Contact: Joseph E. Lundy, Schnader Harrison Segal & Lewis LLP (Delaware & Pennsylvania, USA)

It has been reported that many colleges and universities have received IRS Notices assessing significant penalties for failing to provide accurate or complete information on IRS Forms 1098-T. Going forward, colleges and universities may be able to take advantage of a safe harbor included in recently enacted trade legislation to avoid penalties for failing to properly report student taxpayer ID numbers (TIN). It remains uncertain how the IRS proposes to respond to requests for abatement of penalties assessed for deficiencies in prior year filings of such forms.

Please click here to read the full Alert.

Contact: S. Eva Wolf, Mitchell Silberberg & Knupp LLP (Los Angeles, California, USA)                  

The laws addressing the basis of property acquired from a decedent were revised on July 31, 2015. Generally, property acquired from a decedent receives a basis equal to its fair market value at the decedent’s date of death, or if elected, the alternate valuation date. This basis adjustment is advantageous to beneficiaries receiving appreciated property, because the pre-death appreciation is not subject to capital gains tax.

Read more: New Law Steps Up Reporting Requirements for Executors

Legislation for the bahamas government’s national budget for the period 2015/2016 came into effect as of 01 July 2015. The national fiscal year runs 01 July to 30 June.

This is Delaney Partners’ annual fiscal update to clients arising out of the national budget.

Read more: Bahamas National Budget 2015/2016

By: Will Hellams

For years, estate tax planning for couples has included the use of credit shelter trusts, also known as bypass or family trusts, to take advantage of the first-to-die spouse’s estate tax exemption. Over the past 15 years, the federal estate tax exemption has increased from $675,000 to $5.4 million in 2015. Maryland and the District of Columbia have passed laws increasing their state estate tax exemption amounts. The increase in federal and state estate tax exemptions has meant estate taxes are no longer a concern for most people.

Read more: Gimme Shelter: Income Tax Planning Opportunity for Certain Credit Shelter Trusts

Until now, non-UK residents have generally been able to dispose of UK property without incurring a liability to Capital Gains Tax (CGT) but from 6 April this will change and non-residents will be subject to CGT on disposals of UK residential property. The term “disposal” includes not only a sale but also a gift, so those considering gifts to, say, children also need to take note of this change. The proposals were originally announced in the 2013 Autumn Statement but following publication of the draft legislation for inclusion in the Finance Bill 2015, full details are now available. 

Read more: Non-Residents to pay CGT on residential property from April 2015: Details announced