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Abstract:
This update explains several developments in the substantive federal income, estate and gift tax laws affecting individual taxpayers and small businesses. It contains summaries of significant cases, rulings, regulations, legislation and other matters from August, 2007, through August, 2008. This update generally does not discuss developments in the areas of qualified plans or the taxation of business entities (except to a very limited extent).

tax, income, estate, gift, cases, rulings, regulations, legislation, update

Abstract:
This update explains several developments in the federal income, estate and gift taxes affecting individual taxpayers and small businesses. It contains summaries of significant cases, rulings, regulations, legislation and other matters from August, 2005, through September, 2006. This update generally does not discuss developments in the areas of qualified plans or the taxation of business entities (except to very limited extents).

federal income tax, tax, cases, rulings, regulations, update, 2006

Abstract:
This update explains several developments in the substantive federal income, estate and gift tax laws affecting individual taxpayers and small businesses. It contains summaries of significant cases, rulings, regulations, legislation and other matters from August, 2006, through September, 2007. This update generally does not discuss developments in the areas of qualified plans or the taxation of business entities (except to a very limited extent).

tax, update, income, estate, gift, partnership, international, recent, developments, legislation, cases, rulings, regulations

Abstract:
This paper examines significant developments in the federal income, gift, and estate taxation of individuals and small businesses from August, 2008, through August, 2009. It covers important cases, rulings, regulations, and legislation during this period. This paper generally does not address developments in the areas of qualified plans or the taxation of C corporations (except to limited extents).

taxation, update, cases, rulings, regulations, legislation, tax, estate, gift, income, bailout, deduction, credit

Abstract:
This article discusses three income tax rules that can cause partners to recognize gain for federal income tax purposes upon the liquidation of a family limited partnership: §§ 704(c)(1)(B), 731(c), and 737. From a policy perspective, the application of these rules to traditional family limited partnerships creates two problems. These problems are illustrated through the use of a hypothetical case study.

The first problem (which arises where the partnership holds loss property) is that of super-recognition, where a partner recognizes more gain from the liquidation than he or she would recognize upon a sale of his or her partnership interest. The article argues that while super-recognition is appropriate in the context of a traditional partnership, it is not appropriate in the context of the typical family limited partnership formed for estate planning purposes.

The second problem relates to the return-to-sender exception, which permits a partnership to distribute property back to the contributing partner without forcing the contributing partner to recognize gain under these rules. Regulations expressly extend the return-to-sender exception to a contributing partner's assignee for purposes of §704(c)(1)(B), but the regulations are ominously quiet as to whether assignees of a contributing partner are spared from the other two rules. The article argues that the return-to-sender exception should be extended to the assignees of a contributing partner for all purposes.

family limited partnership, liquidation, tax policy, distributions, partnership, estate planning

Abstract:
Family partnerships and family limited liability companies are typically formed for reasons of efficiency, succession, and valuation. But all good things come to an end. Owners of a family partnership opt for liquidation in a variety of situations, usually following the death of the founding owner(s). Although most practitioners recall that the liquidation of a partnership is not a taxable event, few remember that as many as three Code provisions can come into play upon the liquidation of a family partnership. This article reviews those potential income tax traps and uses two examples to illustrate their coordination and application in a typical setting.

partnerships, liquidations, tax, estate planning

Abstract:
There is growing political momentum to simplify the Internal Revenue Code. While the federal tax laws should be no more complex than necessary, this Article demonstrates that tax complexity is not as bad as political rhetoric leads us to believe. The Article makes four arguments in support of this thesis. First, the forces comprising tax complexity are either inevitable or net beneficial, so calls for simplification are ultimately pointless. Second, the alleged harms of tax complexity are either unproven or overstated, so the need for simplification is questionable. Third, significant proposals for simplification are flawed because they either overcorrect for the perceived problem or actually result in increased complexity. Finally, as a criterion of tax policy, simplicity is overrated. While many scholars use the criteria of equity, efficiency, and simplicity in conducting tax policy analysis, simplicity is best characterized as a component of the efficiency criterion. By elevating simplicity to a plan equal with efficiency and equity, therefore, one gives greater weight to simplicity than to equity and the other components of efficiency. To the extent equitable-but-complex laws are superior to inequitable-but-simple laws, the emphasis on simplicity is misguided.