The IRS ruled that a retired employee’s receipt of excess pension payments for which collection of the overpayment was waived by the former employer was not reportable income resulting from a discharge of indebtedness.
The IRS has released compensation tables, listing amounts for both birth and Social Security retirement years, to provide employer assistance in calculating benefits under stock bonus, profit-sharing and pension plans.
In PLR 201742006, the IRS examined the tax implications of two identical incomplete gift, non-grantor trusts (“ING Trusts”) created by spouses, one by the husband and one by the wife (each a “grantor”). Each ING Trust provided for payments by a Distribution Committee (of which the grantor was a member) to the trust beneficiaries, including…
In Estate of Ruth M. Oberg, the decedent’s estate did not file federal or state estate tax returns until more than 4 years after her passing, despite the fact that her estate was above both the federal and New Jersey filing thresholds.
The IRS and other federal agencies have announced the following relief for the areas that were affected by Hurricane Harvey, Hurricane Irma, and Hurricane Maria:
In Estate of Sower v. Commissioner, the Tax Court held that, despite issuance of a closing letter for the predeceased spouse’s estate, the IRS retained authority to re-examine the predeceased spouse’s estate tax return for the purpose of determining the correct deceased spousal unused exclusion (DSUE) amount available to the surviving spouse’s estate.
The IRS announced that employer-sponsored retirement plans may provide relief in the form of loans or hardship distributions to participants and their family members who live and work in the FEMA-designated disaster areas affected by Hurricane Harvey.
In Notice 2017-44, IRS provides model amendments for qualified defined benefit (“DB”) plan sponsors used in offering bifurcated distribution options to participants in accordance with the recently issued final regulations regarding required survivor annuity distribution options. The final regulations provide two acceptable bifurcation methods –
On August 9, 2017, the final version of the IRS’ proposed mortality table regulations was sent to the Office of Management and Budget (“OMB”) for approval. The proposed regulations would change the life expectancy tables and likely increase pension funding liabilities for pension plan sponsors who use the tables to compute pension funding and lump-sum…
To support and incentivize charitable giving, the Internal Revenue Code (“Code”) provides an income tax deduction for contributions to qualified charities. The substantiation requirements for claiming the income tax deduction for charitable donations, however, are numerous and complex, especially for non-cash gifts.