Thursday, April 24, 2014
Registration and Continental Breakfast
Charles Boger, Dean and Wade Edwards Distinguished Professor of Law
8:25 a.m. - 10:25 a.m.
Recent Federal Income Tax Developments
Martin J. McMahon, Jr., James J. Freeland Eminent Scholar in Taxation and Professor of Law, Fredric G. Levin College of Law, University of Florida and Bruce A. McGovern, Vice President, Associate Dean for Academic
Administration and Professor of Law, South Texas College of Law
This session will provide an examination of the legislation, court opinions, and regulations and rulings of the past year.
10:25 a.m. – 10:35 a.m.
10:35 a.m. – 11:50 p.m.
Changes to North Carolina's Tax Code in 2014: The First Step to Major Tax Reform
Michael A. Hannah, Esquire, CPA
The state has taken a very big first step in overhauling its tax code -- enacting its first major reform in 80 years. The change created a modified flat tax system, with a single income tax rate, an increased standard deduction and fewer tax breaks, as well as the elimination of the personal exemption and a $50,000 deduction for small business owners. It also repeals the state's estate tax.
12:00 p.m. – 12:40 p.m.
12:45 p.m. – 1:55 p.m.
Top Ten Fiduciary Income Tax Issues
Scott E. Hamm, KPMG LLP
In 2013, trusts and fiduciaries confronted a new income tax environment with the advent of the section 1411 tax of 3.8% on net investment income and the increase in the ordinary income and capital gain tax rates applicable to trusts. In addition to offering advice on minimizing the income tax bite, this presentation will highlight some of the most problematic unresolved fiduciary income tax issues and offer suggestions on how best to approach these questions when faced with them in practice.
2:00 p.m. – 3:10 p.m.
Hot Topics in Partnership Taxation
Eric B. Sloan and Dina A. Wiesen Deloitte Tax, LLP
This presentation will address recent and anticipated developments in partnership taxation, including a review of the 2013-2014 Priority Guidance Plan. Special attention will be paid to the revenue procedure regarding the allocation under section 704(b) of rehabilitation tax credits under section 47, the proposed regulations under section 752 regarding related person rules, and future regulations under section 707 relating to disguised sales of property.
3:15 p.m. – 4:25 p.m.
Partnership Exits: "I Want Out"
James “Jim” B. Sowell, KPMG LLP
Partners and their advisors often need to evaluate alternate tax strategies when exiting a partnership. Seemingly comparable methods can produce significantly different tax results. This program will focus on different exit strategies and highlight important tax issues, including character, installment reporting, stuffing allocations, retained equity interests, and mixing bowls.
4:30 p.m. – 5:30 p.m.
Ethical and Related Considerations in Providing Tax Advice (PR)*
Peter S. Wilson, McGladrey, LLP
The course will address the ethical obligations of attorneys, CPAs and other Circular 230 practitioners in advising their clients concerning Federal tax matters. It will also consider certain related considerations in advising clients, including the obligations of nonsigning preparers under Internal Revenue Code §6694, the practitioner privilege under §7525, and risk management principles in providing advice.
Friday, April 25, 2014
8:30 a.m. – 9:30 a.m.
Ethical Hazards in Representing Clients with Diminished Capacity (PR)*
Mary F. Radford, Marjorie Fine Knowles Professor of Law, Georgia State
University College of Law
Although state law standards for testamentary capacity are remarkably low, clients often approach and even cross that threshold (sometimes going back and forth). When they do, a host of ethical issues arise for the estate planner. What obligations does the planner have to verify the client’s capacity? Will such verifications breach client confidences? Do examinations of the client’s capacity violate the planner’s obligations to zealously pursue the client’s goals? If the planner determines the client lacks capacity, what obligations does the planner have to pursue incompetency proceedings, notify agents under previously executed powers of attorney, or notify successor trustees under revocable trust instruments? These and other thorny ethical issues arising in this context will be explored.
9:30 a.m. – 9:45 p.m.
9:45 a.m. – 11:00 a.m.
Federal Transfer Tax Reform in a Post-Windsor World **
Sanford J. Schlesinger, Schlesinger Gannon & Lazetera LLP
The speaker will discuss the gift tax, estate tax and generation-skipping transfer tax provisions of the American Taxpayer Relief Act of 2012, including the impact of the United States Supreme Court decision in United States v. Windsor on gift and estate planning and the administration of estates. The speaker will also discuss the estate planning impact of the repeal of the North Carolina estate tax in 2013, and how that repeal affects estate planning decisions for North Carolinians. The session will also include an examination of the Administration’s current proposals for transfer tax reform regarding the transfer tax exemptions and rates, short term grantor retained annuity trusts and grantor trusts. In addition, the speaker will review recent IRS developments regarding various aspects of estates and trusts.
11:10 a.m. – 12:20 a.m.
Federal and State Due Diligence for M&A and Equity Investments in
Jerald D. August, Fox Rothschild LLP
Discussion of the principal tax considerations that should be taken into account in negotiating acquisition agreements, from both the buyer's and seller's perspectives, involving corporations, including S corporations. Emphasis will be given to the relevant contractual provisions contained in acquisition agreements pertaining to tax matters, including the parties' tax representations and warranties, covenants, and indemnification provisions. Other points for consideration will be purchase price allocations, allocation of income or loss in year of sale, impact of tax sharing agreements and dispute resolution provisions.
12:20 p.m. – 1:00 p.m.
1:00 p.m. – 2:10 p.m.
Net Investment Income Tax and Its Specific Impact on Rental Real
Todd D. Keator, Thompson & Knight LLP
This session is an analysis of the new net investment income tax in the context of rental real estate investments, with a focus on what it means for rental real estate to be held in a "trade or business" and on the rules and exceptions for determining whether such activity is passive or non-passive under Section 469.
2:15 p.m. – 3:25 p.m.
Compensating Owners and Key Employees of Partnerships and LLCs
Elizabeth E. Drigotas, Deloitte Tax LLP
This presentation covers the latest tax considerations in structuring compensatory arrangements for owners and key employees of partnerships and LLCs. A range of topics will be discussed, including Section 409A, partnership profits interests, phantom equity and other forms of deferred compensation. The presentation will focus on comparing and contrasting the different compensation alternatives to help identify the best form of compensation for different types of partnerships and LLCs.
3:30 p.m. – 4:30 p.m.
Compensation Reclassification Risks for S and C Corporations?
Stephen R. Looney, Dean, Mead
This presentation will discuss how the IRS and the Courts are addressing the reclassification of compensation and other payments to shareholders as dividends (unreasonably high compensation) in the context of C corporations, as well as how the IRS and the Courts are addressing the reclassification of distributions as compensation (unreasonably low compensation) subject to payroll tax liability in the context of S corporations. It will also focus on the increasing application by the IRS and Courts of the so-called “independent investor test” to determine reasonable compensation, recent cases addressing the application of the self-employment tax to LLC members, and recent legislative attempts to impose the self-employment tax on certain S corporations.
*The School of Law is greatly appreciative of the Judge Marshall T. Spears, Sr. Lecture, which was established in 1981 by E.F. Spears to support professional Continuing Legal Education.
**The School of Law is greatly appreciative of the Marvin K. and Florence T. Blount Lecture, which was established in 1973 by Marvin (J.D., 1916) and Florence Blount to promote greater professional and public awareness of estate planning and tax issues.