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Tuesday, October 23, 2012


I have previously written about the Wandry decision here. Wandry is a favorable Tax Court Memorandum decision that accepted the use of a simplified formula gift clause (that is, one that did not involve disclaimer or charitable elements) as a method of avoiding an inadvertent taxable gift by reason of an IRS upwards revaluation of the value of gifted property.  The Government appealed the decision to the 10th Circuit Court of Appeals earlier this year. An appellate decision upholding Wandry would be welcomed by practitioners – a reversal would not.

Neither is going to happen now. Per the Tax Court website, the Government has voluntarily dismissed its appeal. At this point, I do not know why.

The dismissal is better than a reversal. However, I was looking forward to a more definitive ruling on the issue (one way or the other) due to the limited precedential value of a Tax Court Memorandum decision.

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