Friday, August 19, 2016

Criminal Defense Lawyer's 5th Amendment Privilege Trumps an IRS Summon

Defense Lawyer Pleading The 5th Beats IRS Summons preview imageAccording to Law360, A Minnesota federal judge has denied the IRS’ request to enforce a summons against a local criminal defense lawyer the agency accused of hiding tax-related information, agreeing with his Fifth Amendment objection citing the right against self-incrimination.

Attorney Martin S. Azarian had provided the tax agency certain documents in response to a summons over his income taxes. The IRS then sued in Minnesota federal court to obtain more information from him that he allegedly improperly withheld. The attorney pushed back, asserting a reasonable fear of prosecution under the Fifth Amendment.

Agreeing with a magistrate judge's report and recommendation, U.S. District Judge Wilhelmina M. Wright ruled Tuesday that Azarian's Fifth Amendment privilege assertion is valid.
Have a Tax Problem?
 
 



Need to Quash an IRS Summons?


Contact the Tax Lawyers at
Marini & Associates, P.A.
 for a FREE Tax Consultation Contact US at
or Toll Free at 888-8TaxAid (888 882-9243).
 
 



Tuesday, August 16, 2016

Is This the End of Discounting Transfer Taxes with LLC's and FLPs?

In the late 1980s, two Texas attorneys, John Porter and Stacy Eastland, introduced a new discounting technique relating to the formation of family limited partnerships which resulted in discounts of 30% and more to the value of the artificially created family limited partnership (FLP).  This technique was an anathema to the Internal Revenue Service; a review of many estate tax court cases litigated in the last 20 years involve the discounts taken on  FLPs. The bulk of these discounts were related to intrafamily transfers, many times saving millions of dollars in estate tax.

Now, the Internal Revenue Service is fighting back. A proposed regulation would beef up section 2704 of the IRC of 1986 to preclude many of the presently available discounting techniques. In addition, this proposed regulation would expand the purview of section 2704 to include not only partnerships and corporations but LLCs, S corporations, and other family "business" transfer entities.

Part of the proposal includes drawing a bright line between the family members and nonfamily members for the purpose of allowing discounts. The proposed regulation would enable the IRS to attack any entity created prior to October 8, 1990.

What this regulation will look like when it is finalized is somewhat conjectural but be prepared to take a hit on the use of heavily discounted entities within intra-family transfer transactions. It will be equally interesting to see what steps the estate tax planning community will take to try to blunt the thrust of these new regulations.

 Have a US Estate Tax Problem?
 
 



Estate Tax Problems Require
an Experienced Estate Tax Attorney


Contact the Tax Lawyers at
Marini & Associates, P.A.
 for a FREE Tax Consultation Contact US at
or Toll Free at 888-8TaxAid (888 882-9243).
 
 
Robert S. Blumenfeld  - 
 Estate Tax Counsel
Mr. Blumenfeld concentrates his practice in the areas of International Tax and Estate Planning, Probate Law, and Representation of Resident and Non-Resident Aliens before the IRS.

Prior to joining Marini & Associates, P.A., he spent 32 years as the Senior Attorney with the Internal Revenue Service (IRS), Office of Deputy Commissioner, International.
While with the IRS, he examined approximately 2,000 Estate Tax Returns and litigated various international and tax issues associated with these returns.As a result of his experience, he has extensive knowledge of the issues associated with and the preparation of U.S. Estate Tax Returns for Resident and Non-Resident Aliens, Gift Tax Returns, Form 706QDT and Qualified Domestic Trusts.
 

 

Friday, August 12, 2016

FDR Held in Contempt for Intercepting an Approved Chapter 13 Bkcy Payment



Fla. Tax Agency In Contempt For Collection, 11th Circ. Says preview imageAccording to Law360, The Florida Department of Revenue must be held in contempt of a bankruptcy court after intercepting a payment to a federal employee whose Chapter 13 plan was already confirmed, the Eleventh Circuit ruled Thursday in upholding lower courts in the dispute.

  Have a Tax Problem?
 
Contact the Tax Lawyers at
Marini & Associates, P.A.
 for a FREE Tax Consultation Contact US at 
or Toll Free at 888-8TaxAid (888 882-9243).
 
 
 

Thursday, August 11, 2016

Cayman Islands FATCA Reporting of American Depositors Has Been Postponed until Sept. 2nd - Don't Wait Until it is TOO Late to Come Clean!

Yesterday we posted Cayman Islands FATCA Reporting of American Depositors is TODAY - Don't Wait Until it is TOO Late to Come Clean! now The Cayman Islands has postponed the deadline for banks to report accounts of US and UK persons for the 2015 tax year to the Cayman Tax Information Authority from August 10, 2016 to September 2, 2016 for both US Foreign Account Tax Compliance Act reporting and UK Crown Dependencies/Overseas Territories reporting.

The deadline, which refers to the 2015 tax year, was originally fixed for May 31, 2016. Banks and other financial institutions were told that it applied to their reporting duties under both the US Foreign Account Tax Compliance Act and the UK Crown Dependencies/Overseas Territories disclosure agreement. It is referred to as a 'soft' deadline because it is set by administrative fiat rather than legislation.

However, financial institutions have had problems using the website set up by the government as a reporting portal. The deadline was first put back to July 8, 2016, then to August 10 , 2016 and now it's been further postponed until September 2, 2016, both for actual reporting of bank account information and for notifications that the institution is a reporting body.

Do You Have Undeclared Income 
From A Grand Cayman Island Account or
A Grand Cayman Island Mutual Fund?
 
 
 
Want to Know if the OVDP Program
is Right for You?


 
Contact the Tax Lawyers at 
Marini & Associates, P.A.  
 
for a FREE Tax Consultation
or Toll Free at 888-8TaxAid (888) 882-9243



Source

Wednesday, August 10, 2016

Cayman Islands FATCA Reporting of American Depositors is TODAY - Don't Wait Until it is TOO Late to Come Clean!


Today Wednesday August 10, 2016 is the deadline for Cayman Islands financial institutions to complete their notification and reporting of American Clients' accounts to the Cayman Tax Information Authority, under the US Foreign Account Tax Compliance Act (FATCA).


Users of Cayman Islands vehicles which fall within the scope of FATCA, as Reporting Financial Institutions (FFIs), which will include most Cayman funds, are reminded that they have until the previously extended deadline of today August 10, 2016, to complete their notification and reporting to the Cayman Tax Information Authority.  

Cayman Reporting Financial Institutions are reminded that their obligations under FATCA will include:

  • Registration with the United States IRS to obtain a Global Intermediary Identification Number (GIIN) and
  • Due diligence on investors and identification of any reportable accounts
Reporting Financial Institutions ("Reporting FIs") must report through the Cayman Islands AEOI Portal.

Users should expect heavy traffic on the Portal.   

Today's FATCA deadline for Reporting FIs through the Cayman Islands AEOI Port, is also the UK FATCA (CDOT) deadline for Reporting FIs. Also in relation to CRS, Reporting FIs are reminded that 31 December 2016 is the deadline for the completion of due diligence on Preexisting High Value Individual Accounts.

Do You Have Undeclared Income 

From A Grand Cayman Island Account or

A Grand Cayman Island Mutual Fund?
 
 


Want to Know if the OVDP Program
is Right for You?


Contact the Tax Lawyers at 
Marini & Associates, P.A.  
 
for a FREE Tax Consultation
or Toll Free at 888-8TaxAid (888) 882-9243


Sources:
Collas Crill

Tuesday, August 9, 2016

Federal Agents & Prosecutors Now Gearing Up to Utilize "Panama Papers" in Their Prosecutions of Mossack Fonseca's Employees!

On June 25, 2016 we posted Federal Agents & Prosecutors Gearing Up to Utilize "Panama Papers" in Their Prosecutions where we discussed that Federal agents and prosecutors are "chomping at the bit" to exploit the Panama Papers and launch prosecutions, a senior federal law enforcement official told NBC News, but want to be sure that the way the huge data dump about offshore money was obtained doesn't jeopardize their cases.
 
The official, who is familiar with ongoing discussions about the document trove, said agents from every three-letter agency are lining up to crunch the data to bolster existing cases and build new ones against organized crime syndicates, drug cartels, foreign corrupt regimes and even suspected Hezbollah terror cells in Latin America and possibly the U.S. That includes the FBI, the IRS and other Treasury agents, the Drug Enforcement Administration (DEA) and the Department of Homeland Security (DHS).
Now U.S. federal prosecutors have launched a criminal investigation into whether individuals at Mossack Fonseca & Co., the law firm at the center of the “Panama Papers” scandal, knowingly helped its clients launder money or evade taxes, according to people familiar with the matter.

–– ADVERTISEMENT ––
A spokeswoman for Mossack Fonseca directed all inquiries to the firm’s website, which says the firm “has never been accused or charged in connection with criminal wrongdoing.”

The investigation, led by the Manhattan U.S. attorney’s office and the Justice Department’s main office in Washington, is focused on whether individuals within Mossack Fonseca worked with clients to knowingly facilitate criminal activity, according to people familiar with the matter. Prosecutors are considering charges that could include conspiracies to launder money, evade taxes, and hide bribes to foreign officials, the people said.

The Investigation is Focused on a Handful of
Lower-Level Mossack Fonseca Employees,
but Prosecutors plan to Expand Their Scope,
people familiar with the matter said.
The Investigation is Still in Early Stages!

To bring any charges, U.S. prosecutors would have to prove that Mossack Fonseca’s lawyers knew they were helping clients conduct illegal activities or were willfully blind.

Prosecutors also will have to ensure that the evidence they use from the Panama Papers isn’t protected by attorney-client privilege.

In our April 25, 2016 post entitled DoJ Launches Criminal Investigation of Hundreds of US Taxpayers Named in Panama Papers Leak! we discussed that Mossack Fonseca Company Services is currently attempting to fight a subpoena brought in the U.S. District Court for the District of Nevada seeking information on at least 123 companies that it created.

In 2015, a federal judge in Nevada ruled that Mossack Fonseca was subject to the U.S. court’s jurisdiction due to the existence of M.F. Corporate Services in Nevada, which the judge said was a Las Vegas-based “alter ego” for the firm.

As we further discussed in our June 25, 2016 post Nevada & Wyoming Asked to Provide Information on Entities Linked to the “Panama Papers” Senate Finance Committee Ranking Member Ron Wyden (D-OR) has asked the Nevada Secretary of State to provide specific information on over 1,000 Nevada business entities that have been linked to the so-called “Panama Papers” scandal. Nevada's law allows it to demand a list of beneficial owners of any entity registered in Nevada and suspected of illegal activities. Senator Wyden has also requested that the Wyoming Secretary of State provide specific information on the 24 Wyoming business entities that are linked to the scandal.

Lets just say that this is not an ideal time to be a Mossack Fonseca client with undeclared offshore income and is now it is also not a good time for Mossack Fonseca employees who may have been involved with or willfully blind to tax evasion, money laundering or other unlawful acts.

  Do You Have Undeclared Income From An Entity
Formed By Mossack Fonseca ?

  
Do You Have Undeclared Accounts
With Any of the Following Foreign Banks?
 
 
 
Want to Know if the OVDP Program is Right for You?
 
Contact the Tax Lawyers at 
Marini & Associates, P.A.  
 
for a FREE Tax Consultation
or Toll Free at 888-8TaxAid (888) 882-9243
Sources:

The Guardian