Tax developments were a little slow for this shortened holiday week, but we managed to find several interesting topics to cover, including a court ruling on exempt status for an organization formed for the purpose of . . . well, you’ll just have to read on.
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Two items this week:
- Book review. Ever wonder what’s the best book you can get on the subject of estate planning? Whether you’re an individual planning your own estate or a financial advisor looking to bolster your knowledge of the subject, you’ll appreciate Estate Planning Smarts: A Practical, User-Friendly, Action-Oriented Guide
by Deborah L. Jacobs, which we reviewed here.
- GRAT rules may change soon. See @Congress, below.
@Congress
For the second week in a row, congressional gridlock was not in evidence — this time because Congress was away on its Fourth of July recess. This respite allowed us to catch up with a proposed change in the rules affecting grantor retained annuity trusts, or GRATs. The proposal has been kicking around for a while, but enactment could be imminent now that it has been inserted into a war funding bill. That’s important because a major provision of the law takes effect immediately.
@IRS
Not much of note this week.
- The IRS sent out a reminder that summer childcare, and even day camp for children under 13, can qualify for the childcare credit.
- We couldn’t resist the urge to poke fun at another IRS release offering tax tips for students with summer jobs.
@Court
A federal district court in Massachusetts declared the Defense of Marriage Act unconstitutional in a case that would affect the income tax filing status of same-sex couples married in that state, among many other rights and obligations.
On a lighter note, the Tax Court, in an opinion remarkable for its restraint, denied tax-exempt status for an organization formed to provide sperm to women seeking a donor — chiefly because it was offering only the sperm of the guy who formed the organization. Now that’s Darwinian.
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