Charitable remainder trust can be divided into separate trusts without adverse tax consequences

Rev Rul 2008-41, 2008-30 IRB

Mike Habib, EA
In the context of two fairly detailed factual situations, a new revenue ruling makes it clear that a charitable remainder trust (CRT) can be divided into two or more separate CRTs without adverse tax consequences. If [...]

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IRS discusses easing of cell phone recordkeeping requirements [Information Letter 2008-0012]:
The IRS has issued an information letter in response to a question regarding the noted difficultly that states and localities are having drafting cell phone policies that comply with IRS recordkeeping requirements.
Under IRC §162(a), individuals may take deductions for all ordinary and necessary [...]

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Limited partner’s investment interest from trader partnership deductible above-the-lineRev Rul 2008-38, 2008-31 IRB; Ann. 2008-65, 2008-31 IRB
Mike Habib, EA
Earlier this year, IRS issued Rev Rul 2008-12, 2008-10 IRB 520 concluding that where a non-corporate limited partner doesn’t materially participate in the partnership’s activity, his distributive share of the interest expense on debt allocable [...]

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Judge: IRS can seek tax information from Swiss banking giant UBS in expanding investigation
Associated Press WorldStream via NewsEdge :
MIAMI_A federal judge agreed Tuesday to allow the IRS to serve legal papers on Swiss banking giant UBS AG in an expanding investigation into U.S. taxpayers who may have used overseas accounts to hide assets and [...]

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Final regs on dependent child of divorced or separated parents or parents who live apart T.D. 9408, 07/01/2008; Reg. § 1.152-4 Mike Habib, EA
IRS has issued final regs on the rules for claiming a child as a dependent by parents who are divorced, legally separated under a decree of separate maintenance or a [...]

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TIGTA results of 2008 review IRS compliance with legal guidelines when conducting property seizures [Audit Report No. 2008-30-126]:
IRS has usually followed the numerous legal and internal guidelines that apply to seizures of taxpayers’ property, the Treasury Inspector General for Tax Administration (TIGTA) said in a recent audit. TIGTA based its opinion on a [...]

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New bill extends unemployment benefits for 13 weeksThe President has signed into law H.R. 2642, “The Supplemental Appropriations Act of 2008.”
Title IV of the bill authorizes an extension of unemployment insurance (UI) benefits. Individuals may be eligible for 13 weeks of extended benefits if they: (1) are fully or partially unemployed after July 5, 2008, [...]

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House passes AMT relief with bipartisan majority – President threatens veto On June 25, the House by a vote of 233 to 189 approved H.R.6275, the “Alternative Minimum Tax Relief Act of 2008.” The bill will be sent to the Senate for consideration.
The bill would patch the alternative minimum tax (AMT) problem for 2008 [...]

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Loan repayment to shareholder’s spouse wasn’t constructive distribution Beckley, 130 TC No. 18 (2008)
Mike Habib, EA

The Tax Court has ruled that payments made by a corporation to the wife of one of its shareholders represented repayment of money she advanced to a predecessor corporation. Despite the absence of a written loan agreement, the repayment wasn’t [...]

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Final regs include new process for reporting employment tax adjustments and refund claims
T.D. 9405, 06/30/2008, Reg. § 31.6011(a)-1, Reg. § 31.6011(a)-4, Reg. § 31.6011(a)-5, Reg. § 31.6205-1, Reg. § 31.6302-1, Reg. § 31.6402(a)-1, Reg. § 31.6413(a)-1, Reg. § 31.6403(a)-2
Mike Habib, EA

IRS has issued final regs on employment tax adjustments and refund claims, effective Jan. [...]

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