May 242011
 
Making Use of GRATS Before It’s Too Late

The IRS recently announced its intent to publish Revenue Ruling 2011-13 which provides various prescribed interest rates for June 2011 for federal income, estate, and gift tax purposes. According to the IRS, the June section 7520 rate will be 2.8%. The reason this rate is relevant is because it serves as a reminder of the importance of establishing a Grantor Retained Annuity Trust (GRAT) now, while interest rates are low and the opportunity is still available. A GRAT is an estate planning technique based primarily on interest rate assumptions. It begins with the formation of a trust that typically exists More…

May 042011
 
IRS Prevails Against Tax Practitioner for Fraud

Every now and then I receive e-News bulletins from the IRS intended for tax practitioners. Recently, I received one which detailed that IRS’ triumph over a CPA who conspired with his client to hide income and submit fraudulent returns.  The United States District Court for the Southern District of Florida found that the CPA and the taxpayer evaded income taxes, “by utilizing sham corporate entities, nominee bank accounts, and other surreptitious means to conceal business income and assets.” When the government found out about their little ruse, the parties involved were punished severely. The taxpayer was sentenced to 54 months More…