regulations may eliminate discounts for family-owned businesses
The Internal Revenue
Service released proposed regulations in early August that would modify and
expand Internal Revenue Code
2704 impacting the valuation of privately-held, minority interests
that are controlled by the same family. The proposed regulations are subject to
a 90-day public comment period which ends Nov. 2.
Since the tax court
decision of Kerr v. Commissioner (113 T.C. No. 30), the IRS has been concerned
that certain loopholes exist in IRC 2704 that allow taxpayers to gift interests
to family members in entities that have no business purpose and allow the
transfer of wealth without due consideration of the value to the transferor.
Many attorneys, accountants and business advisors expected the regulations to
target partnerships with liquid assets. However, the ramifications of the
regulations appear to be more far-reaching than initially believed and may have
unintended consequences for valuation discounts for intra-family interest
Advisors who think
their clients might be impacted by the changed regulations should review their
clients’ personal situations and estate plans and, if such transfers were being
considered or planned, implement them before the proposed regulations are
issued. Read the full article here.
ISBA member warns of elaborate new scam
Sioux City attorney,
Dan Dykstra, sent an email message to the bar office last week asking that
information concerning a different type of scam be sent to members as a
Dykstra was contacted
by a procurement agent from a company in the Netherlands about the sale of a
piece of equipment. Since he does some work for companies in the Netherlands,
he wasn’t surprised at the contact. However, the red flags came up when a check
arrived as the deposit with a request that he immediately wire monies
He called the real
agent in the Netherlands and the named buyer, which was an Iowa company. Both
denied the transaction.
and his firm did not get caught or damaged even though the fake broker used a
real business brokerage company in California and a real name.
Supreme Court appoints
members to Access to Justice Commission
In an order filed last
Thursday, Sept. 22, the Iowa Supreme Court appointed 26 members to the Access
to Justice Commission. One member will serve for one year, 13 members will
serve for two years and 12 members will serve for three years. All terms begin
this Saturday, Oct. 1, and end on Sept. 30, 2017, 2018 or 2019.
Established on June 27
upon the recommendation of The Iowa State Bar Association, the Access to
Justice Commission is charged with finding "solutions that will best serve
Iowans who may encounter barriers to or difficulties with fully accessing the
Iowa justice system,” according to the order. The order outlines the issues
that commission members are to address. Justice Brent Appel chairs the
See the list of
appointees and the issues to be addressed in the complete order.
annual Family Law seminar
This year’s Iowa State
Bar Association Family Law Seminar will feature Forrest "Woody” Mosten, an
internationally known expert on alternative dispute resolution. Woody will lead
a day-long training entitled Building a Successful Unbundled Family Law
Practice, providing insight on how to expand and improve a practice by
increasing legal access to the under-served through an offering of unbundled legal
The seminar, scheduled
Oct. 27 and 28 at the West Des Moines Marriott, will cover topics including The
New Lawyer: Embracing the Pro Se Revolution and a Consumer Approach To Family
Law Practice, Ethical Challenges of Delivering Unbundled Services, Unbundled
Representation of Clients in Family Mediation and Kick-starting Your Unbundled
Family Law Practice.
A total of 15.5 CLE
credit hours are available during the two-day event. Online registration with
early-bird pricing is available through the ISBA website until Oct. 26.
YLD creating anonymous question forum
The Young Lawyers
Division met for its quarterly meeting on Friday, Sept. 23 in Coralville. As part of the meeting, four working groups met to plan projects
that will be implemented between now and June. The ideas for the projects
came from small-group brainstorming at the YLD quarterly meeting in June and
from phone calls between YLD officers and YLD members around the state.
One of the projects is a forum where young lawyers can ask questions
anonymously and receive feedback from other attorneys. The YLD’s goal is
to have the forum up and running by January 2017 and they are working with the
ISBA staff to accomplish that goal.
If you have any questions or would
like to be involved with implementing the forum, please contact Maggie White
at firstname.lastname@example.org or (515) 309-6830.
Link to sign up to
judge Drake’s moot court competition
Last week, this
newsletter contained an article about the need for attorneys to judge the
preliminary and quarterfinal rounds of the regional moot court competition
being hosted by Drake University Law School, Nov. 16-19. The link to sign up as
a judge was not included in the article. Here is that link.
For answers to
questions and for more information, contact Tara Miller at email@example.com.
On a lighter note:
Davenport golfer is $10,000 richer … for a moment
Dana Waterman sunk a 50-foot putt at the Genesis Health Services Foundation’s
ProAm Challenge last month. The prize: $10,000.
As a devoted member of the
foundation’s board, however, the Lane & Waterman attorney donated the money
back to the foundation. See a video of the winning putt here.
|SUPREME COURT OPINIONS|
DENNIS L. SMITH vs.
IOWA STATE UNIVERSITY OF SCIENCE AND TECHNOLOGY, STATE OF IOWA
A former employee of a
state university who successfully sued that university for
intentional infliction of emotional distress and a
violation seeks further review of a court of appeals decision reversing the district
court’s award of attorney fees and remanding for further
DECISION OF COURT OF APPEALS VACATED; DISTRICT COURT JUDGMENT
REVERSED AND CASE REMANDED.