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Certain CRATs Identified as Listed Transactions
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Certain CRATs Identified as Listed Transactions

The IRS issued proposed regulations indicating that certain Charitable Remainder Annuity Trusts will be listed transactions.

Paul Neiffer's avatar
Paul Neiffer
Mar 25, 2024
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Certain CRATs Identified as Listed Transactions
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a couple of pigs that are laying down
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The IRS issued proposed regulations last week indicating that certain “abusive” charitable remainder annuity trusts (CRATs) will be listed transactions.

If a farmer enters into one of these CRATs, then they will need to disclose the transaction on Form 8886 which will almost certainly lead to an automatic audit.

These CRATs are typically referred to as a Hoffman CRAT and show the following characteristics:

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