In its Employee Plan News, June 22, 2011, IRS discusses how to calculate a participant’s required minimum distribution (RMD) from a defined contribution plan. Beliveau Law Group: Massachusetts | Florida | New Hampshire The attorneys at the Beliveau Law Group provides legal services for estate planning (wills and trusts), Medicaid (planning and applications), probate (estate and trust administration), business law (formation and operation), real estate (residential and commercial), taxation (federal and state), and civil litigation (in

The Court of Appeals for the Fourth Circuit, affirming the district court, has held in Newbill v. U.S. that the president, treasurer, and majority shareholder of a construction company was liable for the trust fund recovery penalty under Code Sec. 6672. He was a responsible person, and agreements that gave creditors joint control over the company’s accounts didn’t shield him from the penalty. Beliveau Law Group: Massachusetts | Florida | New Hampshire The attorneys at the Beliveau

In PLR 201129049, IRS has privately ruled that a private foundation’s holding of a promissory note and its receipt of promissory note payments from its founder’s corporation after the period of estate administration terminations won’t be treated as acts of self-dealing subject to the Code Sec. 4941(a) excise tax. IRS concluded that the transactions will meet all of the requirements of the “estate administration exception” in Reg. § 53.4941(d)-1(b)(3). Beliveau Law Group: Massachusetts | Florida |

In a Technical Advice Memorandum (TAM) 201129050, IRS has determined that the first-tier excise taxes due under Code Sec. 4942 on a trust’s undistributed income for the years at issue shouldn’t be abated under Code Sec. 4962 because the trust failed to establish that it acted with reasonable cause and not with willful neglect. Beliveau Law Group: Massachusetts | Florida | New Hampshire The attorneys at the Beliveau Law Group provides legal services for estate planning

In four identical private rulings, IRS has concluded that neither trusts’ transfers of farmland to limited liability companies (LLCs) in exchange for interests in the LLCs, nor the LLCs’ lease of the farmland to a partnership, will trigger recapture of special use valuation. PLR 201129016, PLR 201129018, PLR 201129019, PLR 201129020 Beliveau Law Group: Massachusetts | Florida | New Hampshire The attorneys at the Beliveau Law Group provides legal services for estate planning (wills and trusts),

The First Court of Appeals in Recovery Group, Inc., (CA 1 7/26/2011) 108 AFTR 2d ¶ 2011-5114, confirmed the Tax Court when it determined that a covenant not to compete, entered into in connection with the acquisition of a portion of the stock of a corporation that is engaged in a trade or business, is considered a “section 197 intangible,” within the meaning of I.R.C. § 197(d)(1)(E), regardless of whether the portion of stock acquired constitutes

A new Chief Counsel Notice (CCN), cc-2011-017 “Change in Litigating Position on the Two-Year Deadline to Request Section 6015(f) Equitable Relief”, formally reverses IRS’s litigation stance on the issue of whether an individual may request equitable relief under Code Sec. 6015(f) more than two years after IRS first acted to collect the liability from the individual. The CCN explains why IRS reversed course, and how litigators should apply IRS’s new position, namely that it will consider a

IRS has warned U.S. taxpayers hiding income in undisclosed offshore accounts that they are running out of time to take advantage of the soon-to-expire 2011 Offshore Voluntary Disclosure Initiative (OVDI), which will expire on Aug. 31, 2011. The IRS reminded taxpayers that the 2011 Offshore Voluntary Disclosure Initiative (OVDI) will expire on Aug. 31, 2011. Taxpayers who come forward voluntarily get a better deal than those who wait for the IRS to find their undisclosed accounts

IRS has revised Notice 2011-53 which provides the phased implementation of the Foreign Account Tax Compliance Act (FATCA) rules that expand the information reporting requirements imposed on foreign financial institutions (FFIs) and impose withholding, documentation, and reporting requirements with respect to certain payments made to specified foreign entities. The revised Notice provides that a withholding agent’s Code Sec. 1472(a) withholding obligations for payment to a non-financial foreign entity with respect to amounts described in Code Sec. 1473(1)(A)(i)