Posted by Bill Mureiko, Eric Reis and Mary McNulty
On March 6, 2014, Bill Mureiko, Eric Reis, and Mary McNulty discussed recent developments in avoiding disputes with the IRS and beneficiaries with the Firm’s Family Office Discussion Group. A copy of their presentation is available here. Topics included no-contest clauses, mandatory arbitration clauses in wills and trusts, the new IRS information document request (IDR) process that became effective on March 3, 2014, and the offshore voluntary disclosure program (OVDP). Key points from the presentation include the following:
- A new Texas statute became effective on January 1, 2014, governing the enforceability of no-contest clauses in wills and trusts.
- The Texas Supreme Court recently decided that a beneficiary who has accepted the benefits of a trust has also agreed to all the terms of the trust, including any arbitration provisions.
- The IRS has announced a new IDR process that clarifies and supercedes the IRS process announced on June 18, 2013, and November 4, 2013, and previously discussed here.
- The Offshore Voluntary Disclosure Program is becoming increasingly important as the IRS and the Department of Justice reach more agreements with offshore banks that will allow them to identify U.S. citizens who failed to disclose offshore bank accounts and to report income from such accounts on their U.S. tax returns.
If you have any questions about any of these topics or if you would like to join the Firm’s Family Office Discussion Group, please contact one of the authors or any of the other Tax lawyers at Thompson & Knight.