Tax & Accounting Blog

Partners and Details Firming around FATCA

Partners and Details Firming around FATCA

Foreign financial institutions and governments might initially have groaned when the U.S. Congress passed the Foreign Account Tax Compliance Act in March 2010, but it looks like at least some of them are starting to come around. In February, the U.S. Treasury announced it had partnered with five European nations — France, Germany, Italy, … Read More

New Cost Basis Rules May Be Lost on Many

New Cost Basis Rules May Be Lost on Many

With taxpayers in the throes of planning their 2011 income tax returns, now’s a good time to remind filers not to overlook new cost basis reporting rules governing securities sales. In the past, they had the option of specifying which shares they sold when computing their cost basis. But as of 2011, taxpayers’ account custodians … Read More

IRS Requests Comments on the Tax Consequences of a Decanting Trust

IRS Requests Comments on the Tax Consequences of a Decanting Trust

In a Notice, the IRS has requested comments on when and under what circumstances transfers by a trustee of all or a part of the principal of an irrevocable trust (Distributing Trust) to another irrevocable trust (Receiving Trust), sometimes called decanting, that result in a change in the beneficial interests in the trust aren’t subject … Read More

Deadline Approaching for Executors to Make Portability Election for Post-2010 Estates

Deadline Approaching for Executors to Make Portability Election for Post-2010 Estates

In a notice and accompanying news release, IRS reminded executors of the estates of married decedents dying after 2010 that they must file an estate tax return in order to pass along the unused estate and gift tax exclusion amount, available for the first time this year, to their surviving spouse. The first estate tax … Read More

Congress Allows Numerous Temporary Provisions to Expire at the End of 2011

Congress Allows Numerous Temporary Provisions to Expire at the End of 2011

Congress allowed numerous temporary provisions to expire at the end of 2011. But, note that Congress may retroactively reinstate some or all of these rules. Below are some of the provisions that expired. Reduced alternative minimum tax (AMT) exemption amounts.  Absent another AMT patch, the AMT exemption amounts for tax years beginning after 2011 revert to the … Read More