Robert S. Keebler, Peter Melcher, Jennifer Voigt, Steven C. Lunn, and Michelle Ward, of Virchow Krause and James Hamilton, Wolters Kluwer Legal Markets discuss the various tax and planning implications that arise as a result of investment in the Madoff Ponzi scheme. This article will be updated on an ongoing basis as guidance is issued. On March 17, 2009, the IRS issued guidance on how to treat theft losses resulting from investments in fraudulent schemes and provided a safe harbor for computing such losses. Although this article focuses on the Madoff situation, the discussion is also applicable to investments in other fraudulent schemes.

This Lawmaker’s Guide, written by Robert Cline, Ernst & Young LLP, was funded by the Deloitte Multistate Tax Center at the University of Wisconsin, Milwaukee. In this article, published in the Journal of State Taxation, Robert Cline sheds insight on the multitude of results combined reporting can have on taxable income by demonstrating significant and unintended results on taxpayers, as well as the uncertain and often negative revenue and economic impacts on states that have implemented combined reporting.

In an important article in TAXES—The Tax Magazine^®, Charles W. Cope, Thomas M. Zollo and Clark J. Chandler examine the temporary cost sharing regulations addressing a cost sharing arrangement (CSA) among controlled taxpayers. These new regulations took effect upon publication in the Federal Register on January 5, 2009 and will expire on December 30, 2011. The Temporary Regulations should be of interest to a broad range of taxpayers because taxpayers with CSAs must understand the transition rules in the Temporary Regulations in order to amend their written agreements prior to July 6, 2009, and qualify for the benefits offered. These transition rules make most of the provisions of the Temporary Regulations applicable to pre-effective date CSAs that qualify for transition relief.

What happens to a client’s interest in his closely held company when he dies? Estate planners who are familiar with their client’s most valuable assets can manage transition of corporate ownership to the survivor’s great advantage says Joel Kabaker in his column in the Journal of Practical Estate Planning. The tool they use is a buy-sell agreement spun in a strategic direction. The overriding purpose of buy-sell agreements is to provide control over the transfer of ownership under specified circumstances. Estate planners tailor this document to fit the client’s overall plan.