More On Legal & Compliancefrom The Advisor's Professional Library
- Client Communication and Miscommunication RIA policies and procedures must specify what type of communications should be retained. The safest course of action is for RIAs to retain all communicationsto clients, from clients, and about client accounts. To comply with fiduciary obligations, communications must be thorough and not mislead.
- Pay-to-Play Rule Violating the pay-to-play rule can result in serious consequences, and RIAs should adopt robust policies and procedures to prevent and detect contributions made to influence the selection of the firm by a government entity.
The IRS issued guidance on Friday for executors who plan to opt out of the estate tax and have carryover basis rules apply for estates of people who died in 2010.
The IRS said an executor who chooses to opt out of the estate tax must file Form 8939, Allocation of Increase in Basis for Property Acquired from a Decedent, by Nov. 15. The IRS said it expected to issue Form 8939, which can currently be viewed in draft form, and related instructions early in the autumn.
The agency noted that the Economic Growth and Tax Relief Reconciliation Act of 2001 repealed the estate tax for people who died in 2010. However, the estate tax for those who died in 2010 was reinstated by the Tax Relief, Unemployment Insurance Reauthorization, and Job Creation Act of 2010. The new law allows executors to elect to be governed by the repealed 2001 carryover basis provisions.