Petter v. Commissioner, T.C. Memo. 2009-280 (Dec. 7, 2009) Defined Value Clause Upheld; “One-Two Punch” to IRS’s Fight Against Defined Value Clauses
Estate of Christiansen v. Commissioner, 104 AFTR2d 2009-XXXX (8th Cir. Nov. 13, 2009, corrected Nov. 18, 2009) Eighth Circuit Upholds Formula Disclaimer Over Public Policy Objections (or “Friday the 13th Massacre of IRS Position on Defined Value Clauses”)
Final Regulations Under Section 2053 Governing Estate Tax Deductions for Administration Expenses and Claims Against Estates (November 2009)
Estate of Murphy vs. United States, U.S. Dist. Ct. W.D. Ark. El Dorado Division, Case No. 07-CV-1013 (October 2, 2009) Total Taxpayer Victory in FLP Case Involving §2036, Rule 144/Blockage Discounts, FLP Discounts, and Graegin Loan
Estate of Malkin v. Commissioner, T.C. Memo. 2009-212 (September 16, 2009) IRS Defeats Aggressive FLP Planning; Issues Involving §2036, Indirect Gifts, and Sham Sales and Loans
Keller v. U.S., Civil Action No. V-02-62 (S.D. Tex. August 20, 2009) $40 Million Taxpayer Victory; Partnership Recognized Although Not Formally Funded Before Decedent’s Death; 47.5% Discount Allowed For Assignee Interest in Limited Partnership Holding Bond Portfolio; Bona Fide Sale Exception to Sections 2036 and 2038 Applied; Interest on Loan to Borrow Money From Partnership After Death to Pay Estate Taxes and Other Obligations Is Deductible For Estate Tax Purposes
Pierre v. Commissioner, 133 T.C. No. 2 (August 24, 2009) Transfers of Interests in Single-Member LLC Treated as Transfers of Interests in the Entity Rather Than as Transfers of Proportionate Shares of the Underlying Assets (Without a Discount)
Heckerman v. U.S., U.S. Dist. Ct., W.D. Washington, Cause No. C08-0211-JCC (July 27, 2009) Contributions of Cash to LLC and Gifts of LLC Interests on the Same Day Treated as Indirect Gifts and as Step Transaction to Eliminate Discounts for Gift Tax Purposes
Linton v. U.S., U.S. Dist. Ct. W.D. Washington, Cause No. C08-227Z (July 1, 2009) Contributions of Property to LLC and Gifts of LLC Interests on the Same Day Resulted in Application of Indirect Gift and Step Transaction Doctrines to Eliminate Any Discounts for Gift Tax Purposes (July 21, 2009)
Estate of Jorgensen, T.C. Memo. 2009-66 Section 2036 Applied to Creation of FLPs; Equitable Recoupment Allowed to Adjust for Prior Income Tax Overpayments in Light of Increase in Basis Attributable to Increased Gross Estate Value (March 26, 2009)
Bianca Gross v. Commissioner Tax Court Rejects Indirect Gift Attack for Gift of Partnership Interest At Least 11 Days After Contribution of Stock Portfolio to Partnership, Bianca Gross v. Commissioner, T.C. Memo 2008-221 (September 29, 2008)
Holman v. Commissioner Tax Court Rejects Indirect Gift Theory For Gifts of Partnership Interests After an FLP is Formed and Applies Section 2703 to ransfer Restrictions, Holman v. Commissioner, 130 T.C. No. 12 (May 27, 2008)
Astleford v. Commissioner Tier Discounts Allowed; Substantial Lack of Control and Marketability Discounts Recognized for Parent and Subsidiary Real Estate Partnerships, Astleford v. Commissioner, T.C. Memo. 2008-128
Mirowski v. Commissioner T.C. Memo. 2008-74; Court Rejects IRS’s §§2036(a)(1), 2036(a)(2), 2038, and 2035 Arguments
