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Many FrontsMany Fronts
The Internal Revenue Service has almost literally thrown the (Internal Revenue Code) book at family limited partnerships (FLPs), seeking to negate their validity, and thereby knock out discounts and reap higher tax payments. It has had some of its greatest success against FLP discounts with IRC Section 2036(a).1 In Strangi II,2 the Tax Court's second ruling on Strangi,3 the IRS argued successfully
Edward A. Renn & N. Todd Angkatavanich
The Internal Revenue Service has almost literally thrown the (Internal Revenue Code) book at family limited partnerships (FLPs), seeking to negate their validity, and thereby knock out discounts and reap higher tax payments.
It has had some of its greatest success against FLP discounts with IRC Section 2036(a).1
In Strangi II,2 the Tax Court's second ruling on Strangi,3 the IRS argued successfully that the full value of an FLP's assets should be included in the decedent's estate pursuant to Section 2036(a)(2) because the decedent maintained a slight interest in the controlling entity of the FLP. This small interest was not even enough to control the decisions of the entity. Still, the court determined ...
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