IRS finalizes rules for certain charitable remainder annuity trust transactions
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Table of Contents
The IRS has issued final regulations that label specific types of Charitable Remainder Annuity Trust (CRAT) transactions as “listed transactions.” In tax terms, a listed transaction is a specific type of activity that the IRS has identified as potentially being used to avoid taxes, which triggers extra paperwork and reporting requirements.
Why it matters: This is a technical administrative change that increases the paperwork and reporting burden for people using specific trust structures to manage their taxes. It aims to make sure the IRS knows exactly who is using these methods.
Who it affects
- Individuals using specific Charitable Remainder Annuity Trust (CRAT) structures
This information comes from the Treasury Department and the IRS; you should read the full Federal Register document before making financial or tax decisions.
Agency: Treasury Department, Internal Revenue Service
Source: Federal Register — read the official document