Trustee personally liable for failing to honor IRS levy
Article Abstract:
The court in 'Ruff' ascribed personal liability to a trustee in a corporation's Chapter 7 bankruptcy for not implementing an IRS levy to collect the outstanding tax liabilities of the broker hired by the trustee. The levy targetted all of the broker's property, property rights, and all money or obligations owed to the broker. When the trustee was asked to impose the levy against the broker's commission, the trustee responded that the broker had no forthcoming funds and that it could not be ascertained when the broker would next receive any money. The Eleventh Circuit Court found that the trustee was personally liable for the broker's property not surrendered in accordance with the notice of the levy since the trustee held the broker's right to property upon receipt of the notice.
Publication Name: Taxation for Accountants
Subject: Business
ISSN: 0040-0165
Year: 1997
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QTIP not snubbed when spouse fails to get stub income
Article Abstract:
The Eleventh Circuit has repealed the decision made by a Tax Court in 'Estate of Shelfer.' It judged that a trust could be a qualified terminable interest property (QTIP) trust despite the fact that the surviving spouse was not allowed to partake of trust income collected between the date of the last distribution and the date of death of the spouse. Although the decision may be seen as a victory on the part of taxpayers, it is worth noting that it was the IRS that called for the looser interpretation of the QTIP statutory requirements. The Eleventh Circuit follows the Ninth Circuit when it comes to QTIP cases. The Ninth Circuit previously opined in the 'state of Howard' case that the disposition of stub income does not disqualify property from QTIP status.
Publication Name: Taxation for Accountants
Subject: Business
ISSN: 0040-0165
Year: 1996
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