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Archive for Ronald Marini

How Will the IRS Know About My Foreign Account?

Taxpayers who have financial assets outside the United States often ask the question “How will they (IRS) know about my Foreign Account?;” when they are considering how (or whether) to come clean and inform the IRS about their previously undisclosed foreign financial accounts.

For years, there was little public knowledge of the U.S. government’s foreign financial reporting requirements, and enforcement of those rules was not always very strict.  Read more

New E-Business Visa Route For Frustrated Foreign Investors

Citizenship applications for the Caribbean island of Grenada have boomed in the last three years.

Reports have emerged that Grenada’s citizenship by investment program, introduced in 2014, is being used to fast-track U.S. E2 visa applications. Read more

All That You Wanted to Know About Form 706NA – Part I

Deceased nonresidents who were not American citizens are subject to U.S. estate taxation with respect to their U.S.-situated assets. Also, many foreigners owning property or assets in the United States are in violation of 706-NA filing requirements because of a number of misunderstandings. The basic rule is pretty clear-if a foreign decedent has assets in the United States with a gross value in excess of $60,000, the estate is supposed to file a tax return with the Internal Revenue Service.  Read more

Ireland Disagrees With EU’s Decision To Collect €13 Billion

Ireland previously has said it planned to shut down a much-criticized tax arrangement used by Apple Inc. to shelter over $40 billion from taxation, but will leave open an even bigger loophole that means the computer giant is unlikely to pay any more tax. The highly criticized arrangement has become known in the tax avoidance industry as the “double Irish”. This arrangement has been used by Google, Microsoft & Apple, just to name a few.  Read more

Issues Concerning Filing A Form 706-NA

Deceased nonresidents who were not American citizens are subject to U.S. estate taxation with respect to their U.S.-situated assets.

Many foreigners owning property or assets in the United States are in violation of 706-NA filing requirements because of a number of misunderstandings. The basic rule is pretty clear-if a foreign decedent has assets in the United States with a gross value in excess of $60,000, the estate is supposed to file a tax return with the Internal Revenue Service.  Read more

CPA Advice May Not Constitute Reasonable Cause

Taxpayers have been able to rely on advice from their accountants and CPAs to meet the complicated tax filing imposed by the U.S. Tax Code. But a case currently pending in the U.S. Court of Federal Claims suggests that CPA advice may not be enough to stop the IRS from assessing FBAR penalties for non-willful reporting violations.

A current case in the United States Court of Federal Claims, Jarnagin v United States, Docket No. 15-1534-T, shows what can happen when an unsuspecting taxpayer fails to file FBAR forms after providing all the requisite information regarding the foreign account to their accountant/CPA. Read more

New International Criminal Units Driven By Data Mining

In 2012, we discussed the use of data-mining technology and how the Internal Revenue Service has adopted it to find taxpayers with undisclosed offshore bank accounts. U.S. taxpayers who are still considering whether to disclose their accounts need to understand that IRS’s data-mining software increases their risk of being detected. They should act accordingly and seek legal advice immediately.” We also discussed that the phasing in over the coming year of the Foreign Account Tax Compliance Act (FATCA) will only increase the breadth and depth of the data available to IRS and E-Trak. Read more

Denying Taxpayers’ Right To Switch From OVDP To Streamlined

Previously, we discussed that three taxpayers seeking to switch over to the IRS’ new “streamlined” compliance program for unreported offshore income argued to a D.C. Circuit panel that their lawsuit is not foreclosed by the Anti-Injunction Act’s bar on pre-enforcement tax challenges, attacking the government’s key defense in the case. The case is Maze et al. v. Internal Revenue Service et al., case number 16-5265, in the U.S. Court of Appeals for the District of Columbia Circuit. Read more

Greek Co. Not Liable For Gain From Sale Of Partnership Interest

Ron Marini

The Tax Court has concluded that a foreign corporation’s proceeds from the redemption of a U.S. limited liability company that was treated as a partnership for U.S. income tax purposes was not U.S.-source income and was not effectively connected with a U.S. trade or business. Read more

Private Debt Collectors Threatening Taxpayers To Pay Their Debts?

The IRS announced that it plans to begin private collection of certain overdue federal tax debts next spring and has selected four contractors to implement the new program.

The IRS began sending letters to a relatively small group of taxpayers whose overdue federal tax accounts are being assigned to one of four private-sector collection agencies starting April 2017. Read more

IRS Agree On Tax Refund Due Amazon In $1.5B Dispute

We previously discussed that the U.S. Tax Court ruled against the IRS in this $1.5 billion transfer pricing dispute with Amazon, which currently has experts calling for a re-examination of the agency’s valuation methodologies in order to prevent it from wasting its own resources and those of taxpayers. Read more

U.S. Government Agrees To Intervene In Apple’s €13B EU Case

Ron Marini

Apple has published its defense to the European Commission’s accusation that it obtained unfair commercial advantage from its corporation tax agreement with Ireland. Apple has published its defense to the European Commission’s accusation that it obtained unfair commercial advantage from its corporation tax agreement with Ireland.  Read more

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