The Tax Court has held in Estate of Lillian Baral, (2011) 137 TC No. 1 that payments made to caregivers for providing physician-ordered assistance and supervision to a patient suffering from dementia qualified as long-term care services under Code Sec. 7702B(c) and were thus deductible amounts paid for medical care under Code Sec. 213(d)(1)(C). The Beliveau Law Group: Massachusetts | Florida | New Hampshire The attorneys at The Beliveau Law Group provides legal services for estate planning

In PLR 201126023 the IRS has ruled that (1) the domestication of a foreign corporation would be considered a reorganization under Code Sec. 368(a)(1)(F); (2) such domesticated company could elect to be considered an S corporation on the date it became domesticated; and (2) the trusts that wholly-own the domesticated corporation were eligible to elect to be treated as electing small business trusts (ESBTs). Source: International Tax Updates on Checkpoint Newsstand The Beliveau Law Group: Massachusetts |

Beginning July 1, the 0.2% federal unemployment tax (FUTA) surtax is no longer in effect. The surtax was part of the 6.2% gross unemployment tax rate that employers pay on the first $7,000 of wages paid annually to each employee (6% permanent tax rate, 0.2% temporary surtax). The surtax had been in effect in every year since 1976, when it was enacted by Congress on a temporary basis. The FUTA tax rate, before consideration of state

In Comm. v. Simmons, (CA DC 6/21/2011) 107 AFTR 2d ¶ 2011-966, the Court of Appeals for the District of Columbia Circuit, affirming the Tax Court, has held that a taxpayer was entitled to charitable contribution deductions for her donation of conservation easements on the facades of two buildings located in a historic district. The Court rejected IRS’s contention that her contribution wasn’t exclusively for conservation purposes, as required by Code Sec. 170(h)(1)(C), and that she

In Intermountain, the Court of Appeals for the District of Columbia has reversed the Tax Court and upheld the regulations for Code section 6501(d)(1)(A) that treat a basis overstatement as triggering the 6 year limitations period for when a taxpayer omits from gross income an amount that is greater than 25% of the amount of gross income stated in the return. In upholding the regulations, the DC Court of Appeals joins the Court of Appeals for

The Fourth Circuit reversed the Tax Court and joins with the Third and Seventh Circuits upholding Reg. 1.6015-5(b)(1), which proves that a spouse must request equitable relief under Code Sec. 6015(f) no later than two years from the first collection activity against the spouse in Jones v. Comm., (CA 4 6/13/2001) 107 AFTR 2d 2011-930 IRS Commissioner Doug Shulman has directed the IRS to review the two-year period regulation noting that the courts are at odds