Mitigation Provisions Allow the IRS to Reclaim Refund from Trust Beneficiaries Even Though IRS Exam Had Originally Created the Refunds
One of the more confusing areas of the tax law involves the mitigation provisions found at IRC §§1311-1314. The case of Costello v. Commissioner, TC Memo 2016-33 deals with the potential application of these provisions to a trust and its beneficiaries that arose when the IRS made an assessment on the examination of the trust that it later agreed was in error.
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