The heiress, farmer and estate taxes

November 22, 2009

Remember when Paris Hilton and Nicole Richie spent some time on a farm? That's OK. Not many folks do recall their ostensible reality show The Simple Life.

Simple_Life_DVD_season1 But being a vidiot, the chasm depicted on that TV program between the two rich girls and the farm family with which they spent some time popped into my head when I read the opening paragraph of Ray D. Madoff's New York Times op-ed piece Protect the Farm, Tax the Manor:

"How do you tell a wealthy heiress from a family farmer? It sounds like the setup for a joke. But in fact it is the fundamental problem underlying sensible reform of the federal estate tax."

As Congress works this year (we hope) on the estate tax that's supposed to disappear in 2010 and then come back in tougher form in 2011, Madoff says "lawmakers should use the opportunity to solve the farmer/heiress riddle once and
for all and move our tax system closer to the values on which the country was
founded — that hard work should be rewarded and power should not be conferred by
birth.
"

One of the biggest problems, although more political than practical, is just how the estate tax affects the transfer of family farms and businesses. 

Boston College Law School professor Madoff (no relation to the infamous Bernie of the same surname is claimed or disclaimed) argues that a special rule is needed to facilitate the transfer of family enterprises one generation to the next.

Will Congress consider Madoff's idea before 2009 ends? It's possible if, as some now predict, Washington gets around to making permanent changes to the estate tax before year's end.

But I'm still betting that as lawmakers rush to deal with health care and expiring tax provisions, they'll take the easy way out and simply keep the estate tax's 2009 provisions in place for one more year.

Related posts:

Want to tell your friends about this blog post? Click the Tweet This or Digg This buttons below or use the Share This icon to spread the word via e-mail, Facebook and other popular applications. Thanks!

Share:

The More Tax Posts tab at the top of this page will take you to, well, more tax posts. You also can search below for a tax topic. 

Latest Posts
Tropical Storm Arthur’s deadly arrival underscores need for disaster preparation

June 18, 2026

Tropical Storm Arthur as it moved toward the Texas cost on June 17. Its deadly…

Read More
Tax Season 2026 Continues!

We made it. Tax Day 2025 is finally over. For most of us. When the filing season started on Jan. 26, millions who were expecting refunds filed immediately. Most of us got our returns to the Internal Revenue Service by April 15. But plenty of taxpayers also got extensions. They are looking at an Oct. 15 filing deadline.

Those procrastinating filers aren’t a problem. In fact, the IRS appreciates taxpayers who take time to fill out their 1040 forms correctly. It also is grateful that tax submissions are spread out a bit, especially now that the IRS is a leaner agency. Processing returns is easier when they arrive throughout the year instead of in massive bunches.

But enough about Uncle Sam’s tax collection issues. The focus now is on all y’all who filed for extensions, giving you another six months to complete your return. Since your new mid-October due date will be here before you know it, let’s get started now on meeting it.

The ol’ blog is here to help you finish up your extended Form 1040. You can start with January’s tax tips page, which has links to the rest of the year’s tips by-month collections. You also can peruse various tax categories for more tailored advice by clicking on the More Tax Posts drop-down menu at the top of this (and every) page.

And to make sure you don’t miss your new filing deadline, the count-down clock below will let you know just how much time you to file by Oct. 15. At the latest.e. (Note: I’m in the Central Time Zone, so adjust accordingly for where you live.)

Comments

Comments are closed.