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Criminal Defense Lawyer's 5th Amendment Privilege Trumps an IRS Summon

Defense Lawyer Pleading The 5th Beats IRS Summons preview imageAccording to Law360, A Minnesota federal judge has denied the IRS’ request to enforce a summons against a local criminal defense lawyer the agency accused of hiding tax-related information, agreeing with his Fifth Amendment objection citing the right against self-incrimination.

Attorney Martin S. Azarian had provided the tax agency certain documents in response to a summons over his income taxes. The IRS then sued in Minnesota federal court to obtain more information from him that he allegedly improperly withheld. The attorney pushed back, asserting a reasonable fear of prosecution under the Fifth Amendment.
Agreeing with a magistrate judge's report and recommendation, U.S. District Judge Wilhelmina M. Wright ruled Tuesday that Azarian's Fifth Amendment privilege assertion is valid.

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Read more at: Tax Times blog

In the late 1980s, two Texas attorneys, John Porter and Stacy Eastland, introduced a new discounting technique relating to the formation of family limited partnerships which resulted in discounts of 30% and more to the value of the artificially created family limited partnership (FLP).  This technique was an anathema to the Internal Revenue Service; a review of many estate tax court cases litigated in the last 20 years involve the discounts taken on  FLPs. The bulk of these discounts were related to intrafamily transfers, many times saving millions of dollars in estate tax.

Now, the Internal Revenue Service is fighting back. A proposed regulation would beef up section 2704 of the IRC of 1986 to preclude many of the presently available discounting techniques. In addition, this proposed regulation would expand the purview of section 2704 to include not only partnerships and corporations but LLCs, S corporations, and other family "business" transfer entities.

Part of the proposal includes drawing a bright line between the family members and nonfamily members for the purpose of allowing discounts. The proposed regulation would enable the IRS to attack any entity created prior to October 8, 1990.

What this regulation will look like when it is finalized is somewhat conjectural but be prepared to take a hit on the use of heavily discounted entities within intrafamily transfer transactions. It will be equally interesting to see what steps the estate tax planning community will take to try to blunt the thrust of these new regulations.
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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

FDR Held in Contempt for Intercepting an Approved Chapter 13 Bkcy Payment

Fla. Tax Agency In Contempt For Collection, 11th Circ. Says preview imageAccording to Law360, The Florida Department of Revenue must be held in contempt of a bankruptcy court after intercepting a payment to a federal employee whose Chapter 13 plan was already confirmed, the Eleventh Circuit ruled Thursday in upholding lower courts in the dispute.

  Have a Tax Problem?
 
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).
 
 

 

Read more at: Tax Times blog

Cayman Islands FATCA Reporting of American Depositors Has Been Postponed until Sept. 2nd – Don't Wait Until it is TOO Late to Come Clean!

Yesterday we posted Cayman Islands FATCA Reporting of American Depositors is TODAY - Don't Wait Until it is TOO Late to Come Clean! now The Cayman Islands has postponed the deadline for banks to report accounts of US and UK persons for the 2015 tax year to the Cayman Tax Information Authority from August 10, 2016 to September 2, 2016 for both US Foreign Account Tax Compliance Actreporting and UK Crown Dependencies/Overseas Territories reporting.

The deadline, which refers to the 2015 tax year, was originally fixed for May 31, 2016. Banks and other financial institutions were told that it applied to their reporting duties under both the US Foreign Account Tax Compliance Act and the UK Crown Dependencies/Overseas Territories disclosure agreement. It is referred to as a 'soft' deadline because it is set by administrative fiat rather than legislation.

However, financial institutions have had problems using the website set up by the government as a reporting portal. The deadline was first put back to July 8, 2016, then to August 10 , 2016 and now it's been further postponed until September 2, 2016, both for actual reporting of bank account information and for notifications that the institution is a reporting body.

Do You Have Undeclared Income 
From A Grand Cayman Island Account or
A Grand Cayman Island Mutual Fund?
 

 

 

Want to Know if the OVDP Program
is Right for You?

 

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Marini & Associates, P.A.  
 
for a FREE Tax Consultation
or Toll Free at 888-8TaxAid (888) 882-9243


Source

Read more at: Tax Times blog