Category Archives: criminal tax law

We previously posted All That You Wanted to Know About Form 706NA - Part I, where we discussed that in the area of estate tax compliance, many of us have prepared Form 706’s, the estate tax return for US citizens and domiciliaries.  To be sure, this form is quite voluminous and can take a while to fill out but there are very few mysteries beyond schedule E; what percentage of an asset might be includable in an estate, the value of an annuity, what debts and expenses are deductible, the calculation of the marital deduction, and the generation-skipping tax computation. The Form 706NA, however, preparation of the tax return for the estate of the nonresident alien owning property in the United States, can present a more daunting task.  

Based on our estate counsel Robert Blumenfeld's 32 years of experience as a senior attorney at the International office of the IRS, some of the strange and exotic problems that he discovered upon while auditing roughly 1,500 estate tax returns and preparing about 300 of the same in the last few years.
 

After we get through the information about the decedent himself, we reach an area of the return, Part III, General Information. Most of it is pretty obvious but… The first area of major concern may be whether the decedent died intestate. Many people who have assets in several countries have country specific wills, for instance one for the United States and one for say Canada, England etc. If the decedent did die testate, one should always include the US will. If there are other wills, go through them carefully before you submit them to the IRS because they make contain data which would create questions or problems with the IRS. In the alternative, many folks have a Universal Will which covers the disposition of assets in all countries. Because of the difference of rules from country to country, such a universal will may create problems with assets passing to a surviving spouse or a charity. 

Question five relates to whether the decedent owned jointly held property in the United States. If the taxpayer plans to include 100% of the value of the asset, then this question should pose no problems. Two potential problems come to light: if the decedent came from a community property jurisdiction, is one half of the value of the asset excluded by operation of law in the foreign country? If one wishes to exclude a portion of an asset from a decedent in a non-community property jurisdiction, Section 2040 of the IRC places the onus again, of proving contribution on the surviving co-tenant. This can sometimes be a very difficult task, especially if the property is been held for a substantial number of years and many records/canceled checks etc. have been destroyed over the years. 

Question six asks whether the decedent had ever been a US citizen. If the answer to the initial question is yes but at the time of death, the decedent is no longer a US citizen, it is necessary to include in the paperwork sent to the IRS some evidence that the decedent properly expatriated from the United States. Based on the timing, if this happened shortly before death, it could raise the issue of expatriation to avoid tax. Again, getting this information before preparing the return is a good way to avoiding embarrassment at  the examination.

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

www.TaxAid.com or www.OVDPLaw.com

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

 

Read more at: Tax Times blog

Ronald Marini has once again been recognized as a Super Lawyer, highlighting his ongoing professional excellence in the field of tax law. This prestigious honor is a testament to his more than 40 years of dedication to international and domestic tax law, exceptional representation of clients before the IRS, and consistent delivery of outstanding client service.

The Super Lawyers distinction is awarded to fewer than 5% of attorneys in each state, reflecting superior peer recognition, professional achievement, and exemplary legal work in their area of practice. This honor involves a rigorous multiphase selection process, including peer nominations and independent research, ensuring only the most outstanding legal professionals are chosen.

Ronald Marini’s selection solidifies his reputation as a top-tier tax attorney, both in Florida and nationwide, and underscores his ongoing commitment to legal excellence and client advocacy. His recognition also demonstrates continued leadership and prominence within the legal community, built on a career that spans notable client victories, landmark tax cases, and authoritative contributions to tax scholarship.

For clients and colleagues alike, Ronald Marini’s standing as a Super Lawyer serves as a reliable indicator of elite expertise and proven results in complex tax and estate planning matters.

Have an IRS Tax Problem? 

    

Need International and/or Estate Planning? 

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

Read more at: Tax Times blog

According to Henley Private Wealth Migration Report 2025, 2025 is shaping up to be a record-breaking year for millionaire migration, with a projected 142,000 high-net-worth individuals (HNWIs) expected to relocate internationally. This unprecedented movement is not just a story of personal wealth—it’s a powerful indicator of shifting economic power, policy impacts, and evolving global investment landscapes.

UK Leads the Outflow: The “WEXIT” Phenomenon

For the first time in a decade, the UK is set to top the global leaderboard for millionaire outflows, with a staggering net loss of 16,500 HNWIs in 2025, more than double the outflow from China, which had dominated this ranking for years. This dramatic shift is being driven by recent tax reforms, including sharp hikes in capital gains and inheritance taxes, as well as new rules targeting non-domiciled residents and family wealth structures. The result? A mass exodus of wealthy individuals seeking more favorable environments, a trend some are calling “WEXIT” (wealth exit).

Europe’s Wealth Hubs: Retreat and Reinvention

The UK isn’t alone. Major EU economies France (–800), Spain (–500), and Germany (–400) are also forecast to see net millionaire losses in 2025. Even smaller markets like Ireland, Norway, and Sweden are experiencing significant outflows. The reasons are multifaceted, including tax pressures, political uncertainty, and a search for better investment climates.

But not all of Europe is losing out. Southern Europe is emerging as a new center of gravity for wealth migration:

·         Switzerland: +3,000 net inflow

·         Italy: +3,600 net inflow

·         Portugal: +1,400 net inflow

·         Greece: +1,200 net inflow

·         Monaco: +200 net inflow

Favorable tax regimes, lifestyle appeal, and active investment migration programs are drawing the wealthy southward, with cities like Milan, Lisbon, and the Athenian Riviera becoming new hotspots.

Global Winners: Where the Wealth Is Heading

The UAE retains its crown as the world’s leading wealth magnet, expecting a record net inflow of 9,800 millionaires in 2025, well ahead of the US (+7,500). The UAE’s appeal is bolstered by attractive golden visa options and its status as a stable, business-friendly hub for global investors, especially from the UK, India, Russia, Southeast Asia, and Africa.

Other notable destinations include:

·         Saudi Arabia: +2,400 (biggest riser, driven by returning nationals and international investors)

·         Singapore: +1,600 (though net inflows are at their lowest on record)

·         Australia & Canada: +1,000 each (also seeing reduced appeal)

·         Thailand: +450 (emerging as Southeast Asia’s new safe haven)

·         Hong Kong: +800 (steady inflows from Asia’s tech sector)

·         Japan: +600 (influx from China due to stability)

Caribbean and Central American countries—like Costa Rica, Panama, the Cayman Islands, and Bermuda—are also attracting record numbers of wealthy migrants, as are African nations such as Morocco, Mauritius, and Seychelles.

Global Losers: Where the Wealth Is Leaving

Beyond the UK, significant outflows are expected from:

·         China: –7,800 (lowest net loss since Covid, with more affluent Chinese choosing to stay)

·         India: –3,500 (offset by some returnees from the UK)

·         South Korea: –2,400 (political and economic turbulence)

·         Brazil: –1,200 (wealth drains to the US, Portugal, and the Caribbean)

·         Russia: –1,500

·         Vietnam: –300

·         Lebanon, Iran, Israel: Modest but concerning losses, often to Cyprus, Greece, and the UAE^[1]

The Big Picture: What Does It All Mean?

Millionaire migration is more than a trend—it’s a barometer of global confidence, policy effectiveness, and the shifting sands of economic opportunity. The fastest-growing wealth markets are often those that attract migrating millionaires or are emerging tech hubs, highlighting the crucial role of mobility in wealth creation.

As 2025 unfolds, the global map of wealth is being redrawn, one millionaire at a time.

• Nearly 1 in 4 American expatriates say they are “seriously considering” or “planning” to ditch their U.S. citizenship, a survey from Greenback Expat Tax Services finds.  
• About 9 million U.S. citizens are living abroad, the U.S. Department of State estimates.
• More than 4 in 10 who would renounce citizenship say it’s due to the burden of filing U.S. taxes, the Greenback poll shows.

Should I Stay or Should I Go?

Need Advise on Expatriation?

 

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

Read more at: Tax Times blog

According to Law360, a Michigan doctor clearly met the standard for a willful failure to file reports of foreign bank accounts, the Sixth Circuit said, confirming a lower court decision resulting in a $930,000 penalty against him.

James Kelly Jr. made multiple decisions intended to hide the fact that he did not file reports of foreign bank and financial accounts, or FBARs, for his holdings in Swiss banks, the appeals court said in an order issued February 8, 2024, upholding a summary judgment ruling in favor of the U.S. government.

"The undisputed facts show that Kelly knew about his foreign account, undertook considerable efforts to keep it secret, did not consult with any professionals about his tax obligations, and then failed to ensure that the FBARs were submitted after learning he had not met these reporting requirements in the past," the court said. 

• He designated his account as numbered so his name would not appear on statements, the court said, 
• he had the bank retain correspondence. 
• Kelly did not take steps to comply with his reporting obligations until his bank told him it would take steps to notify U.S. authorities, the court said. 
• He did not consult an attorney or tax expert and 
• Still did not submit FBARs even after joining the voluntary disclosure program, it said.

 Do You Have Undeclared Offshore Income?

 

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 contact us at:

www.TaxAid.com or www.OVDPLaw.com 

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

Read more at: Tax Times blog