Cases, Rulings, Regulations

This is the third and final portion of the series on insurable interest.  Steve Leimberg and Randy Zipse of the John Hancock discuss the latest trends and key issues in this most important and currently notable area.They warn practitioners that more insurable interest cases and rulings can be expected and that a failure to meet both the letter and the spirit of insurable interest laws will not only lead to lawsuits and policy rescissions - but in the life settlement and investor-initiated life insurance (SOLI and CHOLI) areas - are indicative of consumer and insurance fraud. This Podcast is sponsored by Leimberg Information Services, Inc. at http://www.leimbergservices.com Please visit our software, books, and PowerPoint Presentations site at http://www.leimberg.com

This PodCast is a frank discussion of what some of the top practitioners in the country are thinking,  and actually doing,   with respect to a number of key estate planning tools and techniques.  (PLEASE be patient since the download takes a minute or two) Part 1 covered Planning Techniques, FLPs, and State Death Taxes.   This part covers planning for nonresident aliens and trust tools and techniques. Dan Hastings, Skadden, Arps, Slate, Meagher & Flom LLP in NYC, Ann B. Lesk, of Fried, Frank, Harris, Shriver & Jacobson LLP in NYC, and Joshua S. Rubenstein, Katten Muchin Rosenman LLP in NYC are the panelists. Special Thanks to Dick Nenno, Managing Director and Trust Counsel of Wilmington Trust Company for making this very special program available to LISI members! This Podcast is sponsored by Leimberg Information Services, Inc. at http://www.leimbergservices.com Please visit our software, books, and PowerPoint Presentations site at http://www.leimberg.com

This PodCast is a frank discussion of what some of the top practioners in the country are thinking, and actually doing, with respect to a number of key estate planning tools and techniques.Part 1 covers Planning Techniques, FLPs, and State Death TaxesThe panelists for this Wilimington Trust Company PodCast on THE FURTURE OF ESTATE PLANNING are Dan Hastings, Skadden, Arps, Slate, Meagher & Flom LLP in NYC, Ann B. Lesk, of Fried, Frank, Harris, Shriver & Jacobson LLP in NYC, and Joshua S. Rubenstein, Katten Muchin Rosenman LLP in NYC.We thank Dick Nenno, Managing Director and Trust Counsel of Wilmington Trust Company for making this very special program available to LISI members!! This Podcast is sponsored by Leimberg Information Services, Inc. at http://www.leimbergservices.com Please visit our software, books, and PowerPoint Presentations site at http://www.leimberg.com

This PodCast revisits the Cohan (records keeping) rule, but this time in the context of a much larger taxpayer than we normally look at, in the case of Tyson Foods, Inc and Subsidiaries vs. Commissioner, TC Memo 2007-188.  The taxpayer was attempting to argue, based on Cohan rationalization, that they should be able to depreciate a $2,000,000+ debit remaining on their books after making an agreed upon adjustment under IRS exam.  The IRS (and eventually the Tax Court) did not agree that such a treatment should be allowed. The materials for the case are at http://www.edzollars.com/2007-07-21.pdf . This Podcast is sponsored by Leimberg Information Services, Inc. at http://www.leimbergservices.com Please visit our software, books, and PowerPoint Presentations site at http://www.leimberg.com

This PodCast concerns income taxation where equitable ownership of a home is involved.  Equitable ownership of a home can make a eligible for a deduction for mortgage interest and taxes -  even when the taxpayer is not the legal owner.  While the taxpayer in the case of Nair v. Commissioner, TC Summary Opinion 2007-116, did not have such ownership, the opinion does outline the requirements a taxpayer would need to demonstrate to have such equitable ownership. Mr. Nair's failed attempt to obtain a casualty loss deduction also offers some insights into the issue of establishing basis for items that are involved in a casualty loss deduction. The materials for the podcast can be downloaded from http://www.edzollars.com/2007-07-15.pdf. This Podcast is sponsored by Leimberg Information Services, Inc. at http://www.leimbergservices.com Please visit our software, books, and PowerPoint Presentations site at http://www.leimberg.com

This PodCast pertains to both the changes to Circular 230 paragraph 10.35 back in 2005 and the recent revisions to Section 6694. We review the penalties that can be imposed on a taxpayer.  We specifically examine  6662(b)(1)'s negligence and disregard of rules and regulations penalty and will later focus on the substantial understatement provisions of 6662(b)(2). The materials for this podcast can be found at http://www.edzollars.com/2007-06-29_Client_Side_Penalties.pdf . This Podcast is sponsored by Leimberg Information Services, Inc. at http://www.leimbergservices.com Please visit our software, books, and PowerPoint Presentations site at http://www.leimberg.com

This PodCast provides a look at recent cases where the IRS lost a statute of limations argument.  In the case of Bakersfield Energy Partners, LP, 128 TC No. 17, the question was whether an overstatement of basis used in computing a Section 1231 gain could result in omission from gross income that triggers the six year statute of limitations under Code Sections 6629 and 6501.   The Tax Court decided the answer was "No". The materials can be downloaded at http://www.edzollars.com/2007-06-22_Limits.pdf . This Podcast is sponsored by Leimberg Information Services, Inc. at http://www.leimbergservices.com Please visit our software, books, and PowerPoint Presentations site at http://www.leimberg.com

This PodCast pertains to IRS Notice 2007-54 which grants partial relief from some of the changes made to the preparer penalties under Section 6694(a), delaying full implementation of the provisions until next year.  We discuss the extent of the relief granted, as well as some of the reactions to this change noticed in online discussion groups. The materials for this podcast, including the above notice, can be found at www.edzollars.com/2007-06-15_Delay_of_Game.pdf . This Podcast is sponsored by Leimberg Information Services, Inc. at http://www.leimbergservices.com Please visit our software, books, and PowerPoint Presentations site at http://www.leimberg.com

This PodCast examines Pediatric Affililates, P.A., (2007-1 USTC 50,477) where the Third Circuit Court of Appeals upheld the U.S. District Court of New Jersey's determination that the taxpayers were liable for unpaid payroll taxes that their payroll service had walked off with.  The case is instructive for the types of responsibilities under the tax law a taxpayer is unable to delegate to a third party.The materials can be downloaded at www.edzollars.com/2007-05-18_Payroll_taxes.pdf . This Podcast is sponsored by Leimberg Information Services, Inc. at http://www.leimbergservices.com Please visit our software, books, and PowerPoint Presentations site at http://www.leimberg.com

This PodCast is Part 2 of Wilmington Trust's 2007 Future Vision of Estate Planning and features Dick Nenno asking perceptive questions of some of the brightest and most creative minds in practice today.  Leimberg Information Services Inc. (LISI) is deeply appreciative of Wilmington Trust Company's willingness to share with LISI members this very practical and insightful session. This Podcast is sponsored by Leimberg Information Services, Inc. at http://www.leimbergservices.com Please visit our software, books, and PowerPoint Presentations site at http://www.leimberg.com

This PodCast contains the first round of Wilmington Trust's 2007 Future Vision of Estate Planning and features Dick Nenno asking perceptive questions of some of the brightest and most creative minds in practice today.  This is Part 1.Leimberg Information Services Inc. (LISI) is deeply appreciative of Wilmington Trust Company's willingness to share with LISI members this very practical and insightful session. This Podcast is sponsored by Leimberg Information Services, Inc. at http://www.leimbergservices.com Please visit our software, books, and PowerPoint Presentations site at http://www.leimberg.com

This PodCast examines Proposed Regulations under Section 152 to clarify the treatment of divorced parents, regulations that would both serve to document what has developed under the current temporary regulations and case law and add some new quirks-including the ability to revoke a waiver that was to apply to a future year by the custodial parent. The materials for the podcast can be found at http://www.edzollars.com/2007-05-08_Dependent.pdf . This Podcast is sponsored by Leimberg Information Services, Inc. at http://www.leimbergservices.com Please visit our software, books, and PowerPoint Presentations site at http://www.leimberg.com

This PodCast is about travel deductions.  A taxpayer without a regular place of business can still obtain a deduction for travel away from home if the taxpayer can establish that he/she has a home.  In two cases (Jason Ayala v. Commissioner and Manuel Ayala, Jr. v. Commissioner) the taxpayers failed to show they had a home and lost the deduction.  But the IRS also failed in its attempt to assess a negligence penalty on these taxpayers. The materials for the podcast can be downloaded from http://www.edzollars.com/2007-04-27_Home.pdf . This Podcast is sponsored by Leimberg Information Services, Inc. at http://www.leimbergservices.com Please visit our software, books, and PowerPoint Presentations site at http://www.leimberg.com

This Podcast provides guidance on Circular 230 issues.  The IRS on April 23 released guidance on the application of monetary penalties to practitioners, their employers, firms and related entities for violations of Circular 230 as authorized by the American Jobs Creation Act of 2004 This guidance gives some insight into the IRS's views on how they will make use of this new enforcement tool, as well as some indication of what the IRS might view as an appropriate quality control system for a tax practice.  If, as expected, SSTS No. 9 goes from an exposure draft to a final standard for CPAs, this document may be one to consider when a CPA firm sets out its tax quality control standards. And given the existence of the 'aspirational' standard for best practices in Circular 230 Section 10.33, the importance of SSTS No. 9 may not be limited to CPAs. The materials for this podcast can be found at http://www.edzollars.com/2007-04-24_Monetary_Penalties.pdfThere's an excellent book on this topic by Jonathan Bl

This Podcast concerns the income tax statute of limitations.  When Code Section 6501(c) refers to a false and fraudulent return, does the IRS need to show that the taxpayer was involved in the fraud to be able to use the unlimited statute of limitations to assess tax?  Or is it enough to show only that the preparer was involved in preparing a false return with the intent to evade income tax on behalf of the taxpayer?  That's the issue the Tax Court considered in the case of Allen v. Commissioner, 128 TC No. 4.The supporting materials for this podcast can be downloaded from http://edzollars.com/2007-03-10_Preparer_Fraud.pdf . This Podcast is sponsored by Leimberg Information Services, Inc. at http://www.leimbergservices.com Please visit our software, books, and PowerPoint Presentations site at http://www.leimberg.com

This Podcast is Part II in a discussion on Insurable Interest between Steve Leimberg and Randy Zipse of the John Hancock. This Podcast is sponsored by Leimberg Information Services, Inc. at http://www.leimbergservices.com Please visit our software, books, and PowerPoint Presentations site at http://www.leimberg.com

This Podcast is the first in a 3 part series on Insurable Interest.  In this Podcast, Steve Leimberg and Randy Zipse of the John Hancock discuss the underlying philosophy and legal background.  In the following Podcasts, Steve and Randy will cover more specific situations such as the insurable interest between spouses, unmarried couples, parents and children, partners and their partnerships, and employers and employees. This Podcast is sponsored by Leimberg Information Services, Inc. at http://www.leimbergservices.com Please visit our software, books, and PowerPoint Presentations site at http://www.leimberg.com

This Podcast is about IRS guidance indicating their displeasure with a marketed FLP shelter that promises benefits via the literal application of partnership provisions in the IRC.  In CCA 200704028 the IRS outlines both the shelter that was marketed that claimed the magic of returning most of the investment via a credit against state taxes and then a capital loss deduction for the investment for federal tax purposes as well.  The IRS outlines three separate rationales for disallowing the claimed treatment.The materials for the podcast can be downloaded from http://edzollars.com/2007-02-24_Credit_Denied.pdf . This Podcast is sponsored by Leimberg Information Services, Inc. at http://www.leimbergservices.com Please visit our software, books, and PowerPoint Presentations site at http://www.leimberg.com

This PodCast is about Medical Reimbursement Plans (MRPs).  In the 2006 Speltz case the taxpayer prevailed in a medical reimbursement plan provided for her husband who worked for the taxpayer's daycare business as an employee.  That was a case where the taxpayer kept excellent records and truly kept track of all the necessary details.  This Podcast reflects the results in two cases where taxpayers were not as meticulous with such plans and the results were not nearly as good.We look at the cases of Snorek v. Commissioner, TC Memo 2007-34 and Francis v. Commissioner, TC Memo 2007-33 for taxpayers who adopted medical reimbursement plans but found that there was more to sustaining the deduction than just doing that. The materials for this week's presentation can be downloaded from http://edzollars.com/2007-02-17_Medical.pdf We also share early experiences with Microsoft Vista, Word 2007 and Excel 2007.  You can also find a tipcard for Excel 2007  at the following site: http

This Podcast is about timing.  We examine the case of a traveler who got bitten when she attempted to make use of the hotel to get a package picked up by a private delivery service-a package that happened to contain her petition to the Tax Court which she was filing on the last day available.  When the delivery service reported picking up the package the following day, the IRS argued that she had blown her chance to file in Tax Court--and the Tax Court agreed.The case is Austin v. Commissioner, TC Memo 2007-11 and the materials can be downloaded at http://edzollars.com/2007-01-27_Late_Filing.pdf.We also discuss the IRS announcement that 2006 returns won't be due until April 17 due to April 16 being a city holiday in the District of Columbia and its impact at the state level. Finally, this PodCast covers this week's release by Microsoft of the consumer version of Windows Vista and Office 2007. This Podcast is sponsored by Leimberg Information Services, Inc. at http://www.leimbergservic