Charitable Remainder Annuity Trust Rules Expected, Treasury Says

The IRS will name certain uses of charitable remainder annuity trusts as listed transactions in upcoming proposed regulations, a Treasury Department official said Thursday.

The IRS has intensified its efforts to crack down on schemes that help taxpayers dodge taxes by continuing to add to its list of avoidance transactions and releasing proposed rules to identify the schemes.

Charitable remainder annuity trusts allow for individuals to donate to charities and receive income payments in return. However, misusers of the trusts try to get rid of ordinary income on the sale of property.

The proposed regulations on these trusts are coming ...