Expatriate Owl

A politically-incorrect perspective that does not necessarily tow the party line, on various matters including but not limited to taxation, academia, government and religion.

Thursday, June 22, 2006

What's the reason, Aileen?

As mentioned in previous posts, am too busy to get too deeply into blogging.

It is noted, however, that Aileen Condon, IRS Estate and Gift Tax pointwoman, addressed the American Institute of CPAs Tax Division meeting in Atlanta on 19 June 2006 [reported at 2006 TNT 118-2]. Ms. Condon reportedly commented that Estate Tax Return filings dropped from 123,000 in 2000 to 74,000 in 2004, but that she would not speculate as to the reason for the precipitous decline.

What the hell is there to speculate about, Aileen? The I.R.C. Section 2010 Unified Credit Exemption threshold for filing went from an applicable exclusion equivalent of $625,000 in 1998, to $650,000 in 1999, to $675,000 in 2000 and 2001, to a cool even $1,000,000 in 2002 and 2003. This means that the estate of a decedent dying in 1998 didn't have to file unless he or she was worth at least $625,000 [I shall not now get into the Gift Tax adjustment], but the estate of a decedent dying in 2002 or 2003 was off the hook unless the dear departed was a millionaire.

[And for $2004 and 2005 the threshold goes to $1.5 million!].

The thought that the IRS's own E&G head honcha might be so clueless is very disconcerting. I sure hope that Ms. Condon's speech was misreported!

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