Prose by Tax Pros

  It appears that the IRS is on its way to stopping taxpayers from taking what it considers improper positions related to charitable remainder annuity trusts (“CRATs”). The IRS has prevailed in two recent cases, with the Tax Court rejecting all arguments raised by the taxpayers. Consequently, taxpayers with similar CRATs must make a critical decision. Should they hunker down and prepare to fight, or is pro-actively approaching the IRS a better option? This article supplies an overview of tax issues concerning CRATs, explains various actions taken by the IRS to halt what it deems abusive behavior, analyzes the relevant Tax Court decisions, and examines several options remaining for taxpayers with imminent CRAT problems. Read the full article here. About Hale E. Sheppard HALE E. SHEPPARD, Esq. (B.S., M.A., J.D., LL.M., LL.M.T.) is a Shareholder in the Tax Controversy Section of Chamberlain Hrdlicka and Chair of the International Tax Group.

The IRS has been using claims of “technical” problems as its primary weapon in attacking conservation easement donations. This often means identifying shortcomings with Deeds. In an effort to eliminate tax disputes centered on technicalities and get focused on valuation instead, groups have been asking the IRS to issue guidance for years. The IRS did not react until Congress recently forced it to do so. The IRS, pursuant to a congressional mandate, released Notice 2023-30. This article explains the main aspects of the new easement law, two relevant easement clauses, history of prior requests for a model Deed, and the narrow content of Notice 2023-30. Read the full article here. About Hale E. Sheppard HALE E. SHEPPARD, Esq. (B.S., M.A., J.D., LL.M., LL.M.T.) is a Shareholder in the Tax Controversy Section of Chamberlain Hrdlicka and Chair of the International Tax Group.

  Disputes will arise when Congress enacts a tax incentive, it orders the IRS to supply details via regulations, the IRS publishes Notices instead, the Notices contemplate participation by multiple parties and the liberal allocation of tax benefits among them, the IRS issues guidance over the years echoing the Notices, and then the IRS suddenly changes its tune. This is exactly what has occurred when it comes to tax deductions for expenses related to Energy Efficient Commercial Building Property. This article provides an overview of Section 179D, explains various sources of IRS guidance from the past two decades, and analyzes the newest Tax Court case on point, Johnson v. Commissioner. Read the full article here. About Hale E. Sheppard HALE E. SHEPPARD, Esq. (B.S., M.A., J.D., LL.M., LL.M.T.) is a Shareholder in the Tax Controversy Section of Chamberlain Hrdlicka and Chair of the International Tax Group.

This article does the following: explains the economic substance doctrine and the reasons why Congress codified it, summarizes IRS guidance over the following decade, reviews the recent mandate authorizing Revenue Agents to challenge economic substance without first obtaining executive approval, identifies sources demonstrating that attacks on economic substance are on the rise, and highlights obstacles the IRS will encounter if it continues down this path. Read the full article here. About Hale E. Sheppard HALE E. SHEPPARD, Esq. (B.S., M.A., J.D., LL.M., LL.M.T.) is a Shareholder in the Tax Controversy Section of Chamberlain Hrdlicka and Chair of the International Tax Group.