IRS has issued a Chief Counsel Memorandum (CCM) – AM 2023-006 (August 9, 2023) warning people about the proliferation of incorrect information regarding so-called “NICDS” (non-grantor, irrevocable, complex, discretionary, spendthrift trusts). IRS says that several dubious claims of tax and creditor protection benefits are being promoted through social media venues by ”attorneys, accountants, enrolled agents, and unlicensed tax advisors” who IRS says “mistakenly” interpret these trust rules. In addition, the IRS/CCM recommends an audit of these trusts!
For more details, please see the IRS Chief Counsel Memorandum along with related content on this issue from Tax Notes.
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