Retirees Found Liable for Pennsylvania Inheritance Taxes
Two retirees who inherited money in retirement accounts are responsible for paying inheritance taxes to Pennsylvania, a state appeals court decided. The court held that the ultimate liability for paying inheritance taxes is upon the transferee unless a contrary intent is expressed in the will. The court held that the retirement accounts were not part of the will, which specified that the estate would cover estate, inheritance and other death taxes only for property passed through the will.
IRS Issues Proposed Consolidated Returns Rules
The IRS released proposed rules to update regulations for corporations filing consolidated returns. The agency released proposed rules updating the regulations under Code Section 1502, which stipulates that the Treasury secretary has the power to prescribe rules for a related group of entities that are required to file taxes on a consolidated return. The IRS is working on guidance for the treatment of consolidated groups under the new corporate alternative minimum tax.
IRS Found Crypto Stakers’ Rewards To Be Gross Income
Cryptocurrency stakers should include the value of the rewards they earn from the practice as part of their gross income, the IRS said. According to the IRS, a receipt of property counts as gross income when the taxpayer gets undisputed possession of it, and the rewards are gross income in the taxable year in which the taxpayer gets complete control. Stakers can use the cryptocurrency they already own to help validate transactions on a blockchain and create new tokens, which can lead to their receiving additional cryptocurrency units as a reward.
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