Robert M. Russell quoted in Tax Notes article entitled “Individuals Now a Target for LB&I Transition Tax Campaign”
In a recent Tax Notes article by Andrew Velarde entitled "Individuals Now a Target for LB&I Transition Tax Campaign,” Robert M. Russell discussed the IRS announcement that the Section 965 transition tax will now become an area of enforcement as applied to non-corporate taxpayers.
By Megan L. Brackney
The CPA Journal
June 2020 Edition
The Internal Revenue Code and the Bank Secrecy Act (BSA) require that persons engaged in a trade or business file Form 8300, Report of Cash Payments Over $10,000 Received in a Trade or Business, any time the business receives more than $10,000 in cash in a single transaction (or two or more related transactions) in the course of their trade or business [IRC section 6050I(a); 31 USC 5331] . The business must also furnish annual statements notifying the customers who made the payments that it reported the transactions to the IRS [IRC section 6050I(e)]. Congress enacted these reporting requirements in the 1980s to enable the IRS to monitor large cash transactions and detect money laundering schemes, and there are significant civil and criminal penalties for failure to comply.
Caroline Ciraolo co-chaired & moderated a webinar on international criminal tax enforcement for ABA’s Virtual 20th U.S. and Europe Tax Practice Trends Conference
Caroline D. Ciraolo co-chaired and moderated a panel entitled "Following the Money (including digital currency) – The Current State of International Criminal Tax Enforcement." The panel provided updates and current statistics on international criminal tax enforcement from IRS-CI and the Justice Department and discussed recent international criminal tax investigations and prosecutions, including those involving the use of virtual currency.
Kostelanetz & Fink is proud to join forces with other law firms across the country in combating systemic racism as part of the new Law Firm Anti-Racism Alliance (LFAA), which will provide pro bono counsel in concert with legal services organizations and other stakeholders focused on identifying and combating systemic racism.
The Government’s New Stance That the Non-Willful Civil FBAR Penalty Applies to Every Account on an Untimely-Filed FBAR, Rather Than to the Single Untimely FBAR Form
By: Caroline Rule
Journal of Tax Practice & Procedure
Summer 2020 Edition
Recent litigation has focused on the government’s new position that the $10,000 non-willful civil FBAR penalty applies per account listed on an non-willfully untimely-filed annual FBAR—a Report of Foreign Bank or Financial Accounts that must be filed by a U.S. person “who has a financial interest in or signature authority over foreign financial accounts” if the aggregate value of the accounts “exceeds $10,000 at any time during the calendar year.” The FBAR is filed in the following calendar year. Until recently, the rule recognized by courts has been that the non-willful civil penalty applies per single untimely filed FBAR form, not per account listed on that FBAR.
This issue, of first impression in an appellate court, is pending before the Ninth Circuit in J. Boyd. The same issue is currently before the Eastern District of Texas in Bittner, and the Central District of California in Patel, et al.
In Boyd, the taxpayer did not file timely FBARs reporting 13 foreign accounts, but was not willful. The government believes that it was proper when, “[i]n assessing the thirteen separate FBAR penalties against Boyd, the IRS treated each account that was not listed on a timely filed FBAR as a separate non-willful violation.” The District Court agreed, holding that: “Each non-willful FBAR violation relates to a foreign financial account, and the IRS may penalize each such violation with a penalty not to exceed $10,000.”
Robert M. Russell participated in a panel entitled "Tax Day 2020: Filing and Payment Deadlines" at the ABA Section of Taxation's Virtual May Meeting on June 10, 2020
Kostelanetz & Fink attorneys Yoram Keinan and Robert Russell were proud to volunteer for the IRS’s first-in-the-country Virtual Settlement Days with the University of Michigan Law School’s Low-Income Tax Clinic (LITC) on May 9 and May 12, 2020.
IRS Continues to Issue Guidance for International Taxpayers in Light of COVID-19
As COVID-19 continues to impact daily life, the IRS has published guidance to address the tax consequences for certain international taxpayers. Recent travel restrictions could require individuals to remain in locations longer than expected, resulting in a changed tax status. In order to mitigate this result, the IRS provided relief provisions to put certain affected persons in the same U.S. tax position they would have been in, but for the COVID-19 crisis.
Michael Sardar presented a webinar entitled "Penalty Standards for the Taxpayer and the Preparer" for The CPA Academy on June 11, 2020
When the IRS audits a taxpayer and determines that additional tax is due, the taxpayer may be subject to penalties in addition to the tax due. Further, the tax practitioner involved in preparing that tax return may also be subject to penalties. This course covered the standards applicable to both the taxpayer and tax practitioner when the IRS determines whether to impose penalties. Mr. Sardar reviewed the relevant standards, including reasonable basis, substantial authority, and how to make adequate disclosure. Knowing and applying theses standards will help the practitioner and taxpayer avoid IRS penalties.
The Paycheck Protection Program Flexibility Act of 2020 (“PPPFA”) was signed into law by President Trump on June 5, 2020. The PPPFA intends to provide flexibility for businesses making use of Paycheck Protection Program (“PPP”) funds by:
- extending the “covered period;”
- increasing the amount of loan forgiveness that may be attributable to non-payroll costs;
- extending the date by which employers must restore full-time employee (“FTE”) levels;
- creating a new safe harbor for inability to restore FTE levels;
- extending the loan repayment period to five years; and
- deferring payroll tax.