Tax Law Update

David A. Handler (attorney, Chicago, IL) recently published his Tax Law Update, Trusts & Estates (Oct. 2010). The updates he discusses include:

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    • Private Letter Ruling 201029014 (July 23, 2010). The IRS explained that the trustee’s participation determines whether trust activity is passive under IRC Section 469.
    • Private Letter Ruling 201032010 (Aug. 13, 2010). The IRS explained that the disclaimer of an interest in trust passing to a private foundation meets the qualified disclaimer rules and is eligible for a charitable deduction.
    • Estate of Dickow v. United States, 106 A.F.T.R.2d 2010-xxxx (Aug. 19, 2010). The U.S. District Court for Massachusetts held that the estate’s claim for a refund was untimely because the estate tax payment was not made within the look-back period of 3.5 years from the extension request.
    • Chief Counsel Advice 201033030 (Aug. 10, 2010). The Office of Chief Counsel ruled against the IRS, preventing it from collecting time-barred gift tax based on equitable remedies.
    • Estate of Jensen v. Commissioner, T.C. Memo 2010-182 (Aug. 10, 2010). The Tax Court held for the estate with regard to a discount for built-in capital gains.