Court’s Change to Beneficiary Didn’t Create Inherited IRA
Posted by Kim Chen on February 24th, 2017
During his lifetime, the decedent designated a trust as his IRA’s beneficiary. However, the IRA’s custodian didn’t have a copy of the trust instrument and found no evidence that a trust had been created. According to his will, the decedent’s entire estate was left to his spouse, who wanted to roll over the account to […]
IRS Won’t Reject Returns If Health Coverage Information Missing
Posted by Kim Chen on February 21st, 2017
Earlier this year, the IRS made changes to its system that would automatically reject tax returns that failed to provide information on health coverage. However, on 1/20/17, President Trump issued an executive order that directed federal agencies to waive, defer, grant exemptions from, or delay implementation of Affordable Care Act (ACA) provisions that impose a […]
Income Tax—Temporary Regulations on Corporate Spin-offs
Posted by Kim Chen on February 12th, 2017
The IRS has issued guidance in the form of temporary regulations ( TD 9805 ) under IRC Secs. 355(e) and 355(f), which provide exceptions to the Section 355 rule that spin-offs of controlled corporations are tax-free. The regulations impose a tax on a company that spins off a unit if the distributing company or the […]
Foreign Reporting—Passive Foreign Investment Company (PFIC) Ownership Rules
Posted by Kim Chen on February 8th, 2017
Final regulations (TD 9806) were issued that provide guidance on who is an owner of a PFIC, the annual filing requirements for shareholders of PFICs, and statements required to be filed with the IRS by those excepted from certain foreign corporation return rules. Under IRC Sec. 1297(a) , a PFIC is any foreign corporation if […]
Health Care—Final Regulations on Premium Tax Credit
Posted by Kim Chen on February 4th, 2017
The IRS has issued final regulations regarding the premium tax credit that finalizes portions of proposed regulations issued in July 2016 with minor modifications. These final regulations include provisions on eligibility for the premium tax credit, computing the premium assistance amount, and the applicable benchmark plan premium. The regulations do not cover provisions on the […]
