Categories
Federal Income Tax

Sometimes It is Best Not to NIMCRUT

The best laid tax plans often go awry as tax laws and life circumstances change. In other cases tax plans go awry because they were improperly conceived. I have been encountering a number of NIMCRUTs that should not have been undertaken. The NIMCRUT, otherwise known as the net income with makeup charitable remainder unitrust, is […]

Categories
Federal Income Tax Marriage & Divorce Tax Tax

Taxes & Gay and Lesbian Marital Rights

Various states have enacted laws to stop recent attempts by gay and lesbian groups to achieve full marital equality.  While these laws address marital rights, they do not address rights when it comes to fair treatment for Federal income tax purposes.   The Dispute: Filing Status What would a challenge to fair treatment for Federal income […]

Categories
IRS Debts Tax Procedure

Can the IRS be Friendlier and More Efficient at the Same Time?

The Treasury has been working on stepping up its exam and collections efforts. As a result the IRS appears to be moving back its pre-Revenue Restructuring Act (RRA) of 1998 posture, which was enacted as a result of numerous IRS abuses. Yet, the IRS is still bound by the RRA. Are We Asking Too Much […]

Categories
Bankruptcy Tax IRS Debts Tax Procedure

The Bankruptcy Abuse Prevention and Consumer Protection Act

For the most part the Bankruptcy Abuse Prevention and Consumer Protection Act of 2005 comes into full force on October 17, 2005. The Act contains a number of tax-related provisions, almost all of which are controversial. I will focus on a few of the tax-related provisions. The Bankruptcy Code & How It Works The Bankruptcy […]

Categories
Federal Income Tax Retirement Accounts Tax

Trust as the IRA Beneficiary

I continue to hear a number of financial planners, accountants and even attorneys say, “Don’t name a trust as the beneficiary of an IRA. ” The rationale is that naming individuals as the IRA beneficiary is preferable because the individual can take the IRA distributions over the course of the beneficiaries lifetime; whereas, a trust […]

Categories
IRS Debts Tax Procedure

TIGTA Audit Reveals A Few of the Deficiencies in IRS Procedures

In the Revenue Restructuring Act of 1998, Congress provided that taxpayers were to be provided a hearing before the IRS filed a lien or levy on taxpayer property. If filed timely, this involves a collection due process (CDP) hearing; if not filed timely, this involves an equivalency hearing. Typically both hearings are held before the […]

Categories
Tax Litigation Tax Procedure

Judicial Misstatement: Intentional, Error or Oversight?

Judicial opinions often include sentences that misstate the law. Often these sentences will be picked up by the IRS (and sometimes even taxpayers) years later to support arguments that courts should depart from the law. For example, this quote comes from the District Court for the Eastern District of New York in Johnson Home Care […]