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Monthly Archives: December 2015

Its Official – The the 5th Amendment DOES NOT Trump the Required Records Doctrine!

December 2, 2015

On Tuesday, October 27, 2015, we posted US Supreme Court Asked to Consider Whether the 5th Amendment Trumps the Required Records Doctrine? were we discussed the Third Circuit ruling that a married couple must turn over their foreign bank account records to the Internal Revenue Service, saying the couple can’t shield themselves by asserting their Fifth Amendment right against self-incrimination.
 
This comes after our post "Fifth Amendment Does Not Apply to Offshore Banking Records," where we discuss that under the Required Records Doctrine, and a taxpayer who is the subject of a grand jury investigation into his use of offshore bank accounts cannot invoke the privilege to resist compliance with a subpoena seeking records kept pursuant to the Bank Secrecy Act, the U.S. Court of Appeals for the Seventh Circuit ruled Aug. 27 (In re Special February 2011-1 Grand Jury Subpoena Dated September 12, 2011, 7th Cir., No. 11-3799, 8/27/12). 
 
Now the Supreme Court has declined to review a decision of the Court of Appeals for the Third Circuit which held that the "required records" exception to the Fifth Amendment privilege against self-incrimination applies to allow IRS to summon foreign bank account records. (See Chabot, 577 U.S. 15-454, cert denied 11/30/2015). 
Do You Have Undeclared Income from an Offshore Bank?

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
at: www.TaxAid.us or www.TaxLaw.ms or
Toll Free at 888-8TaxAid (888) 882-9243

Read more at: Tax Times blog

Everything You Wanted to Know About Installment Payment Plans, but Wished You Did Not Need to Ask

December 1, 2015

 

If you're financially unable to pay your tax debt immediately, you can make monthly payments through an installment agreement. As long as you pay your tax debt in full, you can reduce or eliminate your payment of penalties or interest, and avoid the fee associated with setting up the agreement.

Before applying for any payment agreement, you must file all required tax returns.

You may be eligible to apply for a streamline payment agreement if:

  • Individuals must owe $50,000 or less in combined individual income tax, penalties and interest, and have filed all required returns.
  • Businesses must owe $25,000 or less in payroll taxes and have filed all required returns.

Even if you're ineligible for a Streamline payment agreement, you can still pay in installments

  • Complete and Form 9465, Installment Agreement Request and 
  • Form 433-F, Collection Information Statement; then contact us for a Free Consultation.

Small Businesses can apply for an in-Business Trust Fund Express installment agreement

    Understand your agreement & avoid default

    • Your future refunds will be applied to your tax debt until it is paid in full;
    • Pay at least your minimum monthly payment when it's due;
    • Include your name, address, SSN, daytime phone number, tax year and return type on your payment;
    • File all required tax returns on time & pay all taxes in-full and on time (contact us to change your existing agreement if you cannot);
    • Make all scheduled payments even if we apply your refund to your account balance; and
    • Ensure your statement is sent to the correct address, contact us if you move or complete and mail Form 8822, Change of Address.

    If you don't receive your statement, send your payment to the address listed in your agreement.
    There may be a reinstatement fee if your agreement goes into default. Penalties and interest continue to accrue until your balance is paid in full. If you are in danger of defaulting on your payment agreement for any reason, contact us immediately. We will generally can stop the IRS from taking enforced collection actions:

    • When an installment agreement is being considered;
    • While an agreement is in effect;
    • For 30 days after a request is rejected, or
    • During the period the IRS evaluates an appeal of a rejected or terminated agreement.

    Have A Tax Problem?


     

    Contact the Tax Lawyers at 
    Marini & Associates, P.A.

    for a FREE Tax Consultation

    Toll Free at 888-8TaxAid - 888-882-9243.


    Read more at: Tax Times blog

    Have An Unpaid Tax Bill? Your Passport Could Soon be Revoked!

    December 1, 2015

    On November 17, 2015 we posted "Tax Delinquents May Have Passports Canceled - Take 2!," where we discussed that nothing has happen since our May 31, 2012 post "Tax Delinquents May Have Passports Canceled & Be Questioned at Air & Sea Ports"  as it relates to the IRS being able to revoke the passports of Americans who owe substantial unpaid taxes.

    However a recent bill known as the  H.R. 22, Fixing America’s Surface Transportation Act (FAST Act), which It includes amendments to the tax code that would allow authorities to revoke or deny the passport of any US taxpayer who has unpaid taxes in excess of $50,000 or who have not obtained or won’t provide a Social Security number, has been approve by the conference committee.

    The applicable provision in the FAST Act is entitled "Revocation or denial of passport in case of certain unpaid taxes (sec. 52101 of the Senate amendment, sec. 32102 of the House amendment, sec. 32101 of the conference agreement and secs. 6320 and 6331 and new secs. 7345 and 6103(k)(11) of the Internal Revenue Code)" 

    This bill will be sent by the Conference Committee back to both the House & the Senate, which must both pass this bill, before it can be sent to the president for signature.

     Have A Tax Problem?

     Want To Keep Your US Passport?

     

    Contact the Tax Lawyers at 

    Marini & Associates, P.A.


    for a FREE Tax Consultation

    Toll Free at 888-8TaxAid (888)882-9243.

      

         



    Read more at: Tax Times blog

    Tax Court Rules That Tax Refunds Are Included in Decedant's Estate

    December 1, 2015


    A matter recently litigated in the United States Tax Court, in Estate of Badgett v. Commissioner, clarifies the situation which most people don't even think about when they prepare a 706 for a US  decedent.  At the time of his death this decedent had not yet filed a 1040 for the year in which he died. Subsequent to his death, a 1040 was filed resulting in a refund to the estate in excess of $400,000.

     
    The estate, on the 706, opined that the $400,000 refund was not an asset of the estate and did not include it in the estate. The IRS took umbrage at this position. The IRS's position, supported by section 2031, indicates that all property, real, personal, tangible or intangible wherever situated is includable in the decedent's gross estate. 

    The estate, in the tax court case, took the position that in order to be included in the decedent's estate, the refund must already have been in existence at the date of death, not merely a possibility or expectation. Clearly this flies in the face of a number of cases in which the decedent was to have been a beneficiary of a contract or a shows in action. Although the receipt of the money is merely a possibility or an expectation, it is still includable in the decedent's estate. In the case of a tax refund, the amount is finite. In the case of a shows in action or contractual obligation, one could argue, depending on the facts and circumstances, that the amount to be included in the gross estate was less than 100% of the value listed on the contractual obligation since a possibility of litigation exists, the right of which may well diminish the contractual obligation from the amount listed on the contract. 

    The  estate's final argument, one which fell on deaf ears, was that there was no guarantee that the IRS would refund the full amount of the refund. Clearly this is a misunderstanding of tax refunds.  In the case that the IRS has no outstanding liens or assessments against a taxpayer, the amount of the refund is 100% of the amount listed on the tax return (barring mathematical error).  It is true however, that if there is an outstanding lien or obligation to the IRS, the amount of the obligation will be netted against the refund. In this particular case, the decedent  had no outstanding obligations to the IRS so the full amount of the refund is includable in the decedent's estate.
     
     

     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.



     

    Read more at: Tax Times blog

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