Article:
Limited Partnership Case Activity
by Paul H. Roskoph
June 1, 2007
Cases continue to flow from the Tax Court upholding the IRS position on "retained interests" for transfers of limited partnership interests to family members where there is an implied agreement that transferors will receive whatever cash needs they require from the Partnership. These are all "bad fact" cases. Limited partnerships continue to be a viable planning opportunity under the proper circumstances where there is compliance with the requirements of partnership law and the estate tax law. It certainly provides a "higher profile" for audit of an estate tax return, but it continues to be a planning opportunity that should be explored. Interested individuals should discuss this thoroughly with their tax advisor.
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