Circular 230: What Estate Planners Need To Know

 

by

 

Louis A. Mezzullo, Esquire

 

TABLE OF CONTENTS

I.

 Introduction

1
II. Covered Opinions 2
 

A.

Introduction

 2
  B.. Definition of a Covered Opinion 3
  C. Reliance Opinion 5
  D. Other Types of Advice Treated as Covered Opinions 6
  E. Requirements for Covered Opinions 7
III. Other Written Advice and Compliance 13
IV. Best Practices 14
 

A.

Best Practices for Tax Advisors

 14
  B.. Procedures to Ensure Best Practices for Tax Advisors 15
V. Effective Dates and Creation of Advisory Committees 15
 

A.

Effective Dates

 15
  B.. Advisory Committees 15
VI. Need for Additional Clarification 15
 

A.

In General

 15
  B.. Covered Opinions 16
  C. Preliminary Advice 17
  D. Other Issues 17
VII. Issues for Estate Planning Practitioners 18
 

A.

Observations Regarding Covered Opinions and Other Written Advice

 18
  B.. Estate Planning Techniques Potentially Affected 19
VIII. Analyzing a Transaction under Circular 230 20
 

A.

Introduction

 20
  B.. Questions 20
  C. Limited Scope Opinions 23
  D. Permitted and Required Disclosures 23
  E. Covered Opinion Requirements 24
IX. Estate Planning Hypothetical 25
X. Suggested Disclosure Statement for Preliminary Advice 27