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Jay R. Nanavati Quoted in Tax Notes Article on Public Leaks Aiding In U.S. OVDP Penalty

By Nathan J. Richman
Tax Notes, August 21, 2017

The Panama Papers and other sources for public leaks are currently being mined for investigatory leads by the IRS and the Justice Department. However, these documents may not be an appropriate cutoff for applying the higher penalty under the IRS's offshore voluntary disclosure program, according to some practitioners in the article authored by Nathan J. Richman. 

In a quote from the article:

Jay R. Nanavati of Kostelanetz & Fink LLP said that the list includes individuals and institutions under investigation and not just those who have been convicted or entered into a resolution such as a NPA with the government. Therefore, if the government can satisfy itself on the reliability of the information, "I don't see any good reason not to include institutions that are the subject of leaks like the Panama Papers" in the higher penalty list, he said.

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Tax Court Holds Gain From the Liquidation of a Foreign Partner’s Ownership Interests In a U.S. Partnership Actively Engaged in Business in the U.S. Is Not Effectively Connected Income

Jerrald David August

Kostelanetz & Fink, LLP 

Grecian Magnesite Mining, Industrial & Shipping Co., SA v. Commissioner, 149 T.C. No. 3  (July 13, 2017)

In 2001 Grecian Magnesite Mining, et al (“GMM”), was organized in 1959 under the laws of Greece (the Hellenic Republic) and maintained its principal place of business at the time it filed its petition with the Tax Court in Athens, Greece. GMM's business includes extracting, producing, and commercializing magnesia and magnesite, which it sells to its worldwide customer base. GMM owns magnesite deposits in Greece, has a research and development facility in Greece, and has an office in Greece. Other than through its ownership interest in a Delaware limited liability company, Premier Magnesia, LLC (“Premier”),[1] GMM had no office, employees, or business operation in the United States.

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Caroline D. Ciraolo spoke on the panel "Examination Do's & Don'ts" at the 2017 NATP National Conference

The way you work with an IRS examiner can sometimes mean the difference between a no-change letter and a referral to the Criminal Investigations Unit. In this course, we walked you through best practices for guiding a client through an IRS examination, and common pitfalls to avoid, from the perspective of a tax litigation lawyer who has seen the results of examinations done right and very, very wrong.

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Caroline D. Ciraolo spoke on the panel "Conflicts Of Interest" at the 2017 NATP National Conference

Conflicts of interest arise in practice before the IRS all the time, and smart practitioners need to know how to spot and avoid those conflicts before it becomes a malpractice or a disciplinary issue. In this session, attendees learned about common conflicts of interest that arise in practice before the IRS, and the best way to avoid them.

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Caroline D. Ciraolo On MSNBC

Kostelanetz & Fink partner Caroline Ciraolo appeared on MSNBC on Monday, July 24, 2017 to discuss how Special Counsel Robert Mueller can obtain access to federal tax returns and why tax returns might be relevant in the investigation into Russian influence in the 2016 presidential campaign. Ciraolo, who joined Kostelanetz & Fink this year as a partner and co-founder of the firm’s new D.C. office, appeared on the inaugural airing of host Ari Melber’s new show “The Beat.”

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Jerald David August presented "Update On Use Of Family Limited Partnerships In Estate Planning" and "Choice Of Entity In Light Of Tax Reform" at the NYU Summer Institute in Taxation

Mr. August presented "Update on Use of Family Limited Partnerships in Estate Planning" on July 26th from 1:15pm - 3:05pm. He also presented "Choice of Entity in Light of Tax Reform" on July 28th from 1:15pm - 2:45pm.

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Bryan C. Skarlatos & Megan L. Brackney presented "Impact Of The DOJ's Revised Charging & Sentencing Policy On Tax And Other Criminal Cases" at the ABA Young Lawyers Division

With the Department of Justice’s revised Charging and Sentencing Policy issued on May 10, it was a good time to review how sentencing works in criminal cases, with an emphasis on criminal tax cases. This program discussed how the Sentencing Guideline levels are determined in tax cases, including computation of the tax loss and common adjustments, assessment of restitution, and other issues.

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Buy Sell Agreements In Canada And Their Impact On Preserving The Tax Favored Status Of Canadian Resident Controlled Private Corporations

By: Jerald David August

Canadian Controlled Private Corporations

In a recent article written by lawyers in the Aird & Berlis LLP law firm in Toronto, which was just published in Tax Notes International, U.S. international tax practitioners and business lawyers can obtain valuable insights on drafting issues and problems with Canadian controlled private corporation (CCPC) shareholder agreements. The idea is to preserve favorable tax attributes of a Canadian private corporation by ensuring that de jure and de facto control of the CCPC is maintained by Canadian persons throughout.

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Former Credit Suisse Banker Pleads Guilty To Conspiring With U.S. Taxpayers And Other Swiss Bankers To Defraud The United States

By: Jerald David August

Department of Justice Press Release of July 19, 2017.

In its press release of July 19, the Department of Justice announced that a citizen and resident of Switzerland pleaded guilty to conspiring to defraud the United States in connection with her work as the head of a team of bankers for Credit Suisse AG, announced Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division and U.S. Attorney Dana J. Boente for the Eastern District of Virginia. Ms. Meier was indicted in 2011 that was part of a number of cases filed by the United States on offshore tax evasion.

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Drafting Partnership Agreement Provisions With Respect To Partnership Audits Both Under TEFRA And The New Bipartisan Budget Act Of 2015

Focusing On The Controversial New Partnership Representative Rule

By: Jerald David August

Partner, Kostelanetz & Fink, LLP [1]

This is the second part of a series of posts pertaining to drafting and revising partnership, limited liability and limited liability partnership (“partnership”) agreements  into account the new consolidated audit rules. The first part of the series appeared on this website, “Business and International Tax Developments” on Friday, June 14, 2014. .

The new partnership audit rules are quite important not only for tax lawyers but for business lawyers and estate planners who undertake to advise clients on partnership agreements and further undertake the responsibility for negotiating and drafting such agreements. Let’s not forget to mention that the clients must have a general understanding of the new rules.

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