August, 2011 | The Beliveau Law Group

Draft forms for Form 706 for 2010 Decedents released

The IRS has released Draft Form 706 and Draft Instruction 706 for decedents who died within the 2010 calendar year. Beliveau Law Group: Massachusetts | Florida | New Hampshire The attorneys at the Beliveau Law Group provides legal services for estate planning (wills and trusts), Medicaid (planning and applications), probate (estate and trust administration), business law (formation and operation), real estate (residential and commercial), taxation (federal and state), and civil litigation (in connection with these practice areas).

Ninth Circuit upholds formula producing larger gifts for charity after valuation challenge

Anne Y. Petter (“Taxpayer” or “Anne”) transferred membership units in a family-owned LLC partly as a gift and partly by sale to two trusts and coupled the transfers with simultaneous gifts of LLC units to two charitable foundations. The transfer documents include both a dollar formula clause —which assigns to the trusts a number of LLC units worth a specified dollar amount and assigns the remainder of the units to the foundations—and a reallocation clause—which obligates

IRS changes position on two year rule for equitable innocent spouse relief

Notice 2011-70 expands the period within which individuals may request equitable relief from joint and several liability under section 6015(f) of the Internal Revenue Code. Specifically, this notice provides that the Internal Revenue Service will consider requests for equitable relief under section 6015(f) if the period of limitation on collection of taxes provided by section 6502 remains open for the tax years at issue. If the relief sought involves a refund of tax, then the period of

IRS issued revised Circular 230

The updated Treasury Department Circular 230 (Rev. 8-2011) is now available online. According to IRS, Circular 230 was revised to reflect the new return preparer oversight program and other changes. Beliveau Law Group: Massachusetts | Florida | New Hampshire The attorneys at the Beliveau Law Group provides legal services for estate planning (wills and trusts), Medicaid (planning and applications), probate (estate and trust administration), business law (formation and operation), real estate (residential and commercial), taxation (federal and

Guidance issued on how executors can elect to have carry over basis rules apply for deaths occuring in 2010

The Internal Revenue Service issued guidance on the treatment of basis for certain estates of decedents who died in 2010. The guidance assists executors who are making the choice to opt out of the estate tax and have the carryover basis rules apply. Form 8939, the basis allocation form required to be filed by executors opting out of the estate tax, is due Nov. 15, 2011. Under the guidance issued, an executor must file Form 8939,

Summer 2011 Newsletters

Elder Law Newsletter (PDF) Employment Law Newsletter (PDF) Estate Planning Newsletter (PDF) Family Law Newsletter (PDF) Real Estate Law Newsletter (PDF)

How do you calculate a participant’s required minimum distribution from a defined contribution plan?

In its Employee Plan News, June 22, 2011, IRS discusses how to calculate a participant’s required minimum distribution (RMD) from a defined contribution plan. Beliveau Law Group: Massachusetts | Florida | New Hampshire The attorneys at the Beliveau Law Group provides legal services for estate planning (wills and trusts), Medicaid (planning and applications), probate (estate and trust administration), business law (formation and operation), real estate (residential and commercial), taxation (federal and state), and civil litigation (in

Agreements with creditors didn’t shield president from trust fund recovery penalty

The Court of Appeals for the Fourth Circuit, affirming the district court, has held in Newbill v. U.S. that the president, treasurer, and majority shareholder of a construction company was liable for the trust fund recovery penalty under Code Sec. 6672. He was a responsible person, and agreements that gave creditors joint control over the company’s accounts didn’t shield him from the penalty. Beliveau Law Group: Massachusetts | Florida | New Hampshire The attorneys at the Beliveau

Private foundation’s receipt of note from founder’s corporation won’t be self-dealing

In PLR 201129049, IRS has privately ruled that a private foundation’s holding of a promissory note and its receipt of promissory note payments from its founder’s corporation after the period of estate administration terminations won’t be treated as acts of self-dealing subject to the Code Sec. 4941(a) excise tax. IRS concluded that the transactions will meet all of the requirements of the “estate administration exception” in Reg. § 53.4941(d)-1(b)(3). Beliveau Law Group: Massachusetts | Florida |

IRS rules no abatement of first-tier excise tax penalty on private foundation’s undistributed income

In a Technical Advice Memorandum (TAM) 201129050, IRS has determined that the first-tier excise taxes due under Code Sec. 4942 on a trust’s undistributed income for the years at issue shouldn’t be abated under Code Sec. 4962 because the trust failed to establish that it acted with reasonable cause and not with willful neglect. Beliveau Law Group: Massachusetts | Florida | New Hampshire The attorneys at the Beliveau Law Group provides legal services for estate planning

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August 2011