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Archive for Ronald Marini

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

Beneficial Ownership Register Starting July 1st

Ron Marini

The British Virgin Islands’ Government signed new legislation regarding Beneficial Ownership & Technical Protocol with the UK which will come into force in June 2017, which is hoped to improve the exchange of beneficial ownership information between the UK& BVI law enforcement for taxation rulings. Read more

U.S. Tax Planning After BEPS

Ron Marini

Previously, we discussed that more than 100 jurisdictions have concluded negotiations on a multilateral instrument(MLI) that will swiftly implement a series of tax treaty measures to update international tax rules and lessen the opportunity for tax avoidance by multinational enterprises.

Even though the U.S. participated in the negotiations over the MLI, it ultimately chose not to adopt the convention.

Read more

U.S. Now Revoking Passports of Taxpayers With Unpaid Taxes!

Ron Marini

The tax code now provides for authorities to revoke or deny the passport of any U.S. taxpayer who has unpaid taxes in excess of $50,000 or who have not obtained or won’t provide a Social Security numbers. The IRS updated it website to state that the IRS had not yet started certifying tax debt to the State Department. However, Certifications to the State Department will begin in early 2017 and this webpage will be updated to indicate when this process has been implemented. Read more

IRS Targeting Foreign Corporations Which Do Not File!

Ron Marini

Tax practitioners will face new questions from examination teams as the IRS selects compliance risks based on data, in the Large Business and International Division’s (LB&I) move from individual audits of multinationals to broader considerations involving risk assessment. Read more

Lessons For U.S. Taxpayers Hiding Assets Offshore

Ron Marini

Argentine soccer superstar Lionel Messi was sentinced to 21 months in jail after he was found guilty of tax fraud for using offshore companies to avoid paying Spanish taxes on advertising contracts. Read more

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