Posts Categorized: BBA News

Tax Deadlines Extended Due to COVID-19

By: Justin M. Hannan and Gene Schlack, Day Pitney LLP.

To provide relief to taxpayers impacted by the COVID-19 pandemic, the IRS and the Massachusetts Department of Revenue have issued guidance in recent weeks extending the deadlines for filing and paying certain taxes.

Pursuant to IRS Notice 2020-18, Notice 2020-20, and Notice 2020-23, the filing deadlines for all federal income tax returns, gift tax returns and estate tax returns that would have been due between April 1 and July 15 have been automatically extended to July 15.  Additionally, any income tax payments and gift, estate and GST tax payments, including estimated quarterly payments, that were due between April 1 and July 15 are now due on July 15, and such payments made by the July 15 deadline will not incur interest or penalties.  There is no limit on the amount of tax payments that may be deferred. 

It is important to note that while these extensions apply to all taxpayers, including trusts and estates, they do not apply to tax returns and tax payments originally due prior to April 1.  For example, a trust that failed to file Form 1041 by March 15 is not saved by this guidance, and any taxes due with said Form 1041 would remain subject to penalties and interest.

Notably, IRS Notice 2020-23 clarifies that the extension to file tax returns also extends the deadline to file certain information returns, such as Form 3520, that are filed as attachments to such tax returns. This key point was previously unclear, creating substantial uncertainty among tax professionals.

In addition to the federal extensions, the Massachusetts Department of Revenue also extended various Massachusetts filing and payment deadlines. Per Technical Information Release (TIR) 20-4, state filings and payments for personal income tax, estate and trust income tax, and income tax due with a partnership composite return with an April 15, 2020 due date have been automatically extended to July 15.  Similarly, installments for estimated income tax payments that would otherwise be due on April 15 and June 15 are now due on July 15.  The filing and payment deadlines for Massachusetts estate tax returns have not been extended.

Though TIR 20-4 does not extend corporate excise tax filings and payments, it does waive late-file and late-pay penalties (but not interest) for corporate excise returns and payments with original due dates of April 15 that are filed and paid by July 15. 

Massachusetts (Temporarily!) Allows Remote Notarization

Massachusetts (Temporarily!) Allows Remote Notarization

The BBA endorsed temporary legislation authorizing notarization and witnessing of documents to be conducted remotely, by videoconference.  The Legislature passed, and the Governor enacted, such a law, which addresses an urgent need that was brought to our attention by practitioners from a number of our sections, including Trusts & Estates and Real Estate.  Read an exclusive Boston Bar Journal article on the requirements and restrictions for this new law.  Thank you to the authors Sara Goldman Curley, Kerry Spindler, and Rebecca Tunney.

REMINDER 6/24/16: BBA CLE – Trusts & Estates Section Year End Review

CLE Title: Trusts & Estates Section Year End Review

Time: 12:30 PM to 2:30 PM

Location: Boston Bar Association, 16 Beacon Street, Boston, MA

Description: An annual event not to be missed, the Trusts and Estates Section Year End Review covers recent federal and state case law, legislation and tax law matters. This year’s Year End review will touch on

  • New Developments subcommittee: in terrorem clauses; whether property held in an irrevocable trust will be considered a countable asset for MassHealth purposes; identifying heirs; evidence of lifetime gifts; and will contests.
  • Public Policy subcommitee: The Public Policy committee will give an update on legislative items relevant for trusts & estate attorneys and professionals, including (i) the revised Massachusetts estate tax reform act submitted by Rep. Dooley, (ii) the Massachusetts Revised Uniform Fiduciary Access to Digital Assets Act, which is expected to be submitted to the legislature in the coming year, (iii) Gov. Baker’s budget proposal that would affect estate recovery for MassHealth patients, and (iv) the pending correction on Adopted Children Act.
  • Tax Law Update subcommittee: Basis Reporting.

Information: For more event details, including accreditation, agenda, and fees, click here.

Sponsors: Trusts & Estates Section.

SpeakersMelissa E. Sydney of Burns & Levinson LLP, Allison Whitmore of Morgan Lewis, Annette Eaton of Nixon Peabody LLP, Katherine (Kerry) Reilly of K. Reilly Law LLC, David Menchaca.

Volunteer T&E Attorneys Needed for Veterans Legal Services

Claire Carrabba and Nikki Marie Oliveira, co-chairs of the Public Service Committee, have been working with Lynn Girton, the Pro Bono Director of Veterans Legal Services (“VLS”), in order to establish a volunteer project to assist homeless and low-income veterans with basic estate planning needs.  In order to qualify for services, the veteran must generally have an income below 200% of the federal poverty level.  Many of the veterans require assistance in obtaining a Will and other estate planning documents, such as Durable Powers of Attorney and Health Care Proxies.  No specialized knowledge of veterans’ law or benefits is needed to help VLS clients.  VLS is able to offer malpractice insurance to those attorneys who provide pro bono assistance to VLS clients.

Lynn Girton is looking for 15 volunteers to get the pro bono project started and she anticipates having a few cases available in the next month.  If you have any questions or are interested in volunteering, please fill out the sign-up sheet (click here) and return it to Nikki Marie Oliveira at noliveira@bassdoherty.com.

 

 

 

 

 

 

BBA Event @ 11/20/15 – Assisted Reproductive Technologies, Estate Planning, Family Law and Probate

Topic: When A.R.T. is the Issue: The Impact of Assisted Reproductive Technologies on Estates and Probate

When: Friday, November 20, 2015 12:30 PM to 1:30 PM

Where: Boston Bar Association16 Beacon Street, Boston, MA

Description:  Learn about assisted reproductive technologies and its impact on estate planning, family law and probate.  After this seminar, attendees will know statutes and case laws that control ownership of genetic material, what constitutes parentage and how to dispose of embryos in estate plans.

Event Co-Sponsors: Family Law Section, Health Law Section, Estate Planning Committee

Details: For more information about this event, click here.

Need Ethics Credits? – BBA CLE on Tues. Nov. 10th

CLE Title: Conflicts of Interest in Estate Planning and Fiduciary Representation

Time: 3:00PM – 6:00PM

Location: Boston Bar Association, 16 Beacon Street, Boston, MA

Description: This program is designed to facilitate a meaningful discussion about the many conflicts that arise (or may arise) in the context of estate planning and fiduciary litigation.  The panelists will guide the practitioners through real examples and will discuss issues to identify and ways to approach drafting to avoid some of the potential conflicts.  The panelists will also talk about best practices regarding engagement letters and conflict waivers.

Information: For more event details, including accreditation, agenda, fees, and program materials, click here.

Sponsors: Co-Chairs of the Trusts & Estates CLE Committee: Kelly Aylward of Tarlow, Breed, Hart & Rdgers, P.C., Jaclyn O’Leary of Day Pitney, LLP, and Amiel Weinstock of Thomas Brady & Associates

BBA Event Reminder: 11/3/15 – Resolving Domicile-Related Tax Disputes Efficiently

Topic: Resolving Domicile-Related Tax Disputes Efficiently: A Review of the Bank of America Decision, Other Recent Domicile-Related Case Law

When: Tuesday, November 3, 2015 12:00 PM to 1:00 PM

Where: Boston Bar Association16 Beacon Street, Boston, MA

Description: Hear a discussion of domicile as it relates to both individuals and fiduciaries.  The panelists will address importance of domicile for income and estate tax purposes, the Massachusetts definitions of domicile and residency, and facts and circumstances that are often considered in determining domicile.  Discussion will also address the recent Appellate Tax Board decision, Bank of America, N.A. v. Massachusetts Commissioner of Revenue, and potential implications and considerations. Finally, the discussion will include New Hampshire domicile considerations associated with fiduciaries.

Event Sponsor: Scott M. Susko of McDermott Will & Emery and Brian Marks of Ernst & Young LLP, co-chairs of the State and Local Tax Committee of the Tax Section

Details: For more information about this event, click here.

REMINDER 10/30/15: BBA CLE – Conflicts – They’re Not Just for Litigators!

CLE Title: Conflicts – They’re Not Just for Litigators!

Time: 9:00AM – 12:00PM

Location: Boston Bar Association, 16 Beacon Street, Boston, MA

Description: This program is designed to facilitate a meaningful discussion about the many conflicts that arise (or may arise) in the context of estate planning and fiduciary litigation.  The panelists will guide the practitioners through real examples and will discuss issues to identify and ways to approach drafting to avoid some of the potential conflicts.  The panelists will also talk about best practices regarding engagement letters and conflict waivers.

Information: For more event details, including accreditation, agenda, fees, and program materials, click here.

Sponsors: Co-Chairs of the Trusts & Estates CLE Committee: Kelly Aylward of Tarlow, Breed, Hart & Rdgers, P.C., Jaclyn O’Leary of Day Pitney, LLP, and Amiel Weinstock of Thomas Brady & Associates