LEGAL LINES
Tax Court Sides with FLP
The IRS has lost a recent battle involving a family limited partnership (FLP).

MEDI-MINUTES
DHHS Offers Draft Guidelines to Help Nursing Homes Battle Fraud
The Department of Health and Human Services has issued a draft guidance to help nursing homes battle internal fraud and abuse of the Medicare and Medicaid programs.

NATIONAL NOTES
White House Budget Proposes Some Changes for Gift/Estate Taxation
President Bill Clinton's budget includes several proposals pertaining to gift and estate taxation.

MORE HEADLINES

OF INTEREST
House Bill Would Eliminate the Marriage Penalty
A bill recently passed by the U.S. House of Representatives would eliminate the so-called marriage penalty by increasing the standard deduction for married couples from $7,350 to $8,800, double the amount for a single filer.

TAX TID-BITS
Automatic Contributions Still Qualify Without Affirmative Election
The IRS has concluded that automatic contributions made to a 401(k) plan for employees who did not elect either to make the contributions or to receive the contributions as cash can still qualify as elective contributions under Reg. 1.401(k)-1(g)(3).