Transfer Tax Audit Often Opening Round in Litigation

As the IRS has increased pressure on family limited partnerships and LLCs in recent years, that focus has widened to boost estate and gift tax audits. What practitioners must understand is that those audits are where any legal case is fully developed, according to John W. Porter, an experienced tax litigator. Porter writes in a recent issue of the Journal of Practical Estate Planning that it has become necessary to consult with a trial lawyer early in the estate-planning process to ensure that the non-tax reasons for creating an entity are properly documented in a way that will withstand examination in court. The early documentation steps will be critical, as is any information provided to IRS field agents during the audit examination, Porter notes.

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This story is from the CCH’s monthly Focus on Tax newsletter, which provides advise and guidance on federal and state tax issues for tax and accounting professionals.

Read this article from CCH’s Journal of Taxation of Financial Products.

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Wolters Kluwer Tax and Accounting

Wolters Kluwer Tax and Accounting is a leading provider of software solutions and local expertise that helps tax, accounting, and audit professionals research and navigate complex regulations, comply with legislation, manage their businesses and advise clients with speed, accuracy and efficiency. Wolters Kluwer Tax and Accounting is part of Wolters Kluwer N.V. (AEX: WKL), a global leader in information services and solutions for professionals in the health, tax and accounting, risk and compliance, finance and legal sectors. We help our customers make critical decisions every day by providing expert solutions that combine deep domain knowledge with specialized technology and services. Wolters Kluwer reported 2016 annual revenues of €4.3 billion. The company, headquartered in Alphen aan den Rijn, the Netherlands, serves customers in over 180 countries, maintains operations in over 40 countries and employs 19,000 people worldwide. Wolters Kluwer shares are listed on Euronext Amsterdam (WKL) and are included in the AEX and Euronext 100 indices. Wolters Kluwer has a sponsored Level 1 American Depositary Receipt program. The ADRs are traded on the over-the-counter market in the U.S. (WTKWY).

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