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Some of the nation’s most privileged heirs and entrepreneurs, who have made spectacular fortunes in real estate, finance and Silicon Valley have collectively united on the need to tax more of the richest Americans’ assets.

In a letter published on June 24, 2019 on the website Medium.com calls for

George Soros, heiresses to the Pritzker fortune, Abigail Disney and Facebook Inc. co-founder Chris Hughes are among those calling for a wealth tax to help address income inequality and provide funding for climate change and public health initiatives.

“The next dollar of new tax revenue should come from the most financially fortunate, not from middle-income and lower-income Americans.”

In the short term, the group hopes the letter “sparks a debate with the 2020 candidates" and that a wealth tax, or alternatives to one, are discussed during the upcoming Presidential debates, said Pritzker Simmons, who supports Elizabeth Warren for the Democratic nomination. “These are conversations that have been had in the past, but now the time is right,” she said.

Warren, a senator from Massachusetts, as well as fellow Democratic presidential hopefuls Pete Buttigieg and Beto O’Rourke support the idea, according to the letter. Warren has proposed a 2% tax on assets of $50 million or more, and a further 1% on assets over $1 billion. It is estimated to generate nearly $3 trillion in tax revenue over 10 years.

The wealth tax isn’t embraced by all Democrats, though, with some arguing it would be difficult to objectively assess the value of wealth like artwork and jewels or illiquid assets.

European countries have experienced mixed results with a wealth tax. Of 15 nations in the Organization for Economic Cooperation and Development that had them in 1995, only four, Switzerland, Belgium, Norway and Spain, still do.

France, Sweden and Germany are among those that backed away from the levy because of the difficulties implementing them.

Some of those signing the letter have already expressed concerns about rising inequality.

• Hughes has evangelized for higher taxes on the rich in his book “Fair Shot.”
• Disney, whose grandfather and great-uncle founded Walt Disney Co., recently called Chief Executive Officer Bob Iger’s $65.6 million compensation package “insane.”
• Nick Hanauer, first warned his “fellow zillionaires” about the country’s growing wealth divide in 2014, writing that “there is no example in human history where wealth accumulated like this and the pitchforks didn’t eventually come out.”

Such inequality has only deepened. Last week, Bernard Arnault joined Jeff Bezos and Bill Gates as the third person with a fortune of at least $100 billion on the Bloomberg Billionaires Index, whose 500 members have a total net worth of $5.5 trillion, up from $4.9 trillion two years ago.

If we don’t do something like this, what are we doing, just hoarding this wealth in a country that’s falling apart at the seams?” Pritzker Simmons said. “That’s not the America we want to live in.”

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

 

for a FREE Tax HELP ... Contact Us at:

www.TaxAid.com or www.OVDPLaw.com or

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

Sources:

Medium.com

The New York Times

AccountingToday
 

According to DoJ, An Alexandria, Virginia, tax lobbyist pleaded guilty on June 21, 2019 to willfully filing a false tax return.

According to court documents, attorney James F. Miller, 67, underreported his gross income on his 2010 through 2014 tax returns by approximately $2,215,587.

 

Miller, a tax policy lobbyist and former employee of the Justice Department’s Tax Division, filed multiple false tax returns with the Internal Revenue Service (IRS).

 

These returns omitted substantial portions of the partnership income he received from:

1. Not one but two law firms he worked at and
2. the gross receipts of his own lobbying firm.
   The Total Tax Loss Resulting From Miller’s

Fraudulent Conduct Was Approximately $735,933! 

Sentencing is scheduled for Sept. 27, 2019.

Miller faces:

• a maximum sentence of 3 years in prison,
• a term of supervised release,
• monetary penalties and
• Miller agreed to pay $735,933 restitution to the IRS.

 Have a IRS Tax Problem?  

 

Contact the Tax Lawyers at 

Marini& Associates, P.A. 

 

 

for a FREE Tax HELP ... Contact Us at:

www.TaxAid.com or www.OVDPLaw.com or

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



 

On April 17, 2019 we posted US S.C. Heard Oral Arguments on Whether States Can Tax Out-of-State & Foreign Trusts where we discussed that the Supreme Court will hear a case that may clarify how much states are able to tax and that in April, the Supreme Court of the United States will hear an appeal against North Carolina's practice of taxing the undistributed income of an out-of-state trust that has a beneficiary living in the state. 

North Carolina is one of 11 states that consider trusts taxable when they hold income for a person who is using the state's services, but US courts have reached different results about whether due process prohibits these taxes. 

Today The U.S. Supreme Court ruled that North Carolina violated the due process clause by taxing an out-of-state trust when the only connection between the state and trust was a beneficiary’s residence in North Carolina.

 

In a unanimous decision authored by Justice Sonia Sotomayor, the court agreed with the North Carolina Supreme Court, which ruled a year ago that the residency of a beneficiary, who did not receive distributions from the Kimberely Rice Kaestner 1992 Family Trust, was insufficient nexus under the due process clause for the state to tax it.

The settlor and initial trustee for trust were in New York, and during the tax years, the trustee was a Connecticut resident. The justices agreed with the trust that the money belonged to him.

“Look, the trustee lives in New York, OK?

The settlor is in New York.

All the administration is in New York,”

Justice Breyer said, adding that

"North Carolina would also have connections

 if the beneficiary received distributions,

but she didn’t for the tax years in question."

 “But that isn’t what you want to tax,” Justice Breyer said. “Moreover, we don’t even know if she’ll ever get the money. Now there’s something wrong with that."

The ruling comes exactly one year after the high court’s landmark decision in South Dakota v. Wayfair, in which the justices decided that physical presence was not necessary for a state to require sales and use tax collection and remittance by out-of-state sellers. North Carolina had sought to use that decision to advance an argument that a trust also need not be present in a state for the state to impose taxation, but the justices rejected that on Friday.

 

This reasoning is the same as The North Carolina Supreme Court’s Finding That Taxation Of The Trust Was Unconstitutional Was That Kaestner, The Beneficiary, Did Not Receive Distributions From The Trust During The Years At Issue. The Revenue Department Collected $1.3 Million In Taxes From The Trust Over Four Years.

This Case Should Also Impact Foreign – Non-US Trusts,

Who Have US Beneficiaries, Living In States Which

Tax Income From Out-Of-State Trusts.

 

This outcome of NC Department of Revenue vThe Kimberley Rice Kaestner1992 Family Trust should d positively impact whether individuals are able to avoid state taxes by placing assets with trustees in states with no income tax liability.  More than $120 billion of our nation's income flows through trusts, and this case that may clarify how much states are able to tax.

Have a IRS Tax Problem?  

 

Contact the Tax Lawyers at 

Marini& Associates, P.A. 

 

 

for a FREE Tax HELP ... Contact Us at:

www.TaxAid.com or www.OVDPLaw.com or

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



 

 

 

  

　

More than $120 billion of our nation's income flows through trusts, and this case that may clarify how much states are able to tax.

Have a IRS Tax Problem?  

Contact the Tax Lawyers at 

Marini& Associates, P.A. 

 

 

for a FREE Tax HELP ... Contact Us at:

www.TaxAid.com or www.OVDPLaw.com or

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

 

In  IR-2019-118 the IRS stated that nearly 2 million Individual Taxpayer Identification Numbers (ITINs) are set to expire at the end of 2019 as the Internal Revenue Service continues to urge affected taxpayers to submit their renewal applications early to avoid refund delays next year.

Renewing before the end of the year will avoid unnecessary delays related to their refunds,” said IRS Commissioner Chuck Rettig. “To help with this process, the IRS is sharing this material in multiple languages. We encourage partner groups to share this important information to reach as many people with ITINs as possible.” 

In addition, ITINs with middle digits 83, 84, 85, 86 or 87 that have not already been renewed will also expire at the end of the year. These affected taxpayers who expect to file a tax return in 2020 must submit a renewal application as soon as possible.

ITINs are used by people who have tax filing or payment obligations under U.S. law but who are not eligible for a Social Security number. ITIN holders who have questions should visit the ITIN information page on IRS.gov and take a few minutes to understand the guidelines.

The IRS continues a nationwide education effort to share information with ITIN holders. To help taxpayers, the IRS offers a variety of informational materials, including flyers and fact sheets, available in several languages, including English, Spanish, Traditional Chinese, Russian, Vietnamese, Korean and Haitian/Creole on IRS.gov.

Who should renew an ITIN

• Taxpayers whose ITIN is expiring and who expect to have a filing requirement in 2020 must submit a renewal application. Others do not need to take any action. ITINs with the middle digits 83, 84, 85 or 86, 87 (For example: 9NN-83-NNNN) need to be renewed even if the taxpayer has used it in the last three years. The IRS will begin sending the CP-48 Notice, You must renew your Individual Taxpayer Identification Number (ITIN) to file your U.S. tax return, in early summer to affected taxpayers. The notice explains the steps to take to renew the ITIN if it will be included on a U.S. tax return filed in 2020. Taxpayers who receive the notice after acting to renew their ITIN do not need to take further action unless another family member is affected.
• ITINs with middle digits of 70 through 82 have previously expired. Taxpayers with these ITINs can still renew at any time, if they have not renewed already.

Family option remains available

Taxpayers with an ITIN that has middle digits 83, 84, 85, 86 or 87, as well as all previously expired ITINs, have the option to renew ITINs for their entire family at the same time. Those who have received a renewal letter from the IRS can choose to renew the family’s ITINs together, even if family members have an ITIN with middle digits that have not been identified for expiration. Family members include the tax filer, spouse and any dependents claimed on the tax return.

How to renew an ITIN

To renew an ITIN, a taxpayer must complete a Form W-7 and submit all required documentation. Taxpayers submitting a Form W-7 to renew their ITIN are not required to attach a federal tax return. However, taxpayers must still note a reason for needing an ITIN on the Form W-7. See the Form W-7 instructions for detailed information.

Spouses and dependents residing outside of the U.S. only need to renew their ITIN if filing an individual tax return, or if they qualify for an allowable tax benefit (e.g., a dependent parent who qualifies the primary taxpayer to claim head of household filing status.) In these instances, a federal return must be attached to the Form W-7 renewal application.

There are three ways to submit the Form W-7 application package. Taxpayers can:

• Mail the form, along with original identification documents or copies certified by the agency that issued them, to the IRS address listed on the Form W-7 instructions. The IRS will review the identification documents and return them within 60 days.
• Work with Certified Acceptance Agents (CAAs) authorized by the IRS to help taxpayers apply for an ITIN. CAAs can authenticate all identification documents for primary and secondary taxpayers, verify that an ITIN application is correct before submitting it to the IRS for processing and authenticate the passports and birth certificates for dependents. This saves taxpayers from mailing original documents to the IRS.
• In advance, call and make an appointment at a designated IRS Taxpayer Assistance Center to have each applicant’s identity authenticated in person instead of mailing original identification documents to the IRS. Each family member applying for an ITIN or renewal must be present at the appointment and must have a completed Form W-7 and required identification documents. See the TAC ITIN authentication page for more details.

Avoid common errors now and prevent delays next year

Federal tax returns that are submitted in 2020 with an expired ITIN will be processed. However, certain tax credits and any exemptions will be disallowed. Taxpayers will receive a notice in the mail advising them of the change to their tax return and their need to renew their ITIN. Once the ITIN is renewed, applicable credits and exemptions will be restored, and any refunds will be issued.

Additionally, several common errors can slow down some ITIN renewal applications. These mistakes generally center on:

• mailing identification documentation without a Form W-7,
• missing information on the Form W-7, or
• insufficient supporting documentation, such as U.S. residency documentation or official documentation to support name changes.

The IRS urges any applicant to check over their form carefully before sending it to the IRS.

As a reminder, the IRS no longer accepts passports that do not have a date of entry into the U.S. as a stand-alone identification document for dependents from a country other than Canada or Mexico, or dependents of U.S. military personnel overseas. The dependent’s passport must have a date of entry stamp, otherwise the following additional documents to prove U.S. residency are required:

• U.S. medical records for dependents under age 6,
• U.S. school records for dependents under age 18, and
• U.S. school records (if a student), rental statements, bank statements or utility bills listing the applicant’s name and U.S. address, if over age 18.

  
Contact the Tax Lawyers at 

Marini& Associates, P.A. 

 

 

for a FREE Tax HELP Contact Us at:

www.TaxAid.com or www.OVDPLaw.com 

orToll Free at 888-8TaxAid (888) 882-9243