Yearly Archives: 2017

On February 22, 2017 we posted Your FBAR Is Due in April This Year! where we discussed that the new law, for returns for tax years beginning after Dec. 31, 2015, the due date of FinCEN Report 114 will be Apr. 15, with a maximum extension of 6 months ending on Oct. 15.

Now FinCEN has issued a new report providing that while new annual due date for filing Reports of Foreign Bank and Financial Accounts (FBAR) for foreign financial accounts is April 15; to implement the statute with minimal burden to the public and FinCEN, FinCEN will grant filers failing to meet the FBAR annual due date of April 15 an automatic extension to October 15 each year. 

Accordingly, specific requests for this extension are not required. You will not have to file any paperwork with the Department to file Form 114 by October 15. 

If you have foreign bank or investment accounts, make sure to discuss this with your tax advisor. 

If you have not reported these accounts, you may need to go back six or eight years and voluntarily report it to the Department of Treasury and the IRS.  Their is a 325% tax, penalties & interest for not doing this,which can easily exceed the remaining dollars in those accounts.

 Have a Tax Problem? 

 

 

 

Contact the Tax Lawyers at

Marini & Associates, P.A.

 

for a FREE Tax Consultation

at www.TaxAid.com or www.OVDPLaw.com

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

Under the check the box rules, entities owned by one person can often be disregarded for federal tax purposes. Such entities are referred to as "disregarded entities." 

As time has progressed since the passage of the check the box rules, the IRS has created more and more exceptions to the disregarded treatment. The following is a summary of the principal exceptions, but is not intended to be exhaustive. If any readers think we have missed anything major, please feel free to comment to this posting.

1. Status is modified if the single owner of the entity is a bank. Treas. Regs. Section 301.7701-2(c)(2) (iii). 

2. Status is modified for certain tax liabilities. Treas. Regs. Section 301.7701-2(c)(2)(iii). These include: (1) federal tax liabilities of the entity with respect to any taxable period for which the entity was not disregarded; (2) federal tax liabilities of any other entity for which the entity is liable; and (3) refunds or credits of federal tax. 

3. Disregarded status ignored or modified for taxes imposed under Subtitle - Employment Taxes and Collection of Income Tax (Chapters 21, 22, 23, 23A 24, and 25 of the Code) and taxes imposed under Subtitle A including Chapter 2 - Tax on SelffEmployment Income. Treas. Regs. Section 301.7701-2(c) (2) (iv) (A). 

4. Status is modified for certain excise taxes, as described in Treas.Regs. Section 301.7701-2(c)(2J(v). Although liability for excise taxes isn't dependent on an entity's classification, an entity's classification is relevant for certain tax administration purposes, such as determining the proper location for filing a notice of federal tax lien and the place for hand-carrying a return under Code Section 6091

5. Conduit financing proposed regulations will treat a disregarded entity as separate from its single member. Code Section 7701 (I).

6. Special rules will apply in hybrid situations. Hybrid situations are circumstances where an entity is not disregarded in one jurisdiction but is disregarded in another.
7. Recently enacted final regulations (TD 9796) that treat domestic disregarded entities wholly owned, directly or indirectly, by foreign persons  as domestic corporations solely for purposes of making them subject to the reporting requirements under Internal Revenue Code, Section 6038A that apply to 25% foreign-owned domestic corporations.

 

Have a Tax Problem?  

 



 

Contact the Tax Lawyers at

Marini & Associates, P.A.

 for a FREE Tax Consultation Contact US at

www.TaxAid.com or www.OVDPLaw.com

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

 

 

 

 



 

We previously posted on November 14, 2016 Trump Presidency Could Be Death Knell For Estate Taxes! where we discussed President-Elect Trump's tax plans, which includes the repeal of the US Estate & Gift taxes.

This may be a realistic possibility considering that this is in line with some of the proposals in the Republican House Ways & Means Committee Report of June 24, 2016 and especially when you consider that now the Republican's Control both the Senate and the Congress.

There are some differences that will need to be ironed out, including that Trump’s proposal would still allow the step-up in basis for estates under USD10 million but the Republican Party's proposal would simply abolish the tax without allowing step-up.

However, our Estate Tax Counsel, Robert S Blumenfeld, Esq., would like to point out that
dating back to the 1960s, an ongoing battle has been waged between Republicans and Democrats over the concept of the Federal Estate Tax.  During this fifty-year plus battle, Republicans have sought to eliminate or at least emasculate the FET while the Democrats fought to increase the impact of the FET on larger estates. The upshot of this is been best while there is a much larger credit shelter, $5.5 million dollars ($11 million for a husband and wife) today than  the $60,000 credit shelter extent in the 1960s, the number of devices or gimmicks available to lessen the impact of the FET has been legislatively reduced or eliminated.

Have an 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

www.TaxAid.com or www.TaxLaw.ms

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.

 

 

 

 

The European Parliament voted, on 2 March 2017, to suspend the EU's visa waiver program with the US for one year, following the US administration's failure to lift visa restrictions on Bulgaria, Croatia, Cyprus, Poland, and Romania.

The European Commission now has two months to reintroduce visas for Americans wishing to travel to Europe.

Citizenship advisory firm Henley & Partners says the outcome could be a 'visa war', with a serious impact on global mobility if US President Trump retaliates in kind.