QUESTION
Does the IRS seem to be more interested in reviewing Crummey notices as of late and if so what do you recommend clients do to get their house in order
Asked on Jun 13th, 2013 on Estate Planning - Colorado
5 ANSWERS
Trusts Attorney serving Sacramento, CA
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Law Office of Victor Waid
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Consult with legal counsel who specializes in tax/irs matters.
Answered on Jun 14th, 2013 at 9:13 AM
Business Planning Attorney serving Livonia, MI
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Frederick & Frederick Attorneys at Law
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It is far less likely that Crummey notices will be needed, since the estate tax exclusion has increased, and will continue to do so. Having said that, I have not seen any increase in scrutiny.
Answered on Jun 14th, 2013 at 9:13 AM
Bankruptcy Attorney serving Florissant, MO
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Law Offices of Thomas Corcoran Phipps
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I am not aware of any patterns of review or audits by IRS. I would keep very organized and clear records in case of an audit. If you have any questions you should consult a CPA or attorney.
Answered on Jun 13th, 2013 at 1:03 PM
Yes, the IRS is really ramping up its actions, both legitimate and illegitimate, to maximize its revenue. It is like a guard dog who wants to control its master, the taxpayers. You should see a good estate planning attorney to review your Crummey notices. We are scrutinizing them in our office currently due to the aggressiveness of the IRS. Remember, that just because the IRS takes a position against you it does not necessarily mean that it is correct. You can fight it in court.
Answered on Jun 13th, 2013 at 11:00 AM
I have seen no increase in service review of withdrawal right notices, however, the service has been taking a closer look at the administration of ILIT's for some time. For further information, make sure the trustee of the ILIT has counsel experienced with these type of trusts.
Answered on Jun 13th, 2013 at 10:01 AM