considered the employer for state UI purposes Chief Counsel Advice 200827007 Mike Habib, EA The IRS has denied a federal unemployment tax (FUTA) exemption to a staffing company because it did not consider the company to be the common law employer of…
Proposed revenue ruling gives green light to use of private trust companies Notice 2008-63, 2008-31 IRB Mike Habib, EA A new notice contains a proposed revenue ruling that would allow families to use private trust companies (PTCs) in their estate planning without adverse income, estate, gift or generation-skipping transfer (GST)…
National Taxpayer Advocate annual report to Congress identifies priorities and issues for upcoming year [IR 2008-87]: An annual report on the priority challenges and issues facing the Office of the Taxpayer Advocate (OTA) was delivered to Congress on July 8. The report, National Taxpayer Advocate’s 2009 Objectives Report to Congress,…
Charitable remainder trust can be divided into separate trusts without adverse tax consequences Rev Rul 2008-41, 2008-30 IRB Mike Habib, EA In the context of two fairly detailed factual situations, a new revenue ruling makes it clear that a charitable remainder trust (CRT) can be divided into two or more…
Judge: IRS can seek tax information from Swiss banking giant UBS in expanding investigation Associated Press WorldStream via NewsEdge : MIAMI_A federal judge agreed Tuesday to allow the IRS to serve legal papers on Swiss banking giant UBS AG in an expanding investigation into U.S. taxpayers who may have used…
Final regs on dependent child of divorced or separated parents or parents who live apart T.D. 9408, 07/01/2008; Reg. § 1.152-4 Mike Habib, EA IRS has issued final regs on the rules for claiming a child as a dependent by parents who are divorced, legally separated under a decree of…
TIGTA results of 2008 review IRS compliance with legal guidelines when conducting property seizures [Audit Report No. 2008-30-126]: IRS has usually followed the numerous legal and internal guidelines that apply to seizures of taxpayers’ property, the Treasury Inspector General for Tax Administration (TIGTA) said in a recent audit. TIGTA based…
Loan repayment to shareholder’s spouse wasn’t constructive distribution Beckley, 130 TC No. 18 (2008) Mike Habib, EA The Tax Court has ruled that payments made by a corporation to the wife of one of its shareholders represented repayment of money she advanced to a predecessor corporation. Despite the absence of…
Gain from selling carbon dioxide allowances didn’t generate foreign personal holding company income PLR 200825009 Mike Habib, EA IRS has privately ruled that gain from the sale of surplus carbon dioxide allowances didn’t constitute foreign personal holding company income (FPHCI) under Code Sec. 954(c). It concluded that the emissions allowances…