Tax

FATCA imposes a new global withholding and reporting regime intended to curb tax evasion and noncompliance by U.S. taxpayers. FATCA does this by expanding reporting and due diligence requirements on financial institutions, particularly foreign financial institutions. FATCA imposes a 30% withholding tax on specific U.S. source payments to most foreign financial institutions (“FFIs”) unless the […]

There is nothing more American than going to a baseball game.  Catching a ball at the game is a sports fan ultimate dream, especially if that ball is a result of a record breaking hit.  Last Saturday, 23-year-old Christian Lopez, was one of few lucky baseball fans who experienced that dream when he came up with […]

The IRS recently issued proposed regulations under Internal Revenue Code Section 162(m) relating to the deduction limitation for certain employee remuneration in excess of $1,000,000, which if passed, will have a significant impact on the design of equity based compensation plans for existing public companies and privately-held companies that ultimately become publicly held. Under Code […]

In Hendrix v. Commissioner, T.C. Memo 2011-133 (06/15/2011), the United States Tax Court ruled in favor of taxpayers and against the IRS determination of a $14 million gift tax deficiency relating to transfers of stock in a closely held corporation.  The taxpayers used a defined value formula clause which allowed them to transfer shares with […]

The New York Times reports that the IRS is beginning to investigate whether wealthy taxpayers are making taxable gifts when they make contributions to nonprofit advocacy groups that are organized as Section 501(c)(4) organizations. These groups, including the National Rifle Association, the Sierra Club, the American Civil Liberties Union, and Americans for Prosperity, have become […]

In late February, the IRS announced the 2011 Offshore Voluntary Disclosure Initiative (the “2011 OVDI”) providing a mechanism for taxpayers to avoid criminal prosecution relating to undisclosed foreign accounts and assets if they voluntarily come forward and report by August 31, 2011. The 2011 OVDI is a follow up to a similar voluntary disclosure program […]

Today, March 3, the Federal District Court stayed for 7 days its prior determination that the Patient Protection and Affordable Care Act was unconstitutional.  Florida v. HHS, N.D. Fla., No. 10-91, 3/3/11.  The court agreed with the Obama administration’s Motion that the immediate injunction-like affect of the prior decision could result in harm, e.g., insurance […]

On February 23, 2011, the U.S. Justice Department filed suit in U.S. District Court in New Jersey (United States v. Klink, D.N.J., No. 1:11-cv-00969-JEI-KMW, complaint filed 2/22/11) seeking to bar two Southern California attorneys and a Kentucky financial professional from promoting an “Intermediary Transaction” tax shelter.  In an Intermediary Transaction, the promoters attempt to find […]

Contrary to the Seventh Circuit Court of Appeals decision just three weeks ago, the U.S. Court of Appeals for the Fourth Circuit has just held that the extended 6-year limitations period does not apply to an omission of more than 25 percent of gross income that resulted when a taxpayer used a tax shelter that […]