IRS Appeals Jelke to Supreme Court

The government asked the U.S. Supreme Court to review the Eleventh Circuit’s decision in Estate of Frazier Jelke III v. Commissioner (100 AFTR2d 2007-6694, “Tax Matters: Dunn Does It Again,” JofA, March 08, page 70). The Eleventh Circuit previously declined to rehear en banc its decision overruling the Tax Court on a valuation discount for tax liability of an estate’s built-in capital gains.

In its brief to the Supreme Court, the government said the Eleventh Circuit in Jelke adopted the “categorical approach which it believed the Fifth Circuit had adopted in Estate of Dunn v. Commissioner” (90 AFTR2d 2002-5527). Following that approach, the Eleventh Circuit in Jelke rejected the Tax Court’s holding that discounted the built-in gains tax liability over a period of time. Rather, the Eleventh Circuit said, 100% of the built-in gains taxes must be taken into account under the net asset valuation method (regardless of the likelihood of liquidation), because the method assumes that all assets are liquidated as of the date of valuation. In its brief to the Supreme Court, the government argued the Eleventh Circuit had used an erroneous standard of review—it treated the selection of a valuation method as a matter of law (and therefore subject to de novo review) instead of as a matter of fact (which can be reviewed only for clear error).


Year-end tax planning and what’s new for 2016

Practitioners need to consider several tax planning opportunities to review with their clients before the end of the year. This report offers strategies for individuals and businesses, as well as recent federal tax law changes affecting this year’s tax returns.


News quiz: Retirement planning, tax practice, and fraud risk

Recent reports focused on a survey that gauges the worries about retirement among CPA financial planners’ clients, a suit that affects tax practitioners, and a guide that offers advice on fraud risk. See how much you know with this short quiz.


Bolster your data defenses

As you weather the dog days of summer, it’s a good time to make sure your cybersecurity structure can stand up to the heat of external and internal threats. Here are six steps to help shore up your systems.