IRS urges participants of abusive micro-captive insurance arrangements to exit from arrangements (Apr. 9, 2021)

Internal Revenue Service officials urged participants in abusive micro-captive insurance arrangements to exit these transactions as soon as possible. The IRS has stepped up examinations of these arrangements and has recently won yet another case in U.S. Tax Court that such arrangements are not eligible for the tax benefits claimed. On March 10, 2021, the … Continue reading IRS urges participants of abusive micro-captive insurance arrangements to exit from arrangements (Apr. 9, 2021)

Forbes: IRS Warning: FBAR Deadline For Offshore Accounts Is Still April 15 (April 9, 2021)

Forbes has published an article, “IRS Warning: FBAR Deadline For Offshore Accounts Is Still April 15,” which clarifies to readers that the April 15 deadline for those with Foreign Bank and Financial Accounts (FBAR) has not changed despite the May 17 tax filing deadline. The article begins as follows: This year’s tax filing deadline hasn’t … Continue reading Forbes: IRS Warning: FBAR Deadline For Offshore Accounts Is Still April 15 (April 9, 2021)

Nicola Bruce and Karen Corless (Conyers): It’s About Time: Bermuda’s Approach to the Rule against Perpetuities (March 26, 2021)

Nicola Bruce and Karen Corless, of Conyers, has made available for download their article, "It’s About Time: Bermuda’s Approach to the Rule against Perpetuities," published in JDSUPRA. The abstract is as follows: For how long should the dead be able to exert control, from beyond the grave, over the living? This question has arisen in … Continue reading Nicola Bruce and Karen Corless (Conyers): It’s About Time: Bermuda’s Approach to the Rule against Perpetuities (March 26, 2021)

Federal Tax Crimes: Another Failed Judicial Contest of the FBAR Willful Penalty (March 23, 2021)

Jack Townsend, in his Federal Tax Crimes Blog, discusses the failed attempt to overturn the FBAR civil penalty in Kimble v. United States, ___ F.3d ___ (Fed. Cir. 3/22/21). In Kimble v. United States, ___ F.3d ___ (Fed. Cir. 3/22/21), TN here, in an appeal from an adverse holding in a refund suit, the Court sustained the … Continue reading Federal Tax Crimes: Another Failed Judicial Contest of the FBAR Willful Penalty (March 23, 2021)

Forbes: Collateral Attack On Charging Order Via Federal Court Fails In Kerr (March 27, 2021)

Forbes has published an article, “Collateral Attack On Charging Order Via Federal Court Fails In Kerr,” which discusses how debtors will sometimes attempt to collaterally attack a charging order and are usually futile due to abstention doctrines used in federal court. The article, which uses Kerr v. Collier, 2021 WL 972529 (N.D.Ohio, March 16, 2021) … Continue reading Forbes: Collateral Attack On Charging Order Via Federal Court Fails In Kerr (March 27, 2021)

Kimble v. United States, 2019-1590 (US Fed Cir. 2019): Willful Failure to File FBAR – 50 Percent Penalty Applies

The Court of Federal Claims, in Kimble v. United States, 2019-1590 (US Fed Cir. 2019), held that an individual’s failure to disclose a foreign bank account was willful.  The Court noted that, contrary to the individual’s argument that a taxpayer cannot commit a willful violation without actual knowledge of the obligation to file an Report … Continue reading Kimble v. United States, 2019-1590 (US Fed Cir. 2019): Willful Failure to File FBAR – 50 Percent Penalty Applies

US v. Boyd, No. 19-55585 (9th Cir. Mar. 24, 2021): Only one penalty applies for untimely filing of FBAR reporting multiple foreign accounts

In United States v. Boyd, No. 19-55585 (9th Cir. Mar. 24, 2021), the U.S. Court of Appeals for the Ninth Circuit, in a case of first impression for the circuit, held that the IRS is limited to imposing one penalty for the untimely filing of a single accurate “Report of Foreign Bank and Financial Accounts” … Continue reading US v. Boyd, No. 19-55585 (9th Cir. Mar. 24, 2021): Only one penalty applies for untimely filing of FBAR reporting multiple foreign accounts

KPMG: Advance notice of proposed rulemaking pending OIRA review: Beneficial ownership reporting requirements (Mar. 23, 2021)

KPMG is reporting that OMB’s Office of Information and Regulatory Affairs (OIRA) reported that it has received for review from the U.S. Treasury Department an advance notice of proposed rulemaking concerning section 6403 and provisions for implementing the Corporate Transparency Act. Section 6403 is the main Code section relating to the new beneficial ownership information reporting requirements. … Continue reading KPMG: Advance notice of proposed rulemaking pending OIRA review: Beneficial ownership reporting requirements (Mar. 23, 2021)

Beneficial Ownership Reporting Required Under the Corporate Transparency Act

The Corporate Transparency Act (the CTA), which became law on January 1, 2021, as part of the National Defense Authorization Act for Fiscal Year 2021 (P.L. 116-283), requires certain US entities and foreign entities doing business in the United States to report their beneficial owners to the Department of the Treasury’s Financial Crimes Enforcement Network … Continue reading Beneficial Ownership Reporting Required Under the Corporate Transparency Act

Forbes: Debtor’s Large LLC Distribution To Circumvent Charging Order Draws Ire Of Non-Debtor Member In Bargreen (February 15, 2021)

Forbes has published an article, “Debtor’s Large LLC Distribution To Circumvent Charging Order Draws Ire Of Non-Debtor Member In Bargreen” which discusses Wholesaler Equity Development Corp (Wedco). v. Bargreen as it pertains to effects of charging orders on the relationship between businesses, debtor members, and non-debtor members. The summary of the article is as follows: It is … Continue reading Forbes: Debtor’s Large LLC Distribution To Circumvent Charging Order Draws Ire Of Non-Debtor Member In Bargreen (February 15, 2021)

Kansas Supreme Court: “Any Person” Means What It Says In Double Penalty Probate Statute For Conversion Of Decedent’s Property (February 4, 2021)

Probate Stars has published an article,"'Any Person' Means What It Says In Double Penalty Probate Statute For Conversion Of Decedent’s Property," which discusses "In re Estate of Taylor." The article begins as follows: In the January 22, 2021 opinion of "In re Estate of Taylor," the Kansas Supreme Court interpreted the plain language of the Kansas … Continue reading Kansas Supreme Court: “Any Person” Means What It Says In Double Penalty Probate Statute For Conversion Of Decedent’s Property (February 4, 2021)

Antonio De Vito and Martin Jacob: The Role of Creditor Protection in Lending and Tax Avoidance (November 9, 2020)

Antonio De Vito and Martin Jacob, of IE University and WHU - Otto Beisheim School of Management, respectively, have made available for download their article, The Role of Creditor Protection in Lending and Tax Avoidance, available in SSRN. The abstract is as followed: We examine how creditor rights affect the trade-off between non-debt and debt … Continue reading Antonio De Vito and Martin Jacob: The Role of Creditor Protection in Lending and Tax Avoidance (November 9, 2020)

Rubin on Tax: Beware the Last Minute Signing of a Prenuptial Agreement [Florida] (February 6, 2021)

Charles (Chuck) Rubin, in his Rubin on Tax blog, discusses prenuptial agreement complications in regards to the time of signing, as well as the context of coercion and duress that are usually brought up in court cases to void such agreements. In using Bates v. Bates, 46 Fla. L. Weekly D287c (3rd DCA, February 3, 2021) as reference, … Continue reading Rubin on Tax: Beware the Last Minute Signing of a Prenuptial Agreement [Florida] (February 6, 2021)

Federal Tax Crimes: Court Holds Taxpayer Liable for FBAR Civil Willful Penalty (February 10, 2021)

Jack Townsend, in his Federal Tax Crimes Blog, discusses United States v. Collins, 2021 U.S. Dist. LEXIS 23260 (W.D. Penn. 2/8/21). The Court’s reasoning for its principal holding that the de novo review standard applies rather than the APA abuse of discretion standard echoes the holding that, since Tax Court deficiency review is de novo, abuse … Continue reading Federal Tax Crimes: Court Holds Taxpayer Liable for FBAR Civil Willful Penalty (February 10, 2021)

Mark Douglas and Daniel Merrett (Jones Day LLP): Another Court Adopts Majority View in Approving Bankruptcy Trustee’s Use of Tax Code Look-Back Period in Avoidance Actions (February 9, 2021)

Mark Douglas and Daniel Merrett, of Jones Day LLP, have made available for download their article, Another Court Adopts Majority View in Approving Bankruptcy Trustee's Use of Tax Code Look-Back Period in Avoidance Actions, published in JDSUPRA. The abstract is as follows: The ability of a bankruptcy trustee or chapter 11 debtor-in-possession ("DIP") to avoid … Continue reading Mark Douglas and Daniel Merrett (Jones Day LLP): Another Court Adopts Majority View in Approving Bankruptcy Trustee’s Use of Tax Code Look-Back Period in Avoidance Actions (February 9, 2021)

Procedurally Taxing: Holding Transferees Liable Without a Transferee Assessment (February 8, 2021)

Marilyn Ames, Office of Chief Counsel, IRS retiree, discusses United States v. Henco Holding Corp.. In yet another case involving an intermediary transaction tax shelter, the Eleventh Circuit Court of Appeals reaches back to a 1933 Supreme Court case to show how broad the government’s powers to reach transferees of a taxpayer’s assets are.  In United … Continue reading Procedurally Taxing: Holding Transferees Liable Without a Transferee Assessment (February 8, 2021)

Forbes: Warren-Nadler Consumer Bankruptcy Reform Act Portends Biggest Changes To Bankruptcy Code Since 2005 (January 27, 2021)

Forbes has published an article, "Warren-Nadler Consumer Bankruptcy Reform Act Portends Biggest Changes To Bankruptcy Code Since 2005," which discusses the changes that the CBRA act could make the bankruptcy code. The article begins as follows: Senator Warren and Congressman Nadler have introduced the Consumer Bankruptcy Reform Act (CBRA) which portends to be the biggest change to … Continue reading Forbes: Warren-Nadler Consumer Bankruptcy Reform Act Portends Biggest Changes To Bankruptcy Code Since 2005 (January 27, 2021)

Procedurally Taxing: Revoking the Release of Federal Tax Lien (October 14, 2020)

Keith Fogg, in his Procedurally Taxing Blog article, discusses Webb v. IRS, No. 1:17-cv-00058 (S.D. Ind. 2020). Taxpayers get a sad lesson in the ability of the federal tax lien both to survive bankruptcy and to come back to life after release.  This is not a story of foreclosure, though that chapter may still be written, but rather … Continue reading Procedurally Taxing: Revoking the Release of Federal Tax Lien (October 14, 2020)

Federal Tax Crimes: Fourth Circuit Holds Taxpayer Liable for Willful FBAR Penalty (10/21/20)

Jack Townsend, in his Federal Tax Crimes Blog, discusses United States v. Horowitz, ___ F.3d ___, 2020 U.S. App. LEXIS 33074 (4th Cir. 2020). OVDP has been discontinued, but a similar risk is encountered in making the decision to join the Streamlined program which requires a certification of non-willfulness with supporting narrative facts.  Streamlined was designed … Continue reading Federal Tax Crimes: Fourth Circuit Holds Taxpayer Liable for Willful FBAR Penalty (10/21/20)

IRS Tax Practice Unit: Receipt of Dividends or Interest from a Related CFC (July 29, 2020)

The IRS Large Business and International (LB&I) has issued a new Practice Unit, Receipt of Dividends or Interest from a Related CFC. Practice Units provide IRS staff with explanations of general tax concepts, as well as information on specific types of transactions. Practice Units are not official pronouncements of law or directives and cannot be … Continue reading IRS Tax Practice Unit: Receipt of Dividends or Interest from a Related CFC (July 29, 2020)