Trust Accounting Income: The Fundamentals

Jim has nineteen years of experience providing tax consulting and compliance services to a variety of clients. Jim is a member of the Washington National Tax – Passthrough Group specializing in both partnerships and S corporations. He is also the national competency co lead of Passhroughs for Deloitte Tax. Jim has been very active in restructuring projects that include preparing a partnership for a public offering, consulting on various acquisitions including asset versus equity deals and joint venture arrangements, profit and loss allocations including credits with flip structures, cash flow modeling and tax deferral minimization strategies. Jim also assists clients with C to S conversions and S corporation sale transactions. Jim has also given presentations on partnership and S corporation taxation matters to the Tax Executives Institute, the Illinois CPA Society and with BNA. He also actively participates in the Firm’s national training. Jim also has considerable experience in the estate planning field with a strong background in trust taxation. He has consulted on several trust consulting projects over the years for high profile families. Jim was the Chair of an AICPA task force on Trust Accounting Income. He has also given numerous presentations with the IRS National Forum.

Jacqueline Patterson is a founding partner in the law firm of Haney, Buchanan & Patterson, LLP and specializes in tax, estate and financial transactions. Her emphasis is positioning individuals, businesses, and fiduciary entities for asset protection and succession planning. She advises grantors, fiduciaries and beneficiaries in matters involving the transfer, administration, investment and management of assets and is a consultant to attorneys and CPAs in fiduciary accounting, taxation and litigation. Ms. Patterson graduated from Santa Clara Law, continued her education with a Masters in Business Taxation (MBT) from the University of Southern California in 1986 and is also a Certified Public Accountant. 

Ms. Patterson is a nationally recognized speaker and has been a seminar discussion leader and author for over fifteen years, writing and facilitating seminars in corporate taxation, the income taxation of trusts and estates, fiduciary accounting, tax research and planning, trusts, real estate transactions and charitable trusts. She was honored by the California CPA Education Foundation with the 2000 Award for Meritorious Service, the 2002 Award for Outstanding Course Materials and the 2006 Award for Outstanding Conference Speaker. Ms. Patterson has held Adjunct Faculty positions in the graduate tax programs at both USC and Golden Gate University. She served on an AICPA special task force studying fiduciary accounting as well as serving on the AICPA Estate and Gift Technical Resource Panel for several years. She taught for the National Tax Institute, has participated in panel discussions for Continuing Education of the Bar (CEB) and has authored and presented financial seminars to professional groups on a broad range of issues. She has practice experience in public accounting, the financial institution industry, business management, real estate and law.

Steven B. Gorin is a partner in the St. Louis office of the law firm of Thompson Coburn LLP, which also has offices in Chicago and Washington, D.C. He is a Fellow of the American College of Trust and Estate Counsel, serving as a member of its Business Planning Committee and its Employee Benefits in Estate Planning Committee. Mr. Gorin serves on the Council of the Real Property, Probate, Trust and Estate Law Section (RPTE) of the American Bar Association (ABA). He is past chair of RPTE’s Business Planning Group of committees. 

Mr. Gorin served as ABA Advisor to the 2008 Amendments to the Uniform Principal and Income Act (UPAIA). The amendment to UPAIA section 409 helps secure the marital estate tax deduction when IRAs and other retirement plans or annuities are payable to marital deductions. This amendment responds to Revenue Ruling 2006-26, in which the IRS stated that the existing UPAIA did not satisfy the IRS’ safe harbor for the marital estate tax deduction. The amendment to UPAIA section 505 clarifies issues arising when a mandatory income trust holds an interest in a flow-through entity, such as a partnership. The amendment responds to litigation in which beneficiaries claimed that the trustee could not retain enough money to pay the trust’s income taxes.