IRS BOTH REDUCES AND INCREASES THE PENALTY FOR NONDISCLOSURE OF FOREIGN ACCOUNTS

The IRS recently announced a new streamlined filing compliance procedure for certain taxpayers who failed to report and pay all tax due with respect to a foreign financial account.  Under the new procedure which became effective on July 1, 2014,  those taxpayers who weren’t willfully trying to hide money from U.S. tax authorities will qualify for a one-time penalty equal to 5% of the foreign account’s highest value.    Under...
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2127 Hits

"CARRIED INTERESTS” STILL IN CONGRESS’S CROSSHAIRS

On February 26, 2014, Chairman Dave Camp (R) of the House Committee on Ways and Means released his proposal to reform and simplify the nation’s tax code. Rep. Camp’s proposal reduces the top marginal rate (for both individuals and corporations), but also eliminates several deductions and loopholes. One of Rep. Camp’s proposals was to close the perceived loophole allowing “carried interests” to be taxed as capital gains instead of ordinary...
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2064 Hits

FOREIGN-HELD ASSETS FOUND TO BE ASSET PROTECTED

In Sargeant v. Al-Saleh, [1] a Florida District Court of Appeal (the “Court”) held that a Florida trial court does not have in rem jurisdiction over assets held in a foreign jurisdiction, and therefore did not have the authority to order Florida-based debtors to turn over foreign stock certificates.  In Sargeant,  a creditor obtained a $20 million judgment against the debtors for proceeding with a corporate business arrangement without sharing...
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2176 Hits

OBLIGATION OF ONE'S AGENT TO FILE AN FBAR

     A United States person with a greater than 50% interest in a foreign financial account must annually file FinCEN Form 114, entitled “Report of Foreign Bank and Financial Accounts” (“FBAR”) if the aggregate maximum value of the foreign financial accounts exceeds $10,000 at any time during a calendar year.  An individual who has “signature authority” over  a foreign financial account must also file an FBAR.      In...
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2141 Hits

Engel & Reiman pc’s Updated Comparative Grid Just Published

With the very recent enactment of the Mississippi Qualified Disposition in Trust Act, Engel & Reiman has updated its Jurisdictional Comparative Grid. The Grid is intended to provide a bird’s-eye view of what one should look for in asset protection trust legislation (the horizontal axis on the Grid), the principal foreign and domestic jurisdictions having asset protection trust-style legislation (the vertical axis on the Grid), and which jurisdictions address which...
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2522 Hits

CHALK UP ANOTHER GREAT RESULT FOR ADVANCE PLANNING THROUGH A COOK ISLANDS ASSET PROTECTION TRUST

Many years ago, someone who has become and remains one of my favorite clients and a very dear friend created a Cook Islands Asset Protection Trust.   Through the years the client as well as the trust have suffered their share of slings and arrows from a variety of claimants, ranging from the IRS to a variety of private party litigants.  In every lawsuit both the client and the trust...
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2758 Hits

ISLE OF MAN TRUST LAW ENHANCEMENTS UNDER CONSIDERATION

The Isle of Man in the British Isles is a long-standing offshore financial center (“OFC”) that boasts having (among other things) a Parliament (called “ Tynwald ”) that is the oldest continuously governing body in the world, dating back to 979 AD.  This august governing body has taken the first few steps toward amending Manx trust law with the goal of the Isle of Man becoming more competitive as a...
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  2484 Hits
2484 Hits

SENATE REPORT ON OFFSHORE TAX EVASION RELEASED

On February 26, 2014, the United States Senate Permanent Subcommittee on Investigations released a report regarding offshore tax evasion and specifically the actions of Credit Suisse, Switzerland’s second largest bank.  The report is the product of a two-year investigation initiated in 2011 after seven Credit Suisse bankers were indicted by the U.S. Department of Justice (DOJ) for aiding and abetting U.S. tax evasion. The report is highly critical of Credit...
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2409 Hits

CRACKDOWN BY U.S. GOVERNMENT ON SWISS PRIVATE PLACEMENT LIFE INSURANCE

On February 24, 2014, The Wall Street Journal reported that the IRS is investigating Swiss Private Placement Life Insurance (PPLI) companies in order to determine whether American citizens have been using PPLI to hide assets or otherwise evade taxes in the United States.  PPLI combines private banking and portfolio management into a life insurance structure.  This development is not surprising in light of the highly publicized crackdown by the U.S....
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3413 Hits

DELAWARE LAW TO PROTECT INTERESTS IN SINGLE MEMBER LLCs

As of August 1, 2013, in Delaware a charging order will be the sole and exclusive remedy by which a judgment creditor of a member (or of a member’s assignee) may satisfy a judgment out of the judgment debtor’s limited liability company interest. Moreover, as of this date attachment, garnishment, foreclosure or other legal and equitable remedies will not be available to a judgment creditor, whether the limited liability company...
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  3328 Hits
3328 Hits

Seminars & Events:

April, 2017 - CELESQ
“An Asset Protection Planning Primer for Estate Planning, Tax and Creditors Rights Lawyers”
Live Web Cast
May 31 – June 1, 2017 - 

SOUTHPAC TRUST OFFSHORE PLANNING INSTITUTE CONFERENCE 2017, “Asset Protection in a Changing World” (31 May 2017) and “Questions & Answer Panel on Industry Challenges to Asset Protection Structures” (1 June 2017)
Las Vegas, Nevada

 

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Contact Information

Barry S. Engel
Email: info@engelreiman.com