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17 Prac. Tax Law. 1 (2002-2003)

handle is hein.ali/practax0017 and id is 1 raw text is: THE PRACTICAL

FALL 2002

Published by The American Law Institute-American Bar Association Committee on Continuing
Professional Education with the cooperation of the Section of Taxation, American Bar Association

What Every Tax Practitioner Needs
To Know About Trust Fund Taxes
and Responsible Person Liability
in Bankruptcy
Joseph DiGiuseppe                             7
Many financially distressed businesses fail to
account for, collect, and turn over required with-
holding taxes. This article defines the principles
behind both federal and state withholding tax lia-
bility, explains how these principles interact with
the Bankruptcy Code, and offers practical steps for
lawyers advising potential responsible persons.
Synthetic Lease Off Balance Sheet
Financing Before and After (?) Enron
Iris June Brown                              19
The primary benefit of a synthetic lease is account-
ing treatment, which keeps the asset and associated
liability off the company's balance sheet, thereby
improving the company's financial ratios. As a
financing device, it typically get a lower cost of
funds than prevailing mortgage rates. The company
gets the tax benefits of ownership (depreciation and
interest deductions). However, such leases must
meet a host of accounting rule requirements to
achieve the desired accounting result, and then
must also pass scrutiny by the IRS.
The New Determination Letter Procedures
Pamela D. Perdue                             25
The Service has now revised the determination let-
ter program to allow plan sponsors more flexibility
in deciding the level and type of review sought on
request of a favorable determination letter. The
consequences of these changes are reviewed in this

Testamentary Contributions of
Retirement Plan Assets to Split-Interest
Charitable Arrangements: A Primer
Lisa Bianculli                               35
After reviewing the taxation of qualified retire-
ment plans and related distribution rules and the
split-interest giving techniques that currently
exist, the author focuses on the tax consequences
to the charity, the estate, and the noncharitable
beneficiary of retirement plan distributions to
split-interest vehicles.
What You Should Know About
Obtaining IRS Private Letter Rulings
Robert S. Schwartz                           49
Since obtaining favorable tax rulings from the ERS
always works to the taxpayer's benefit, questions
arise regarding the circumstances when a taxpayer
can or should obtain a private letter ruling and how
the request for a private letter ruling should be pre-
pared for the greatest chance of success. This article
provides some general advice in answer to these
practical questions. It highlights the most important
procedural prerequisites for obtaining a private letter
ruling and discusses common practical impediments
to obtaining private letter rulings.
A More Dangerous Game-New Federal
Sentencing Guidelines and Tax Crimes
Theodore M. David                            55
Practitioners owe it to their clients to explain that the
game of tax fraud has gotten more dangerous with
a much greater likelihood of incarceration for tax loss
at all levels. The time to correct potential tax fraud
issues is before IRS contact of any kind. To avoid client
incarceration, practitioners must attempt to have
clients qualify under the voluntary disclosure policy
of the IRS. This article explains how to do so.

Taxing Decisions
Programs, Publications,
and Playbacks

5      ALI-ABA and ABA Section
of Taxation CLE Calendars

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