IRS Extends Guidance on Trustee Fees

The IRS announced that it is fluctuating halt superintendence on a diagnosis of investment advisory fees and other costs theme to a 2% building underneath Sec. 67(a) (Notice 2011-37). Under a notice, nongrantor trusts and estates will not be compulsory to unbundle their fiduciary fees to establish what apportionment is theme to a 2% threshold for itemized deductions. Instead, taxpayers will be authorised to concede a full volume of bundled fiduciary fees though courtesy to a 2% floor.

The notice extends diagnosis that was creatively released in Notice 2008-32, effective for taxation years commencement before Jan 1, 2008. Subsequent notices extended a diagnosis to years commencement before Jan 1, 2009, and afterwards Jan 1, 2010. Notice 2011-37 abandons a proceed of fluctuating a diagnosis one year during a time and extends it to any taxation year commencement before a date final regulations underneath Regs. Sec. 1.67-4 are published in a Federal Register.

The IRS and a Treasury Department intend to heed a regulations to a Supreme Court’s preference in Michael J. Knight, Trustee of William L. Rudkin Testamentary Trust, 552 U.S. 181 (2008), though so distant have not finished so.

About Emil Estafanous, CPA
Certified Public Accountant (CPA) Tax Professional committed in representing taxpayers and resolving their tax problems.

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