Highlights of the American Taxpayer Relief Act – Part I

On January 1, 2013, Congress passed the American Taxpayer Relief Act (“2012 Taxpayer Relief Act”), which the President has vowed to sign as soon as it is ready for his signature.  The 2012 Taxpayer Relief Act will prevent many of the tax hikes scheduled to go into effect this year and retain many favorable tax … Continued

Treasury Responds to Claims of Undervaluation in Contributed Retirement Plan Assets

Treasury has answered a letter from Democratic Representatives voicing suspicions that the contribution limits for tax-deferred retirement accounts are being avoided by undervaluing the contributed assets.   Treasury highlighted the IRS’s enforcement efforts, opined that current tax rules provide little incentive to shift investment gains to IRAs and SEP-IRAs by using undervalued assets, and highlighted current … Continued

Individual Taxpayers and The 3.8% Medicare Surtax

The 2010 Patient Protection and Affordable Care Act, which the Supreme Court largely declared constitutional last month, contains several new taxes.  Among the most significant is the new 3.8% Medicare surtax on investment income which takes effect January 1, 2013.

New, Temporary Regulations Explain Estate Tax Portability Election

IRS has issued long-awaited temporary and proposed regulations providing guidance on the requirements for electing portability of a deceased spousal unused exclusion amount (“DSUEA”) to the surviving spouse, and on the rules for the surviving spouse’s use of this DSUEA.