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Gift tax

Tax Court – gift tax return filed as part of settlement can’t escape late payment interest rules

Tax Court – gift tax return filed as part of settlement can’t escape late payment interest rules

Estate of La Sala, TC Memo 2016-42 The Tax Court has held that an estate’s agreement to file a gift tax return and pay the gift tax due with that return, as part of a settlement with IRS that reduced IRS’s proposed estate tax deficiency, did not prevent late payment interest from accruing with respect […]

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IRS Tax Tips to Help You Determine if your Gift is Taxable

IRS Tax Tips to Help You Determine if your Gift is Taxable

Tax Tips to Help You Determine if your Gift is Taxable If you gave money or property to someone as a gift, you may wonder about the federal gift tax. Many gifts are not subject to the gift tax. Here are seven tax tips for gifts and the gift tax. 1. Nontaxable Gifts. The general rule is […]

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Private Letter Ruling – payment from sale of unredeemed gift cards for goods or services could be deferred

Private Letter Ruling – payment from sale of unredeemed gift cards for goods or services could be deferred

PLR 201610017 In a Technical Advice Memorandum (TAM), IRS has concluded that a company can defer the recognition of advance payment income received from the sale of unredeemed gift cards that are redeemable for goods or services for up to two years, to the extent it can make an appropriate estimate of the amounts that […]

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Reminder: Mar. 31 is deadline for many inherited property basis returns

Reminder: Mar. 31 is deadline for many inherited property basis returns

The due date for filing returns with IRS and providing statements to beneficiaries under the rules requiring consistent basis reporting for inherited property for estate tax and income tax purposes, where the estate tax return of the decedent was filed after July 31, 2015, is Mar. 31, 2016, except with respect to decedents that died very […]

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New form sets out rules for reporting basis of decedent-owned property

New form sets out rules for reporting basis of decedent-owned property

Form 8971, Information Regarding Beneficiaries Acquiring Property From a Decedent (January 2016). IRS has released the final version of new Form 8971, which, pursuant to legislation enacted in 2015, must be used to report the final estate tax value of property distributed or to be distributed from an estate, if the estate filed a Federal […]

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Tax Court – State court decision on transfers between couple as gifts didn’t collaterally estop IRS

Tax Court – State court decision on transfers between couple as gifts didn’t collaterally estop IRS

Blagaich, TC Memo 2016-2 The Tax Court has concluded that a taxpayer couldn’t assert collateral estoppel against IRS and rely on a State court decision in a lawsuit between her and her ex-boyfriend that cash and property given to her by him were nontaxable gifts under Code Sec. 102(a). In addition, the Court held that […]

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Shareholder’s transfer to children after settlement of family business dispute was a taxable gift

Shareholder’s transfer to children after settlement of family business dispute was a taxable gift

Sumner Redstone, TC Memo 2015-237 The Tax Court has rejected a taxpayer’s claim that a transfer of stock to trusts for the benefit of his children wasn’t a taxable gift. Although the Court had previously found that a similar transfer by his brother to settle a dispute in the family business was made in the […]

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IRS tries to placate fears about alternate donee reporting of $250-or-more charitable gifts

IRS tries to placate fears about alternate donee reporting of $250-or-more charitable gifts

Emailed IRS Statement. Using the unusual venue of an e-mail, IRS has sought to assure charitable organizations that proposed regs issued in September wouldn’t make mandatory changes to the way donees currently acknowledge charitable gifts of $250 or more. The proposed regs would merely implement an optional donee reporting procedure, authorized by Code Sec. 170(f)(8)(D), […]

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Transfer to shareholder’s children to settle dispute in family business wasn’t a gift

Transfer to shareholder’s children to settle dispute in family business wasn’t a gift

Estate of Edward S. Redstone, (2015) 145 TC No. 11 The Tax Court, rejecting IRS’s claim that a taxpayer’s transfer of stock to trusts for the benefit of his children was a taxable gift, has concluded that the transfer was made in the ordinary course of business and for full and adequate consideration in money […]

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Donee’s assumption of Code Sec. 2035(b) estate liability reduced value of gift

Donee’s assumption of Code Sec. 2035(b) estate liability reduced value of gift

Jean Steinberg, Donor, (2015) 145 TC No. 7 The Tax Court has concluded that where a taxpayer gave her children property in exchange for their promise to pay any estate tax liability arising under Code Sec. 2035(b)’s “gross-up rule”—which increases a decedent’s gross estate by the amount of any gift tax paid by the decedent […]

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IRS issues proposed regs on transfer tax on covered gifts and bequests from covered expatriates

IRS issues proposed regs on transfer tax on covered gifts and bequests from covered expatriates

Preamble to Prop Reg 09/09/2015, Prop Reg § 28.2801-1, Prop Reg § 28.2801-2, Prop Reg § 28.2801-3, Prop Reg § 28.2801-4, Prop Reg § 28.2801-5, Prop Reg § 28.2801-6, Prop Reg § 28.2801-7 IRS has issued proposed regs on the tax under Code Sec. 2801 on U.S. citizens and residents who receive gifts or bequests […]

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Failure to adequately describe gifts allowed IRS to assess gift tax at any time

Failure to adequately describe gifts allowed IRS to assess gift tax at any time

Legal Advice Issued by Field Attorneys 20152201F Background on gift tax limitations period. The Code imposes a tax on a transfer of property by gift. (Code Sec. 2501(a)) In general, any individual who makes a transfer by gift in any calendar year must file a gift tax return for that year using Form 709, United States […]

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Court of Appeals 5th Circuit: statute limits donees’ liability for unpaid gift tax and interest to value of gift

Court of Appeals 5th Circuit: statute limits donees’ liability for unpaid gift tax and interest to value of gift

U.S. v. Marshall, (CA 5 08/19/2015) 116 AFTR 2d ¶2015-5156 The Court of Appeals for the Fifth Circuit, withdrawing its earlier decision and reversing in part the district court, has ruled in a per curiam opinion that donees of an indirect gift were liable for gift tax and interest only to the extent of the […]

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Your Annual Gift-Tax Exclusions – You May Give $14,000 Tax Free to As Many Recipients As You Like

Your Annual Gift-Tax Exclusions – You May Give $14,000 Tax Free to As Many Recipients As You Like

Your Annual Gift-Tax Exclusions – You May Give $14,000 Tax Free to As Many Recipients As You Like, as reported in the WS Journal. Q:  I recall a few years ago some IRS program having to do with an individual giving a gift of up to $10,000, I believe, to a family member, with no […]

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Fifth Circuit mostly affirms district court orders concerning gift tax on indirect transfer

Fifth Circuit mostly affirms district court orders concerning gift tax on indirect transfer

U.S. v. Elaine T. Marshall, 114 AFTR 2d ¶ 2014-5428 The Court of Appeals for the Fifth Circuit has affirmed, with one exception, multiple district court orders involving gift tax on an indirect gift consisting of a sale of stock at below market value that was never paid by the donor or his estate. Here, […]

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Decedent’s lifetime transfers of residence and rental properties includible in her estate

Decedent’s lifetime transfers of residence and rental properties includible in her estate

In Estate of Trombetta v. Commissioner, TC Memo 2013-234, the Tax Court has ruled that a taxpayer’s lifetime transfers of her residence to one trust and rental properties to another trust were transfers with a retained life estate and thus the properties were includible in her gross estate. It also ruled against the taxpayer with […]

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Agreement to pay parent’s potential gross-up estate liability could result in net gift

Agreement to pay parent’s potential gross-up estate liability could result in net gift

The Tax Court, in Jean Steinberg v. Commissioner, (2013) 141 TC No.8, has concluded that where a taxpayer gave her children property in exchange for their promise to pay any estate tax liability arising under Code Sec. 2035(b)’s “gross-up rule”—which increases a decedent’s gross estate by the amount of any gift tax paid by the […]

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Donees liable for interest on gift tax: U.S. v. MacIntrye

Donees liable for interest on gift tax:  U.S. v. MacIntrye

A district court in U.S. v. MacIntyre (DC Texas June 7, 2012), 109 AFTR 2d ¶ 2012-868 has held that donees were liable for interest assessed under Code Sec. 6601 and Code Sec. 6621 on their separate personal liabilities created by Code Sec. 6324(b) as a result of the failure of the estate of the […]

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Eight Tips to Determine if Your Gift is Taxable

Eight Tips to Determine if Your Gift is Taxable

Eight Tips to Determine if Your Gift is Taxable IRS Tax Tip 2012-62 If you gave money or property to someone as a gift, you may owe federal gift tax. Many gifts are not subject to the gift tax, but the IRS offers the following eight tips about gifts and the gift tax. 1. Most […]

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Meet Paul Raymond

Meet Paul Raymond

Mr. Raymond is a sought after speaker in tax controversy law by many attorney, accountant, and business groups and at the request of the Internal Revenue Service, has presented programs at the IRS Nationwide Tax Forum, attended by tax professionals throughout the United States.

Additionally, he continues to be an active member in the Section of Taxation, American Bar Association, where he was the Past Chair of the Employment Taxes Committee.

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Member CA Bar Member Orange County Bar US Tax Court Attorney