William D. Lipkind (Partner-New Jersey) and Tammy L. Meyer (Of Counsel-New Jersey) collaborated on "IRC § 673(c): An ING Bar or an ING Hurdle?" published in the November 2016 issue of Leimberg's Asset Protection Planning Newsletter. PLR 201642019 (the 2016 PLR) revokedthe conclusion of Ruling 1 of PLR 201426014 (the 2014 PLR), which held that the trust under consideration (the Trust) was not a grantor trust, i.e., that income of the Trust would not be taxable to the grantor pursuant to IRC § 671. The reason given for the revocation was that the grantor held a reversionary interest within the meaning of IRC § 673(a). Bill and Tammy submit that the 2016 PLR is not supportable as a matter of law, or was based on facts not disclosed, or did not fully reflect the reasoning of the draftsperson.

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