Tax, Trust and Estates Attorney, Scott Filmore featured in The Journal of Taxation January 2014 Issue discussing Self-Cancelling Installment Notes
Tax, Trust and Estates Attorney, Scott Filmore is highlighted in the January issue of The Journal of Taxation. Scott reviews a recent and surprising IRS ruling concerning the valuation of self-cancelling installment notes, which are used to shelter assets from transfer tax. The case has generated a lot of commentary among trusts and estates practitioners. The ruling is related to Davidson v. Commissioner, a case that is currently on the Tax Court docket. The amounts in controversy are staggering; in one of its claims, the IRS asserted over $2 billion in additional taxes and penalties. A decision by the Tax Court may have a substantial effect on a wide variety of estate planning techniques.
An interesting side note of the Davidson case is that the decedent was one of the wealthiest individuals in the country and was the owner of the NBA's Detroit Pistons and the NHL's Tampa Bay Lightning.