This new, simplified procedure is retroactive and effective for all taxable years for which a refund with interest
was paid after December 31, 1986.
His involvement with interest on federal taxes dates back as far as 1955, when he was of counsel for the taxpayer in the consideration by the Supreme Court of the United States of Premier Oil Co.
942, where interest on a deficiency extinguished by a carryback was discussed along with interest in other situations; the term "restricted interest" was applied to refer to interest that was limited or restricted by some statutory prohibition of interest.
Terminating interest on the due date of the amount against which the credit is taken coordinates with section 6601(f), which deals with interest on underpayments satisfied by a credit.
This negates any argument that interest expense may be netted with interest
* Netting interest income with interest
expense subject to capitalization.
The IRS disallowed the netting of interest income with interest
rates at their lowest level in nearly 20 years (but expected to increase in the future), now may be the most opportune time to establish a grantor retained annuity trust (GRAT) or a grantor retained unitrust (GRUT).
The IRS conceded that a MID for each gift should not be disallowed "solely because the transferred interests, when aggregated with interests
held by family members, would be a part of a controlling interest." In effect, the Service accepted the willing buyer-seller standard and agreed to value each gift separately.
Interests in rental realty cannot be combined with interests
in other trade or business activities.
Consequently, a MID will not be disallowed solely because a transferred interest, when aggregated with interests held by family members, would be part of a controlling interest.
93-12, that in valuing the shares, a MID will not be disallowed solely because a transferred interest, when aggregated with interests held by other family members, would be part of a controlling interest, it ruled that the swing vote attributes of each block should be considered in determining the value of each share.
93-12 merely held that "a minority discount will not be disallowed solely because a transferred interest, when aggregated with interests
held by other family members, would be part of a controlling interest." (Emphasis in original.)