Family limited partnerships must follow rules

A family limited partnership can be an effective estate planning tool. However, to be successful in removing future appreciation in value from the estate of a wealthy family member, it is important that the family limited partnership (FLP) meet strict guidelines, both...

IRS enforces rules on IRA withdrawal

A recent private letter ruling illustrates the dangers inherent in using IRA funds as a source of short-term financing. Normally, you can avoid tax on a distribution from a traditional IRA if you roll the money over to another IRA or other eligible retirement plan...

Good time to buy business SUV

If the soaring price of gasoline has not deterred you from purchasing a SUV, you may be able to take advantage of a perhaps unintentional tax break.   For a limited time only, the 100 percent bonus depreciation rules allow a complete write-off for the cost of a...

Penalties for offshore assets disclosed

The IRS has issued a memorandum describing the penalty framework that will apply to those who voluntarily disclose assets hidden in offshore accounts. The new program is a followup to voluntary disclosure efforts conducted two years ago. Every U.S. citizen who has a...

Healthcare act may go to Supreme Court

The Supreme Court has refused, without comment, to bypass the court of appeals and review a Virginia district court decision that challenges the constitutionality of the Patient Protection and Affordable Care Act.   In Virginia ex rel. Cuccinelli v. Sebelius...

Courts do not agree on IRS regulation

Several courts are addressing the legality of an IRS regulation, with mixed results.   Late last year, the IRS issued final regulations describing conditions under which it will be allowed six years – instead of the normal three years – to assess additional tax...