2007 Articles

Alternative Minimum Tax By Sarah Delano Pavlik August 2007 Everyone agrees that something must be done to fix the alternative minimum tax (AMT).

Amendment to applicable sections of the Internal Revenue Code: Changing the deductibility of attorney fees By Sarah Delano Pavlik August 2007 In previous years, we discussed the case of Officer Cynthia Spina which made national headlines in 2002.

Cancellation of debt & Section 108 By Gregory A. Zbylut October 2007 In recent years, with interest rates at their lowest levels and banks seemingly giving away mortgages, owning one’s own home never seemed easier.

Chair’s Corner By Sarah Delano Pavlik August 2007 As the Chair of the Federal Taxation Section Council for 2007-2008, I want to welcome you to the Section.

Collection procedure update March 2007 Section 509 of the Tax Increase Prevention and Reconciliation Act of 2005 (TIPRA) had a profound effect on offer in compromise procedures, especially those for the submission of most offers based on doubt as to collectibility.

Estate and gift tax recent cases and rulings By Joseph P. O’Keefe & Elizabeth C. Hesselbach June 2007 At issue in this case was the estate tax valuation of a decedent’s shares in a publicly traded company.

Estate and gift tax update By Robert J. Krupp March 2007 Husband and Wife established an irrevocable life insurance trust for the benefit of their children by transferring two life insurance policies to the trust.

Estate Tax Repeal By Robert J. Krupp August 2007 The debate surrounding the estate tax focuses on eliminating the tax in total or reforming it by increasing the exemption level and lowering the top rate.

Federal estate and gift tax update By Michelle L. Heller January 2007 The Tax Court decided that the fair market value of decedent’s personal residence, which was transferred to a partnership formed shortly before the transfer, was includable in her gross estate under section 2036(a)(1) because she retained the “possession” and “enjoyment” of the property after the transfer.

The Illinois Series LLC provides several planning opportunities but significant issues remain unresolved By Edward J. Hannon June 2007 In 2005, Illinois amended its Limited Liability Company Act to provide for the creation of a “Series LLC.”

Individual income tax update By James H. Schultz March 2007 During 2006, numerous tax laws were enacted that will affect individual taxpayers.

Internal Revenue Service liaison update By Thomas F. Arends March 2007 The editorial staff of the Newsletter would like to inform members of the Section that Mr. Thomas Arends of the Council currently serves as liaison for the Section to the Internal Revenue Service.

IRS Collection Financial Standards October 2007 Effective October 1, 2007, the IRS Collection Financial Standards for use in calculating repayment of delinquent taxes have been revised.

IRS Stakeholder Liaison October 2007 Information of interest to tax practitioners.

IRS Telephone Directory for Practitioners October 2007 Information of interest to tax practitioners.

Major “Kiddie Tax” changes By Edward J. Fellin December 2007 The Small Business and Work Community Tax Act of 2007 extends the reach of “Kiddie Tax” that is imposed on the investment income of minor children.

Not-for-profit organizations and donor provisions of the Pension Protection Act of 2006 By Donna F. Hartl June 2007 On August 17, 2006, the Pension Protection Act of 2006 was signed into law.

Offer in compromise By George E. Marifian August 2007 These Comments are submitted partly in response to changes to the offer in compromise program (the “OIC Program”) enacted as part of the Tax Increase Prevention and Reconciliation Act of 2005 (Pub. L. No. 109-222) (“TIPRA”).

Overview of the multi-employer plan provisions in the Pension Protection Act of 2006 By Thomas Vasiljevich March 2007 The Pension Protection Act of 2006 (“PPA”), signed into law on August 17, 2006 by President Bush, contains significant changes for multi-employer plans.

Phantom gain—It’s magic “Minimum” gain arising from partnership nonrecourse debt By Derek P. Usman December 2007 Section 702(a) provides a list of items arising from partnership operations that are to be separately distributed to each partner.

Proposed regulations limiting estate tax deductions for uncertain claims against decedents and other administration expenses under §2053 By Steve R. Akers June 2007 The IRS has issued proposed regulations dealing primarily with the deductibility of claims against a decedent’s estate that are uncertain in amount at the date of death.

Realistic business succession planning for family businesses By Leonard S. DeFranco January 2007 The business lawyer, in my experience, usually gives short shrift to the myriad of issues that confront succession planning in a family-owned business.

Shareholder loans made simple By Derek P. Usman January 2007 Shareholders of a corporation taxed under Subchapter S of the Internal Revenue Code may elect a “pass-through” taxation system.

Tax professionals take note: Monetary penalties for misconduct By Kevin Thorn December 2007 On April, 23, 2007, the Internal Revenue Service issued Notice 2007-39 (“the Notice”), which provides guidance to the IRS Office of Professional Responsibility (“OPR”) in exercising its authority to impose monetary penalties for practitioner misconduct.

Valuing private company stock: Determining fair market value for purposes of §409A By Alan R. Singleton October 2007 Internal Revenue Code §409A requires all non-qualified stock options and stock appreciation rights to have exercise prices set at or above the fair market value of the underlying stock at the time the grant is made.