The FLP QuadrilogyThe FLP Quadrilogy
Estate and gift tax valuation positions associated with family limited partnerships (FLPs) often are challenged by the Internal Revenue Service and somewhat unpredictably adjudicated by the courts. But in the last two years, taxpayers have won four key victories starting with the Mirowski case in 2008 and continuing with the Miller, Keller and Murphy cases in 2009 in which estates were able to prevail
N. Todd Angkatavanich & Edward A. Vergara
Estate and gift tax valuation positions associated with family limited partnerships (FLPs) often are challenged by the Internal Revenue Service and somewhat unpredictably adjudicated by the courts. But in the last two years, taxpayers have won four key victories — starting with the Mirowski case in 2008 and continuing with the Miller, Keller and Murphy cases in 2009 — in which estates were able to prevail against the IRS challenges of FLPs because the bona fide sale exception to Internal Revenue Code Section 2036 had been satisfied.1 These cases represent a new trend because the consistency of their themes provides some further insight into the circumstances under which FLP planning has the greate...
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