Tag Archives: TE

Tenancy By the Entirety

Tenancy By the Entirety

Tenancy By the Entirety means:
a form of joint ownership for real estate that exists only between husband and wife with equal rights of possession and enjoyment during their joint lives and with the right of survivorship; that is, when one dies, the property goes to the surviving tenant. Tenancy by the entirety is recognized in some states. Former IRC (check if this IRC provision is current here) §2040.

Example of Tenancy By the Entirety:

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A married couple owns property as tenants by the entirety. Neither spouse can convey his or her part of the property during the lives of the couple unless the other consents, a feature that is different from joint tenancy. Divorced spouses are tenants in common; see also tenancy in common.

Description and Definition of Tenancy by the Entirety

A joint tenancy in real property in the name of both husband and wife. If one owner dies the other takes the entire estate.

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Testamentary Trust

Testamentary Trust

Testamentary Trust means:
a trust created by a will, as distinguished from an inter vivos trust, which is created during the lifetime of the grantor.

Description and Definition of Testamentary Trust

A trust created by a will.

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Ten-year Averaging

Ten-year Averaging

Ten-year Averaging means:
a method of calculating income tax on a lump-sum distribution from a qualified plan that reduces a beneficiary's tax liability on the distribution. It is available only to a participant who was age 50 years or older before January 1, 1986, and had been a participant in the plan for at least 5 years before the year of distribution.

The tax is calculated, using a separate 10-year averaging rate table, on one-tenth of the excess of the portion of the distribution subject to averaging over the minimum distribution allowance. The minimum distribution alloivance is the lesser of $10,000 or >/2 the portion of the distribution subject to averaging, minus 20% of the portion subject to averaging in excess of $20,000. The tax computed in this manner is then multiplied by 10 for the actual tax on the distribution.

State Income Tax

Description and Definition of Ten-Year Averaging

A favorable method of computing tax on a lump-sum retirement distribution available only to taxpayers born before January 1, 1936. When five-year averaging is abolished in 2000 ten-year averaging will remain for qualifying retirees.

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Terminally Ill

Terminally Ill

Terminally Ill means:
having the expectation of death within 12 months.

See also other Tax Terms and Definitions in U.S.A.

gift in contemplation of death.

See Inheritance Tax and Inheritance Tax.

Description and Definition of Terminally Ill

A person not expected to live more than 12 months.

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Tenants in Common

Tenants in Common

Description and Definition of Tenants in Common

Two or more persons who have undivided ownership rights in property. If one owner dies the other does not automatically take the entire estate. Whoever is designated in the decedent's will inherits the decedent's share of the property.

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Technical Advice Memoranda

Technical Advice Memoranda

Overview

A technical advice memorandum, or TAM, is guidance furnished by the Office of Chief Counsel upon the request of an IRS director or an area director, appeals, in response to technical or procedural questions that develop during a proceeding. A request for a TAM generally stems from an examination of a taxpayer’s return, a consideration of a taxpayer’s claim for a refund or credit, or any other matter involving a specific taxpayer under the jurisdiction of the territory manager or the area director, appeals. Technical Advice Memoranda are issued only on closed transactions and provide the interpretation of proper application of tax laws, tax treaties, regulations, revenue rulings or other precedents. The advice rendered represents a final determination of the position of the IRS, but only with respect to the specific issue in the specific case in which the advice is issued. Technical Advice Memoranda are generally made public after all information has been removed that could identify the taxpayer whose circumstances triggered a specific memorandum.

Technical Memoranda are documents prepared by the Office of the Chief Counsel that “explain the reasons behind the adoption of [a] Treasury Decision” and “are used by IRS personnel in determining the tax status of taxpayers.” Taxation With Representation Fund v. IRS, 485 F.Supp. 263 at 266 (D.D.C. 1980)

Locating IRS Technical Advice Memoranda

When IRS Technical Memoranda are not yet available on the American Tax Encyclopedia can be found on the following external site(s):

  • IRS Technical Memoranda on the IRS website. This website, within IRS’s Electronic Reading Room, contains the text of Technical Advice Memoranda from 1997 to the present
  • IRS Technical Memoranda on Legalbitstream
  • Westlaw: (Formerly: FTX-TAM; FTX-WD database)
  • Lexis: (Formerly: FEDTAX;PLR database)

These Westlaw and Lexis databases contain Technical Advice Memoranda from 1954 to the present.

Print and Online Sources:

  • CCH’s Standard Federal Tax Reporter contains annotations to Technical Advice Memoranda in its compilation volumes following each IRC section. CCH’s online product, CCH Tax Research NetWork, contains the text of Technical Advice Memoranda in the Federal Tab in the “Letter Rulings & IRS Positions (including TAMs and FSAs)” section under Primary Sources.
  • RIA’s United States Tax Reporter contains annotations to Technical Advice Memoranda in its compilation volumes following each IRC section. RIA’s online product, RIA Checkpoint, contains the text of Technical Advice Memoranda, which can be accessed via the “Rulings/IRB” section on the left side of the screen under Find By Citation or by searching in the “IRS Rulings and Releases” database under the Primary Source Materials heading, which contains Technical Advice Memoranda from 1953 to the present.
  • Print: CCH IRS Letter Rulings Reporter (KF6289.A353)

Citing Technical Advice Memoranda in Bluebook

See Bluebook Rule 14.5.2(c). Example: Tech. Adv. Mem. 85-04-005 (Sept. 28, 1984).

IRS Technical Advice Memoranda Examples

  • Technical Memorandum TM 1983-503 Internal Revenue Service NRPM published in F.R. 1-5-83. Internal Control No.: CC:LR-2117; Br4:CLClark [Final Draft of 10/25/82] MEMORANDUM FOR: Roscoe Egger Commissioner
  • Technical Memorandum TM 1982-042 Internal Revenue Service T.D. 7842, published in F.R. 11-3-82. Internal Control No.: CC:LR-71-79; JRFelton [Final Draft of 7-23-82] MEMORANDUM FOR: Honorable John E. Chapoton Assistant Secretary of the Treasury
  • Technical Memorandum TM 1985-033 Internal Revenue Service T.D. 8036, published in F.R. 7-23-85. Internal Control No.: CC:LR-205-78; Br1:RHGinsburgh [Final Draft of 8-27-84] MEMORANDUM FOR: Honorable Ronald A. Pearlman Acting Assistant Secretary of the Treasury SUBJECT: Treasury decision–Amendment of Excise Tax Regulations
  • Technical Memorandum TM 1984-039 Internal Revenue Service T.D. 7970, published in F.R. 8-31-84. Internal Control No.: CC:LR-33-84; Br4:WAJackson [Final draft of 8-3-84] MEMORANDUM FOR: Honorable Ronald A. Pearlman Acting Assistant Secretary of the Treasury
  • Technical Memorandum TM 1984-024 Internal Revenue Service Statement of Procedural Rule, published in F.R. 5-9-84. Internal Control No.: CC:LR-91-82; Br2:DHPellervo [Final draft of 10-25-83] TO: Roscoe L. Egger, Jr. Commissioner FROM: Acting Chief Counsel
  • Technical Memorandum TM 1984-021 Internal Revenue Service T.D. 7953, published in F.R. 5-9-84. Internal Control No.: CC:LR-118-83 ; Br6:MHRapaport [Final draft of 1/24/84] MEMORANDUM FOR: Honorable John E. Chapoton
  • Technical Memorandum TM 1983-029 Internal Revenue Service T.D. 7894, published in F.R. 5-19-83. Internal Control No.: CC:LR-68-75; Br5:KKlein [Final draft of 1/31/83] MEMORANDUM FOR: Honorable John E. Chapoton Assistant Secretary of the Treasury SUBJECT: Treasury decision–Amendment of the Income Tax Regulations
  • Technical Memorandum TM 1982-026 Internal Revenue Service T.D. 7826, published in F.R. 9-2-82. Internal Control No.: CC:LR-280-81; Br6:BLWold [Final draft of 5-10-82] MEMORANDUM FOR: Honorable John E. Chapoton Assistant Secretary of the Treasury
  • Technical Memorandum TM 1987-514 Internal Revenue Service NPRM, published in F.R. 9-21-87. Internal Control No.: CC:LR-183-82; Br1:GHMorse MEMORANDUM FOR: J. Roger Mentz Assistant Secretary of the Treasury SUBJECT: Notice of proposed rulemaking–Amendment of Income Tax Regulations under sections 48, 196, 312 and 705 of the Internal Revenue Code of 1954
  • Technical Memorandum TM 1990-048 Internal Revenue Service T.D. 8326, published in F.R. 12-28-90. Internal Control No.: CC:IA-3-85; CC:IA-83-90; Br4:DLMeyer [Final draft of 12-10-90] MEMORANDUM FOR: Kenneth W. Gideon Assistant Secretary (Tax Policy) FROM: Fred T. Goldberg, Jr.