Gunster Blog
Gunster’s series of in house legal and industry blogs provides information and expanded points of interest for our clients and partners.
These are personal blog posts. The opinions expressed here are the authors’ and not those of Gunster or any other person.
New Penalty Framework Released for Voluntary Disclosure of Unreported Offshore Income
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 [...]
U.S. Judge Stays His Decision to Invalidate Health Care Law
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 [...]
IRS Cracking Down on “Intermediary Transaction” Tax Shelters
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 [...]
Update on New Tax Issue on 6 Year Statutes For Asset Basis Understatements
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 [...]
New Tax Issue on 6 Year Statutes For Asset Basis Understatements
In a recently decided case, Beard v. Comm., (CA 7 01/26/2011), the Court of Appeals for the Seventh Circuit reversed the Tax Court and held that an overstatement of basis is an omission of gross income for purposes of the 6-year limitations period of Code Sec. 6501(e)(1)(A) . Normally, the statute of limitations is 3 [...]
Battle Over Creditor Access to John Goodman’s Spendthrift Trust Records
There is an interesting battle being waged over a potential creditor’s access to financial records of a spendthrift trust. John Goodman is being sued in a wrongful death action by the parents of Scott Patrick Wilson, who was killed when Goodman’s car allegedly struck Wilson’s car last February. Although the case hasn’t gone to trial [...]
New Rules on Interest Reporting for Nonresident Aliens Proposed – Everything Old is New Again
Earlier today (January 6, 2011), the Internal Revenue Service issued new proposed regulations which, if finalized, will require annual reporting of interest paid on deposits maintained by nonresident aliens at U.S. offices of certain financial institutions. These new proposed regulations replace ones that were issued in August 2002 (the “2002 Proposed Regs”), which themselves replaced [...]
Even better than that sweater your Aunt gave you for Christmas
Most people are aware that the federal government imposes a tax on large gifts made by a person. “Large” for gift tax purposes generally means a gift over the annual exclusion amount. The annual exclusion amount, currently $13,000, is the amount in cash or property that each of us can give annually to any number [...]
Just Published: Federal Tax Committee Estimates Cost of Federal Tax Laws
On December 15, 2010, the Staff of the Joint Committee on Taxation (JCT) published its Estimates of Federal Tax Expenditures for Fiscal years 2010-2014 (the “JCT Report”). The JTC Report may be especially important in the coming months as the next Congress tackles the growing federal deficit. The reason for this lies in the President’s [...]
Insurance Coverage May Cover Madoff Clawback Settlement Payments
Tomorrow is the deadline for Irving Picard, the Madoff trustee, to file fraudulent transfer (“clawback”) lawsuits against Madoff net winners. Several high profile individuals, including Carl Shapiro and Robert Jaffe, recently settled the claims against them. The clawback litigation is expected to last for many years, and the costs to defend and resolve these lawsuits will be massive and crippling even to the most wealthy individuals and organizations. Defendants may have directors & officers, errors & omissions, or other liability insurance to pay for the cost to defend these lawsuits. Insurance may also cover some or all settlement or judgment payments.
