Black Shirts (Black, Shurtz) and the Marital Deduction MismatchBlack Shirts (Black, Shurtz) and the Marital Deduction Mismatch
In the ongoing family limited partnership (FLP) battle between taxpayers and the Internal Revenue Service, taxpayers have been able to achieve some significant victories over the past two years in the Tax Court, particularly in the face of IRS challenges under Internal Revenue Code Section 2036(a). In these recent cases, the IRS has argued that all of the assets contributed by a decedent into an FLP
N. Todd Angkatavanich
In the ongoing family limited partnership (FLP) battle between taxpayers and the Internal Revenue Service, taxpayers have been able to achieve some significant victories over the past two years in the Tax Court, particularly in the face of IRS challenges under Internal Revenue Code Section 2036(a). In these recent cases, the IRS has argued that all of the assets contributed by a decedent into an FLP during his lifetime should be included in the gross estate under a Section 2036(a) retained interest theory. Six recent cases, however, have demonstrated that it's possible for a taxpayer's estate to successfully defend a Section 2036(a) challenge by satisfying the “bona fide sale for an adequate and full consideration” e...
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