Portability - ACT NOW

By Lester B. Law

-- January 2, 2018 Deadline to Cure "Past" Missed Portability Elections!
-- Two Years from Death of Death to Make Future Portability Elections!

Revenue Procedure 2017-34, issued on June 26, 2017, provides two new forms of administrative grace, one allowing all "past" missed portability elections to be fixed and one allowing "future" missed portability elections to be fixed.  There are limits on this administrative grace, however.

The new IRS procedure allows every small estate where the portability election was missed since the date of enactment the opportunity to go back and make the election.  We cannot stress enough this new procedure's importance.

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IRS Warns of Cyber Fraud - Be Sensible and Sensitive ... Don't be Caught by Tax Phishing Scams!

By Lester B. Law

More and more, emboldened cyber scammers attempt to abscond with taxpayers' funds and information by posing as IRS representatives (or as representatives of some other legitimate agency or private company).  This illegal cyber activity is referred to as "phishing".  In a recently published report, the IRS alerts practitioners to advise their clients about recent phishing e-mails. This Client Alert summarizes the IRS' advice regarding keeping your sensitive information private, and advises about the tax implications regarding such losses.

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Durable Powers of Attorney

By Richard S. Franklin and Lester B. Law

A DPOA is a device used to authorize another person (the "Agent") to manage the financial affairs of the person granting the power of attorney (the "Principal").  Without using this tool (or other similar tools), in the event that the Principal becomes incapacitated, an expensive and invasive, court-monitored guardianship proceeding may be neeed to authorize someone to act on the Principal's behalf.

 

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D.C. Estate Tax Exemption Will Increase . . . But When?

By Michelle L. Evans

The presumably permanent federal estate tax exemption of $5,000,000, as indexed for inflation, has created an increased focus on state estate taxes.  In order to remain attractive to individuals concerned about estate tax exposure, some states have recently passed legislation to increase their estate tax exemptions.  For example, Maryland enacted a new law that gradually increases the Maryland estate tax exemption each year until it matches the federal estate tax exemption in 2019.  The District of Columbia recently enacted the Tax Revision Commission Implementation Amendment Act of 2014 (the "TRC ACT"), which became law on February 26, 2015, and makes several changes to the D.C. estate law.

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