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Archive for Ronald Marini

OECD Announces New Country-by-Country Reporting Standard Starting in 2016!


On 02/06/15 the OECD and G20 countries have agreed three key elements that will enable implementation of the BEPS Project:

• a mandate to launch negotiations on a multilateral instrument to streamline implementation of tax treaty-related BEPS measures;

• an implementation package

     • for country-by-country reporting in 2016 and

     • government-to-government exchange mechanism to start in 2017;

• criteria to assess whether preferential treatment regimes for intellectual property Read more

FATCA Update! – 112 FATCA Agreements To Date!

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Since our last FATCA update which we posted on Monday, December 1, 2014, FATCA Update! – 101 FATCA Agreement To Date! the following 11 countries have signed FATCA agreements with the US  bringing the total to 112 jurisdictions with FATCA agreement including:

1. The U.S. and Seychelles sign agreement to implement FATCA. Seychelles is about to sign a Model 1B inter-governmental agreement (IGA) with the US to implement the US Foreign Account Tax Compliance Act. The Seychelles Revenue Commission will collect the information from domestic financial institutions and exchange it with the US Internal Revenue Service annually. Read more

Estate Tax Inequities (Changing Domiciliary)

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Last year, Joan Rivers died with an estate of roughly $100 million. In her last will and testament she described herself as a resident of New York State but a domiciliary of the State of California. What’s the difference?

Prior to 2000, there was no difference and all estates that paid federal taxes had to pay state death taxes based on a pickup chart listed on the tax return. It was a graduated tax predicated on the size of the estate; every estate, however, irrespective of domicile, paid the same amount on a percentage basis to the state of domicile. Circa 2000, the IRS disconnected the state death tax payments from the federal tax. The result was that some states chose not to have any state death tax while other states levied a substantial tax of their own. Read more

DOJ Continues To Prosecute Offshore Bankers Who Have Aided Taxpayers To Avoid US Taxes!

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Bloomberg News reports that federal prosecutors in Manhattan filed an expanded indictment Wednesday against former Wegelin & Co. bankers Roger Keller, Urs Frei and Michael Berlinka.

On Wednesday, August 28, 2013 we posted U.S. Turns Up The Pressure On Swiss Banks! where we discussed that thousands of Swiss bank workers have seen their data handed over to justice authorities in the United States and are now living with a considerable amount of uncertainty.

Now three Swiss bankers accused in 2012 of helping Americans hide more than $1.2 billion from the U.S. Internal Revenue Service face new charges of obstructing the Read more

UBS Whistleblower Bradley Birkenfeld Subpoenaed By French Authorities


A former UBS AG banker whose disclosures led the U.S. Department of Justice to investigate the Swiss bank for helping its American clients evade taxes has asked a Florida federal judge for permission to travel to France to aid in that country’s scrutiny of the bank, after receiving a subpoena from a French magistrate judge.

Bradley Birkenfeld filed a motion on Friday saying he had received a subpoena to appear before French Magistrate Judge Guillaume Daieff in Paris later this month to help the judge and French law enforcement with their investigation into the bank’s activities.

“The subpoena commands Mr. Birkenfeld to assist the investigation by appearing before him to provide testimony in his chambers,” the motion said. “Through French counsel, Read more

IRS Begins Limited Test of Providing Appointments at 10 Walk-In Locations

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The Internal Revenue Service announced today a limited test in 10 of its larger Tax Assistance Centers around the country to determine if an appointment-based service approach can help reduce taxpayer wait times during a time of severe budget cuts.

While the IRS believes this approach will benefit taxpayers by helping them avoid long waits in line that they otherwise might have experienced, the IRS is testing this process during the tax filing season to ensure this is a more efficient approach for taxpayers.

“During a challenging filing season with a very limited budget, we need to find ways to increase our efficiency and still provide the best service possible to taxpayers,” said IRS Commissioner John Koskinen. “My hope is that this test increases the level of customer Read more

IRS Issues Guidance on Estate-Gift Tax Pre-Appeals Conference Procedures

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IRS’s Small Business/Self-Employed (SB/SE) Division has issued interim guidance to its estate and gift tax auditors on procedures to use in connection with a taxpayer whose estate tax, gift tax, generation-skipping transfer tax, fiduciary income tax, or information return is being examined by estate/gift tax auditors, being eligible for an IRS Appeals conference.

After an IRS auditor completes an examination of a taxpayer’s tax return with respect to which the auditor wishes to propose adjustments, IRS provides the taxpayer a letter, a “30-day letter,” together with a computation report of proposed adjustments to the tax return. Read more

US Expatriation Increase At A Record Pace In 2014!


We previously posted US Expatriation Increase At a Record Pace in 2014! where we discussed that the number of Americans renouncing U.S. citizenship stayed near an all-time high in the first half of the year before rules that make it harder to hide assets from tax authorities came into force (FATCA – Effective Date July 1, 2014).

A record 3,415 individuals renounced their U.S. citizenship or long-term residency in 2014, according to a list released by the Treasury Department on Tuesday. Each quarter the U.S. Treasury publishes the names of the Americans who officially expatriated during that period.

3,415 Americans Renounced their Citizenship in 2014.  Eclipsing the Previous All-Time Read more

Final Regulations on Reporting Foreign Financial Assets – Form 8938


The IRS published final regulations (TD 9706, 12/12/14) on the statutory provisions that require specified foreign financial assets to be reported for tax years beginning after 3/18/10. The regulations provide guidance on the requirement that individuals attach a statement to their income tax return to provide required information regarding specified foreign financial assets in which they have an interest.

The regulations exempt from the reporting requirements some dual resident taxpayers who determine their U.S. tax liability as if they were nonresident aliens and claim treaty benefits as nonresidents of the U.S.

Also, the regulations clarify the reporting requirements for some interests in assets under Read more

Clients of HSBC Geneva Are Named Publicly!

Bank building

The media has obtained the names of HSBC account holders, some of which will be named in a TV program to be shown by the British Broadcasting Corporation (BBC).

The HSBC files, the biggest banking leak in history, reveal the full scale of malpractice at its Swiss subsidiary,  as more fully discussed in out post
Another Offshore Whistle Blower – Former HSBC Employee! Recent court cases in the US and Europe have provided individual examples of the bank’s wrongdoing, but the leaked files show how these cases were part of a persistent pattern of misconduct.

At its height, HSBC’s secretive Swiss arm hid a total of $120bn (£78bn) in assets. These funds were collected from wealthy clients all over the world and have already led to Read more

US Investigates UBS… Again!

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UBS AG got into trouble with the IRS and Justice Department and changed bank secrecy forever. Eventually, the Swiss Parliament passed a measure enabling banks to hand over client identities to American authorities without violating Swiss bank-secrecy laws. After getting bruised in court battles with the IRS, in 2009, UBS paid $780 million to settle charges that it helped wealthy Americans evade taxes and many Swiss Banks followed suit.

The Swiss Banks – US Tax Time Line:

• 2009: Switzerland’s biggest bank UBS agrees to turn over more than 4,450 client names and pay a $780 million fine after admitting to criminal wrongdoing in selling tax-evasion Read more

Hiding Money or Income Offshore Among the “Dirty Dozen” List of Tax Scams for the 2015 Filing Season


The Internal Revenue Service announced in IR-2015-09, Jan. 28, 2015 that avoiding taxes by hiding money or assets in unreported offshore accounts remains on its annual list of tax scams known as the “Dirty Dozen” for the 2015 filing season.

“The recent string of successful enforcement actions against offshore tax cheats and the financial organizations that help them shows that it’s a bad bet to hide money and income offshore,” said IRS Commissioner John Koskinen. “Taxpayers are best served by coming in voluntarily and getting their taxes and filing requirements in order.”

Since the first Offshore Voluntary Disclosure Program (OVDP) opened in 2009, there have been more than 50,000 disclosures and we have collected more than $7 billion from Read more