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Tax Advice Legal Advice Attorney Client Privilege
By Chris Moss CPA Welcome to TaxView with Chris Moss CPA Tax Attorney Are your tax communications with your tax attorney privileged under the attorney client confidentiality privilege? Are you receiving privileged communications from your tax attorney when there is tax advice being given? The United States Circuit Courts are split on the issue of attorney client privilege of tax advice and it was thought perhaps the US Supreme Court would settle the answer to the age old question is Tax advice Legal Advice when they agreed to hear oral arguments in Re Grand Jury The question presented to the US Supreme Court in 2023 almost would have answered this question--- almost---- in that after the Supreme Court heard oral argument In Re Grand Jury, the Court changed its mind with a DIG (dismissed as improvidently granted) and decided not to hear the case. Why did the Supreme Court hear oral arguments and then issue the DIG? Stay with us here on TaxView with Chris Moss CPA Tax Attorney. and find out the exciting answers to the age old question is tax advice legal advice and is that legal advice subject to the attorney client privilege? |
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IRS Business Purpose Doctrine SLAT/DAPT Family LLC Audit
By Chris Moss CPA Welcome to TaxView with Chris Moss CPA Tax Attorney If you have been following TaxView with Chris Moss CPA Tax Attorney regarding Irrevocable Spousal Lifetime Access Trusts and Domestic Asset Protection Trusts (SLATs and DAPTs) we have recommended best practice in 2019 is to have your Irrevocable SLAT/DAPT own your Family or Holding LLC partnership with your spouse, children and grandchildren as beneficiaries, and to transfer as much of your assets to your family Holding LLC as you can prior to the 2020 elections. However, there are IRS traps waiting to be sprung, as the Government waits, patiently I might add, until you die, disallowing your 2019 gift tax returns and bringing back all those assets ($22.8M married in 2019) back into your estate to be taxed at whatever rate Congress has enacted at the time of your death. The trap? The Business Purpose Doctrine of Court made case law and the IRS Code Section 2036(a): Your estate plan must have a legitimate non-tax business purpose. Seems simple, but perhaps not so simple. How to avoid this trap? Stay with us here on TaxView, with Chris Moss CPA Tax attorney to find out how to easily maneuver past this trap so your SLAT/DAPT and family Holding LLC will be created on a solid structural foundation to withstand the IRS storms ahead when your estate gets audited years after your passing. |
