In a recent Chief Counsel Advice Memorandum[1] (“CCM”), the office of the IRS Chief Counsel debunks the income taxation, or lack thereof, found in promotional materials promoting a structure known as a “Non-grantor, irrevocable, complex, discretionary, spendthrift trust”, with a note that the structure may be referred to by several other similar but slightly different…
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A recent Chief Counsel Advice Memorandum (“CCA”) discusses certain tax consequences pertaining to a taxpayer owning cryptocurrency native to a blockchain that undergoes a protocol upgrade. CCA 202316008. In the hypothetical scenario discussed in the CCA, a hypothetical blockchain, very similar to Ethereum, underwent a change in the method in which it approved and processed…
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Every year the IRS publishes its list of the top tax scams that taxpayers should be aware of, known as the Dirty Dozen. I discussed the IRS’s 2021 Dirty Dozen list in a prior web article,[1] and the IRS has recently released its 2023 Dirty Dozen list.[2] Several of these scams are designed to steal…
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In a recent Notice issuance, the IRS and Treasury put taxpayers on notice that they intend to issue guidance related to the treatment of certain nonfungible tokens (“NFTs”) as collectibles under IRC § 408(m). Notice 2023-27 does not itself pass any regulations but instead puts taxpayers on notice for future guidance and that the IRS…
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So, you mooned in the short term on a completely degenerate gamble and want to offset income with charitable giving. First off, good on you for wanting to do the right thing. Second, don’t mess up. It may seem really simple that if you send some cryptocurrency to a qualifying organization, you should be able…
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In a prior article, I wrote about the importance of properly prepared Form 706 Estate Tax Return, discussing a Private Letter Ruling (“PLR”) that highlighted some common mistakes made on the Form 706.[1] In that article, I discussed issues related to the marital deduction and the allocation of a decedent’s unused Generation Skipping Transfer Tax…
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In a recent full Tax Court opinion[1], the Tax Court set aside Notice 2017-10, holding IRC § 6662A penalties are not to be imposed upon the taxpayer.[2] The Court’s reasoning was that the IRS failed to properly follow the notice-and-comment procedure, required under the Administrative Procedure Act. On December 23, 2016, the IRS issued Notice…
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The state of litigation concerning listed transactions has changed dramatically since the Supreme Court’s unanimous decision in CIC Services, LLC v. Internal Revenue Service in May of 2021. Prior to the Court’s decision, the IRS relied on the Anti-Injunction Act to shield itself from litigation based on the Service’s failure to go through the required…
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A recent Private Letter Ruling (“PLR”) issued by the IRS highlighted the importance of a properly prepared Form 706 Estate (and Generation Skipping Transfer) Tax Return (“706”).[1] The PLR granted the requesting Estate a 120-day extension to make a QTIP election (discussed below) as well as divide the QTIP Trust into a Generation Skipping Transfer…
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Tax rules relating to S corporations are a frequent and often time-consuming problem. With the release of Revenue Procedure 2022-19[1], the IRS just made it easier for S corporations to confirm compliance with tax rules and also has eased the administrative burden on the IRS in dealing with these taxpayers. The Internal Revenue Code provides…
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