08/26/2026
The IRS has finalized regulations targeting certain abusive Charitable Remainder Annuity Trust (CRAT) arrangements and substantially similar transactions.
These arrangements are now classified as listed transactions, meaning certain participants and material advisors may have additional IRS disclosure requirements—and penalties can apply for failing to properly disclose participation. The rules became effective July 9, 2026.
Importantly, this does not mean all CRATs are problematic. The rules are aimed at specific arrangements designed to improperly avoid ordinary income or capital-gain tax.
If you’re involved with a CRAT—or have been presented with a strategy that promises unusually favorable tax treatment—it may be worth having the structure reviewed.
📩 Questions about IRS compliance or tax planning?llc | tttaxrelief.com
For informational purposes only. This post does not constitute tax or legal advice.
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