In an August 1, 2008 statement, DOJ Deputy Assistant Attorney General John DiCicco comments on a Claims Court ruling that denied deductions and imposed a 40% penalty on a family that sold stock in their business and used a portion of the proceeds to purchase a "Son of BOSS" digital foreign currency tax shelter in an effort to avoid $40 million in capital gains taxes. Under the topic of food for thought, although this case included no charitable component, we wonder if the tax(and penalty)payers' advisors ever presented a charitable remainder trust or other philanthropic planning vehicle for their clients' consideration?  MORE »

In a letter sent shortly after the government froze $500 million in Xelan assets, Michael C. Durney, a former Justice Department Deputy Assistant Attorney General for the Tax Division and current litigant in the Xelan matter, wrote Eileen O'Connor, Assistant Attorney General for the Tax Division, that the action was unprecedented and unwarranted.  MORE »

In an AOD 1999-001, the IRS has acquiesced to the Second Circuit's ruling in Eisenberg v. Commissioner, 155 F.3d 50 (1998), which held that when valuing closely held stock which is the subject of a gift, an adjustment for potential capital gains tax liabilities should be applied, regardless of whether a liquidation or sale of the Corporation's assets was planned at the time of the gift.   MORE »