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William Byrnes (Texas A&M) tax & compliance articles

Archive for March, 2014

IRS Grants Reprieve for Late Estate Tax Portability Elections

Posted by William Byrnes on March 31, 2014


Today’s generous estate tax exemption has created an unexpected problem among clients: failure to take advantage of the portability of a first-to-die spouse’s unused estate tax exemption. Unknown to many, portability is available only if you ask for it, and failure to elect portability can leave a surviving spouse’s estate facing an unexpectedly heavy tax burden, even if no estate tax was due upon the first spouse’s death.

Luckily, the IRS has provided a limited reprieve for certain clients whose inadvertent failure to make the election could leave them on the hook for an unnecessary estate tax bill.  The relief provided by the IRS, however, is limited in both time and scope, so the time to learn the rules of portability is now.

Read the analysis of William Byrnes and Robert Bloink at > ThinkAdvisor <

ThinkAdvisor.com supports the professional growth and vitality of the Investment Advisory community, from RIAs and wealth managers of all kinds, to independent broker-dealer and wirehouse representatives. We provide unparalleled access to the knowledge, information and critical resources they need to succeed at every stage in their career, including professional development, education and certification, industry news and analysis, reference tools and services, and community networking opportunities.

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Tomorrow’s Deadline (April 1) for Many Retirees To Take Required Retirement Plan Distributions

Posted by William Byrnes on March 31, 2014


The Internal Revenue Service in Tax Tip 2014-38 reminded taxpayers who turned 70½ during 2013 that in most cases they must start receiving required minimum distributions (RMDs) from Individual Retirement Accounts (IRAs) and workplace retirement plans by Tuesday, April 1, 2014.

The April 1 deadline applies to owners of traditional IRAs but not Roth IRAs. Normally, it also applies to participants in various workplace retirement plans, including 401(k), 403(b) and 457 plans.

The April 1 deadline only applies to the required distribution for the first year. For all subsequent years, the RMD must be made by Dec. 31. So, for example, a taxpayer who turned 70½ in 2013 and receives the first required payment on April 1, 2014 must still receive the second RMD by Dec. 31, 2014.

Affected taxpayers who turned 70½ during 2013 must figure the RMD for the first year using their life expectancy on Dec. 31, 2013 and their account balance on Dec. 31, 2012. The trustee reports the year-end account value to the IRA owner on Form 5498 in Box 5. Worksheets and life expectancy tables for making this computation can be found in the Appendices to Publication 590.

Most taxpayers use Table III (Uniform Lifetime) to figure their RMD. For a taxpayer who turned 71 in 2013, for example, the first required distribution would be based on a life expectancy of 26.5 years. A separate table, Table II, applies to a taxpayer married to a spouse who is more than 10 years younger and is the taxpayer’s only beneficiary.

Though the April 1 deadline is mandatory for all owners of traditional IRAs and most participants in workplace retirement plans, some people with workplace plans can wait longer to receive their RMD. Usually, employees who are still working can, if their plan allows, wait until April 1 of the year after they retire to start receiving these distributions. See Tax on Excess Accumulations in Publication 575. Employees of public schools and certain tax-exempt organizations with 403(b) plan accruals before 1987 should check with their employer, plan administrator or provider to see how to treat these accruals.

The IRS encourages taxpayers to begin planning now for any distributions required during 2014. An IRA trustee must either report the amount of the RMD to the IRA owner or offer to calculate it for the owner. Often, the trustee shows the RMD amount in Box 12b on Form 5498. For a 2014 RMD, this amount would be on the 2013 Form 5498 that is normally issued in January 2014.

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Today is the deadline to sign up for health care (or face penalties)

Posted by William Byrnes on March 31, 2014


In Health Care Tax Tip 2014-11 the IRS reminds taxpayers that today, March 31, is the deadline to sign up for health care for 2014 – or face penalties.

Below are five tips about the Obama Care (ACA) health care law that the IRS wants taxpayers to consider.

• Currently Insured – No Change: If a taxpayer is already insured, do not need to do anything more than continue that insurance.

• Uninsured – Enroll by Today – March 31: The open enrollment period to purchase health care coverage through the Health Insurance Marketplace for 2014 runs through March 31, 2014. When a taxpayer chooses health insurance through the marketplace, the taxpayer may be able to receive advance payments of the premium tax credit that will immediately help lower the monthly premium.

• Premium Tax Credit To Lower the Monthly Premium: If a taxpayer chooses insurance through the Marketplace, the taxpayer may be eligible to claim the premium tax credit. The taxpayer may elect to have advance payments of the tax credit sent directly to the insurance company during 2014 so that the monthly premium the taxpayer must pay is lower, or the taxpayer can wait to claim the credit when filing the tax return in 2015.  If a taxpayer chooses to have advance payments sent to the insurance company, then the taxpayer must reconcile the payments on the 2014 tax return, which will be filed in 2015.

• Change in Circumstances: If a taxpayer receives advance payments of the premium tax credit to help pay for the insurance coverage, then the taxpayer must report “life changes”, such as income, marital status or family size changes, to the Marketplace. Reporting changes will help to make sure the taxpayer has the right coverage and is getting the proper amount of advance payments of the premium tax credit.

• Individual Shared Responsibility Payment: Starting January 2014, taxpayers and the family must have health care coverage or have an exemption from coverage.  Most people already have qualifying health care coverage.  These individuals will not need to do anything more than maintain that coverage throughout 2014.  If a taxpayer can afford coverage but decides not to buy it and remain uninsured throughout the year, that taxpayer may have to make an “individual shared responsibility payment” (a.k.a. the ACA penalty) when filing a 2014 tax return in 2015.

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Small Business Health Care Tax Credit

Posted by William Byrnes on March 30, 2014


2013_tf_insurance_emp_benefits_combo_covers-m_2In the IRS’ Health Care Tax Tip (HCTT-2014-08), it revealed that the “Small Business Health Care Tax Credit” helps small businesses and tax-exempt organizations pay for health care coverage they offer their employees.

A small employer is eligible for the credit if it has fewer than 25 employees who work full-time, or a combination of full-time and part-time. For example, two half-time employees equal one employee for purposes of the credit.

For 2013, the average annual wages of employees must be less than $50,000, and the employer must pay a uniform percentage for all employees that is equal to at least 50% of the premium cost of the insurance coverage.

The maximum credit is 35 percent of premiums paid for small business employers and 25 percent of premiums paid for small tax-exempt employers such as charities.

If no tax is owed during the year, then the tax credit may be carried back or forward to other tax years.

For small tax-exempt employers, the credit is refundable, so even if no taxable income is due, the credit may be refunded so long as it does not exceed the income tax withholding and Medicare tax liability.

Authoritative and easy-to-use, 2014 Tax Facts on Insurance & Employee Benefits shows you how the tax law and regulations are relevant to your insurance, employee benefits, and financial planning practices.  Often complex tax law and regulations are explained in clear, understandable language.  Pertinent planning points are provided throughout.

Organized in a convenient Q&A format to speed you to the information you need, 2014 Tax Facts on Insurance & Employee Benefits delivers the latest guidance on:

  • Estate & Gift Tax Planning
  • Roth IRAs
  • HSAs
  • Capital Gains, Qualifying Dividends
  • Non-qualified Deferred Compensation Under IRC Section 409A
  • And much more!

Key updates for 2014:

  • Important federal income and estate tax developments impacting insurance and employee benefits including changes from the American Taxpayer Relief Act of 2012
  • Concise updated explanation and highlights of the Patient Protection and Affordable Care Act (PPACA)
  • Expanded coverage of Annuities
  • New section on Structured Settlements
  • New section on International Tax
  • More than thirty new Planning Points, written by practitioners for practitioners, in the following areas:
    • Life Insurance
    • Health Insurance
    • Estate and Gift Tax
    • Deferred Compensation
    • Individual Retirement Plans

Plus, you’re kept up-to-date with online supplements for critical developments.  Written and reviewed by practicing professionals who are subject matter experts in their respective topics, Tax Facts is the practical resource you can rely on.

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Simplified Option for Claiming Home Office Deduction Now Available – May Deduct up to $1,500!

Posted by William Byrnes on March 29, 2014


2014_tf_on_individuals_small_businesses-m_1The IRS reported in Newswire (IR-2014-24) that people with home-based businesses that this year for the first time they can choose a new simplified option for claiming the deduction for business use of a home.

In tax year 2011, the most recent year for which figures are available, some 3.3 million taxpayers claimed deductions for business use of a home (commonly referred to as the home office deduction) totaling nearly $10 billion.  The new optional deduction, capped at $1,500 per year based on $5 a square foot for up to 300 square feet, will reduce the paperwork and record keeping burden on small businesses by an estimated 1.6 million hours annually.

The new option is available starting with the 2013 return taxpayers are filing now.  Normally, home-based businesses are required to fill out a 43-line form (Form 8829) often with complex calculations of allocated expenses, depreciation and carryovers of unused deductions.  Instead, taxpayers claiming the optional deduction need only complete a short worksheet in the tax instructions and enter the result on their return.  Self-employed individuals claim the home office deduction on Schedule C Line 30, farmers claim it on Schedule F  Line 32 and eligible employees claim it on Schedule A Line 21.

Though homeowners using the new option cannot depreciate the portion of their home used in a trade or business, they can claim allowable mortgage interest, real estate taxes and casualty losses on the home as itemized deductions on Schedule A. These deductions need not be allocated between personal and business use, as is required under the regular method.

Business expenses unrelated to the home, such as advertising, supplies and wages paid to employees, are still fully deductible.  Long-standing restrictions on the home office deduction, such as the requirement that a home office be used regularly and exclusively for business and the limit tied to the income derived from the particular business, still apply under the new option.

IRS YouTube Video:
Simplified Home Office Deduction: English / Spanish / ASL

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Preventing Tax Preparer Fraud: IRS Initiatives and the Loving case

Posted by William Byrnes on March 28, 2014


by Dawna E. Snipes

Why the Increase in Tax Preparer Fraud?

Tax preparer fraud has become more paramount with taxpayers choosing to have their federal tax returns prepared by paid return providers.  When unadvised and vulnerable taxpayers choose unqualified and unscrupulous preparers, they potentially face IRS penalties for filing false returns.

26 U.S.C. §7701(a)(3) defines a tax return preparer as “any person who prepares tax returns for others for compensation.”[1]  The Internal Revenue Service (IRS) has estimated that approximately 60 percent of taxpayers use paid tax preparers to file their taxes.  However, between 2012 and 2013, the IRS successfully obtained permanent injunctions against over 30 preparers operating throughout the country.  Some reasons for the increase in tax preparer fraud are (1) lack of federal regulations, (2) an arduous tax code, and (3) overly-burdened enforcement agencies.

Read the full article at http://www.advisorfyi.com/2014/01/preventing-tax-preparer-fraud-irs-initiatives-and-the-loving-case/

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IRS Reminds Individuals of Health Care Choices for 2014

Posted by William Byrnes on March 28, 2014


In Issue Number HC-TT- 2014-01, the IRS released reminders for Individuals about the 2014 Health Care Choices.  In 3 days, on March 31, the Heath Care Market Exchange enrollment period will close.

Starting in 2014, each person must choose to either have basic health insurance coverage (known as minimum essential coverage) for everyone in the family for each month or go without health care coverage for some or all of the year.

If a person don’t maintain health insurance coverage, then that person will need to either seek an exemption or pay a penalty (called an “individual shared responsibility payment”) with the 2014 income tax return filed in 2015. 

What Qualifies as Health Insurance to Avoid the Penalty?

Qualifying coverage includes:

  • health insurance coverage provided by your employer (including COBRA and retiree coverage),
  • health insurance coverage purchase through a health care exchange Marketplace,
  • Medicare, Medicaid or other government-sponsored health coverage including programs for veterans, or
  • coverage you buy directly from an insurance company.

Qualifying coverage does not include certain coverage that may provide limited benefits, such as coverage only for vision care or dental care, workers’ compensation, or coverage only for a specific disease or condition. 

Premium Tax Credit May Help Pay for Health Insurance

If purchasing health insurance coverage through the Marketplace, the person may be eligible for financial assistance including the premium tax credit, which will help lower the out-of-pocket cost of your monthly insurance premiums (see yesterday’s blog article).

Exemptions

If a person chooses to go without coverage or experiences a gap in coverage, the person may still qualify for an exemption based upon (1) not having access to affordable coverage, (2) the gap is less than three consecutive months without coverage, or (3) qualifying for one of several other exemptions.  A special hardship exemption applies to individuals who purchase their insurance through the Marketplace during the initial enrollment period but due to the enrollment process have a coverage gap at the beginning of 2014.

Penalty for Not Having Health Insurance

If a person (or any of dependents) do not maintain coverage and do not qualify for an exemption, then the person will owe a penalty, called a “individual shared responsibility payment”, paid when filing the tax return in 2015.  In general, the payment amount is either a percentage of household income or a flat dollar amount, whichever is greater.

The person will owe 1/12th of the annual payment for each month you (or your dependents) do not have coverage and are not exempt. The annual payment amount for 2014 is the greater of:

  • 1 percent of household income that is above the tax return filing threshold for the filing status, such as Married Filing Jointly or single, or
  • A family’s flat dollar amount, which is $95 per adult and $47.50 per child, limited to a maximum of $285.

The penalty is capped at the cost of the national average premium for the bronze level health plan available through the Marketplace in 2014.

For more than half a century, Tax Facts has been an essential resource designed to meet the real-world tax-guidance needs of professionals in both the insurance and investment industries.

2014_tf_on_individuals_small_businesses-m_1Due to a number of recent changes in the law, taxpayers are currently facing many questions connected to important issues such as healthcare, home office use, capital gains, investments, and whether an individual is considered an employee or a contractor. Financial advisors are continually looking for updated tax information that can help them provide the right answers to the right people at the right time. This brand-new resource provides fast, clear, and authoritative answers to pressing questions, and it does so in the convenient, timesaving, Q&A format for which Tax Facts is famous.

“Our brand-new Tax Facts title is exciting in many ways,” says Rick Kravitz, Vice President & Managing Director of Summit Professional Network’s Professional Publishing Division. “First of all, it fills a huge gap in the resources available to today’s advisors. Small business is a big market, and this book enables advisors to get up-and-running right away, with proven guidance that will help them serve their clients’ needs. Secondly, it addresses the biggest questions facing all taxpayers and provides absolutely reliable answers that help advisors solve today’s biggest problems with confidence.”

tax-facts-online_mediumThe company also points out that the expert authors—Robert Bloink, Esq., LL.M., and William H. Byrnes, Esq., LL.M., CWM®—are delivering real-life guidance based on decades of experience.

The authors’ knowledge and experience in tax law and practice provides the expert guidance for National Underwriter to once again deliver a valuable resource for the financial advising community,” added Kravitz.

Anyone interested can try Tax Facts on Individuals & Small Business, risk-free for 30 days, with a 100% guarantee of complete satisfaction.  For more information, please go to www.nationalunderwriter.com/TaxFactsIndividuals or call 1-800-543-0874.

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Videos of Prof. William Byrnes’ Presentations on Distance Education

Posted by William Byrnes on March 27, 2014


1st vimeo video: Associate Dean William Byrnes’ 15 minute presentation about distance learning to the 500 policy makers of India’s National Board of Accreditation http://vimeo.com/39260008#t=3549  (starts from 1:00:00 until 1:15.00)

2nd vimeo video: William Byrnes’ second 6 minute response presentation delivered in the afternoon to India’s National Board of Accreditation policy congress in response of questions of the plenary about his approach to distance learning http://vimeo.com/39264336#t=4959  (starts from 1:22.30 until 1.28.30)

TJSL’s Associate Dean for Graduate & Distance Education Programs William Byrnes was honored with the 2012 Education Leadership Award by the World Education Congress of India’s National Board of Accreditation that brought together 500 policy makers from many countries on all the continents to examine and develop best practice policies for higher (university and graduate) education.

Professor William Byrnes’ leadership and contribution to the field of education is well known,” said Chairman of Awards & Academic Committee Edward Smith. “The position that you occupy in the fraternity is strategic and iconic. As a thinker and doer you are a role model and a believer in change. I am pleased that the Jury and Council of Board members would like to confer the Education Leadership Award to you.”

Professor Byrnes pioneered online legal education in 1994, thereafter creating the first online LL.M. program offered by an ABA accredited law school. He is a key founding member of the Work Group for Distance Education in Legal Education that in 2013 published Distance Learning in Legal Education: A Summary of Delivery Models, Regulatory Issues and Recommended Practices (http://www.law.harvard.edu/programs/plp/pdf/Distance_Learning_in_Legal_Ed.pdf). The second edition of this Best Practices Report will be released shortly (see Working Group for Distance Learning in Legal Education on Harvard’s Program on the Legal Profession website: http://www.law.harvard.edu/programs/plp/pages/distance_learning_working_group.php)

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The Obama Care “Premium Tax Credit” – 4 days left to take advantage

Posted by William Byrnes on March 27, 2014


On February 25, the IRS released Health Care Tax Tip 2014-03 reminding taxpayers that time is running out – only 4 days left – to enroll for health insurance coverage through the Health Insurance Marketplace.

However, the premium tax credit can help make purchasing health insurance coverage more affordable for people with moderate incomes. To be eligible for the premium tax credit, a tax filer must satisfy three rules:  

1.  Sign up for health insurance coverage through the Health Insurance Marketplace.  The open enrollment period to purchase health insurance coverage for 2014 through the Health Insurance Marketplace ENDS in 4 days on March 31, 2014!

2. Household income between one and four times the federal poverty line.  For a family of four for tax year 2014, that means income from $23,550 to $94,200.

3. Not eligible for other medical coverage, such as Medicare, Medicaid, or sufficiently generous employer-sponsored coverage.

If a  Marketplace determines the taxpayer is likely to qualify for the tax credit at the time of signup on the Health Insurance Marketplace, then the taxpayer has two choices:

1. Choose to have some or all of the estimated credit paid in advance directly to the medical insurance company to lower the pay out-of-pocket for the monthly premiums during 2014, or

2. Wait to receive the premium tax credit when the 2014 tax return is filed in 2015.  Waiting to receive the premium tax credit will either increase the tax refund or lower the balance due to the IRS.

For taxpayers choosing to receive the premium tax credit in advance, changes to income or family size will affect the credit eligible to receive.  If the credit on the 2014 tax return (filed in 2015) does not match the amount received in advance, the taxpayer will have to repay any excess advance payment, or you may get a larger refund if you are entitled to more. It is important to tell your Marketplace about changes in your income or family size as they happen during 2014 because these changes will affect the amount of your credit.

For more than half a century, Tax Facts has been an essential resource designed to meet the real-world tax-guidance needs of professionals in both the insurance and investment industries.

2014_tf_on_individuals_small_businesses-m_1Due to a number of recent changes in the law, taxpayers are currently facing many questions connected to important issues such as healthcare, home office use, capital gains, investments, and whether an individual is considered an employee or a contractor. Financial advisors are continually looking for updated tax information that can help them provide the right answers to the right people at the right time. This brand-new resource provides fast, clear, and authoritative answers to pressing questions, and it does so in the convenient, timesaving, Q&A format for which Tax Facts is famous.

“Our brand-new Tax Facts title is exciting in many ways,” says Rick Kravitz, Vice President & Managing Director of Summit Professional Network’s Professional Publishing Division. “First of all, it fills a huge gap in the resources available to today’s advisors. Small business is a big market, and this book enables advisors to get up-and-running right away, with proven guidance that will help them serve their clients’ needs. Secondly, it addresses the biggest questions facing all taxpayers and provides absolutely reliable answers that help advisors solve today’s biggest problems with confidence.”

tax-facts-online_mediumThe company also points out that the expert authors—Robert Bloink, Esq., LL.M., and William H. Byrnes, Esq., LL.M., CWM®—are delivering real-life guidance based on decades of experience.

The authors’ knowledge and experience in tax law and practice provides the expert guidance for National Underwriter to once again deliver a valuable resource for the financial advising community,” added Kravitz.

Anyone interested can try Tax Facts on Individuals & Small Business, risk-free for 30 days, with a 100% guarantee of complete satisfaction.  For more information, please go to www.nationalunderwriter.com/TaxFactsIndividuals or call 1-800-543-0874.

Posted in Taxation | Tagged: , , , , | 3 Comments »

Cloning your Client webinar on Wednesday, April 2 at 8am PDT (sponsorship eliminates enrollment fee!)

Posted by William Byrnes on March 26, 2014


TJSL Banner Webinar

Advisys is sponsoring a webinar on Client Prospecting with Thomas Jefferson’s Associate Dean William Byrnes, the author of the newly released book National Underwriter Sales Essentials: Managing Your Agency.   The sponsored webinar is Wednesday April 2 at 8am Pacific, thus you may enroll without cost!

“While America is experiencing its greatest transfer of wealth, the senior level ‘baby boomer’ financial advisors are retiring out of the market,” explained Associate Dean William Byrnes.  “The next five years presents substantial opportunities for this generation of financial advisors who exercise best networking and face-to-face practices.”

“Many young professionals unproductively spin their wheels when it comes to growing their client base,” interjected co-author Robert Bloink. “The online Thomas Jefferson graduate program is competitive because most faculty members like myself brings decades of business experience into the classroom and keep our students eye on the ball – developing their client books.

“The National Underwriter Sales Essentials Series combines all of the most practical, proven sales techniques advisors need to convert prospects into customers, win new business, and to grow sales,” added Rick Kravitz Managing Director of the National Underwriter Professional Publishing Division. “The Life & Health Sales Essentials focuses on the selling skills and techniques essential to achieving success—prospecting for new business and the demands of running an agency.”  

William Byrnes continued, “I invite you to attend the upcoming webinar wherein we will discuss topics such as How to Clone Your Clients, What`s Your Point of Difference?, The ‘Ben Franklin Method’ For Winning People Over, How to Cultivate a Network of Endless Referrals, and Marketing to the Millennials.  We will focus on client cloning, including: asking intriguing questionsC2C qualified introductions, and client crowd sourcing.” 

Advisys is the creator of the Back Room Technician financial planning platform,” related its President Ken Kerr. “With over 40,000 users and more than three decades of experience, Advisys has insight into the most popular and effective client presentations used today. Advisys helps its partners to be their best when face-to-face with clients and prospects.” 

TJSL Banner Webinar <— fill in for more information about Professor William Byrnes’ financial professionals program!

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Four Tax Facts about the Health Care Law for Individuals

Posted by William Byrnes on March 26, 2014


In Health Care Tax Tip 2014-06, the IRS alerted taxpayers to four basic tax tips about the new health care law.  The IRS stated that health insurance choices made now may affect the income tax return filed next year (2015).

1. Most people already have qualified health insurance coverage and will not need to do anything more than maintain qualified coverage throughout 2014.

2. If a taxpayer does not have health insurance through a job or a government plan, the taxpayer may be able to buy it through the Health Insurance Marketplace.  The open enrollment period to purchase health insurance coverage for 2014 through the Health Insurance Marketplace ENDS in 5 days on March 31, 2014!

3. If a taxpayer buy health insurance through the Marketplace, the taxpayer may be eligible for an advance premium tax credit to lower your out-of-pocket monthly premiums. (Tomorrow’s blog article will provide information about this advance premium tax credit.)

4. The 2014 tax return to be filed in 2015 will have a new tax question:  did you have insurance coverage or did you qualify for an exemption?  If not, the taxpayer may owe a shared responsibility payment.

What should you do now?

If a taxpayer or the family does not have health insurance, then talk to the employer about the employer’s health coverage offered, or visit the Marketplace online.

Find out more about the health care law and the Marketplace at www.HealthCare.gov.

Find out more about the premium tax credit and the shared responsibility payment at www.IRS.gov/aca.

For more than half a century, Tax Facts has been an essential resource designed to meet the real-world tax-guidance needs of professionals in both the insurance and investment industries.

tax-facts-online_medium

Due to a number of recent changes in the law, taxpayers are currently facing many questions connected to important issues such as healthcare, home office use, capital gains, investments, and whether an individual is considered an employee or a contractor. Financial advisors are continually looking for updated tax information that can help them provide the right answers to the right people at the right time. This brand-new resource provides fast, clear, and authoritative answers to pressing questions, and it does so in the convenient, timesaving, Q&A format for which Tax Facts is famous.

“Our brand-new Tax Facts title is exciting in many ways,” says Rick Kravitz, Vice President & Managing Director of Summit Professional Network’s Professional Publishing Division. “First of all, it fills a huge gap in the resources available to today’s advisors. Small business is a big market, and this book enables advisors to get up-and-running right away, with proven guidance that will help them serve their clients’ needs. Secondly, it addresses the biggest questions facing all taxpayers and provides absolutely reliable answers that help advisors solve today’s biggest problems with confidence.”

The company also points out that the expert authors—Robert Bloink, Esq., LL.M., and William H. Byrnes, Esq., LL.M., CWM®—are delivering real-life guidance based on decades of experience.

The authors’ knowledge and experience in tax law and practice provides the expert guidance for National Underwriter to once again deliver a valuable resource for the financial advising community,” added Kravitz.

Anyone interested can try Tax Facts on Individuals & Small Business, risk-free for 30 days, with a 100% guarantee of complete satisfaction.  For more information, please go to www.nationalunderwriter.com/TaxFactsIndividuals or call 1-800-543-0874.

Posted in Taxation | Tagged: , , , , | Leave a Comment »

EU to Adopt New Expanded Savings Directive

Posted by William Byrnes on March 25, 2014


EU Council Announces March 2014 Adoption of Expanded EU Savings Directive

On Saturday, March 22, 2014 the EU Council’s General Secretariat announced that it will adopt major amendments to the EU Directive on taxation of savings income at its next March 2014 meeting.  The amendments will address the current loopholes, such as application to trusts, to foundations, and to investment income that is comparable to interest income.

Brief Background on EU Savings Directive

The liberalization of capital markets and the free movement of capital within the EU borders revealed how important it was to establish cooperation with a view to preventing, in the direct taxation area, fraud and evasion linked to cross-border financial investments. The problem with taxpayers moving their investments to Member States which did not impose taxation at source while the taxpayers simultaneously under-reported to their respective State of residence (or not reporting at all) the income earned. The EU Savings Directive was adopted to address this situation, coming into effect in 2005.

The mechanism of the Directive works by imposing an obligation to any paying agent in an EU Member State which makes a payment to an individual resident in the other Member State which is the beneficial owner of the income, to report that payment of interest to the competent tax authorities of the Member State in which the paying agent is established. The competent tax authorities of that (source) State in turn transfer the information collected to the competent tax authority of the residence of the beneficial owner. Based on the information received it is possible for the State of residence of the beneficial owner to verify if the amount is declared for tax purposes and to tax the corresponding income.

Loopholes Reported in 2008

In his 2004 Report on the Regulatory, Competitive, Economic and Socio-Economic Impact of the European Union Code of Conduct on Business Taxation and Tax Savings Directive to the United Kingdom Foreign and Commonwealth Office and the Overseas Territories of The Virgin Islands (British), Turks & Caicos Islands, Anguilla and Montserrat, Professor William Byrnes undertook an in-depth analysis of the EU Savings Directive identifying several loopholes that would require later amendments for it to achieve its objectives.

The Savings Directive loopholes include:

• Territorial scope: It is limited to intra-community situations in which a paying agent from one Member State pays to an individual resident in another Member State. It does not apply to payments from outside the EU, i.e. when the paying agent is located in a third (non-EU) State or to payments to beneficial owners who reside in third States.

• Personal scope: it does not apply to persons other than individuals, in particular payments made to legal entities. This limitation provides individuals with opportunities to circumvent the Savings Directive by using an interposed legal person or arrangement.

• Material scope: it does not cover other forms of savings like insurance products, pensions, some tailored investment funds, return on derivative contracts, structured products, etc.

These and other loopholes have been formally reported by the European Commission since 2008. The main findings of a report produced by the Commission identified as a major problem lack of “consistent treatment of other comparable situations”.[1] Pursuing this aim of consistency requires that interest payments obtained by an individual through intermediate vehicles are consistently put on an equal footing with interest payments directly received by the individual. This consistency of coverage is required not only to ensure the effectiveness of the Directive, but also compliance with the rules of the internal market and fair competition between comparable financial products and structures.

A proposal was submitted to the Council which aimed at extending the scope of the Directive.[2] 

European Council Announces Amended Savings Directive Adoption in March 2014

On March 22, 2014 the European Council reported in a press release[3] that (emphasis added):

The European Council welcomes the Commission’s report on the state of play of negotiations on savings taxation with European third countries (Switzerland, Liechtenstein, Monaco, Andorra and San Marino) and calls on those countries to commit fully to implementing the new single global standard for automatic exchange of information, developed by the OECD and endorsed by the G20, and to the early adopters initiative.

The European Council calls on the Commission to carry forth the negotiations with those countries swiftly with a view to concluding them by the end of the year, and invites the Commission to report on the state of play at its December meeting. If sufficient progress is not made, the Commission’s report should explore possible options to ensure compliance with the new global standard.

In the light of this, the Council will adopt the Directive on taxation of savings income at its next March 2014 meeting.

The European Council invites the Council to ensure that, with the adoption of the Directive on Administrative Cooperation by the end of 2014, EU law is fully aligned with the new global standard.

What About the Withholding Exception for Austria and Luxembourg?

While most Member States adopted the exchange of information regime provided in the 2005 Savings Directive, three Member States with a tradition of bank secrecy—Belgium, Luxembourg and Austria—preferred to adopt, during a transitional period, a withholding tax regime. They were authorized to adopt a withholding tax (now 35%) on interest income that is paid to individual savers resident in other EU Member States. In the meantime Belgium decided to discontinue applying the transitional withholding tax as of 1 January 2010 and exchange information instead.

Therefore, only Luxembourg and Austria are currently entitled to levy a withholding tax. Luxembourg has notified the EU Commission that from next year, January 1, 2015 it will discontinue applying the transitional withholding tax and thus begin automatically exchanging information for applicable accounts from that date.

Thus, only Austria has expressed that it will maintain the withholding tax option. Austria’s finance minister is quoted in April 2013 stating: “All this data exchange will not put one red cent in my tax coffers, …. I want to have the money, not a data cemetery.”[4]  However, in light of the Council’s press release on Saturday, this position has probably changed.

The Austria’s Chancellor had also indicated that Austria may begin automatic exchange regarding the interest from savings accounts beginning 2014.[5] Although this statement is different from the Luxembourg commitment towards automatic exchange of information, it would not be surprising that Austria will soon also endorse this automatic exchange standard within the scope of applying the Savings Directive, in light of FATCA, GATCA, and the Council’s press release.

book coverPractical Compliance Aspects of Exchange of Information, FATCA and GATCA

For in-depth analysis of the practical compliance aspects of financial service business providing for exchange of information of information about foreign residents with their national competent authority or with the IRS (FATCA), see Lexis Guide to FATCA Compliance, 2nd Edition just published!

William H. Byrnes, author of six Lexis international tax titles, has achieved authoritative prominence with more than 20 books, 100 book chapters and supplements, and 1,000 media articles.  In 2008 he was appointed Associate Dean at Thomas Jefferson School of Law, previously obtaining Professor of Law with Tenure at St. Thomas University.   William Byrnes was a Senior Manager, then Associate Director of international tax for Coopers and Lybrand, and consulted for clients involved with Africa, Europe, Asia, the Indian sub-continent, and the Caribbean.   He has been commissioned by a number of governments on tax policy.

[1] See Commission Staff Working Document, “Refining the present coverage of Council Directive 2003/48/EC on taxation of income from savings”, SEC (2008), p. 559.

[2] See “Proposal for a Council Directive amending Council Directive 2003/48/EC on taxation of savings income in the form of interest payments”, COM (2008) 727 final, of November 13, 2008.

[3] Conclusions, European Council, Brussels, Euco 7/1/14, 21 March 2014.

[4]“All this data exchange will not put one red cent in my tax coffers,” finance minister Maria Fekter said on 13 April. “I want to have the money, not a data cemetery.”  Stamatoukou, Eleni, “EU Savings Directive to be modified”, New Europe Online, (April 15, 2013) Available at http://www.neurope.eu/article/eu-savings-directive-be-modified.

[5] Austria’s position regarding the extension of the EU Savings Directive requires that such extension be also imposed through international agreements with San Marino, Switzerland, Lichtenstein, Andorra, and Monaco.  However, it is unclear if Austria has since backtracked and made these five agreements a pre-condition for its own automatic information exchange on savings income for depository accounts.  See Bodoni, Stephanie, EU Push For Savings-Tax Deal Fought By Luxembourg, Austria, Bloomberg (Nov 14, 2013).  Available at http://www.bloomberg.com/news/2013-11-14/eu-set-to-fail-to-meet-savings-tax-goal-on-luxembourg-opposition.html.

 

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OECD releases BEPS draft for Tax Challenges of the Digital Economy

Posted by William Byrnes on March 25, 2014


The OECD released Monday, March 24, a discussion draft on the Tax Challenges of the Digital Economy.

In July 2013, the OECD published its Action Plan on Base Erosion and Profit Shifting. The Action Plan identifies 15 actions to address BEPS in a comprehensive manner and sets deadlines to implement these actions. Excerpting from the Report, Action 1 reads as follows:

Action 1 Address the tax challenges of the digital economy

Identify the main difficulties that the digital economy poses for the application of existing international tax rules and develop detailed options to address these difficulties, taking a holistic approach and considering both direct and indirect taxation. Issues to be examined include, but are not limited to, the ability of a company to have a significant digital presence in the economy of another country without being liable to taxation due to the lack of nexus under current international rules, the attribution of value created from the generation of marketable location-relevant data through the use of digital products and services, the characterisation of income derived from new business models, the application of related source rules, and how to ensure the effective collection of VAT/GST with respect to the cross-border supply of digital goods and services. Such work will require a thorough analysis of the various business models in this sector.

The OECD’s March 24 discussion draft on the Tax Challenges of the Digital Economy, after surveying the elements of the new global digital economy, outlines the tax minimization techniques and then provides broad proposals to reduce the BEPS resulting therefrom. Below, I have excerpted and paraphrased the relevant aspects to provide an overview.

Section IV “Identifying Opportunities for BEPS in the Digital Economy” undertakes a general discussion of the common features of tax planning structures that raise BEPS concerns. Section IV then describes the core elements of BEPS strategies with respect to both direct and indirect taxation.  The common features of digital economy tax planning features include:

Eliminating or reducing tax in the market country

  • Avoiding a Taxable Presence
  • Minimizing Functions, Assets and Risks in Market Jurisdictions
  • Maximizing Deductions in Market Jurisdictions

Eliminating or reducing tax in the intermediate country

Eliminating or reducing tax in the country of residence of the ultimate parent

Avoiding withholding tax

Opportunities for BEPS with respect to VAT

  • Remote digital supplies to exempt businesses
  • Remote digital supplies to a multi-location enterprise (MLE)

Section V “Tackling BEPS in the Digital Economy” of the discussion draft examines how work on the actions of the BEPS Action Plan and in the area of indirect taxation will address BEPS issues arising in the digital economy. This section also highlights the particular characteristics of the digital economy that must be taken into account to ensure that the measures developed effectively address BEPS in the digital economy.

Restoring Taxation on Stateless Income

Measures that will restore taxation in the market jurisdiction

  • Prevent Treaty Abuse (Action 6)
  • Prevent the Artificial Avoidance of PE Status (Action 7)

Measures that will restore taxation in both market and ultimate parent jurisdictions

  • Neutralize the Effects of Hybrid Mismatch Arrangements (Action 2)
  • Limit Base Erosion via Interest Deductions and Other Financial Payments (Action 4 and Action 9)
  • Counter Harmful Tax Practices More Effectively (Action 5)

Assure that transfer pricing outcomes are in line with value creation (Actions 8-10)

  • Intangibles, including hard-to-value intangibles, and cost contribution arrangements
  • Business risks
  • Characterization of transactions
  • Base eroding payments
  • Global value chains and profit methods

Addressing BEPS Issues in the Area of Consumption Taxes

Section VI “Broader Tax Challenges Raised by the Digital Economy” discusses the challenges that the digital economy raises for direct taxation, with respect to nexus, the tax treatment of data, and characterization of payments made under new business models. Section VI also discusses the indirect tax challenges raised by the digital economy with respect to exemptions for imports of low-valued goods, and remote digital supplies to consumers. Thereafter, Section VI lists administrative challenges faced by tax administrations in applying the current rules.

An overview of the tax challenges raised by the digital economy includes:

  • Nexus and the Ability to have a Significant Presence without Being Liable to Tax
  • Data and the Attribution of Value Created from the Generation of Marketable Location-Relevant Data through the Use of Digital Products and Services
  • Characterization of Income Derived from New Business Models
  • Collection of VAT in the Digital Economy

Section VII “Potential Options to Address The Broader Tax Challenges Raised by the Digital Economy” provides a brief framework for evaluating options to address the broader tax challenges raised by the digital economy. This section then provides an overview of potential options that have been received by the Task Force, along with a description of some of the issues that will need to be addressed in developing and evaluating those options.

Modifications to the Exemptions from Permanent Establishment Status

A New Nexus based on Significant Digital Presence

Virtual Permanent Establishment

Creation of a Withholding Tax on Digital Transactions

Consumption Tax Options

  • Exemptions for Imports of Low Valued Good
  • Remote digital supplies to consumers

Submitting Comments to OECD

Interested parties are invited to submit comments electronically in Word on this discussion draft, before 5.00pm on April 14, 2014 to CTP.BEPS@oecd.org.

Persons and organisations who intend to send comments on this discussion draft are invited to indicate by April 7 whether they wish to speak in support of their comments at a public consultation meeting on Action 1 (Address the tax challenges of the digital economy), which is scheduled to be held in Paris at the OECD Conference Centre on April 23, 2014. Persons wishing to attend this public consultation meeting should fill out their request for registration on line as soon as possible but by April 7, 2014.

This meeting will also be broadcast live on the internet and can be accessed on line. No advance registration is required for this internet access.

practical_guide_book

Lexis’ Practical Guide to U.S. Transfer Pricing (William Byrnes & the late Robert Cole (2013)) is designed to help multinationals cope with the U.S. transfer pricing rules and procedures, taking into account the international norms established by the Organisation for Economic Co-operation and Development (OECD). It is also designed for use by tax administrators, both those belonging to the U.S. Internal Revenue Service and those belonging to the tax administrations of other countries, and tax professionals in and out of government, corporate executives, and their non-tax advisors, both American and foreign.  Fifty co-authors contribute subject matter expertise on technical issues faced by tax and risk management counsel.

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LexisNexis FATCA compliance book released

Posted by William Byrnes on March 24, 2014


Associate Dean William Byrnes’ 2nd Edition of LexisNexis Guide to FATCA Compliance” was published February 3, 2014.  The 600+ page book of legal analysis features TJSL JD students Sean Livermore as the managing editor and Jason Miller as the co-author of the Turkey chapter with PwC Partner Umurcan Gago with whom Jason worked as his summer intern in Istanbul.

Sean Livermore opened up about why he chose Thomas Jefferson School of Law.  “It was a great opportunity to engage with partners of Big Law and the Big 4, made possible by the publication opportunities of Associate Dean Byrnes. The chance to be featured on LexisNexis fits nicely with my interests in pursuing an international legal career with several years of experience in Asia having studied in Japan and developed curricula for the Seoul Metropolitan Office of Education.”

book cover

“It was neat having the resources of PwC to help me write these articles,” related Jason Miller, who has now published in three LexisNexis publications and one for WoltersKluwer. “PwC has someone who specializes in every area, and everyone was always accommodating and eager to help me.”

Sean Livermore continued, “Professor Byrnes introduced me to an opportunity to work with an economic and tax study for a foreign government that opened my eyes to various types of tax work, as well as twenty hour work days.”

Professor William Byrnes interjected. “Over fifty of my students are currently involved in various LexisNexis, Wolters Kluwer, National Underwriter and Mertens publications.  It’s like a law review experience on steroids.”

“I undertook over thirty in-house workshops and interviews with tier 1 banks, firms, and government departments.  Through these I developed several new contributing authors, including Peter Cotorceanu who is the Head of UBS’ Product Management for Trusts and Foundations; Devang Ambavi, Rajul Jain, and Shinjini Kumar (PricewaterhouseCoopers experts for India), and Jinghua Liu and Qiguang Zhou (Baker McKenzie experts for China).”

“I look forward to having my new cohort students engage with these experts for the 2015 Edition that I may teach the students how to build an international network, and of course about international tax opportunities.  At the Tax Society lunch this week – Tuesday, March 25th – we are hosting renown European Court of Justice expert and author Dr. Dennis Weber of University of Amsterdam who will discuss ECJ tax jurisprudence that he analyzes in his publications.”

The 600 page LexisNexis Guide to FATCA Compliance will provide the financial enterprise’s FATCA compliance officer the tools for developing and maintaining a best practices compliance strategy.  This Guide may be leveraged in combination with the tools for identification of U.S. indicia of LexisNexis Risk Solutions (http://www.lexisnexis.com/risk/).

LexisNexis® Guide to FATCA Compliance

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OECD releases two BEPS reports of recommendations to combat hybrid mismatch arrangements

Posted by William Byrnes on March 24, 2014


In July 2013, the OECD published its Action Plan on Base Erosion and Profit Shifting. The Action Plan identifies 15 actions to address BEPS in a comprehensive manner and sets deadlines to implement these actions.

The OECD states that a Hybrid Mismatch Arrangement “is a profit shifting arrangement that utilises a hybrid element in the tax treatment of an entity or instrument to produce a mismatch in tax outcomes in respect of a payment that is made under that arrangement.”  The hybrid mismatch arrangements targeted by the OECD rules are “those where the resulting mismatch results in a lower aggregate tax burden for the parties to the arrangement.”  (See Page 8 of OECD Discussion Draft Neutralise the effects of Hybrid Mismatch Arrangements – Recommendations for Domestic Laws).

Action 2 of the BEPS Action Plan calls for the development of model treaty provisions and recommendations for the design of domestic rules to neutralise the effect of hybrid mismatch arrangements:  

ACTION 2

Neutralise the effects of hybrid mismatch arrangements

Develop model treaty provisions and recommendations regarding the design of domestic rules to neutralise the effect (e.g. double non-taxation, double deduction, long-term deferral) of hybrid instruments and entities. This may include: (i) changes to the OECD Model Tax Convention to ensure that hybrid instruments and entities (as well as dual resident entities) are not used to obtain the benefits of treaties unduly; (ii) domestic law provisions that prevent exemption or non-recognition for payments that are deductible by the payor; (iii) domestic law provisions that deny a deduction for a payment that is not includible in income by the recipient (and is not subject to taxation under controlled foreign company (CFC) or similar rules); (iv) domestic law provisions that deny a deduction for a payment that is also deductible in another jurisdiction; and (v) where necessary, guidance on co-ordination or tie-breaker rules if more than one country seeks to apply such rules to a transaction or structure. Special attention should be given to the interaction between possible changes to domestic law and the provisions of the OECD Model Tax Convention. This work will be co-ordinated with the work on interest expense deduction limitations, the work on CFC rules, and the work on treaty shopping.

In connection with this work the Committee on Fiscal Affairs (CFA) has now released two consultation documents on Action Item 2 as a single proposal for public consultation.  

The first discussion draft (Neutralise the effects of Hybrid Mismatch Arrangements – Recommendations for Domestic Laws) sets out recommendations for domestic rules to neutralise the effect of hybrid mismatch arrangements and the second discussion draft (Neutralise the effects of Hybrid Mismatch Arrangements – Treaty Aspects of the Work on Action 2 of the BEPS Action Plan) discusses the impact of the OECD Model Convention on those rules and sets out recommendations for further changes to the Convention to clarify the treatment of hybrid entities.  

The OECD recommendations of the first discussion draft Neutralise the effects of Hybrid Mismatch Arrangements – Recommendations for Domestic Laws target three categories of hybrid mismatch arrangement:

(a) Hybrid financial instruments (including transfers); where a deductible payment made under a financial instrument is not treated as taxable income under the laws of the payee’s jurisdiction;

(b) Hybrid entity payments, where differences in the characterisation of the hybrid payer result in a deductible payment being disregarded or triggering a second deduction in the other jurisdiction;

(c) Reverse hybrid and imported mismatches, which cover payments made to an intermediary payee that are not taxable on receipt. There are two kinds of arrangement targeted by these rules:

(i) arrangements where differences in the characterisation of the intermediary result in the payment being disregarded in both the intermediary jurisdiction and the investor’s jurisdiction (reverse hybrids);
(ii) arrangements where the intermediary is party to a separate hybrid mismatch arrangement and the payment is set-off against a deduction arising under that arrangement (imported mismatches).

The second discussion draft Neutralise the effects of Hybrid Mismatch Arrangements – Treaty Aspects of the Work on Action 2 of the BEPS Action Plan focuses on ensuring that (1) dual resident entities and (2) transparent entities are not used to obtain the benefits of treaties unduly.

The OECD stated that the recommendations set out in these discussion drafts do not represent the consensus views of the CFA or its subsidiary bodies but rather are intended to provide stakeholders with substantive proposals for analysis and comment.  The CFA requested that such comments on these documents should be submitted electronically (in word format) before 5.00 pm on May 2, 2014 and should be addressed as follows:

Hybrid Mismatch Arrangements: Please send comments addressed to Achim Pross, Head, International Co-operation and Tax Administration Division, OECD/CTPA to aggressivetaxplanning@oecd.org.

OECD Model Convention: Please send comment addressed to Marlies de Ruiter, Head, Tax Treaties, Transfer Pricing and Financial Transactions Division, OECD/CTPA to taxtreaties@oecd.org.

Public Consultation:

The OECD invited Persons and organisations who intend to submit comments on these two Consultation Documents to indicate by May 2 whether they wish to speak in support of their comments at a public consultation meeting on Action 2 (Neutralise the effects of hybrid mismatch arrangements), which is scheduled to be held in Paris at the OECD Conference Centre on 15 May 2014.  Persons wishing to attend this public consultation meeting should fill out their request for registration on line by May 2, 2014.  This meeting will also be broadcast live on the internet and can be accessed on line.

Book Binder

Handle your critical international business ventures with confidence using the indispensable content you can only find in LexisNexis® Foreign Tax & Trade Briefs, the one information service that provides the latest tax and trade information for 128 foreign countries and territories on a regular quarterly basis.  Looseleaf, updated with revisions four times each year.  Professor William Byrnes is the author of six Lexis treatises, including Tax Havens of the WorldLexisNexis® Guide to FATCA ComplianceMoney Laundering, Asset Forfeiture and Recovery and Compliance — A Global GuidePractical Guide to US Transfer Pricing and International Withholding Tax Treaty Guide.

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What do I need to know about the Health Care Law for my 2013 Tax Return?

Posted by William Byrnes on March 23, 2014


The IRS stated in Health Care Tax Tip 2014-10 that for most taxpayers, the Affordable Care Act has no effect on the 2013 federal income tax return. For example, for the 2013 tax return a taxpayer does not yet report health care coverage under the individual shared responsibility provision or claim the premium tax credit.  Reporting of these items start with the filing of the 2014 tax return (which will only happen between late January and April 15, 2015).

However, the IRS alerted that some taxpayers people will be affected by a few provisions, including two new medical taxes and a reduction in the ability to take a deduction for medical expenses incurred during 2013.  See (1) increases in the itemized medical deduction threshold, (2) additional Medicare tax and (3) net investment income tax.

The IRS reminded taxpayers that the employer’s reporting of a taxpayer’s value of health care coverage is not taxable (the new box 12 employer health care reporting requirement, identified by Code DD on an employee’s Form W-2) . 

Information available about other tax provisions in the health care law: More information is available regarding the following tax provisions: Premium Rebate for Medical Loss RatioHealth Flexible Spending Arrangements, and Health Saving Accounts.

tax-facts-online_medium

Due to a number of recent changes in the law, taxpayers are currently facing many questions connected to important issues such as healthcare, home office use, capital gains, investments, and whether an individual is considered an employee or a contractor. Financial advisors are continually looking for updated tax information that can help them provide the right answers to the right people at the right time. This brand-new resource provides fast, clear, and authoritative answers to pressing questions, and it does so in the convenient, timesaving, Q&A format for which Tax Facts is famous.

“Our brand-new Tax Facts title is exciting in many ways,” says Rick Kravitz, Vice President & Managing Director of Summit Professional Network’s Professional Publishing Division. “First of all, it fills a huge gap in the resources available to today’s advisors. Small business is a big market, and this book enables advisors to get up-and-running right away, with proven guidance that will help them serve their clients’ needs. Secondly, it addresses the biggest questions facing all taxpayers and provides absolutely reliable answers that help advisors solve today’s biggest problems with confidence.”

Robert Bloink, Esq., LL.M., and William H. Byrnes, Esq., LL.M., CWM®—are delivering real-life guidance based on decades of experience.  The authors’ knowledge and experience in tax law and practice provides the expert guidance for National Underwriter to once again deliver a valuable resource for the financial advising community,” added Rick Kravitz.

Anyone interested can try Tax Facts on Individuals & Small Business, risk-free for 30 days, with a 100% guarantee of complete satisfaction.  For more information, please go to www.nationalunderwriter.com/TaxFactsIndividuals or call 1-800-543-0874.

 

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FINCEN Director speaks out on BITCOIN and other virtual currencies

Posted by William Byrnes on March 22, 2014


The director of FINCEN, Jennifer Shasky Calvery, spoke about virtual currencies, specifically naming BITCOIN, in her remarks on March 18, 2014 to a conference on anti money laundering.  I excerpt pertinent remarks related to virtual currency.

The Financial Crimes Enforcement Network (FinCEN) published earlier this year two administrative rulings, providing additional information on whether a person’s conduct related to convertible virtual currency brings them within the Bank Secrecy Act’s (BSA) definition of a money transmitter. The first ruling stated that, to the extent a user creates or “mines” a convertible virtual currency solely for a user’s own purposes, the user is not a money transmitter under the BSA. The second ruling stated that a company purchasing and selling convertible virtual currency as an investment exclusively for the company’s benefit is not a money transmitter.

The rulings further interpret FinCEN’s March 18, 2013 Guidance Application of FinCEN’s Regulations to Persons Administering, Exchanging, or Using Virtual Currencies to address these business models. The Financial Crimes Enforcement Network (“FinCEN”) issued the March 18, 2013 interpretive guidance to clarify the applicability of the regulations implementing the Bank Secrecy Act (“BSA”) to persons creating, obtaining, distributing, exchanging, accepting, or transmitting virtual currencies.

Definition of Currency and Virtual Currency

FinCEN’s regulations define currency (also referred to as “real” currency) as “the coin and paper money of the United States or of any other country that [i] is designated as legal tender and that [ii] circulates and [iii] is customarily used and accepted as a medium of exchange in the country of issuance.” In contrast to real currency, “virtual” currency is a medium of exchange that operates like a currency in some environments, but does not have all the attributes of real currency. In particular, virtual currency does not have legal tender status in any jurisdiction. This guidance addresses “convertible” virtual currency. This type of virtual currency either has an equivalent value in real currency, or acts as a substitute for real currency.

Excerpts of Remarks

“In the case of Bitcoin, it has been publicly reported that its users processed transactions worth approximately $8 billion over the twelve-month period preceding October 2013; however, this measure may be artificially high due to the extensive use of automated layering in many Bitcoin transactions.”

“By way of comparison, according to information reported publicly, in 2012 Western Union made remittances totaling approximately $81 billion; PayPal processed approximately $145 billion in online payments; the Automated Clearing House Network processed $36.9 trillion in transactions; and Bank of America processed $244.4 trillion in wire transfers.”

“This relative volume of transactions becomes important when you consider that, according to the United Nations Office on Drugs and Crime, the best estimate for the amount of all global criminal proceeds available for laundering through the financial system in 2009 was $1.6 trillion.”

“Exactly one year ago today, FinCEN issued interpretive guidance to bring clarity and regulatory certainty for businesses and individuals engaged in money transmitting services and offering virtual currencies.”

“In the simplest of terms, FinCEN’s guidance explains that administrators or exchangers of virtual currencies must register with FinCEN, and institute certain recordkeeping, reporting, and AML program control measures, unless an exception to these requirements applies. The guidance also explains that those who use virtual currencies exclusively for common personal transactions – like buying goods or services online – are users, and not subject to regulatory requirements under the BSA.”

“In all cases, FinCEN employs an activity-based test to determine when someone dealing with virtual currency qualifies as a money transmitter. The guidance clarifies definitions and expectations to ensure that businesses engaged in such activities are aware of their regulatory responsibilities, including registering appropriately.”

“Furthermore, FinCEN closely coordinates with its state regulatory counterparts to encourage appropriate application of FinCEN guidance as part of the states’ separate AML compliance oversight of financial institutions.”

“Earlier this year, FinCEN expanded upon this guidance, issuing two administrative rulings. The rulings provide additional information on our regulatory coverage of certain activities related to convertible virtual currency. In both rulings, the convertible virtual currency at issue was the crypto-currency, Bitcoin, and we were clarifying how users who obtain virtual currency only for their own use or investment are not money transmitters.”

“I am also pleased to report that since FinCEN issued its guidance, dozens of virtual currency exchangers have registered with FinCEN, and some virtual currency exchangers are beginning to comply with reporting requirements and are filing SARs. They appear to be appreciative of the need to develop controls to make themselves resilient to abuse by bad actors.”

And they are also coming to terms with the fact that as administrators and exchangers they must obtain, verify, and store key information about the senders and recipients of virtual currency and, under certain circumstances, pass that information on to other administrators or exchangers involved in the transaction.

“This last issue is key. Simply put, these exchangers and administrators, like other money transmitters, are subject to the so-called Travel Rule. Thus, they have to incorporate into their business models the same transparency with respect to funds transfers as other money transmitters.”

“While we are encouraged by these industry efforts to increase transparency in this space, I do, however, remain concerned that there appear to be many domestic virtual currency exchangers that are not fulfilling their recordkeeping and reporting requirements.  Those who do not comply with these rules should understand that their actions will have  consequences. Not only are they subject to civil monetary penalties, but the knowing failure to register a money transmitting business with FinCEN – or with state authorities where there is a state licensing requirement – is a federal criminal offense.”

book cover

LexisNexis’ Money Laundering, Asset Forfeiture and Recovery and Compliance: A Global Guide – This eBook is designed to provide the compliance officer accurate analyses of the AML/CTF Financial and Legal Intelligence, law and practice in the nations of the world with the most current references and resources. The eBook is organized around five main themes: 1. Money Laundering Risk and Compliance; 2. The Law of Anti-Money Laundering and Compliance; 3. Criminal and Civil Forfeiture; 4. Compliance and 5. International Cooperation.

Each chapter is made up of five parts. Part I, “Introduction,” begins with the analysis of money laundering risks and compliance with the recommendations of the Financial Action Task Force (FATF), and then concludes with the country’s rating based on the International Narcotics Control Strategy Report (INCSR) of the U.S. State Department.  Part II, “Anti-Money Laundering and Combating Terrorist Financing (AML/CTF)” and Part III, “Criminal and Civil Forfeiture,” evaluate the judicial and legislative structures of the country. Given the increasing global dimension of AML/CTF activities, these sections give special attention to how a country has created statutes, decisions, policies and the judicial enforcement procedures needed to combat money laundering and terrorist financing. Part IV, “Compliance,” examines the most critical processes for the prevention and detection of money laundering and terrorist financing. This section reflects on the practical elements that should be in place so that financial institutions can comply with AML/CTF requirements; these are categorized into the development and implementation of internal controls, policies and procedures. Part V, “International Cooperation,” reviews the compilation of international laws and treaties between countries working together to combat money laundering and terrorist financing.  As these unlawful activities can occur in any given country, it is important to identify the international participants who are cooperating to develop methods to obstruct these criminal activities. 

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Warning on IRA Rollovers: Regulators to Scrutinize Suitability

Posted by William Byrnes on March 22, 2014


Threats of heightened regulatory scrutiny have loomed large in the first weeks of 2014, and perhaps no area has received greater attention than the IRA rollover transaction.

Both the SEC and FINRA have issued warnings to advisors who provide guidance to clients looking to roll traditional workplace 401(k) accounts into private IRAs, and this focus on the importance of proper guidance should be keeping all advisors on their toes. For many advisors, this means a new course in IRA rollover compliance is called for, as even the most experienced professionals may find themselves in the dark over the new requirements being ushered in by the industry’s most prominent regulators.

Read the analysis of William Byrnes and Robert Bloink at > ThinkAdvisor <

ThinkAdvisor.com supports the professional growth and vitality of the Investment Advisory community, from RIAs and wealth managers of all kinds, to independent broker-dealer and wirehouse representatives. We provide unparalleled access to the knowledge, information and critical resources they need to succeed at every stage in their career, including professional development, education and certification, industry news and analysis, reference tools and services, and community networking opportunities.

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Almost half of tax returns still due in remaining 25 days to file!

Posted by William Byrnes on March 21, 2014


The IRS announced in Newswire 2014-32 that almost half of the tax returns expected to be filed for the year 2013 had yet to be filed by March 14, 2014. How many returns will be filed in this last 25 day period?  About 70 million tax returns of the total expected 149 million returns of 2013! If half of these outstanding tax returns are filed with the assistance of a tax preparer, that’s 35 million potential clients in the past 25 days of the tax season! Not a bad profession to be in!

Over the next 25 days this blog will contain many articles for small business owners on taking certain deductions and obtaining various tax credits that allow a small business owner or entrepreneur to minimize the tax imposed on the trade or business and thus maximize the business’ after-tax return.

The IRS reminds small business owners and entrepreneurs of three tax facts that may impact the outstanding 2013 return.

Tax Fact 1: Optional safe harbor method to determine the business use of a home deduction.  Also known as the simplified option for claiming the home office deduction, beginning in 2013, taxpayers can use the optional safe harbor method to determine the deduction for the business use of a home.

If a taxpayer works from home, then it may be possible for the taxpayer to claim the home office deduction.  However, in years past this home office deduction has been rather complicated to calculate.

1. Generally, in order to claim a deduction for a home office, a taxpayer must use a part of your home exclusively and regularly for business purposes. Also, the part of your home used for business must be:

  • the principal place of business, or
  • a place where the taxpayer meets clients or customers in the normal course of business, or
  • a separate structure not attached to the home. Examples might include a studio, garage or barn.

What clearly does NOT qualify for a home office deduction?  By example, a taxpayer sets up a computer in her bedroom on a dresser that she uses for personal emails and for keeping her business records.  In the dresser drawers are pens, paperclips, some receipts, as well as hair clips and some pieces of jewelry.  The IRS isn’t going to allow a home office deduction based on that computer on that dresser.

The taxpayer may be able to use the simplified option to claim the home office deduction instead of claiming actual expenses. Under this method, the taxpayer multiplies the allowable square footage of the office area by a prescribed rate of $5.  The maximum footage allowed by the IRS is 300 square feet. The deduction maximum limit using this method is thus $1,500 per year.

If the taxpayer is self-employed and chooses the actual expense method, then the taxpayer should use Form 8829Expenses for Business Use of Your Home, to calculate the amount of the home office deduction.  The taxpayer claims the deduction on Schedule CProfit or Loss From Business, whether using the simplified or actual expense method.

If the taxpayer is an employee, then additional rules apply to claim the deduction. For example, in addition to the above tests, the business use must also be for the employer’s convenience.  By example: a “work from home” arrangement.

Tax Fact 2: Standard mileage rate. Beginning in 2013, the standard mileage rate for the cost of operating a car, van, pickup, or panel truck for each mile of business use is 56.5 cents per mile.

Tax Fact 3: Additional Medicare Tax. Beginning in 2013, a 0.9% Additional Medicare Tax applies to Medicare wages, railroad retirement (RRTA) compensation, and self-employment income that are more than:

  • $125,000 if married filing separately,
  • $250,000 if married filing jointly, or
  • $200,000 if single, head of household, or qualifying widow(er) with dependent child.

Medicare wages and self-employment income are combined to determine if a taxpayer’s income exceeds the threshold. RRTA compensation should be separately compared to the threshold.

tax-facts-online_medium

Due to a number of recent changes in the law, taxpayers are currently facing many questions connected to important issues such as healthcare, home office use, capital gains, investments, and whether an individual is considered an employee or a contractor. Financial advisors are continually looking for updated tax information that can help them provide the right answers to the right people at the right time. This brand-new resource provides fast, clear, and authoritative answers to pressing questions, and it does so in the convenient, timesaving, Q&A format for which Tax Facts is famous.

“Our brand-new Tax Facts title is exciting in many ways,” says Rick Kravitz, Vice President & Managing Director of Summit Professional Network’s Professional Publishing Division. “First of all, it fills a huge gap in the resources available to today’s advisors. Small business is a big market, and this book enables advisors to get up-and-running right away, with proven guidance that will help them serve their clients’ needs. Secondly, it addresses the biggest questions facing all taxpayers and provides absolutely reliable answers that help advisors solve today’s biggest problems with confidence.”

Robert Bloink, Esq., LL.M., and William H. Byrnes, Esq., LL.M., CWM®—are delivering real-life guidance based on decades of experience.  The authors’ knowledge and experience in tax law and practice provides the expert guidance for National Underwriter to once again deliver a valuable resource for the financial advising community,” added Rick Kravitz.

Anyone interested can try Tax Facts on Individuals & Small Business, risk-free for 30 days, with a 100% guarantee of complete satisfaction.  For more information, please go to www.nationalunderwriter.com/TaxFactsIndividuals or call 1-800-543-0874.

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Master Limited Partnerships’ (MLPs)

Posted by William Byrnes on March 20, 2014


By Theron West and William Byrnes.

Why Are Wealth Managers Interested In MLPs?

According to the National Association of Publicly Traded Partnerships, Master Limited Partnerships (“MLPs”) have reached a market capital of $400 billion, with over 100 MLPs traded on major exchanges.  Generally established as LLCs with advantageous partnership flow through tax treatment, MLPs present attractive return vehicles to attract long term capital to the energy extraction, energy transportation (“midstream”), and most recent, energy distribution (“downstream”), markets.

MLPs have offered profitable vehicles for “midstream” businesses, that is, businesses that own assets which focus primarily on the transportation of natural resources like natural gas or crude oil.  One reason that midstream assets have been so profitable is that the pipelines and ships act as toll roads for the natural resources.  By owning these midstream assets many MLPs can avoid the volatility of the oil and gas markets directly by charging a fixed price for the units shipped.  However, in recent years many MLPs have entered into the “downstream” asset business, that is, the refining, processing or marketing of natural resources.

What is an MLP?

At the most basic level, the MLP is a type of publicly traded entity that is taxed as a partnership, but publicly traded on a national securities market in the same manner as corporate stock. M any investors are attracted to invest in MLPs because of this type of security’s high yield offer of return.  MLPs entice investors by contractually agreeing to distribute quarterly all available cash.

How is an MLP Taxed?

IRC Section 7704 provides that a publicly traded partnership will be taxed as a corporation unless the partnership meets certain gross income requirements.  A partnership satisfies the gross income requirements when at least 90 percent of the partnership’s gross income is “qualified income.”  Some forms of qualified income include interest, dividends, real property rents, income and gains derived from the exploration, development, mining or production, processing, refining, transportation (pipelines, ships, trucks), or the marketing of any mineral or natural resource.

Mutual Funds Investors?

IRC Section 851 was amended by the American Jobs Creation Act of 2004, and now provides that a RIC may include “net income derived from an interest in a qualified publicly traded partnership” in calculating its 90 percent income requirement.  Essentially, this amendment provided mutual funds the ability to diversify their portfolios because any income derived from the MLP will not affect its status as a RIC.  Still, there are significant limitations imposed on the ability of a mutual fund to invest in MLPs.  A mutual fund is not permitted to invest more than twenty-five percent of its assets in a MLP.  Nor are mutual funds permitted to own more than 10 percent of the interests issued by a MLP.


2014_tf_on_investments-m

 

2014 Tax Facts on Investments provides clear, concise answers to often complex tax questions concerning investments.  Pertinent planning points are provided throughout.

Organized in a convenient Q&A format to speed you to the information you need, 2014 Tax Facts on Investments delivers the latest guidance on:

tax-facts-online_medium

  • Mutual Funds, Unit Trusts, REITs
  • Incentive Stock Options
  • Options & Futures
  • Real Estate
  • Stocks, Bonds
  • Oil & Gas
  • Precious Metals & Collectibles
  • And much more!

Key updates for 2014:

  • Important federal income and estate tax developments impacting investments, including changes from the American Taxpayer Relief Act of 2012
  • Expanded coverage of Reverse Mortgages
  • Expanded coverage of Real Estate Investment Trusts (REITs)
  • More than 30 new Planning Points, written by practitioners for practitioners, in the following areas:
    • Limitations on Loss Deductions
    • Charitable Gifts
    • Reverse Mortgages
    • Deduction of Interest and Expenses
    • REITs

The company also points out that the expert authors—Robert Bloink, Esq., LL.M., and William H. Byrnes, Esq., LL.M., CWM®—are delivering real-life guidance based on decades of experience.

The authors’ knowledge and experience in tax law and practice provides the expert guidance for National Underwriter to once again deliver a valuable resource for the financial advising community,” added Kravitz.

 

 

Posted in Wealth Management | Tagged: , , , | 1 Comment »

TJSL Tax Law Society Hosts Dr. Dennis Weber Tuesday, March 25

Posted by William Byrnes on March 19, 2014


Dennis picFor event details and rsvp information see > TJSL Tax Law Society Will Host International Tax Professor

Dr. Weber heads the European Direct Tax Law practice at Loyens & Loeff, the largest European continental law firm.  He specializes in advising clients in European tax law proceedings for the Dutch courts, the European Court of Justice and foreign courts. Dr. Weber is a professor of European Corporate Tax Law and the director of the University of Amsterdam’s Centre for Tax Law. He is a deputy judge in the regional Court of Appeal of ‘s-Hertogenbosch and an editor of many books, such as: Taking the Financial Sector (IBFD), EU Income Tax Law: Issues for the Years Ahead (IBFD) and Common Consolidated Corporate Tax Base (CCCTB): Selected Issues (Kluwer). 

“I met Dr. Weber last year during a Thomas Jefferson Tax Law Society career service event when he revealed how Holland is often the center of the world of international finance, and how tax law students can take advantage of often overlooked employment opportunities in this area,” explained the Tax Law Society’s Vice President of Operations Mark Hackmann (3L). “I was excited to obtain a generous sponsorship from Professor William Byrnes for the Tax Society to bring Dr. Weber back to campus to re-engage with our students.”

See the event announcement and details at TJSL Tax Law Society Will Host International Tax Professor

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Trustee’s Investment Strategy: Prudent Investor Rule vs. Legal List

Posted by William Byrnes on March 19, 2014


by Roland Ortiz

The fiduciary duty of a trustee must respond to the overall financial goals established by a trust.  The grantor typically provides guidelines of purpose of the trust at the same time allowing the trustee the ability to respond to changing beneficiary needs.  According to the trust, assets are disbursed or can be facilitated as providing life time income, or both.  The trustee is obligated to fulfill the fiduciary duties by proper administration of the trust.

In order to achieve proper fiduciary duty, a trustee is required to provide the beneficiary with performing investments but with consideration of overall risk.  Diversification provides performance while also reducing unsystematic risk.  There are two types of investment strategies which are used to provide this diversification: the Prudent Investor Rule or Legal List.

Read the article at http://www.advisorfyi.com/2014/02/trustees-investment-strategy-prudent-investor-rule-vs-legal-list/

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OECD Publishes Proposals to Prevent Treaty Shopping

Posted by William Byrnes on March 18, 2014


On Friday (March 3) the OECD released its discussion draft of > proposals produced with respect to Action 6 < (Prevent Treaty Abuse) of the BEPS Action Plan.  The OECD stated that the draft proposals set out do not represent the consensus views of either the Committee on Fiscal Affairs or its subsidiary bodies but rather are intended to provide stakeholders with substantive proposals for analysis and comment.  The proposals follow upon the July 2013 OECD > Action Plan on Base Erosion and Profit Shifting <. The Action Plan identifies 15 actions to address BEPS in a comprehensive manner and sets deadlines to implement these actions.

Prevent Treaty Abuse

The Action Plan identifies treaty abuse, and in particular treaty shopping, as one of the most important sources of BEPS concerns. Action 6 (Prevent Treaty Abuse) reads as follows:

Action 6 Prevent treaty abuse

Develop model treaty provisions and recommendations regarding the design of domestic rules to prevent the granting of treaty benefits in inappropriate circumstances. Work will also be done to clarify that tax treaties are not intended to be used to generate double non-taxation and to identify the tax policy considerations that, in general, countries should consider before deciding to enter into a tax treaty with another country. The work will be co-ordinated with the work on hybrids.

US Limitation of Benefits Approach 

The OECD’s primary recommendation is the inclusion of a Limitation of Benefits (LOB) provision in tax treaties.  The detailed OECD proposal refers to the US’ LOB articles and follows a US approach to combatting treaty shopping.

Public Consultation

As part of that consultation process, interested parties are invited to send comments on this discussion draft, which includes the preliminary results of the work carried out in the three different areas identified in Action 6:

A. Develop model treaty provisions and recommendations regarding the design of domestic rules to prevent the granting of treaty benefits in inappropriate circumstances.

B. Clarify that tax treaties are not intended to be used to generate double non-taxation.

C. Identify the tax policy considerations that, in general, countries should consider before deciding to enter into a tax treaty with another country.

The Action Plan also provided that “[t]he OECD’s work on the different items of the Action Plan will continue to include a transparent and inclusive consultation process” and that all stakeholders such as business (in particular BIAC), non-governmental organisations, think tanks, and academia would be consulted.  The comments must be received by April 9, 2014.  The comments received by that date will be examined by the Focus Group at a meeting that will be held on the following week.  Comments on this discussion draft should be sent electronically (in Word format) by email to taxtreaties@oecd.org and should be addressed to: “Tax Treaties, Transfer Pricing and Financial Transactions Division OECD/CTPA”.  It is the policy of the OECD to publish all responses (including the names of responders) on the OECD website.

Persons and organisations who intend to send comments on this discussion draft are invited to indicate as soon as possible, by April 3rd, whether they wish to speak in support of their comments at a public consultation meeting on Action 6 (Prevent Treaty Abuse), which is scheduled to be held in Paris at the OECD Conference Centre on April 14-15, 2014.

This consultation meeting will be open to the public and the press.  Persons wishing to attend this public consultation meeting should fill out their request for registration on line as soon as possible, with a deadline of April 3, 2014.  This meeting will also be broadcast live on the internet and can be accessed on line. No advance registration is required for this internet access.

OECD Proposal Topics

A. Treaty provisions and/or domestic rules to prevent the granting of treaty benefits in inappropriate circumstances

1. Cases where a person tries to circumvent limitations provided by the treaty itself 

a) Treaty shopping

i) Limitation-on-benefits provision
ii) Rules aimed at arrangements one of the main purposes of which is to obtain treaty benefits

b) Other situations where a person seeks to circumvent treaty limitations

i) Splitting-up of contracts
ii) Hiring-out of labour cases
iii) Transactions intended to avoid dividend characterisation
iv) Dividend transfer transactions
v) Transactions that circumvent the application of Art. 13(4)
vi) Tie-breaker rule for determining the treaty residence of dual-resident persons
vii) Anti-abuse rule for permanent establishments situated in third States

2. Cases where a person tries to abuse the provisions of domestic tax law using treaties

B. Clarification that tax treaties are not intended to be used to generate double non-taxation

C. Tax policy considerations that, in general, countries should consider before deciding to enter into a tax treaty with another country.

Book Binder

Handle your critical international business ventures with confidence using the indispensable content you can only find in LexisNexis® Foreign Tax & Trade Briefs, the one information service that provides the latest tax and trade information for 128 foreign countries and territories on a regular quarterly basis.  Looseleaf, updated with revisions four times each year.  Professor William Byrnes is the author of six Lexis treatises, including Tax Havens of the WorldLexisNexis® Guide to FATCA Compliance; Money Laundering, Asset Forfeiture and Recovery and Compliance — A Global Guide; Practical Guide to US Transfer Pricing and International Withholding Tax Treaty Guide.

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The IRS Will Pay You to Save Retirement Money !

Posted by William Byrnes on March 18, 2014


2013_tf_insurance_emp_benefits_combo_covers-m_2The IRS reported in Tax Tip 2014-28 that it will pay some taxpayers to save for retirement!

If a taxpayer contributes to a retirement plan, like a 401(k) or an IRA, then the taxpayer may be eligible for the “Saver’s Credit”. The Saver’s Credit can help save for retirement and reduce this year’s tax owed.  5 facts about this credit:

1. The Saver’s Credit is the short name for the Retirement Savings Contribution Credit. It can be worth up to $2,000 for married couples filing a joint return. The credit is worth up to $1,000 for single taxpayers.

2. Eligibility depends on a taxpayer’s filing status and the amount of yearly income.  2013 tax return eligibility for the credit depends on:

  • Married filing separately or a single taxpayer with income up to $29,500
  • Head of household with income up to $44,250
  • Married filing jointly with income up to $59,000

3. Other special rules that apply to the credit include:

  • Must be at least 18 years of age.
  • Can’t be a full-time student in 2013.
  • Can’t be claimed as a dependent on another person’s tax return.

4. The taxpayer must have contributed to a 401(k) plan or similar workplace plan by the end of the year to claim this credit. However, a taxpayer can contribute to an IRA by the due date of a tax return (April 15, 2014) and still have that contribution count for 2013.

5. File Form 8880, Credit for Qualified Retirement Savings Contributions, to claim the credit. Tax software includes this form for e-file.

The Saver’s Credit is in addition to other tax savings for setting aside money for retirement.  For example, a taxpayer may be able to deduct contributions to a traditional IRA.

Authoritative and easy-to-use, 2014 Tax Facts on Insurance & Employee Benefits shows you how the tax law and regulations are relevant to your insurance, employee benefits, and financial planning practices.  Often complex tax law and regulations are explained in clear, understandable language.  Pertinent planning points are provided throughout.

Posted in Retirement Planning, Taxation | Tagged: , , , , | Leave a Comment »

Novel Ideas: Literary Agents, Writers, and the Law

Posted by William Byrnes on March 17, 2014


April 16 (Wednesday) presented by the Entertainment & Sports Law and Intellectual Property Law Sections of the San Diego County Bar Association

Featuring: Vincent F. Aiello, Esq.; William H. Byrnes; Leah Christensen; and Mary Wenzel

Are you a writer or do you represent writers? Join us and bring yourself up to date on the changes in law in the dramatically altered world of publishing and the distribution of the written word. This informative program will cover authorship, protecting books as property, obtaining and negotiating publishing deals.

The following will be addressed:
• Learn what literary agents do and how they help writers obtain and close publishing deals.
• Academic books: How you reach out to a publisher, the proposal process, and why you never really get paid.
• Alternative ways to grow your business via ghost writers for content on websites and blogs.
• How to consistently write intriguing blogicles that build a personal and professional brand that will develop client leads.

Click here to download the PDF flyer.         Click here to register for the remote internet Webcast.

Entertainment & Sports Law Section Co- Chairs: Eric Eastham & D. Jonathan Hadaya, Vice Chair: Jeremy Evans
Intellectual Property Law Section Co-Chairs: Leah Strickland & Jing Liu

Location: SDCBA Conference Center, 401 West A St., Ste. 120 (1st Floor), San Diego, CA 92101
Sponsors: Entertainment & Sports Law Section; Intellectual Property Law Section

 

Byrnes book on Prospecting

The National Underwriter Sales Essentials Series combines all of the most practical, proven sales techniques advisors, agents, brokers, producers, sales managers or agency owners need to convert prospects into customers, win new business, and to grow sales.

The Life & Health Sales Essentials focuses on the selling skills and techniques essential to achieving success—prospecting for new business and the demands of running an agency.

Posted in book | 1 Comment »

Conflict of Interest: Sole interest or Best Interest

Posted by William Byrnes on March 17, 2014


by Roland Ortiz

One of the most fundamental tools for estate planners, either professional or individuals, is a trust.    Specifically, an inter vivos trust which is a legal arrangement by which property under state law can be transferred by a grantor to a trustee for management and stewardship.  Typically used to transfer grantor assets away from their gross estate, while allowing beneficiaries the benefit of life income, distribution of grantor’s assets or both.  This benefit begins and ends with a trustee’s administration of all assets in the trust.

When accepting this position, the trustee must adhere to the trust provisions and the Uniform Trust Code when evaluating investments, distributions, as well as the termination of the trust.  These provisions and codes are the guidelines for the trustee to administer the trust with fidelity and prudence.  For a trustee, duty of loyalty and good faith for the betterment of the beneficiaries are the cornerstones by which their position exists.

Read the full article at http://www.advisorfyi.com/2014/02/conflict-of-interest-sole-interest-or-best-interest/

Roland Ortiz currently provides clients with evaluations on fixed income trading, derivative trading, security trading, accounting, and portfolio valuations.  You can reach him at:  www.linkedin.com/pub/roland-ortiz/27/622/806/

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Client’s Seeking Market Value Adjusted Annuities

Posted by William Byrnes on March 16, 2014


As clients have begun to feel the shifting winds with respect to the general economy, the annuity market is now undergoing its own type of evolution. While products that tie fluctuations in an annuity’s cash surrender value to prevailing market interest rates may have seemed unacceptably risky to most clients just a few months ago, changes in today’s interest rate environment now have clients flocking to find these features.

Annuities with market value adjustment (MVA) features may be the next hot product for clients looking to beat the return on other conservative investment products, so make sure you are ready for this emerging product trend.

Read the full analysis of Professor William Byrnes and Robert Bloink at Think Advisor !

2013_tf_insurance_emp_benefits_combo_covers-m_2Authoritative and easy-to-use, 2014 Tax Facts on Insurance & Employee Benefits shows you how the tax law and regulations are relevant to your insurance, employee benefits, and financial planning practices.  Often complex tax law and regulations are explained in clear, understandable language.  Pertinent planning points are provided throughout.

Organized in a convenient Q&A format to speed you to the information you need, 2014 Tax Facts on Insurance & Employee Benefits delivers the latest guidance on:

  • Estate & Gift Tax Planning
  • Roth IRAs
  • HSAs
  • Capital Gains, Qualifying Dividends
  • Non-qualified Deferred Compensation Under IRC Section 409A
  • And much more!

Key updates for 2014:

  • Important federal income and estate tax developments impacting insurance and employee benefits including changes from the American Taxpayer Relief Act of 2012
  • Concise updated explanation and highlights of the Patient Protection and Affordable Care Act (PPACA)
  • Expanded coverage of Annuities
  • New section on Structured Settlements
  • New section on International Tax
  • More than thirty new Planning Points, written by practitioners for practitioners, in the following areas:
    • Life Insurance
    • Health Insurance
    • Estate and Gift Tax
    • Deferred Compensation
    • Individual Retirement Plans

Plus, you’re kept up-to-date with online supplements for critical developments.  Written and reviewed by practicing professionals who are subject matter experts in their respective topics, Tax Facts is the practical resource you can rely on.

Posted in Insurance, Pensions, Retirement Planning | Tagged: , , , , | Leave a Comment »

OECD releases “transfer pricing comparability data and developing countries” for comment

Posted by William Byrnes on March 16, 2014


On Tuesday the OECD released Transfer Pricing Comparability and Developing Countries (March 11, 2014).  The OECD is seeking stakeholder and public comment until April 11, 2014 and will publicly discuss the contents in two parallel sessions on March 28, 2014, the last day of the Global Forum on Transfer Pricing.  This last day of the Global Forum meeting will be held in conjunction with the Task Force on Tax & Development.  Written comments should be sent to TransferPricing@oecd.org.

Transfer Pricing Comparability and Developing Countriesets out and briefly discusses four possible approaches to addressing the concerns over the lack of data on comparables that have been expressed by developing countries. 

  1. Expanding access to data sources for comparables, including steps to improve the range of data contained in commercial databases, expand developing country access to such databases, and improve access to comparables data in developing countries with a significant number of sizeable independent companies.
  2. More effective use of data sources for comparables, including guidance or assistance in the effective use of commercial databases, the selection of foreign comparables, whether and how to make adjustments to foreign comparables to enhance their reliability, and alternative approaches to finding comparables.
  3. Approaches to identifying arm’s length prices or results without reliance on direct comparables, including guidance or assistance in making use of proxies for arm’s length outcomes, the profit split method, value chain analysis, and safe harbours, an evaluation of the impact, effectiveness and compatibility with the arm’s length principle of approaches such as the so called “sixth method”, which is increasingly prevalent particularly in developing countries in Latin America and Africa, and a review of possible anti-avoidance approaches.
  4. Advance pricing agreements and mutual agreement proceedings, including a review of developing country experiences with the pros and cons of advance pricing agreements and negotiations to resolve transfer pricing disputes, as well as guidance or assistance with respect to mutual agreement proceedings.

Transfer pricing expert Dr. Gary Stone of PriceWaterhouseCoopers has > analyzed < the OECD paper, available at http://www.pwc.com/en_GX/gx/tax/newsletters/pricing-knowledge-network/assets/pwc-oecd-comparability-data-developing-countries.pdf   Dr. Stone is the global leader of the Transfer Pricing Group of PricewaterhouseCoopers (PwC).  Dr. Stone is based in Chicago and has directed and performed numerous analyses of intercompany pricing and economic valuation issues for Fortune 500 size companies.  Dr. Stone is a contributing co-author to Lexis’ Practical Guide to U.S. Transfer Pricing.

practical_guide_book

Lexis’ Practical Guide to U.S. Transfer Pricing (William Byrnes & the late Robert Cole (2013)) is designed to help multinationals cope with the U.S. transfer pricing rules and procedures, taking into account the international norms established by the Organisation for Economic Co-operation and Development (OECD). It is also designed for use by tax administrators, both those belonging to the U.S. Internal Revenue Service and those belonging to the tax administrations of other countries, and tax professionals in and out of government, corporate executives, and their non-tax advisors, both American and foreign.

The U.S. rules are presented along with ideas on how to apply them in a common-sense fashion in a multi-jurisdictional world.  A few of the highlights in the latest update to the treatise include:

  • The most important development in U.S. transfer pricing in the year ended in July 2013 is the strengthening of the IRS’s capability to enforce the U.S. transfer pricing rules.
  • We examine Transfer Pricing Operations’ three groups: the Advance Pricing and Mutual Agreement group (APMA), the Transfer Pricing Practice, and the International Practice Networks (IPNs).
  • We note the 2014 budget proposal, carried over from 2013, of the Obama administration limiting the shifting of income through intangible property transfers, which would expand the scope of intangible property for purposes of IRC Sections 367(d) and 482 to include ”workforce in place, goodwill, and going concern value.”
  • We discuss the new ”Rapid Appeals Process,” which is available for controversies that have arisen in an LB&I audit. It contemplates that Appeals, the examination team, and the taxpayer will discuss the case jointly in a single preopening conference in an effort to resolve the outstanding issues before the case is considered further by Appeals.

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So Where Does the Oft Cited $150 Billion Figure Of Offshore Evasion Come From?

Posted by William Byrnes on March 15, 2014


Continuing from last Saturday March 8th …

Well known tax author and journalist Denis Kleinfeld suggests the following answer to this question.

The Congressional Research Service (CRS) provided a Memorandum of July 23, 2001 referencing an inquiry made by the House Majority Leader as to the method used by attorney Jack Blum to construct the estimate of $70 billion of illegal tax evasion losses due to tax havens. This figure was contained in Jack Blum’s Affidavit submitted in support of the government’s request from the federal court for a John Doe summons for records from MasterCard and American Express.

Dennis Kleinfeld states that, according to the CRS:*

Mr. Blum’s estimate was contained in a declaration filed in connection with a petition the Internal Revenue Service filed with the U.S. District Court for the Southern District. In response to your request, we contacted Mr. Blum and discussed his estimate; he was not able to send us a written discussion of his estimating procedure … We did not discuss these particular aspects of the estimating process in our initial conversation with Mr. Blum and our attempts to contact Mr. Blum on a follow-up basis have not been successful.

Mr. Kleinfeld reports that Mr. Blum has been described as follows:

“Mr. Blum is under contract to the IRS, he testifies before Senate committees and has provided an affidavit in support of at least one IRS search warrant.”[1]  This same statement of $70 billion was given by Jack Blum in testimony in 2002. When asked about that number he admitted it was imprecise stating, “You just have to take a guess at it.”

The Senate Permanent Subcommittee on Investigations issued a report entitled “Tax Haven Banks and U.S. Tax Compliance.” This report examined how tax haven banks facilitate tax evasion by U.S. clients that cost U.S. taxpayers an estimated $100 billion each year. This Report, widely cited as authority for the claim that $100 billion is lost in taxes because of evasion of tax through tax havens, is, in fact, merely based on footnote 1 of the Report which cites to information unsubstantiated in five magazine articles that varied widely in terms of authors and opinions regarding the amount of tax losses the U.S. incurs.[2] Mr. Kleinfeld notes that none of the cited articles provide any empirical evidence or known statistical methodology on how the number was calculated. The Report makes no claim that the $100 billion tax loss is based on anything else than these published articles.

IRS Commissioner Charles Shulman, in testifying before the Permanent Subcommittee on Investigations on March 4, 2009, was questioned on the analysis of hidden money criminally held overseas:[3]

Senator McCaskell: “Has there been any analysis done of how much of this money that is being hidden overseas is, in fact, a result of criminal activity?”

Mr. Shulman: “Not that I am aware of. I mean, estimating how much money that is overseas and not being paid to the government. As far as I am aware, there is no credible estimate because it is kind of a chicken and egg. It is over there and we have not found it, it is hard to estimate what is there. And all estimates that I have seen have not broken down criminal versus civil because, again, until we see the cases, it is hard to say.”

Based on a rate of the 15% long terms capital gain that applies to that money over the past 7 look-back years of Statute of Limitation, the currently cited $150B of lost annual tax revenue would require $1 trillion of annual taxable (hidden) income. To generate $1 trillion of capital gains income at a 5% rate of return requires $20 trillion of “noncompliant” offshore dollars.  Is it likely that noncompliant money represents almost double the M2 money supply (Federal Reserve data of March 6, 2014 about $11T, see http://www.federalreserve.gov/releases/h6/current/) and about 20 times the actual amount of paper dollars that are in circulation?

How Much Did the Congressional Joint Committee on Tax Estimate FATCA Will Bring in Annually?

The Congressional Joint Committee on Tax estimated that FATCA will generate $8.7 billion over ten years or average revenue $870 million per year – a very far cry from $100 billion, much less $150 billion, annually.  The $870 million annually appears not too far out of line with the tax collections generated by the OVDI the past six years, albeit the compliance costs to global industry to prepare for FATCA is currently estimated near this same amount based on government reports from the UK, Canada, Spain among other trade partners of the US.  So for the moment, at least offset for compliance costs, it’s probably a wash out.

An interesting study would be to quantify the total amount of funds from Americans repatriating back to the USA because of FATCA and the amount that expatriates to other jurisdictions.  By example, according to the Texas Bankers Association, to date FATCA has resulted in an outflow of $500 million of deposits from the Texas banking system.4 The Florida Bankers Association reported to Fitch that $60 billion and $100 billion in foreign deposits are held in Florida banks, close to 20% of the state’s total deposits.5  In 2012, Fitch estimated that a substantial portion of these deposits would NOT expatriate from Florida.  

Will the US be a net winner or loser from FATCA in terms of foreign deposits?  Also – in terms of revenue income raised, offset against compliance costs but taking into account that not all compliance costs retard GDP growth (arguably, some compliance costs may add to GDP while others may create a GPP lag).

The Telephone Game

How did the number jump from $60 billion to $100 billion to $150 billion in such a short matter of time?  Perhaps former Secretary of the Treasury O’Neil best poses a response.  Before the Permanent Subcommittee on Investigations of the Committee on Governmental Affairs on July 18, 2001 Secretary of the Treasury O’Neil pointed out the never ending computer life of something not true in his testimony:

“Well, thank you. I was frankly thunderstruck when I got the letter from these distinguished people, because I could not believe that they had read what I said, and I think you will hear today that they were responding to press accounts. As I said before, they did not respond to what I said at all. They responded to misrepresentations in the media, and I am sorry to be so blunt about it, but there is no other way to characterize it. If you look at the pieces that are in this book, if you can find any connection between the representations that were made in these stories and what I have said on the record and off the record, there is no connection whatsoever. But, intelligent people, including these distinguished citizens who have served in their government, took what they read at face value. Many of them know better, because they have been subjected to this, but they had forgotten.

So, when they read it in the newspaper, they filed—you would not believe, I get 2,000 letters a week and many of them are responding to things that I never said, never imagined and never would imagine, but I am still getting letters about it as though it were the real stuff simply because it appears in print. These days, with the wonderful technology we have with Lexis Nexis and all the rest of that, once this stuff is on the record it never goes away. It is always a primary source. So, when I am 95, I am going to be getting letters saying we cannot believe you did not want to prosecute money launderers. I will let them speak for themselves.”


*Congressional Research Service memorandum to House Majority Leader, attention Elizabeth Tobias, Reported Estimate of U.S. Tax Revenue Lost Through Use of Tax Havens, July 23, 2001.

[1] Kleinfeld, Denis, IFC Review, US Scandals Reinforce Warning Signs of FATCA’s Dangers” (July 1, 2013).  See http://www.ifcreview.com/restricted.aspx?articleId=6390&areaId=39 (accessed February 26, 2014).

[2] Permanent Subcommittee on Investigations, Tax Haven Banks and U.S. Tax Compliance, Hearing on March 4, 2009.

[3] Permanent Subcommittee on Investigations, Tax Haven Banks and U.S. Tax Compliance, Hearing on March 4, 2009.

[4] Aubin, Dena, Bankers take fight over U.S. anti-tax dodge rules to appeals court, Reuters, (Feb 5, 2014).

[5] See https://www.fitchratings.com/web/en/dynamic/articles/New-US-Tax-Rules-Could-Prompt-Foreign-Deposit-Outflow.jsp

LexisNexis FATCA Compliance Manual

book coverFifty contributing FATCA experts, each advising major institutions and financial service companies, authored 600 pages of analysis within the LexisNexis® Guide to FATCA Compliance (2nd Edition): many perspectives – one voice crafted by the primary author Professor William Byrnes.

The LexisNexis® Guide to FATCA Compliance (2nd Edition) comprises 34 Chapters grouped in three parts: compliance program (Chapters 1–4), analysis of FATCA regulations (Chapters 5–16) and analysis of Intergovernmental Agreements (IGAs) and local law compliance challenges (Chapters 17–34), including intergovernmental agreements as well as the OECD’s TRACE initiative for global automatic information exchange protocols and systems. The 34 chapters include many practical examples to assist a compliance officer contextualize the regulations, IGA provisions, and national rules enacted pursuant to an IGA.  Chapters include by example an in-depth analysis of the categorization of trusts pursuant to the Regulations and IGAs, operational specificity of the mechanisms of information capture, management and exchange by firms and between countries, insights as to the application of FATCA and the IGAs within new BRIC and European country chapters.

FATCA Experts Selected for the Lexis’ Guide  (please contact williambyrnes@gmail.com for an introduction to any of the below FATCA implementation experts)

Theodore C. Ahlgren, Esq. Ted Ahlgren concentrates his practice on international tax, trust, and estate planning. He has advised numerous U.S. and non-U.S. financial institutions, corporations, high net worth individuals, and their advisors on a variety of U.S. federal income, transfer, and withholding tax issues and has represented individuals and financial institutions in audits and voluntary disclosures. He participated in the submission of comments to Treasury and the IRS on the proposed FATCA regulations, and has written and spoken extensively on FATCA and other topics of relevance to international tax and estate planning. Contributions include chapter 7: Foreign Financial Institutions.

Devang Ambavi Devang Ambavi is Manager at PricewaterhouseCoopers Pvt. Ltd, India (PwC). He has over six years of experience in advising clients in multidisciplinary areas including international tax, domestic tax, exchange control and regulatory matters. More recently, he was on a two year secondment to PwC New York where he advised US based Funds on global structuring and international tax issues on a cross-jurisdictional basis. Contribution includes chapter 34: Exchange of Tax Information and Impact of FATCA for India.

Kyria Ali FCCA CIA CFE MCSI Kyria Ali, with her in-depth experience and qualifications in securities and investment (CISI), internal and forensic auditing (CIA and CFE) and financial background (FCCA) is strategically positioned as a leading business advisor in the BVI, Eastern Caribbean and Central American region. Very knowledgeable of the offshore sector, she has assisted many organisations, in the financial services industry, with risk management, compliance, FATCA and other tax related matters; just some of the areas addressed by the suite of business advisory services she provides. Contribution includes chapter 26: Exchange of Tax Information and Impact of FATCA for the The British Virgin Islands.

Michael Alliston, Esq.  Michael Alliston is a solicitor in the London office of Herbert Smith Freehills LLP. He advises on a range of corporate tax matters including mergers and acquisitions, corporate reorganizations, general finance and capital markets transactions. He also has particular experience in real estate and investment fund transactions and much of his work involves a cross-border element. Michael regularly advises clients on the transactional implications of FATCA from a UK law perspective and presents externally on the subject. Contribution includes chapter 24: U.K.-U.S. Intergovernmental Agreement and Its Implementation.

Maarten de Bruin, Esq. Maarten de Bruin advises on domestic and international tax aspects of commercial and (structured) finance transactions for Stibbe Simont. Maarten joined Stibbe’s tax department in 1989 and moved to the New York office in 1993 where he became partner in 1997. While in New York he graduated from New York University (tax LLM) and spent 6 months in the tax department of Cravath Swaine & Moore. He returned to the Amsterdam office of Stibbe in 1999 where he focused on clients in the industrial and real estate sector. His clients include Accor, Tata, APG and Super de Boer. Contribution includes chapter 30: Exchange of Tax Information and Impact of FATCA for the Netherlands.

Jean-Paul van den Berg, Esq. Jean-Paul van den Berg is a tax partner of Stibbe Simont whose areas of expertise include the application of tax treaties and EU law, major public and private cross-border mergers and acquisitions, private equity transactions (fund formation and investments), tax structuring, structured finance, debt restructuring, and corporate reorganizations. He is a regular speaker and author of articles in his practice area. He is currently based in our Amsterdam office. Previously, from 2008–2012 he was the resident tax partner in Stibbe’s New York offices and from 2002–2005 he was based in Stibbe’s London office. Contribution includes chapter 30: Exchange of Tax Information and Impact of FATCA for the The Netherlands.

Prof. William H. Byrnes, Esq.  William Byrnes has achieved authoritative prominence with 30 book and compendium volumes, 97 book & treatise chapters and book supplements, 1,000 articles, and the monthly subscription Tax Facts Intelligence available via Lexis.com. He is the author of several Lexis multi-volume publications including Foreign Tax & Trade Briefs; Tax Havens of the World; Money Laundering, Asset Forfeiture and Recovery, and Compliance—A Global Guide, and a Practical Guide to U.S. Transfer Pricing. Professionally, William Byrnes was a Senior Manager then Associate Director of international tax for Coopers and Lybrand based in its Johannesburg office. Academically, William Byrnes obtained the title of tenured law professor in 2005 at St. Thomas University and in 2008 the level of Associate Dean at Thomas Jefferson School of Law. William Byrnes pioneered online legal education in 1995, and established the first online LL.M. offered by an ABA accredited law school. The International Tax & Financial Services graduate program enrolls approximately 200 professionals annually pursuing a Master or Doctorate.

Amanda Castellano, Esq.   Amanda Castellano, an attorney working on tax, business, nonprofit and estate planning matters spent three years as an auditor with the Internal Revenue Service. She is currently a tax consultant based in Portland, Oregon. She graduated summa cum laude from Thomas Jefferson School of Law, where she served as Chief Notes Editor on the Thomas Jefferson Law Review. Contribution includes chapter 1: Introduction (Accidental American).

Luzius Cavelti, Esq. Luzius obtained his law degree from the University of Fribourg, Switzerland. He is qualified as certified tax expert (specialization in international tax) and holds an LL.M. degree from the Columbia School of Law. Luzius is admitted to the bar in Zurich and works as associate at Tappolet & Partner in Zurich. Luzius is specialized in international and domestic tax law. Contribution includes chapter 23: Switzerland-U.S. Intergovernmental Agreement and Its Implementation.

Peter Cotorceanu, Esq. Peter Cotorceanu is the Head of Product Management for Trusts and Foundations at UBS AG in Zurich. He was previously UBS’s Head of Wealth Structuring Consulting for UHNW clients in Zurich. In his current role, Peter is responsible for UBS’s FATCA compliance for trusts, foundations, and other fiduciary structures. Before joining UBS, Peter practiced law for over 20 years, both in Switzerland and the U.S., most recently at Baker & McKenzie Zurich. His practice concentrated on trust and estate planning and transfer taxes. Peter was also a law professor for a number of years at Washburn University School of Law, Topeka, Kansas and (as an adjunct) at the Marshall-Wythe School of Law, College of William and Mary, in Williamsburg, Virginia.  Peter is a former member of the Board of Governors of Virginia State Bar’s Trusts and Estates Section, as well as the Kansas Judicial Council’s Probate Advisory Committee and Estate Tax Advisory Sub-Committee.  Peter is admitted to practice in New Zealand as well as in Maryland and Virginia. He has an LL.B. (Hons) from Victoria University, Wellington, New Zealand, a J.D. (With Distinction) from Duke University, Durham, North Carolina, and an Executive LL.M. (Tax) from the New York University School of Law.  Peter is certified as a Trusts and Estates Practitioner (TEP) by STEP, and is a member of the International Bar Association and International Tax Planning Association, among other professional organizations.  Contribution includes chapter 9: FATCA and the Offshore Trust Industry.

Bruno Da Silva, LL.M.  Bruno da Silva works at Loyens & Loeff, European Direct Tax Law team, is a tax treaty adviser for the Macau special administrative region of the People’s Republic of China, and is also a researcher at the Amsterdam Centre for Tax Law of the University of Amsterdam. He lectures at different institutions such as the University of Leiden, University of Amsterdam, International Bureau of Fiscal Documentation (IBFD), Universidade Católica Portuguesa and IBDT (Brazil). He obtained an LL.M. in International Tax Law and he is currently pursuing his Ph.D. Contribution includes chapter 17: European Union Cross Border Information Reporting; and chapter 18: The OECD Role On Exchange Of Information: The TRACE Project, FATCA, and Beyond.

Prof. J. Richard Duke, Esq.  Richard Duke,  attorney, is  a member of the Alabama and the Florida Bar, specializing over forty years in income and estate tax planning and compliance, as well as asset protection, for high net wealth individuals. He served as Counsel to the Ludwig von Mises Institute for Austrian Economics 1983–1989 and a Fellow and Honorary Legal Scholar of the International Academy of Tax Advisors. Over his career he has served on numerous American Bar Association Committees and written many articles for legal and financial publications, several books, and was named to the list of “Top 100 Attorneys” in the U.S., Worth magazine, December 2005-2008. He is a Professor of Law of the LL.M. International Tax Program of Thomas Jefferson School of Law, San Diego, California and was an Adjunct Professor of Law at the Cumberland School of Law of Samford University International for Tax and Asset Protection Planning from 1983–1999. Contribution includes chapter 10: Withholding and Qualified Intermediary Reporting, chapter 11: Withholding and FATCA, chapter 12: “Withholdable” Payments, and chapter 13: Determining and Documenting the Payee.

Dr. Jan Dyckmans, Esq.  Jan Dyckmans is a German attorney at Flick Gocke Schaumburg in Frankfurt am Main, Germany where advises clients on corporate tax law in general and on international tax law matters in particular. He studied law at the University of Würzburg, Germany, where he was awarded his doctorate in 2008.  Contribution includes chapter 19: Exchange of Tax Information and Impact of FATCA for Germany.

Umurcan Gago, Esq., Umurcan Gago is a partner of PwC Turkey. He is a member of the Istanbul Bar and an Independent Chartered Accountant and Financial Advisor. Umurcan is specialised in cross border financial transactions, financial structures/products, conventional and structured financial products, investment banking products, international tax planning, securities law related matters, and financial structuring.   Contribution includes chapter 33: Exchange of Tax Information and the Impact of FATCA for Turkey.

Dr. F. Alfredo García Dr. F. Alfredo García is professor of Financial and Tax Law at the University of Valencia and Jean Monnet Chair of EU Law and Taxation. He is professor of European Taxation at Thomas Jefferson School of Law in California, and has been visiting professor at the Universities of London, Harvard, Leiden, Leuven, Bergamo and Georgetown.  Contribution includes chapter 28: Spain-U.S. Intergovernmental Agreement and its Implementation.

Dr. Valcir Gassen Dr. Valcir Gassen is a Professor of Federal University of Brasilia (UnB), participating with the support CAPES Foundation, Ministry of Education of Brazil. His hold a law degree from the University of Northwest of State of Rio Grande do Sul; an LL.M. from the Federal University of Santa Catarina; Ph.D. from the Federal University of Santa Catarina and Post-doctoral research from the University of Alicante, Spain. He coordinates since 2009 the Research Group in State, Constitution and Tax Law, with undergraduate and graduate students in UnB. Contribution includes chapter  25: Exchange of Tax Information and the Impact of FATCA for Brazil.

Arne Hansen Arne Hansen is a legal trainee of the Hanseatisches Oberlandesgericht (Higher Regional Court of Hamburg), Germany and previously undertook his stage at the Frankfurt office of Flick Gocke Schaumburg. He studied law at the University of Bayreuth, Germany, and the Victoria University of Wellington, New Zealand. He further completed an additional qualification in economics with the focus on finance and taxation at the University of Bayreuth. He is finalizing his doctoral thesis on a topic of international tax law with special regard to double tax treaties. Contribution includes chapter 20: Exchange of Tax Information and Impact of FATCA for Germany.

Mark Heroux, J.D. Mark Heroux, Principal in the Tax Services Group at Baker Tilly Virchow Krause, LLP, joined the firm in 2008. He has more than 25 years of tax litigation, technical, and program management experience. Mark began his career in 1986 with the IRS Office of Chief Counsel, and left public service in 2000. Mark specializes in IRS procedures including the withholding requirements of the US Internal Revenue Code, and dispute resolution including transfer pricing and the negotiation of Advance Pricing Agreements. He leads the IRS Practice and Procedures group, and has provided tax and business advisory services to large and mid-size financial institutions, and high net worth individuals. Contribution includes chapter 26: Exchange of Tax Information and Impact of FATCA for the The British Virgin Islands.

Véronique Hoffeld, Esq. Véronique Hoffeld, attorney-at-law, is a member of the Management Committee of Loyens & Loeff Luxembourg and heads the Luxembourg Commercial and Litigation department.  She can be considered as a generalist lawyer, whose activities cover matters in the areas of commercial law (negotiation of contracts), litigation and arbitration, bankruptcy & restructuring, IP law, real estate law, environment law, E-commerce and new technologies. Véronique is also occasionally involved in maritime and administrative law matters.  Prior to joining Loyens & Loeff Luxembourg, Véronique worked for more than 10 years in another important Luxembourg law firm at which she was made partner in 2003. Véronique is a member of the Luxembourg Bar since 1996.  Contributions include chapter 31: Exchange of Tax Information and Impact of FATCA for Luxembourg.

Rob. H. Holt, Esq. Rob H. Holt is a practicing attorney of thirty years licensed in New York and Texas representing real estate investment companies, university professors, and a variety of other business owners in the formation of their entities, business contracts, and distribution and channel documentation. He is currently completing his LL.M. in Taxation from Thomas Jefferson School of Law. Rob and his wife of 29 years live in College Station/Bryan, Texas. He is an avid, amateur ballroom dancer and loves the waltz, foxtrot, and tango. Contribution includes chapter 7: Foreign Financial Institutions.

Rajul Jain Rajul Jain is Senior Manager at PricewaterhouseCoopers Pvt. Ltd, India (PwC). He has more than 11 years of  International professional experience which involves proactively leading global teams and providing Financial and Strategic analysis, advice on RBI and Regulatory frameworks,  Designing  Compliance frameworks, Project management  advice and performing Enterprise risk reviews. Contribution includes chapter 34 Exchange of Tax Information and Impact of FATCA for India.

Richard Kando, CPA  Richard Kando, a Certified Public Accountant (New York) is a Director at Navigant Consulting. Richard specializes in forensic accounting and compliance matters relating to Government investigations, anti-money laundering and the Foreign Account Tax Compliance Act (“FATCA”). Richard is a leader of Navigant’s FATCA task force. Previously, Richard served as a Special Agent with the IRS Criminal Investigation Division where he received the U.S. Department of Justice—Tax Division Assistant Attorney General’s Special Contribution Award. Contribution includes chapter 2: Practical Considerations for Developing a FATCA Compliance Program.

Denis Kleinfeld, Esq., CPA. Denis Kleinfeld is Of Counsel to Fuerst Ittleman David & Joseph, PL, in Miami, Florida and a Professor of Law of the LL.M. International Tax Program of Thomas Jefferson School of Law, San Diego, California. The author of chapters in prominent legal publications, he has written extensively in professional and general circulation magazines and publications on a wide variety of tax, insurance, estate planning, treaty planning, domestic and international asset protection, and investment issues as well as observations on relevant political, social and economic issues. Mr. Kleinfeld is the founder of, and now serves as co-chairman for, the Florida Annual Wealth Protection Conference and is a speaker at a wide variety of professional conferences, seminars, and symposiums in the United States and around the world. After obtaining his B.S. degree in Accountancy from the University of Illinois in 1967 and obtaining his license as a Certified Public Accountant, Mr. Kleinfeld enrolled at the Loyola University of Chicago School of Law, graduating in 1970. He was admitted to the Illinois Bar in 1970 and was employed as an attorney with the Internal Revenue Service in the Estate and Gift Tax Division for four years before going into private practice. Mr. Kleinfeld has been a member of the Florida Bar since 1983, and is also a member of the Florida Institute of Certified Public Accountants, the American Bar Association, and the American Institute of Certified Public Accountants. Contribution includes chapter 1: Introduction and chapter 5: FBAR & 8938 FATCA Reporting.

Richard L. Knickerbocker, Esq. Richard L. Knickerbocker is the senior partner in the Los Angeles office of the Knickerbocker Law Group. He is the former City Attorney of the City of Santa Monica. He was designated Super Lawyer five years running by Los Angeles magazine, made numerous television appearances and has extensive publications. He has taught law in various colleges and law schools and is a certified civil trial advocate and appellate specialist. He graduated from the University of Southern California Gould School of Law with both a J.D. and an LL.M. degree. Contributions include chapter 11: Withholding and FATCA and chapter 13: Determining and Documenting the Payee.

Saloi Abou-Jaoude’ Knickerbocker  Saloi Abou-Jaoude’ Knickerbocker is a Legal Administrator in the Los Angeles office of the Knickerbocker Law Group. She holds LL.M. (Summa Cum Laude) in International Taxation and Financial Services has earned her J.D. (Summa Cum Laude). She has concentrated her practice and research on shari’a finance. She has published Shari’a Finance: Rapid Expansion With the Islamic Golden Age—Some International Taxation Implications in the TaxTalk Magazine (South Africa).  Contributions include chapter 11: Withholding and FATCA and chapter 13: Determining and Documenting the Payee.

Shinjini Kumar Shinjini Kumar is Executive Director at PricewaterhouseCoopers Pvt. Ltd, India (PwC). She is the Sector leader for Banking and Capital Markets and also heads Financial Services regulatory practice at PwC India. Prior to joining PwC in 2010, Shinjini has held senior positions at the Reserve Bank of India (RBI) and Bank of America-Merill Lynch. Her vast experience with the regulator and industry gives her the distinctive opportunity to engage with the industry, media and policy makers on important issues affecting the industry. Contribution includes chapter 34 Exchange of Tax Information and Impact of FATCA for India.

Mathias M. Link, Esq., LL.M.  Mathias Link is a counsel in the Frankfurt office of Hengeler Mueller. He is qualified as German attorney-at-law and tax consultant, holds an LL.M. degree from Columbia University and is also admitted to the New York bar. He advises corporate clients, banks and financial services institutions on a variety of tax matters including mergers and acquisitions, reorganizations, finance and capital markets transactions. He has particular expertise in the structuring of private equity, real estate and investment fund transactions and his main focus is on international tax aspects. Mathias regularly advises clients on the implications of FATCA from a German law perspective.  Contribution includes chapter 19: Germany.-U.S. Intergovernmental Agreement and Its Implementation.

Jinghua Liu, JD Jinghua Liu is a partner in the Tax group at Baker & McKenzie and is based in the Beijing office. She heads the tax dispute resolution practice in China. She joined Baker & McKenzie in 2004 and has been practicing China tax law since then. She is a frequent speaker at international tax conferences on PRC taxation and international tax planning, and authored and co-authored various articles in leading tax publications. Chambers Asia Pacific lists her as one of the recommended lawyers for tax in 2011 and 2012.  Contribution includes chapter 29: Exchange of Tax Information and Impact of FATCA for China.

Jeffrey Locke, Esq. Jeffrey Locke is Director at Navigant Consulting. At Navigant, he is a leader of the FATCA Task Force and has drafted numerous white papers and articles concerning the practical implementation of FATCA. Prior to joining Navigant, he served as an assistant New York state attorney general in the Criminal Prosecutions Bureau, worked in the prosecutor’s office for the United Nations in Kosovo and was an assistant public defender in Philadelphia. He received his law degree from Columbia Law School. Mr. Locke recently contributed a chapter to the book “International Prosecutors” published by Oxford University Press. Contribution includes chapter 2: Practical Considerations for Developing a FATCA Compliance Program.

Josh Lom  Josh works at Herbert Smith Freehills LLP having graduated from Oxford University. Contributions include chapter 24: UK-U.S. Intergovernmental Agreement and Its Implementation.

Jason R. Miller  Jason R. Miller recently spent the summer as a stagier at PwC Istanbul working with Umurcan Gago to author several chapters on Turkey for Lexis publications.  He will graduate in 2014 from Thomas Jefferson School of Law with his Juris Doctorate specializing in Global Legal Studies and Business Law.  Jason has a BS in Business Administration from California Polytechnic State University, San Luis Obispo, with a concentration in Human Resources.  He has contributed to publications for LexisNexis and Wolters Kluwer, including chapters on Company Law, AML, FATCA, and Foreign Tax and Trade Briefs.  Jason is an Editor of the Thomas Jefferson Law Review.   Contribution includes: chapter 33 Exchange of Tax Information and the Impact of FATCA for Turkey.

Dr. Robert J. Munro Dr. Robert Munro is the author of 35 published books including Lexis’ three volume Tax Havens of the World, two volume Foreign Tax & Trade Briefs, and Money Laundering, Asset Forfeiture and Recovery, and Compliance—A Global Guide. He is a Professor of the International Tax & Financial Services Graduate Program of Thomas Jefferson School of Law, San Diego, California. A former Law Librarian at University of Florida College of Law, Dr. Munro was the Director of the Center for International Financial Crimes Studies at UF and continues as a Senior Research Fellow and Director of Research for North America of CIDOEC at Jesus College, Cambridge University, England. He has addressed audiences at Cambridge University, the University of Florida, the University of London, the CIA and the U.S. State Department and created, organized and chaired over twenty conferences in Miami, Aruba, Curacao, the Bahamas, Washington, D.C., New York City, Cambridge, England and San Francisco.

Rachel O’Toole  Rachel O’Toole BA, LL.B, BL, is a barrister-at-law licensed in Ireland and holds the Master of Laws, International Taxation & Financial Services (Thomas Jefferson School of Law, San Diego). She practices a wide range of civil litigation. Besides her role as trial advocate, her work includes advice in financial and debt related issues, planning law compliance, implementation and compliance of European environmental law, and construction and contract disputes. She is an accredited civil and commercial mediator. She has researched and presented papers on current and emerging areas of financial law and compliance facing practitioners in Ireland. Contribution includes Chapter 20: Ireland-U.S. Intergovernmental Agreement and Its Implementation.

Dr. Maji C. Rhee  Maji C. Rhee is a professor of Waseda University located in Tokyo, Japan where she teaches courses on language and legal communications. Rhee received her Ed.D. from Rutgers, her LL.M. in International Taxation & Financial Services from Thomas Jefferson School of Law and is currently finishing her J.S.D. dissertation on transfer pricing in Japan. Contribution includes chapter 21: Japan-U.S. Intergovernmental Agreement and Its Implementation.

Jean Richard, Esq. Jean Richard, a Canadian attorney, previously worked for the Quebec Tax Department, as a Senior Tax Manager with a large international accounting firm and as a Tax & Estate consultant for a pre-eminent Canadian insurance company. He is currently the Vice President and Sr. Wealth Management Consultant of the BMO Financial Group. He completed a LL.L. at University of Montreal, was admitted to the Quebec Bar Association in 1981. He also completed the Canadian ‘In Depth Tax Course’ (Canadian Institute of Chartered Accountant), a Master in International Taxation with the Australian School of Taxation (ATAX), University of New South Wale, Sydney, Australia and a LL.M. in International Tax and Financial Services (International Taxation) with the Thomas Jefferson School of Law. He is a licensed financial planner and financial security advisor.  Contribution includes chapter 27: Exchange of Tax Information and Impact of FATCA for Canada.

Michael J. Rinaldi, II, CPA.  Mr. Rinaldi represents U.S. and foreign institutions and families in a broad range of advisory activities including private equity real estate opportunity funds, with regard to formation, acquisitions, operations, dispositions and development of significant properties and portfolios. He is a Professor in the graduate international tax law program at Thomas Jefferson School of Law, where he teaches on Trusts, Private Equity Funds and Tax Treaties. Professor Rinaldi has authored several publications for Kluwer Law International, Jordan’s and LexisNexis. He is licensed as a certified public accountant in the District of Columbia and is a member of the International Tax Planning Association (ITPA), the Society of Trust and Estate Practitioners (STEP) and the American Bar Association, Tax Section-Partnership and US Activities of Foreigners & Tax Treaties Committees. He holds graduate degrees in accounting and tax law (both US and International). Contributions includes chapter 6: Determining U.S. Ownership Under FATCA; chapter 7: Foreign Financial Institutions; and chapter 8: Non-Financial Foreign Entities.

Edgardo Santiago-Torres, Esq. Edgardo Santiago-Torres is an attorney at law, principal of Santiago Law Group, LLC, and of counsel of the Knickerbocker Law Group, representing individuals and entities in corporate, taxation, and estate planning litigation. Mr. Santiago is also a Certified Public Accountant and a Chartered Global Management Accountant, pursuant to the AICPA and CIMA rules and regulations, admitted by the Puerto Rico Board of Accountancy to practice Public Accounting in Puerto Rico. He holds an LL.M. in International Taxation and Financial Services (highest honors) and a Juris Doctor (honors) of the University of Puerto Rico School of Law.  Contributions include chapter 11: Withholding and FATCA and chapter 13: Determining and Documenting the Payee.

Hope M. Shoulders, Esq.  Hope M. Shoulders is a licensed attorney in the State of New Jersey. She is currently consulting for a major insurance company assisting with their implementation of FATCA. She is also an adjunct professor for the Thomas Jefferson School of Law. She  previously worked for General Motors, National Transportation Safety Board and the Department of Commerce. She completed her LL.M. in International Taxation from Thomas Jefferson School of Law in San Diego, California. She is a contributor of numerous articles and completed her thesis on OECD transfer pricing and business restructuring. She earned her J.D. and her MBA from the University of Tennessee and a Bachelors of Science from the University of Virginia. Contribution includes chapter 10: FATCA and the Insurance Industry.

Jason Simpson, LL.M., CRA, CCA  Jason Simpson is the Director of the Miami office for Global Atlantic Partners, overseeing all operations in Florida, the Caribbean and most of Latin America. He has worked previously as a bank compliance employee and advisor at various large and mid-sized financial institutions over the past ten years. He has been a key component in the removal of Cease and Desist Orders as well as other written regulatory agreements within a number of Domestic and International Banks, and designed complete AML/BSA units for domestic as well as international banks with over ten million accounts. He is an Adjunct Faculty Member of Thomas Jefferson School of Law for Compliance, AML and Fraud, where he holds a Master of Laws in International Taxation with a concentration specialized in Anti-Money Laundering, Anti-Terrorist Financing and Compliance. Through various online venues, he creates and teaches specialized webinars in both English and Spanish focused compliance. Contribution includes chapter 3: FATCA Compliance and Integration of Information Technology; and chapter 4: Financial Institution Account Remediation.

Dr. Alberto Gil Soriano, Esq. Alberto Gil Soriano is a Spanish attorney who holds a Ph.D. in Tax Law at University of Bologna (Italy), LL.M. in International Taxation and Financial Services at Thomas Jefferson School of Law in San Diego (California) and is Law degree from the University of Valencia (Spain). He has worked at the University of Valencia, at the European Commission’s Anti-Fraud Office in Brussels, and most recently at the Legal Department of the International Monetary Fund’s Financial Integrity Group in Washington, D.C. He currently works at the Fiscal Department of Uría Menéndez Abogados, S.L.P in Barcelona (Spain). Contributions include chapter 1: Introduction and chapter 15: Framework of Intergovernmental Agreements.

Krisztina Szombathy, Esq.  Krisztina Szombathy joined the Commercial & Litigation Department of Loyens & Loeff Luxembourg in October 2013.  She specializes in dispute resolution, and advises on commercial and civil law. Her areas of expertise also include European law, energy law and intellectual property. Before joining Loyens & Loeff, Krisztina acquired experience in legal drafting, notably in European and energy law matters during an internship at the European Court of Justice in Luxembourg.  Krisztina has been a member of the Luxembourg Bar since spring 2013.  Contributions include chapter 31: Exchange of Tax Information and Impact of FATCA for Luxembourg.

Debora de Souza Correa Talutto  Debora de Souza Correa Talutto is the International Transfer Pricing Manager at Temenos Banking Software Co., and a professor of international transfer pricing at Thomas Jefferson School of Law International Tax graduate program.  She is a sought after Brazilian tax authority, having authored the Brazilian chapter of LexisNexis’ Foreign Tax and Trade Briefs, the Brazilian chapter of Lexis’ Anti Money Laundering, Asset Forfeiture, & Recovery Guide, and most recently the Cost Sharing Arrangement chapter of Lexis’ Practical Guide to U.S. Transfer Pricing.    Ms. Talutto previously served as a tax consultant at Deloitte (Brazil) before earning her LL.M. in International Tax from University of Florida.  She holds an MBA, an LL.B. (Brazil), as well as a post-graduate degree in Brazilian taxation.  Contributions include chapter 25: Exchange of Tax Information and Impact of FATCA for Brazil.

Andrey Tereschenko, Esq.  Andrey Tereschenko is a tax partner in the Moscow office of Pepeliaev Group LLC. He focuses on tax law and has a high level of expertise in providing advice to major Russian and foreign companies on a wide range of tax issues but especially the implementation of compensation tax arrangements. Andrey has participated in projects to set up businesses in Russia, including assessment of the tax environment in the chosen business region, investment agreements with regional authorities and tax support for due diligence. Andrey has been directly involved in tax structuring of investment projects, particularly in the sphere of construction, land and real estate acquisition. Contributions include chapter 32: Exchange of Tax Information and Impact of FATCA for Russia.

Lily L. Tse, CPA.  Ms. Tse, a partner of Rinaldi & Associates (Washington, D.C.), represents US and foreign real estate private equity funds and property owners with regard to financial reporting and international tax matters. Her area of practice includes real estate development and leasing, joint ventures, consolidations and mezzanine financing. She has significant experience in U.S. withholding issues effecting foreign partnerships and trusts. Ms. Tse also heads the firm’s audit practice specializing in the development and operation of multi-family housing. Ms. Tse has been qualified as an expert witness in Federal Court, providing testimony in the area of real estate financing. Ms. Tse is licensed as a certified public accountant in the District of Columbia and holds graduate degrees in business and taxation. Contributions include chapter 7: Foreign Financial Institutions.

Dr. Oliver Untersander, Esq.  Oliver Untersander obtained his law degree and his PhD from the University of Zurich. Her holds a LL.M. from the New York University (international tax) and is admitted to the bar in Zurich (Switzerland). He is partner at Tappolet & Partner in Zurich. He is experienced in Swiss and international corporate taxation, corporate reorganizations and tax litigation. Contribution includes chapter 23: Switzerland-U.S. Intergovernmental Agreement and Its Implementation.

Mauricio Cano del Valle, Esq.  Mauricio Cano del Valle is a Mexican attorney who has previously worked for the Mexican Ministry of Finance (Secretaría de Hacienda),  Deloitte Mexico and the Amicorp Group. He is the founding partner of Brook & Cano SC, a Mexican boutique Law Firm, specializing on private clients, HNWI, UHNWI, their families and their businesses. Mauricio has been a professor at both the undergraduate and the graduate level at ITAM, the author of the book “Game Theory and Tax Evasion” published in Mexico in 2006, and the most recently published paper on “Game Theory and Minimum Taxes” included as part of a book on “Game Theory and Contemporary Law” published in Mexico in 2009. He holds a Law Degree, a Masters Degree in Law and Economics, and an MBA. Contribution includes chapter 22: Mexico-U.S. Intergovernmental Agreement and Its Implementation.

Janneke Versantvoort  Janneke Versantvoort is an international tax specialist and a member of the general tax practice at Loyens & Loeff Luxembourg. She is specialized in international tax law, focusing on advising multinational clients on cross-border transactions, group restructurings, project financing and transfer pricing. She worked for three years at the Loyens & Loeff Rotterdam office and is seconded to the Luxembourg office for two years.  Janneke is a member of the Dutch Association of Tax Advisers (NOB) and a member of the Young IFA in Luxembourg.  Contributions include chapter 31: Exchange of Tax Information and Impact of FATCA for Luxembourg.

John Walker, Esq.  John M. Walker, Esq., LL.M., is an international tax attorney who earned his LL.M. in International Taxation and Financial Services. He focuses on international tax compliance for high-net worth individuals as well as foreign trust compliance and structuring under the Foreign Account Tax Compliance Act (FATCA). He is Of Counsel to Duke Law Firm, P.C., and Michael Rinaldi & Co, LLP . Contributions include chapter 6: Determining U.S. Ownership Under FATCA, chapter 12: FATCA Withholding Compliance, chapter 13: “Withholdable” Payments Under FATCA, and chapter 14: Determining and Documenting the Payee.

Prof. Bruce Zagaris, Esq.  Bruce Zagaris is a partner at the Washington, D.C. law firm Berliner, Corcoran & Rowe, LLP, where he practices tax controversy and international criminal law, including representing individuals on voluntary disclosures, audits, and litigation as well as consulting and serving as an expert witness. He represents foreign governments, including helping negotiate treaties. He is an adjunct law professor of the LL.M. in International Taxation and Financial Services at Thomas Jefferson School of Law in San Diego. Mr. Zagaris is founder and editor of the International Enforcement Law Reporter (www.ielr.com). He is the author of International White Collar Crime (Cambridge U. Press 2010). Contribution includes chapter 15: Analysis of Current Intergovernmental Agreements.

Qiguang (Hardy) Zhou, LL.M., CPA  Qiguang (Hardy) Zhou works in the Tax group at Baker & McKenzie and is based in the Shanghai office. He obtained an LL.M. in International Tax Law. Contribution includes chapter 29: Exchange of Tax Information and Impact of FATCA for China.

Chapter 1 Background and Current Status of FATCA
Chapter 2 Practical Considerations for Developing a FATCA Compliance Program
Chapter 3 FATCA Compliance and Integration of Information Technology
Chapter 4 Financial Institution Account Remediation
Chapter 5 FBAR and Form 8938 Reporting and List of International Taxpayer IRS Forms
Chapter 6 Determining U.S. Ownership of Foreign Entities
Chapter 7 Foreign Financial Institutions
Chapter 8 Non-Financial Foreign Entities
Chapter 9 FATCA and the Offshore Trust Industry
Chapter 10 FATCA and the Insurance Industry
Chapter 11 Withholding and Qualified Intermediary
Chapter 12 FATCA Withholding Compliance
Chapter 13 ”Withholdable” Payments
Chapter 14 Determining and Documenting the Payee
Chapter 15 Framework of Intergovernmental Agreements
Chapter 16 Analysis of Current Intergovernmental Agreements
Chapter 17 European Union Cross Border Information Reporting
Chapter 18 The OECD Role in Exchange of Information: The Trace Project, FATCA, and Beyond
Chapter 19 Germany-U.S. Intergovernmental Agreement and its Implementation
Chapter 20 Ireland-U.S. Intergovernmental Agreement and its Implementation
Chapter 21 Japan-U.S. Intergovernmental Agreement and its Implementation
Chapter 22 Mexico-U.S. Intergovernmental Agreement and its Implementation
Chapter 23 Switzerland-U.S. Intergovernmental Agreement and its Implementation
Chapter 24 The United Kingdom-U.S. Intergovernmental Agreement and its Implementation
Chapter 25 Exchange of Tax Information and the Impact of FATCA for Brazil
Chapter 26 Exchange of Tax Information and the Impact of FATCA for The British Virgin Islands
Chapter 27 Exchange of Tax Information and the Impact of FATCA for Canada
Chapter 28 Exchange of Tax Information and the Impact of FATCA for Spain
Chapter 29 Exchange of Tax Information and the Impact of FATCA for China
Chapter 30 Exchange of Tax Information and the Impact of FATCA for Netherlands
Chapter 31 Exchange of Tax Information and the Impact of FATCA for Luxembourg
Chapter 32 Exchange of Tax Information and the Impact of FATCA for Russia
Chapter 33 Exchange of Tax Information and the Impact of FATCA for Turkey
Chapter 34 Exchange of Tax Information and the Impact of FATCA for India

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FATCA and the size of Delaware’s International Financial Center

Posted by William Byrnes on March 14, 2014


Today’s FATCA anecdote from a recent interview ….

Professor William Byrnes stated, “The US has a highly successful international financial service industry that is important to the US economy, exemplified by, firstly, the international financial centres such as Miami and New York) of over a half trillion dollars of foreign deposits of high net wealth individuals whom many experts allege are not tax and exchange control compliant in their home countries; secondly, over 900,000 Delaware companies is the second to Hong Kong, and ahead of British Virgin Islands (BVI is actually third in the world);[1] and thirdly, the US territories’ offshore regimes, reducing the effective US corporate and income tax rates below 3.5 percent.[2]

In 2011, 133,297 businesses incorporated in Delaware.  Delaware has more corporate entities than people, reports Leslie Wayne of the New York Times — 945,326 to 897,934. These absentee corporate residents account for a quarter of Delaware’s total budget, roughly $860 million in taxes and fees in 2011.[3]  Moreover, the economic spill over impact for Delaware includes substantial employment and professional fees to Delaware business participating in the incorporation and advisory industry. Delaware is just behind China’s Hong Kong in number of annual incorporations and overall incorporations, and well ahead of the UK’s Virgin Islands (British) both in terms of offshore business and the dollars earned from that offshore business.

Tomorrow (Saturday March 15) I will provide a detailed account Where the Oft Cited “$150 Billion” Figure Of Offshore Evasion Come From?

See dozens of articles analyzing various compliance requirements of the FATCA Regulations and select IGAs at https://profwilliambyrnes.com/category/fatca/


[1] “Storm Survivors”, Special Report: Offshore Finance, The Economist, 16 Feb 2013. Available at http://www.economist.com/news/special-report/21571549-offshore-financial-centres-have-taken-battering-recently-they-have-shown-remarkable (accessed 28 February 2014).

[2] See William H Byrnes and Dr. Robert J Munro, Tax Havens of the World, US Virgin Islands chapter, LexisNexis.

[3] See Wayne, Leslie, How Delaware Thrives as a Corporate Tax Haven, New York Times (June 30, 2012).

LexisNexis FATCA Compliance Guide

book coverFifty contributing FATCA experts, each advising major institutions and financial service companies, authored 600 pages of analysis within the LexisNexis® Guide to FATCA Compliance (2nd Edition): many perspectives – one voice crafted by the primary author Professor William Byrnes.

The LexisNexis® Guide to FATCA Compliance (2nd Edition) comprises 34 Chapters grouped in three parts: compliance program (Chapters 1–4), analysis of FATCA regulations (Chapters 5–16) and analysis of Intergovernmental Agreements (IGAs) and local law compliance challenges (Chapters 17–34), including intergovernmental agreements as well as the OECD’s TRACE initiative for global automatic information exchange protocols and systems. The 34 chapters include many practical examples to assist a compliance officer contextualize the regulations, IGA provisions, and national rules enacted pursuant to an IGA.  Chapters include by example an in-depth analysis of the categorization of trusts pursuant to the Regulations and IGAs, operational specificity of the mechanisms of information capture, management and exchange by firms and between countries, insights as to the application of FATCA and the IGAs within new BRIC and European country chapters.

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2nd book released for Sales Essentials Series – Managing Your Agency!

Posted by William Byrnes on March 13, 2014


National Underwriter Sales Essentials: Managing Your Agency, the second book by Associate Dean William Byrnes in this soft skills series, released March 3rd.

“The National Underwriter Sales Essentials Series combines all of the most practical, proven sales techniques advisors need to convert prospects into customers, win new business, and to grow sales,” added Rick Kravitz Managing Director of the National Underwriter Professional Publishing Division. “The Life & Health Sales Essentials focuses on the selling skills and techniques essential to achieving success—prospecting for new business and the demands of running an agency.”  

Byrnes book Managing your Agency“While America is experiencing its greatest transfer of wealth, the senior level ‘baby boomer’ financial advisors are retiring out of the market,” explained Associate Dean William Byrnes.  “The next five years presents substantial opportunities for this generation of attorneys and financial advisors who exercise best networking and face-to-face practices.”

“Many young professionals unproductively spin their wheels when it comes to growing their client base,” interjected Robert Bloink. “The Walter H. Diamond Graduate Program, available online, is competitive because most faculty members like myself brings decades of business experience into the classroom and keep our students eye on the ball – developing their client books.”

William Byrnes added, “We invite our readers to the upcoming April 2 webinar wherein we will discuss topics such as How to Clone Your Clients, What`s Your Point of Difference?, The ‘Ben Franklin Method’ For Winning People Over, How to Cultivate a Network of Endless Referrals, and Marketing to the Millennials. Just email me to join the webinar.”

“For advisors that live in Southern California, I’ll be discussing ‘Prospecting in the Twenty-First Century’ on April 16 for a noon panel at the San Diego County Bar Association.”

For the April 2 (8am Pacific, 11am Eastern) > webinar link < or email williambyrnes@gmail.com

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Updated FATCA IGA in Effect List

Posted by William Byrnes on March 13, 2014


The following 24 jurisdictions are treated as having a FATCA intergovernmental agreement in effect.

Model 1 IGA

Model 2 IGA

IGA FATCA XML Schema For Providing Information To IRS

The IRS has finalized the format for automatically exchanging FATCA data with IGA jurisdictions.  The Intergovernmental FATCA XML Schema (version 1.1):

  • Is a standard format developed in close cooperation with the OECD
  • Captures required information for reporting of FATCA data from both Financial Institutions (FIs) and Host Country Tax Administrations (HCTAs)
  • Will be used for automatic exchange with all FATCA jurisdictions
  • Uses elements from existing reporting schemas used by the OECD and the European Union to reduce burden on reporting entities
  • Uses XML to allow for easier modifications down the road in the event of legislative or regulatory changes in reporting rules
  • Will facilitate safe and secure electronic data transmission using the  International Data Exchange Service

IRS Compliance Guide For IGA FATCA XML Schema

The newly published IRS Guide to completing the schema pursuant to an IGA explains the information required to be included in each data element of the FATCA XML schema v1.1. The guide is divided into logical sections based on the schema and provides information on specific data elements and any attributes that describe that data element.

LexisNexis FATCA Compliance Guide

book coverFifty contributing FATCA experts, each advising major institutions and financial service companies, authored 600 pages of analysis within the LexisNexis® Guide to FATCA Compliance (2nd Edition): many perspectives – one voice crafted by the primary author Professor William Byrnes.

The LexisNexis® Guide to FATCA Compliance (2nd Edition) comprises 34 Chapters grouped in three parts: compliance program (Chapters 1–4), analysis of FATCA regulations (Chapters 5–16) and analysis of Intergovernmental Agreements (IGAs) and local law compliance challenges (Chapters 17–34), including intergovernmental agreements as well as the OECD’s TRACE initiative for global automatic information exchange protocols and systems. The 34 chapters include many practical examples to assist a compliance officer contextualize the regulations, IGA provisions, and national rules enacted pursuant to an IGA.  Chapters include by example an in-depth analysis of the categorization of trusts pursuant to the Regulations and IGAs, operational specificity of the mechanisms of information capture, management and exchange by firms and between countries, insights as to the application of FATCA and the IGAs within new BRIC and European country chapters.

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Three Tax Tips about Obama Care

Posted by William Byrnes on March 12, 2014


Here are three tips about how the law may affect you:

The IRS published tax tip HC-TT- 2014-05 alerting taxpayers that Obama Care has provisions that may affect personal income taxes. How Obama Care affects a taxpayer depends on employment status, whether the taxpayer participates in a tax favored health plan, and the taxpayer’s age.

1. Employment Status

  • If a taxpayer is employed then the employer may report the value of the health insurance provided on the W-2 in Box 12 with a Code “DD”.  However, this amount is not taxable.
  • If a taxpayer is self-employed, then the taxpayer may deduct the cost of health insurance premiums, within limits.

2. Tax Favored Health Plans

  • If a taxpayer has a health flexible spending arrangement (FSA) at work, money added to it normally reduces taxable income.
  • If a taxpayer has a health savings account (HSA) at work, money the employer adds to it, within limits, is not taxable.
  • Money added to an HSA usually counts as a deduction.
  • Money used from an HSA for “qualified medical expenses” is not taxable income; however, withdrawals for other purposes are taxable and can even be subject to an additional tax.
  • If a taxpayer has a health reimbursement arrangement (HRA) at work, money received from it is generally not taxable.

3. Age

If a taxpayer is age 65 or older, the threshold for itemized medical deductions remains at 7.5 percent of Adjusted Gross Income (AGI) until 2017; for others the threshold increased to 10 percent of AGI in 2013.  AGI is shown on Form 1040 tax form.

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IRS publishes User Guide for Providing FATCA Information Pursuant to IGA

Posted by William Byrnes on March 11, 2014


International Data Exchange Service

The IRS is finalizing requirements for a Data Exchange service to allow for Financial Institutions (FIs) and Host Country Tax Administrations (HCTAs) to automatically exchange FATCA data with the United States.  The Service will also allow the United States to make reciprocal exchanges where called for by an IGA that is in force.  The International Data Exchange Service:

  • Is based on business requirements collected by a multilateral working group
  • Serves as a single point of FATCA information delivery for both FIs and HCTAs
  • May be used for automatic exchange with all FATCA jurisdictions
  • Is based on readily-available mature technology
  • Requires both the file being sent (in the Intergovernmental FATCA XML Schema) and the transmission pathway to be encrypted, ensuring the security of tax data
  • Can be accessed either through a Browser-Based or a Scheduled Bulk Data Transfer environment

Intergovernmental FATCA XML Schema

The IRS has finalized the format for automatically exchanging FATCA data with IGA jurisdictions.  The Intergovernmental FATCA XML Schema (version 1.1):

  • Is a standard format developed in close cooperation with the OECD
  • Captures required information for reporting of FATCA data from both Financial Institutions (FIs) and Host Country Tax Administrations (HCTAs)
  • Will be used for automatic exchange with all FATCA jurisdictions
  • Uses elements from existing reporting schemas used by the OECD and the European Union to reduce burden on reporting entities
  • Uses XML to allow for easier modifications down the road in the event of legislative or regulatory changes in reporting rules
  • Will facilitate safe and secure electronic data transmission using the  International Data Exchange Service

IRS Guide For Using the Intergovernmental (IGA) FATCA XML Schema

The newly published IRS Guide to completing the schema pursuant to an IGA explains the information required to be included in each data element of the FATCA XML schema v1.1. The guide is divided into logical sections based on the schema and provides information on specific data elements and any attributes that describe that data element.

The requirement field for each data element and its attribute indicates whether the element (a) must be included in the schema (mandatory or validation), (b) is optional, or (c) is not used for FATCA (null).

I. Message Header

Information in the message header identifies the Financial Institution (FI) or Tax Administration that is sending the message. It specifies when the message was created, what calendar year the report is for, and the nature of the report (original, corrected, supplemental, etc).

II. PersonParty_Type

The data elements in this section are used when the Account Holder is a natural person.

IIa. TIN Type

This data element identifies the Tax Identification Number (TIN) used by the receiving tax administration to identify the Individual Account Holder

IIb. ResCountryCode

This data element describes the tax residence country code(s) for the individual being reported upon.

IIc. NamePerson_Type

IId. Address_Type

There are two options for Address type in the schema – AddressFix and AddressFree. AddressFix should be used for all FATCA reporting unless the reporting FI or tax administration transmitting the message cannot define the various parts of the account holder’s address.

IIe. Nationality

IIf. BirthInfo

III. OrganisationParty_Type

This complex type identifies the name of an Account Holder or Payee that is an Entity as opposed to an Individual.

IIIa. TIN_Type

IIIb. ResCountryCode

IIIc. Organisation Name

IV. Reporting FI

Identifies the financial institution that maintains the reported financial account or that makes the reported payment. Examples:

  • The reporting FI is the financial institution that has agreed to treat another financial institution as an owner documented FFI.
  • The reporting FI is the financial institution that makes a reported payment to a territory organized financial institution that is acting as an intermediary and that has not elected to be treated as a U.S. person
  • The reporting FI is the Sponsored FFI and the Sponsoring FFI is identified in the Sponsor group, see below.

If the reporting FI maintains branches outside of its country of tax residence then the GIIN for the reporting FI is the GIIN associated with the branch of the reporting FI that maintains the reported financial account.

IVa. ReportingGroup

IVb. Account Report

IVc. Pool Report

The IRS Guide is available at http://www.irs.gov/pub/irs-utl/Pub5124UserGuide.pdf

LexisNexis FATCA Compliance Guide

book coverFifty contributing FATCA experts, each advising major institutions and financial service companies, authored 600 pages of analysis within the LexisNexis® Guide to FATCA Compliance (2nd Edition): many perspectives – one voice crafted by the primary author Professor William Byrnes.

The LexisNexis® Guide to FATCA Compliance (2nd Edition) comprises 34 Chapters grouped in three parts: compliance program (Chapters 1–4), analysis of FATCA regulations (Chapters 5–16) and analysis of Intergovernmental Agreements (IGAs) and local law compliance challenges (Chapters 17–34), including intergovernmental agreements as well as the OECD’s TRACE initiative for global automatic information exchange protocols and systems. The 34 chapters include many practical examples to assist a compliance officer contextualize the regulations, IGA provisions, and national rules enacted pursuant to an IGA.  Chapters include by example an in-depth analysis of the categorization of trusts pursuant to the Regulations and IGAs, operational specificity of the mechanisms of information capture, management and exchange by firms and between countries, insights as to the application of FATCA and the IGAs within new BRIC and European country chapters.

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IRS Offers Obama Care Tax Tips for 2013 and 2014

Posted by William Byrnes on March 11, 2014


The IRS has set up a webpage >Health Care Tax Tips< to help people understand what they need to know for the 2013 federal individual income tax returns they are filing by April 15th, as well as for future tax returns. This includes information on the new Premium Tax Credit and making health care coverage choices.

Because many of the new Obama Care tax rules only went into effect on Jan. 1, 2014, most of these Obama Care changes do not affect the 2013 tax return.

What do I need to know for my 2013 tax return?

Considerations for 2014 tax year?

  • Open Enrollment for the Health Insurance Marketplace: The open enrollment period to purchase health care coverage through the Health Insurance Marketplace for 2014 began Oct. 1, 2013 and runs through March 31, 2014. When you get health insurance through the marketplace, you may be able to get advance payments of the premium tax credit that will immediately help lower your monthly premium. Learn more at HealthCare.gov.
  • Premium Tax Credit: If you get insurance through the Marketplace, you may be eligible to claim the premium tax credit. You can elect to have advance payments of the tax credit sent directly to your insurer during 2014, or wait to claim the credit when you file your tax return in 2015. If you choose to have advance payments sent to your insurer, you will have to reconcile the payments on your 2014 tax return, which will be filed in 2015. If you’re already receiving advance payments of the credit, you need do nothing at this time unless you have a change in circumstance. Learn More.
  • Change in Circumstances: If you’re receiving advance payments of the premium tax credit to help pay for your insurance coverage, you should report life changes, such as income, marital status or family size changes, to your marketplace. Reporting changes will help to make sure you are getting the proper amount of advance payments.
  • Individual Shared Responsibility Payment: Starting January 2014, you and your family must have health care coverage, have an exemption from coverage, or make a payment when you file your 2014 tax return in 2015. Most people already have qualifying health care coverage and will not need to do anything more than maintain that coverage throughout 2014. Learn More.

The Health Care Tax Tips available at >IRS ACA website< include:

  • IRS Reminds Individuals of Health Care Choices for 2014 ─ Find out what you need to know about how health care choices you make for 2014 may affect your taxes.
  • The Health Insurance Marketplace – Learn about Your Health Insurance Coverage Options – Find out about getting health care coverage through the Health Insurance Marketplace.
  • The Premium Tax Credit ─ Learn the basics of the Premium Tax Credit, including who might be eligible and how to get the credit.
  • The Individual Shared Responsibility Payment – An Overview ─ Provides information about types of qualifying coverage, exemptions from having coverage, and making a payment if you do not have qualifying coverage or an exemption.
  • Three Timely Tips about Taxes and the Health Care Law ─  Provides tips that help with filing the 2013 tax return, including information about employment status, tax favored health plans and itemized deductions.
  • Four Tax Facts about the Health Care Law for Individuals ─Offers basic tips to help people determine if the Affordable Care Act affects them and their families, and where to find more information.
  • Changes in Circumstances can Affect your Premium Tax Credit ─ Learn the importance of reporting any changes in circumstances that involve family size or income when advance payments of the Premium Tax Credit are involved.

For more than half a century, Tax Facts has been an essential resource designed to meet the real-world tax-guidance needs of professionals in both the insurance and investment industries.

2014_tf_on_individuals_small_businesses-m_1Due to a number of recent changes in the law, taxpayers are currently facing many questions connected to important issues such as healthcare, home office use, capital gains, investments, and whether an individual is considered an employee or a contractor. Financial advisors are continually looking for updated tax information that can help them provide the right answers to the right people at the right time. This brand-new resource provides fast, clear, and authoritative answers to pressing questions, and it does so in the convenient, timesaving, Q&A format for which Tax Facts is famous.

“Our brand-new Tax Facts title is exciting in many ways,” says Rick Kravitz, Vice President & Managing Director of Summit Professional Network’s Professional Publishing Division. “First of all, it fills a huge gap in the resources available to today’s advisors. Small business is a big market, and this book enables advisors to get up-and-running right away, with proven guidance that will help them serve their clients’ needs. Secondly, it addresses the biggest questions facing all taxpayers and provides absolutely reliable answers that help advisors solve today’s biggest problems with confidence.”

tax-facts-online_mediumThe company also points out that the expert authors—Robert Bloink, Esq., LL.M., and William H. Byrnes, Esq., LL.M., CWM®—are delivering real-life guidance based on decades of experience.

The authors’ knowledge and experience in tax law and practice provides the expert guidance for National Underwriter to once again deliver a valuable resource for the financial advising community,” added Kravitz.

Anyone interested can try Tax Facts on Individuals & Small Business, risk-free for 30 days, with a 100% guarantee of complete satisfaction.  For more information, please go to www.nationalunderwriter.com/TaxFactsIndividuals or call 1-800-543-0874.

Posted in Taxation | Tagged: , , , , | 1 Comment »

Income Higher Than $51,900? Does Alternative Minimum Tax (AMT) Apply to You?

Posted by William Byrnes on March 10, 2014


The IRS’ Tax Tip 2014-10

The IRS published a recent tax tip for the 2014 tax filing season to remind taxpayers about the possibility that even if no tax is owed under regular tax rules, under the special calculation rules of the alternative minimum tax system, tax may be owed anyway.  Excerpted below:

The AMT attempts to ensure that some individuals who claim certain tax benefits pay a minimum amount of tax.

1. You may have to pay the tax if your taxable income, plus certain adjustments, is more than the AMT exemption amount for your filing status. If your income is below this amount, you usually will not owe AMT.

2. The 2013 AMT exemption amounts for each filing status are:

• Single and Head of Household = $51,900

• Married Filing Joint and Qualifying Widow(er) = $80,800

• Married Filing Separate = $40,400

3. The rules for AMT are more complex than the rules for regular income tax. The best way to make it easy on yourself is to use IRS e-file to prepare and file your tax return. E-file tax software will figure AMT for you if you owe it.

4. If you file a paper return, use the AMT Assistant tool on IRS.gov to find out if you may need to pay the tax.

5. If you owe AMT, you usually must file Form 6251, Alternative Minimum Tax – Individuals. Some taxpayers who owe AMT can file Form 1040A and use the AMT Worksheet in the instructions.

Additional IRS Resources:

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Is $150 Billion Actually Lost Each Year to Offshore Noncompliance?

Posted by William Byrnes on March 8, 2014


continuing from last Saturday, March 1st’s article …

The Senate Subcommittee reported that: “According to the IRS, the current estimated annual U.S. tax gap is $450 billion, which represents the total amount of U.S. taxes owed but not paid on time, despite an overall tax compliance rate among American taxpayers of 83 percent. Contributing to that annual tax gap are offshore tax schemes responsible for lost tax revenues totaling an estimated $150 billion each year.”

To justify the reporting of the number of $150 billion a year of lost tax revenue due to “offshore tax schemes”, the Senate Report primarily cites its own investigatory reports and third party articles that refer to transfer pricing issues.  While transfer pricing regulations have been under scrutiny, at least by the Democrats, in the Senate, it is certainly not commonly held by those same Democrats that transfer pricing is illegal or constitutes an “offshore scheme”.  

It is proven beyond a doubt by the UBS, Credit Suisse, and other similar investigations, validated by the OVDI disclosures, that some Americans are noncompliant, and that some of those noncompliant Americans would owe tax if disclosing foreign income on their tax returns.  There is also no doubt that the total number of noncompliant Americans between 2008 and 2013 was at least 43,000. 

There is also no doubt that the tax that would have been collected from them had they been compliant during their time in the wilderness was in fact, relative to the reported figure of $150 billion lost annually, miniscule (somewhere probably between $300 million and $500 million a year for lost tax, with the majority of the $6 billion collected representing FBAR penalties, tax penalties, and interest).  To date, of the $150 billion referred to as lost a year to offshore schemes, only approximately .003% (a third of one percent) has been collected – and that assuming the above higher number of $500 million a year.

What is motivating the Subcommittee? 

Is the Senate searching for a magic bean to grow a money tree that will help cover up the $500 billion annual deficit (that has led to a $17 trillion national debt)?  The Subcommittee Report states: “Offshore tax evasion has been an issue of concern … because lost tax revenues contribute to the U.S. annual deficit, which today exceeds $500 billion. Collecting unpaid taxes is one way to reduce the deficit without raising taxes.”

90% of Taxpayers with Foreign Accounts are Tax Evaders!

The Taxpayer Advocate, relying on State Department statistics, cited that 7.6 million U.S. citizens reside abroad and many more U.S. residents have FBAR filing requirements, yet the IRS received only 807,040 FBAR submissions as recently as 2012.  The Taxpayer Advocate noted that in Mexico alone, more than one million U.S. citizens reside, and many Mexican citizens reside in the U.S. (and thus are required to file a FBAR for any Mexican accounts of $10,000 or greater).

Thus, more than 90% of taxpayers with foreign accounts are NOT compliant with the tax law? 7.6 million Americans abroad, at least 1 million nonresident aliens in the US, and some number of American in the US with foreign accounts equals a number of approximately 10 million taxpayers.  But the IRS reports that 87% of American residing taxpayers are compliant?  So statistically speaking, having a foreign account is indicative of being a tax evader.

Based on these numbers, being an American living in a foreign country is a leading cause of criminality.  What the statistics do not tell is which comes first?  A person tends toward criminality and thus moves to a foreign country or a person moves to a foreign country and then tends toward criminality? Enough facetiousness…     

I will greatly appreciate if a reader can supply me any studies / audit undertaken in the past five years of a statistically representative sample of the taxable incomes of these approximate 7.6 million Americans residing in foreign countries (I have of course read the CRFB articles and references).  I am curious how many of the nearly seven million non-compliant Americans:

(a) earn more income than that qualifying for the Foreign Income Exclusion of $97,600 for 2013 (combined with the Housing Allowance or Deduction Exclusion), and live in a country with lower effective tax rates than the US that US tax would be owing after the applicable tax credit on the remainder, and  

(b) of the sample, if the exclusion was not available, how many would have an excess tax credit because the foreign taxes paid are higher than the US taxes that would be due?

Maybe Foreign-Resident Americans are a Red Herring?

It will be interesting to learn if these approximate 7 – 8 million American foreign-residents in general owe tax after the foreign income / housing exemption and qualified retirement planning, or whether this group in general represents a red herring (at least as concerns filling in the $500 billion annual deficit).

$100 million is Still $100 million!

However, even if the number is only $1 billion or even $100 million collected a year from the IRS civil and criminal enforcement efforts, while it’s not going to put a dent in a $500 billion deficit, as Senator John McCain told the Credit Suisse representatives at the hearing February 26, it’s still a large amount of money that turns voters heads.

So Where Did the $150 Billion Figure Come From?

Check back next Saturday March 15 to discover the surprise answer…. 

LexisNexis FATCA Compliance Manual

book coverFifty contributing FATCA experts, each advising major institutions and financial service companies, authored 600 pages of analysis within the LexisNexis® Guide to FATCA Compliance (2nd Edition): many perspectives – one voice crafted by the primary author Professor William Byrnes.

The LexisNexis® Guide to FATCA Compliance (2nd Edition) comprises 34 Chapters grouped in three parts: compliance program (Chapters 1–4), analysis of FATCA regulations (Chapters 5–16) and analysis of Intergovernmental Agreements (IGAs) and local law compliance challenges (Chapters 17–34), including intergovernmental agreements as well as the OECD’s TRACE initiative for global automatic information exchange protocols and systems. The 34 chapters include many practical examples to assist a compliance officer contextualize the regulations, IGA provisions, and national rules enacted pursuant to an IGA.  Chapters include by example an in-depth analysis of the categorization of trusts pursuant to the Regulations and IGAs, operational specificity of the mechanisms of information capture, management and exchange by firms and between countries, insights as to the application of FATCA and the IGAs within new BRIC and European country chapters.

FATCA Experts Selected for the Lexis’ Guide  (please contact williambyrnes@gmail.com for an introduction to any of the below FATCA implementation experts)

Theodore C. Ahlgren, Esq. Ted Ahlgren concentrates his practice on international tax, trust, and estate planning. He has advised numerous U.S. and non-U.S. financial institutions, corporations, high net worth individuals, and their advisors on a variety of U.S. federal income, transfer, and withholding tax issues and has represented individuals and financial institutions in audits and voluntary disclosures. He participated in the submission of comments to Treasury and the IRS on the proposed FATCA regulations, and has written and spoken extensively on FATCA and other topics of relevance to international tax and estate planning. Contributions include chapter 7: Foreign Financial Institutions.

Devang Ambavi Devang Ambavi is Manager at PricewaterhouseCoopers Pvt. Ltd, India (PwC). He has over six years of experience in advising clients in multidisciplinary areas including international tax, domestic tax, exchange control and regulatory matters. More recently, he was on a two year secondment to PwC New York where he advised US based Funds on global structuring and international tax issues on a cross-jurisdictional basis. Contribution includes chapter 34: Exchange of Tax Information and Impact of FATCA for India.

Kyria Ali FCCA CIA CFE MCSI Kyria Ali, with her in-depth experience and qualifications in securities and investment (CISI), internal and forensic auditing (CIA and CFE) and financial background (FCCA) is strategically positioned as a leading business advisor in the BVI, Eastern Caribbean and Central American region. Very knowledgeable of the offshore sector, she has assisted many organisations, in the financial services industry, with risk management, compliance, FATCA and other tax related matters; just some of the areas addressed by the suite of business advisory services she provides. Contribution includes chapter 26: Exchange of Tax Information and Impact of FATCA for the The British Virgin Islands.

Michael Alliston, Esq.  Michael Alliston is a solicitor in the London office of Herbert Smith Freehills LLP. He advises on a range of corporate tax matters including mergers and acquisitions, corporate reorganizations, general finance and capital markets transactions. He also has particular experience in real estate and investment fund transactions and much of his work involves a cross-border element. Michael regularly advises clients on the transactional implications of FATCA from a UK law perspective and presents externally on the subject. Contribution includes chapter 24: U.K.-U.S. Intergovernmental Agreement and Its Implementation.

Maarten de Bruin, Esq. Maarten de Bruin advises on domestic and international tax aspects of commercial and (structured) finance transactions for Stibbe Simont. Maarten joined Stibbe’s tax department in 1989 and moved to the New York office in 1993 where he became partner in 1997. While in New York he graduated from New York University (tax LLM) and spent 6 months in the tax department of Cravath Swaine & Moore. He returned to the Amsterdam office of Stibbe in 1999 where he focused on clients in the industrial and real estate sector. His clients include Accor, Tata, APG and Super de Boer. Contribution includes chapter 30: Exchange of Tax Information and Impact of FATCA for the Netherlands.

Jean-Paul van den Berg, Esq. Jean-Paul van den Berg is a tax partner of Stibbe Simont whose areas of expertise include the application of tax treaties and EU law, major public and private cross-border mergers and acquisitions, private equity transactions (fund formation and investments), tax structuring, structured finance, debt restructuring, and corporate reorganizations. He is a regular speaker and author of articles in his practice area. He is currently based in our Amsterdam office. Previously, from 2008–2012 he was the resident tax partner in Stibbe’s New York offices and from 2002–2005 he was based in Stibbe’s London office. Contribution includes chapter 30: Exchange of Tax Information and Impact of FATCA for the The Netherlands.

Prof. William H. Byrnes, Esq.  William Byrnes has achieved authoritative prominence with 30 book and compendium volumes, 97 book & treatise chapters and book supplements, 1,000 articles, and the monthly subscription Tax Facts Intelligence available via Lexis.com. He is the author of several Lexis multi-volume publications including Foreign Tax & Trade Briefs; Tax Havens of the World; Money Laundering, Asset Forfeiture and Recovery, and Compliance—A Global Guide, and a Practical Guide to U.S. Transfer Pricing. Professionally, William Byrnes was a Senior Manager then Associate Director of international tax for Coopers and Lybrand based in its Johannesburg office. Academically, William Byrnes obtained the title of tenured law professor in 2005 at St. Thomas University and in 2008 the level of Associate Dean at Thomas Jefferson School of Law. William Byrnes pioneered online legal education in 1995, and established the first online LL.M. offered by an ABA accredited law school.  The International Tax & Financial Services graduate program enrolls approximately 200 professionals annually pursuing a Master or Doctorate.

Amanda Castellano, Esq. Amanda Castellano, an attorney working on tax, business, nonprofit and estate planning matters spent three years as an auditor with the Internal Revenue Service. She is currently a tax consultant based in Portland, Oregon. She graduated summa cum laude from Thomas Jefferson School of Law, where she served as Chief Notes Editor on the Thomas Jefferson Law Review. Contribution includes chapter 1: Introduction (Accidental American).

Luzius Cavelti, Esq. Luzius obtained his law degree from the University of Fribourg, Switzerland. He is qualified as certified tax expert (specialization in international tax) and holds an LL.M. degree from the Columbia School of Law. Luzius is admitted to the bar in Zurich and works as associate at Tappolet & Partner in Zurich. Luzius is specialized in international and domestic tax law. Contribution includes chapter 23: Switzerland-U.S. Intergovernmental Agreement and Its Implementation.

Peter Cotorceanu, Esq. Peter Cotorceanu is the Head of Product Management for Trusts and Foundations at UBS AG in Zurich. He was previously UBS’s Head of Wealth Structuring Consulting for UHNW clients in Zurich. In his current role, Peter is responsible for UBS’s FATCA compliance for trusts, foundations, and other fiduciary structures. Before joining UBS, Peter practiced law for over 20 years, both in Switzerland and the U.S., most recently at Baker & McKenzie Zurich. His practice concentrated on trust and estate planning and transfer taxes. Peter was also a law professor for a number of years at Washburn University School of Law, Topeka, Kansas and (as an adjunct) at the Marshall-Wythe School of Law, College of William and Mary, in Williamsburg, Virginia.  Peter is a former member of the Board of Governors of Virginia State Bar’s Trusts and Estates Section, as well as the Kansas Judicial Council’s Probate Advisory Committee and Estate Tax Advisory Sub-Committee.  Peter is admitted to practice in New Zealand as well as in Maryland and Virginia. He has an LL.B. (Hons) from Victoria University, Wellington, New Zealand, a J.D. (With Distinction) from Duke University, Durham, North Carolina, and an Executive LL.M. (Tax) from the New York University School of Law.  Peter is certified as a Trusts and Estates Practitioner (TEP) by STEP, and is a member of the International Bar Association and International Tax Planning Association, among other professional organizations.  Contribution includes chapter 9: FATCA and the Offshore Trust Industry.

Bruno Da Silva, LL.M.  Bruno da Silva works at Loyens & Loeff, European Direct Tax Law team, is a tax treaty adviser for the Macau special administrative region of the People’s Republic of China, and is also a researcher at the Amsterdam Centre for Tax Law of the University of Amsterdam. He lectures at different institutions such as the University of Leiden, University of Amsterdam, International Bureau of Fiscal Documentation (IBFD), Universidade Católica Portuguesa and IBDT (Brazil). He obtained an LL.M. in International Tax Law and he is currently pursuing his Ph.D. Contribution includes chapter 17: European Union Cross Border Information Reporting; and chapter 18: The OECD Role On Exchange Of Information: The TRACE Project, FATCA, and Beyond.

Prof. J. Richard Duke, Esq.  Richard Duke,  attorney, is  a member of the Alabama and the Florida Bar, specializing over forty years in income and estate tax planning and compliance, as well as asset protection, for high net wealth individuals. He served as Counsel to the Ludwig von Mises Institute for Austrian Economics 1983–1989 and a Fellow and Honorary Legal Scholar of the International Academy of Tax Advisors. Over his career he has served on numerous American Bar Association Committees and written many articles for legal and financial publications, several books, and was named to the list of “Top 100 Attorneys” in the U.S., Worth magazine, December 2005-2008. He is a Professor of Law of the LL.M. International Tax Program of Thomas Jefferson School of Law, San Diego, California and was an Adjunct Professor of Law at the Cumberland School of Law of Samford University International for Tax and Asset Protection Planning from 1983–1999. Contribution includes chapter 10: Withholding and Qualified Intermediary Reporting, chapter 11: Withholding and FATCA, chapter 12: “Withholdable” Payments, and chapter 13: Determining and Documenting the Payee.

Dr. Jan Dyckmans, Esq.  Jan Dyckmans is a German attorney at Flick Gocke Schaumburg in Frankfurt am Main, Germany where advises clients on corporate tax law in general and on international tax law matters in particular. He studied law at the University of Würzburg, Germany, where he was awarded his doctorate in 2008.  Contribution includes chapter 19: Exchange of Tax Information and Impact of FATCA for Germany.

Umurcan Gago, Esq., Umurcan Gago is a partner of PwC Turkey. He is a member of the Istanbul Bar and an Independent Chartered Accountant and Financial Advisor. Umurcan is specialised in cross border financial transactions, financial structures/products, conventional and structured financial products, investment banking products, international tax planning, securities law related matters, and financial structuring.   Contribution includes chapter 33: Exchange of Tax Information and the Impact of FATCA for Turkey.

Dr. F. Alfredo García Dr. F. Alfredo García is professor of Financial and Tax Law at the University of Valencia and Jean Monnet Chair of EU Law and Taxation. He is professor of European Taxation at Thomas Jefferson School of Law in California, and has been visiting professor at the Universities of London, Harvard, Leiden, Leuven, Bergamo and Georgetown.  Contribution includes chapter 28: Spain-U.S. Intergovernmental Agreement and its Implementation.

Dr. Valcir Gassen Dr. Valcir Gassen is a Professor of Federal University of Brasilia (UnB), participating with the support CAPES Foundation, Ministry of Education of Brazil. His hold a law degree from the University of Northwest of State of Rio Grande do Sul; an LL.M. from the Federal University of Santa Catarina; Ph.D. from the Federal University of Santa Catarina and Post-doctoral research from the University of Alicante, Spain. He coordinates since 2009 the Research Group in State, Constitution and Tax Law, with undergraduate and graduate students in UnB. Contribution includes chapter  25: Exchange of Tax Information and the Impact of FATCA for Brazil.

Arne Hansen Arne Hansen is a legal trainee of the Hanseatisches Oberlandesgericht (Higher Regional Court of Hamburg), Germany and previously undertook his stage at the Frankfurt office of Flick Gocke Schaumburg. He studied law at the University of Bayreuth, Germany, and the Victoria University of Wellington, New Zealand. He further completed an additional qualification in economics with the focus on finance and taxation at the University of Bayreuth. He is finalizing his doctoral thesis on a topic of international tax law with special regard to double tax treaties. Contribution includes chapter 20: Exchange of Tax Information and Impact of FATCA for Germany.

Mark Heroux, J.D. Mark Heroux, Principal in the Tax Services Group at Baker Tilly Virchow Krause, LLP, joined the firm in 2008. He has more than 25 years of tax litigation, technical, and program management experience. Mark began his career in 1986 with the IRS Office of Chief Counsel, and left public service in 2000. Mark specializes in IRS procedures including the withholding requirements of the US Internal Revenue Code, and dispute resolution including transfer pricing and the negotiation of Advance Pricing Agreements. He leads the IRS Practice and Procedures group, and has provided tax and business advisory services to large and mid-size financial institutions, and high net worth individuals. Contribution includes chapter 26: Exchange of Tax Information and Impact of FATCA for the The British Virgin Islands.

Véronique Hoffeld, Esq. Véronique Hoffeld, attorney-at-law, is a member of the Management Committee of Loyens & Loeff Luxembourg and heads the Luxembourg Commercial and Litigation department.  She can be considered as a generalist lawyer, whose activities cover matters in the areas of commercial law (negotiation of contracts), litigation and arbitration, bankruptcy & restructuring, IP law, real estate law, environment law, E-commerce and new technologies. Véronique is also occasionally involved in maritime and administrative law matters.  Prior to joining Loyens & Loeff Luxembourg, Véronique worked for more than 10 years in another important Luxembourg law firm at which she was made partner in 2003. Véronique is a member of the Luxembourg Bar since 1996.  Contributions include chapter 31: Exchange of Tax Information and Impact of FATCA for Luxembourg.

Rob. H. Holt, Esq. Rob H. Holt is a practicing attorney of thirty years licensed in New York and Texas representing real estate investment companies, university professors, and a variety of other business owners in the formation of their entities, business contracts, and distribution and channel documentation. He is currently completing his LL.M. in Taxation from Thomas Jefferson School of Law. Rob and his wife of 29 years live in College Station/Bryan, Texas. He is an avid, amateur ballroom dancer and loves the waltz, foxtrot, and tango. Contribution includes chapter 7: Foreign Financial Institutions.

Rajul Jain Rajul Jain is Senior Manager at PricewaterhouseCoopers Pvt. Ltd, India (PwC). He has more than 11 years of  International professional experience which involves proactively leading global teams and providing Financial and Strategic analysis, advice on RBI and Regulatory frameworks,  Designing  Compliance frameworks, Project management  advice and performing Enterprise risk reviews. Contribution includes chapter 34 Exchange of Tax Information and Impact of FATCA for India.

Richard Kando, CPA  Richard Kando, a Certified Public Accountant (New York) is a Director at Navigant Consulting. Richard specializes in forensic accounting and compliance matters relating to Government investigations, anti-money laundering and the Foreign Account Tax Compliance Act (“FATCA”). Richard is a leader of Navigant’s FATCA task force. Previously, Richard served as a Special Agent with the IRS Criminal Investigation Division where he received the U.S. Department of Justice—Tax Division Assistant Attorney General’s Special Contribution Award. Contribution includes chapter 2: Practical Considerations for Developing a FATCA Compliance Program.

Denis Kleinfeld, Esq., CPA. Denis Kleinfeld is Of Counsel to Fuerst Ittleman David & Joseph, PL, in Miami, Florida and a Professor of Law of the LL.M. International Tax Program of Thomas Jefferson School of Law, San Diego, California. The author of chapters in prominent legal publications, he has written extensively in professional and general circulation magazines and publications on a wide variety of tax, insurance, estate planning, treaty planning, domestic and international asset protection, and investment issues as well as observations on relevant political, social and economic issues. Mr. Kleinfeld is the founder of, and now serves as co-chairman for, the Florida Annual Wealth Protection Conference and is a speaker at a wide variety of professional conferences, seminars, and symposiums in the United States and around the world. After obtaining his B.S. degree in Accountancy from the University of Illinois in 1967 and obtaining his license as a Certified Public Accountant, Mr. Kleinfeld enrolled at the Loyola University of Chicago School of Law, graduating in 1970. He was admitted to the Illinois Bar in 1970 and was employed as an attorney with the Internal Revenue Service in the Estate and Gift Tax Division for four years before going into private practice. Mr. Kleinfeld has been a member of the Florida Bar since 1983, and is also a member of the Florida Institute of Certified Public Accountants, the American Bar Association, and the American Institute of Certified Public Accountants. Contribution includes chapter 1: Introduction and chapter 5: FBAR & 8938 FATCA Reporting.

Richard L. Knickerbocker, Esq. Richard L. Knickerbocker is the senior partner in the Los Angeles office of the Knickerbocker Law Group. He is the former City Attorney of the City of Santa Monica. He was designated Super Lawyer five years running by Los Angeles magazine, made numerous television appearances and has extensive publications. He has taught law in various colleges and law schools and is a certified civil trial advocate and appellate specialist. He graduated from the University of Southern California Gould School of Law with both a J.D. and an LL.M. degree. Contributions include chapter 11: Withholding and FATCA and chapter 13: Determining and Documenting the Payee.

Saloi Abou-Jaoude’ Knickerbocker  Saloi Abou-Jaoude’ Knickerbocker is a Legal Administrator in the Los Angeles office of the Knickerbocker Law Group. She holds LL.M. (Summa Cum Laude) in International Taxation and Financial Services has earned her J.D. (Summa Cum Laude). She has concentrated her practice and research on shari’a finance. She has published Shari’a Finance: Rapid Expansion With the Islamic Golden Age—Some International Taxation Implications in the TaxTalk Magazine (South Africa).  Contributions include chapter 11: Withholding and FATCA and chapter 13: Determining and Documenting the Payee.

Shinjini Kumar Shinjini Kumar is Executive Director at PricewaterhouseCoopers Pvt. Ltd, India (PwC). She is the Sector leader for Banking and Capital Markets and also heads Financial Services regulatory practice at PwC India. Prior to joining PwC in 2010, Shinjini has held senior positions at the Reserve Bank of India (RBI) and Bank of America-Merill Lynch. Her vast experience with the regulator and industry gives her the distinctive opportunity to engage with the industry, media and policy makers on important issues affecting the industry. Contribution includes chapter 34 Exchange of Tax Information and Impact of FATCA for India.

Mathias M. Link, Esq., LL.M.  Mathias Link is a counsel in the Frankfurt office of Hengeler Mueller. He is qualified as German attorney-at-law and tax consultant, holds an LL.M. degree from Columbia University and is also admitted to the New York bar. He advises corporate clients, banks and financial services institutions on a variety of tax matters including mergers and acquisitions, reorganizations, finance and capital markets transactions. He has particular expertise in the structuring of private equity, real estate and investment fund transactions and his main focus is on international tax aspects. Mathias regularly advises clients on the implications of FATCA from a German law perspective.  Contribution includes chapter 19: Germany.-U.S. Intergovernmental Agreement and Its Implementation.

Jinghua Liu, JD Jinghua Liu is a partner in the Tax group at Baker & McKenzie and is based in the Beijing office. She heads the tax dispute resolution practice in China. She joined Baker & McKenzie in 2004 and has been practicing China tax law since then. She is a frequent speaker at international tax conferences on PRC taxation and international tax planning, and authored and co-authored various articles in leading tax publications. Chambers Asia Pacific lists her as one of the recommended lawyers for tax in 2011 and 2012.  Contribution includes chapter 29: Exchange of Tax Information and Impact of FATCA for China.

Jeffrey Locke, Esq. Jeffrey Locke is Director at Navigant Consulting. At Navigant, he is a leader of the FATCA Task Force and has drafted numerous white papers and articles concerning the practical implementation of FATCA. Prior to joining Navigant, he served as an assistant New York state attorney general in the Criminal Prosecutions Bureau, worked in the prosecutor’s office for the United Nations in Kosovo and was an assistant public defender in Philadelphia. He received his law degree from Columbia Law School. Mr. Locke recently contributed a chapter to the book “International Prosecutors” published by Oxford University Press. Contribution includes chapter 2: Practical Considerations for Developing a FATCA Compliance Program.

Josh Lom  Josh works at Herbert Smith Freehills LLP having graduated from Oxford University. Contributions include chapter 24: UK-U.S. Intergovernmental Agreement and Its Implementation.

Jason R. Miller  Jason R. Miller recently spent the summer as a stagier at PwC Istanbul working with Umurcan Gago to author several chapters on Turkey for Lexis publications.  He will graduate in 2014 from Thomas Jefferson School of Law with his Juris Doctorate specializing in Global Legal Studies and Business Law.  Jason has a BS in Business Administration from California Polytechnic State University, San Luis Obispo, with a concentration in Human Resources.  He has contributed to publications for LexisNexis and Wolters Kluwer, including chapters on Company Law, AML, FATCA, and Foreign Tax and Trade Briefs.  Jason is an Editor of the Thomas Jefferson Law Review.   Contribution includes: chapter 33 Exchange of Tax Information and the Impact of FATCA for Turkey.

Dr. Robert J. Munro Dr. Robert Munro is the author of 35 published books including Lexis’ three volume Tax Havens of the World, two volume Foreign Tax & Trade Briefs, and Money Laundering, Asset Forfeiture and Recovery, and Compliance—A Global Guide. He is a Professor of the International Tax & Financial Services Graduate Program of Thomas Jefferson School of Law, San Diego, California. A former Law Librarian at University of Florida College of Law, Dr. Munro was the Director of the Center for International Financial Crimes Studies at UF and continues as a Senior Research Fellow and Director of Research for North America of CIDOEC at Jesus College, Cambridge University, England. He has addressed audiences at Cambridge University, the University of Florida, the University of London, the CIA and the U.S. State Department and created, organized and chaired over twenty conferences in Miami, Aruba, Curacao, the Bahamas, Washington, D.C., New York City, Cambridge, England and San Francisco.

Rachel O’Toole  Rachel O’Toole BA, LL.B, BL, is a barrister-at-law licensed in Ireland and holds the Master of Laws, International Taxation & Financial Services (Thomas Jefferson School of Law, San Diego). She practices a wide range of civil litigation. Besides her role as trial advocate, her work includes advice in financial and debt related issues, planning law compliance, implementation and compliance of European environmental law, and construction and contract disputes. She is an accredited civil and commercial mediator. She has researched and presented papers on current and emerging areas of financial law and compliance facing practitioners in Ireland. Contribution includes Chapter 20: Ireland-U.S. Intergovernmental Agreement and Its Implementation.

Dr. Maji C. Rhee  Maji C. Rhee is a professor of Waseda University located in Tokyo, Japan where she teaches courses on language and legal communications. Rhee received her Ed.D. from Rutgers, her LL.M. in International Taxation & Financial Services from Thomas Jefferson School of Law and is currently finishing her J.S.D. dissertation on transfer pricing in Japan. Contribution includes chapter 21: Japan-U.S. Intergovernmental Agreement and Its Implementation.

Jean Richard, Esq. Jean Richard, a Canadian attorney, previously worked for the Quebec Tax Department, as a Senior Tax Manager with a large international accounting firm and as a Tax & Estate consultant for a pre-eminent Canadian insurance company. He is currently the Vice President and Sr. Wealth Management Consultant of the BMO Financial Group. He completed a LL.L. at University of Montreal, was admitted to the Quebec Bar Association in 1981. He also completed the Canadian ‘In Depth Tax Course’ (Canadian Institute of Chartered Accountant), a Master in International Taxation with the Australian School of Taxation (ATAX), University of New South Wale, Sydney, Australia and a LL.M. in International Tax and Financial Services (International Taxation) with the Thomas Jefferson School of Law. He is a licensed financial planner and financial security advisor.  Contribution includes chapter 27: Exchange of Tax Information and Impact of FATCA for Canada.

Michael J. Rinaldi, II, CPA.  Mr. Rinaldi represents U.S. and foreign institutions and families in a broad range of advisory activities including private equity real estate opportunity funds, with regard to formation, acquisitions, operations, dispositions and development of significant properties and portfolios. He is a Professor in the graduate international tax law program at Thomas Jefferson School of Law, where he teaches on Trusts, Private Equity Funds and Tax Treaties. Professor Rinaldi has authored several publications for Kluwer Law International, Jordan’s and LexisNexis. He is licensed as a certified public accountant in the District of Columbia and is a member of the International Tax Planning Association (ITPA), the Society of Trust and Estate Practitioners (STEP) and the American Bar Association, Tax Section-Partnership and US Activities of Foreigners & Tax Treaties Committees. He holds graduate degrees in accounting and tax law (both US and International). Contributions includes chapter 6: Determining U.S. Ownership Under FATCA; chapter 7: Foreign Financial Institutions; and chapter 8: Non-Financial Foreign Entities.

Edgardo Santiago-Torres, Esq. Edgardo Santiago-Torres is an attorney at law, principal of Santiago Law Group, LLC, and of counsel of the Knickerbocker Law Group, representing individuals and entities in corporate, taxation, and estate planning litigation. Mr. Santiago is also a Certified Public Accountant and a Chartered Global Management Accountant, pursuant to the AICPA and CIMA rules and regulations, admitted by the Puerto Rico Board of Accountancy to practice Public Accounting in Puerto Rico. He holds an LL.M. in International Taxation and Financial Services (highest honors) and a Juris Doctor (honors) of the University of Puerto Rico School of Law.  Contributions include chapter 11: Withholding and FATCA and chapter 13: Determining and Documenting the Payee.

Hope M. Shoulders, Esq.  Hope M. Shoulders is a licensed attorney in the State of New Jersey. She is currently consulting for a major insurance company assisting with their implementation of FATCA. She is also an adjunct professor for the Thomas Jefferson School of Law. She  previously worked for General Motors, National Transportation Safety Board and the Department of Commerce. She completed her LL.M. in International Taxation from Thomas Jefferson School of Law in San Diego, California. She is a contributor of numerous articles and completed her thesis on OECD transfer pricing and business restructuring. She earned her J.D. and her MBA from the University of Tennessee and a Bachelors of Science from the University of Virginia. Contribution includes chapter 10: FATCA and the Insurance Industry.

Jason Simpson, LL.M., CRA, CCA  Jason Simpson is the Director of the Miami office for Global Atlantic Partners, overseeing all operations in Florida, the Caribbean and most of Latin America. He has worked previously as a bank compliance employee and advisor at various large and mid-sized financial institutions over the past ten years. He has been a key component in the removal of Cease and Desist Orders as well as other written regulatory agreements within a number of Domestic and International Banks, and designed complete AML/BSA units for domestic as well as international banks with over ten million accounts. He is an Adjunct Faculty Member of Thomas Jefferson School of Law for Compliance, AML and Fraud, where he holds a Master of Laws in International Taxation with a concentration specialized in Anti-Money Laundering, Anti-Terrorist Financing and Compliance. Through various online venues, he creates and teaches specialized webinars in both English and Spanish focused compliance. Contribution includes chapter 3: FATCA Compliance and Integration of Information Technology; and chapter 4: Financial Institution Account Remediation.

Dr. Alberto Gil Soriano, Esq. Alberto Gil Soriano is a Spanish attorney who holds a Ph.D. in Tax Law at University of Bologna (Italy), LL.M. in International Taxation and Financial Services at Thomas Jefferson School of Law in San Diego (California) and is Law degree from the University of Valencia (Spain). He has worked at the University of Valencia, at the European Commission’s Anti-Fraud Office in Brussels, and most recently at the Legal Department of the International Monetary Fund’s Financial Integrity Group in Washington, D.C. He currently works at the Fiscal Department of Uría Menéndez Abogados, S.L.P in Barcelona (Spain). Contributions include chapter 1: Introduction and chapter 15: Framework of Intergovernmental Agreements.

Krisztina Szombathy, Esq.  Krisztina Szombathy joined the Commercial & Litigation Department of Loyens & Loeff Luxembourg in October 2013.  She specializes in dispute resolution, and advises on commercial and civil law. Her areas of expertise also include European law, energy law and intellectual property. Before joining Loyens & Loeff, Krisztina acquired experience in legal drafting, notably in European and energy law matters during an internship at the European Court of Justice in Luxembourg.  Krisztina has been a member of the Luxembourg Bar since spring 2013.  Contributions include chapter 31: Exchange of Tax Information and Impact of FATCA for Luxembourg.

Debora de Souza Correa Talutto  Debora de Souza Correa Talutto is the International Transfer Pricing Manager at Temenos Banking Software Co., and a professor of international transfer pricing at Thomas Jefferson School of Law International Tax graduate program.  She is a sought after Brazilian tax authority, having authored the Brazilian chapter of LexisNexis’ Foreign Tax and Trade Briefs, the Brazilian chapter of Lexis’ Anti Money Laundering, Asset Forfeiture, & Recovery Guide, and most recently the Cost Sharing Arrangement chapter of Lexis’ Practical Guide to U.S. Transfer Pricing.    Ms. Talutto previously served as a tax consultant at Deloitte (Brazil) before earning her LL.M. in International Tax from University of Florida.  She holds an MBA, an LL.B. (Brazil), as well as a post-graduate degree in Brazilian taxation.  Contributions include chapter 25: Exchange of Tax Information and Impact of FATCA for Brazil.

Andrey Tereschenko, Esq.  Andrey Tereschenko is a tax partner in the Moscow office of Pepeliaev Group LLC. He focuses on tax law and has a high level of expertise in providing advice to major Russian and foreign companies on a wide range of tax issues but especially the implementation of compensation tax arrangements. Andrey has participated in projects to set up businesses in Russia, including assessment of the tax environment in the chosen business region, investment agreements with regional authorities and tax support for due diligence. Andrey has been directly involved in tax structuring of investment projects, particularly in the sphere of construction, land and real estate acquisition. Contributions include chapter 32: Exchange of Tax Information and Impact of FATCA for Russia.

Lily L. Tse, CPA.  Ms. Tse, a partner of Rinaldi & Associates (Washington, D.C.), represents US and foreign real estate private equity funds and property owners with regard to financial reporting and international tax matters. Her area of practice includes real estate development and leasing, joint ventures, consolidations and mezzanine financing. She has significant experience in U.S. withholding issues effecting foreign partnerships and trusts. Ms. Tse also heads the firm’s audit practice specializing in the development and operation of multi-family housing. Ms. Tse has been qualified as an expert witness in Federal Court, providing testimony in the area of real estate financing. Ms. Tse is licensed as a certified public accountant in the District of Columbia and holds graduate degrees in business and taxation. Contributions include chapter 7: Foreign Financial Institutions.

Dr. Oliver Untersander, Esq.  Oliver Untersander obtained his law degree and his PhD from the University of Zurich. Her holds a LL.M. from the New York University (international tax) and is admitted to the bar in Zurich (Switzerland). He is partner at Tappolet & Partner in Zurich. He is experienced in Swiss and international corporate taxation, corporate reorganizations and tax litigation. Contribution includes chapter 23: Switzerland-U.S. Intergovernmental Agreement and Its Implementation.

Mauricio Cano del Valle, Esq.  Mauricio Cano del Valle is a Mexican attorney who has previously worked for the Mexican Ministry of Finance (Secretaría de Hacienda),  Deloitte Mexico and the Amicorp Group. He is the founding partner of Brook & Cano SC, a Mexican boutique Law Firm, specializing on private clients, HNWI, UHNWI, their families and their businesses. Mauricio has been a professor at both the undergraduate and the graduate level at ITAM, the author of the book “Game Theory and Tax Evasion” published in Mexico in 2006, and the most recently published paper on “Game Theory and Minimum Taxes” included as part of a book on “Game Theory and Contemporary Law” published in Mexico in 2009. He holds a Law Degree, a Masters Degree in Law and Economics, and an MBA. Contribution includes chapter 22: Mexico-U.S. Intergovernmental Agreement and Its Implementation.

Janneke Versantvoort  Janneke Versantvoort is an international tax specialist and a member of the general tax practice at Loyens & Loeff Luxembourg. She is specialized in international tax law, focusing on advising multinational clients on cross-border transactions, group restructurings, project financing and transfer pricing. She worked for three years at the Loyens & Loeff Rotterdam office and is seconded to the Luxembourg office for two years.  Janneke is a member of the Dutch Association of Tax Advisers (NOB) and a member of the Young IFA in Luxembourg.  Contributions include chapter 31: Exchange of Tax Information and Impact of FATCA for Luxembourg.

John Walker, Esq.  John M. Walker, Esq., LL.M., is an international tax attorney who earned his LL.M. in International Taxation and Financial Services. He focuses on international tax compliance for high-net worth individuals as well as foreign trust compliance and structuring under the Foreign Account Tax Compliance Act (FATCA). He is Of Counsel to Duke Law Firm, P.C., and Michael Rinaldi & Co, LLP . Contributions include chapter 6: Determining U.S. Ownership Under FATCA, chapter 12: FATCA Withholding Compliance, chapter 13: “Withholdable” Payments Under FATCA, and chapter 14: Determining and Documenting the Payee.

Prof. Bruce Zagaris, Esq.  Bruce Zagaris is a partner at the Washington, D.C. law firm Berliner, Corcoran & Rowe, LLP, where he practices tax controversy and international criminal law, including representing individuals on voluntary disclosures, audits, and litigation as well as consulting and serving as an expert witness. He represents foreign governments, including helping negotiate treaties. He is an adjunct law professor of the LL.M. in International Taxation and Financial Services at Thomas Jefferson School of Law in San Diego. Mr. Zagaris is founder and editor of the International Enforcement Law Reporter (www.ielr.com). He is the author of International White Collar Crime (Cambridge U. Press 2010). Contribution includes chapter 15: Analysis of Current Intergovernmental Agreements.

Qiguang (Hardy) Zhou, LL.M., CPA  Qiguang (Hardy) Zhou works in the Tax group at Baker & McKenzie and is based in the Shanghai office. He obtained an LL.M. in International Tax Law. Contribution includes chapter 29: Exchange of Tax Information and Impact of FATCA for China.

Chapter 1 Background and Current Status of FATCA
Chapter 2 Practical Considerations for Developing a FATCA Compliance Program
Chapter 3 FATCA Compliance and Integration of Information Technology
Chapter 4 Financial Institution Account Remediation
Chapter 5 FBAR and Form 8938 Reporting and List of International Taxpayer IRS Forms
Chapter 6 Determining U.S. Ownership of Foreign Entities
Chapter 7 Foreign Financial Institutions
Chapter 8 Non-Financial Foreign Entities
Chapter 9 FATCA and the Offshore Trust Industry
Chapter 10 FATCA and the Insurance Industry
Chapter 11 Withholding and Qualified Intermediary
Chapter 12 FATCA Withholding Compliance
Chapter 13 ”Withholdable” Payments
Chapter 14 Determining and Documenting the Payee
Chapter 15 Framework of Intergovernmental Agreements
Chapter 16 Analysis of Current Intergovernmental Agreements
Chapter 17 European Union Cross Border Information Reporting
Chapter 18 The OECD Role in Exchange of Information: The Trace Project, FATCA, and Beyond
Chapter 19 Germany-U.S. Intergovernmental Agreement and its Implementation
Chapter 20 Ireland-U.S. Intergovernmental Agreement and its Implementation
Chapter 21 Japan-U.S. Intergovernmental Agreement and its Implementation
Chapter 22 Mexico-U.S. Intergovernmental Agreement and its Implementation
Chapter 23 Switzerland-U.S. Intergovernmental Agreement and its Implementation
Chapter 24 The United Kingdom-U.S. Intergovernmental Agreement and its Implementation
Chapter 25 Exchange of Tax Information and the Impact of FATCA for Brazil
Chapter 26 Exchange of Tax Information and the Impact of FATCA for The British Virgin Islands
Chapter 27 Exchange of Tax Information and the Impact of FATCA for Canada
Chapter 28 Exchange of Tax Information and the Impact of FATCA for Spain
Chapter 29 Exchange of Tax Information and the Impact of FATCA for China
Chapter 30 Exchange of Tax Information and the Impact of FATCA for Netherlands
Chapter 31 Exchange of Tax Information and the Impact of FATCA for Luxembourg
Chapter 32 Exchange of Tax Information and the Impact of FATCA for Russia
Chapter 33 Exchange of Tax Information and the Impact of FATCA for Turkey
Chapter 34 Exchange of Tax Information and the Impact of FATCA for India

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William Byrnes authors new book on Client Prospecting for Sales Essentials Series

Posted by William Byrnes on March 7, 2014


On February 10, 2014 National Underwriter released its book Sales Essentials: Prospecting by Associate Dean William Byrnes.

“The National Underwriter Sales Essentials Series combines all of the most practical, proven sales techniques advisors, agents, brokers, producers, sales managers or agency owners need to convert prospects into customers, win new business, and to grow sales,” related Rick Kravitz Managing Director of the Professional Publishing Division. “The Life & Health Sales Essentials focuses on the selling skills and techniques essential to achieving success—prospecting for new business and the demands of running an agency.”  

“My co-author Robert Bloink and I wanted to write from a different focus than our tax books” explained William Byrnes.  “We uncovered that many financial professionals, accountants and attorneys aren’t taught the necessary soft skills in business and law school to develop and manage a sustainable practice after graduation.  This book addresses the soft skills necessary to be the firm ‘rainmaker’ and build a client base.”

Robert Bloink added, “Most young professionals don’t understand that the most valuable skill is the ability to attract and maintain clients.  In the current legal market, there are twice as many graduates as good positions – it’s an employer’s market.  Byrnes book on Prospecting

“In this new book we cover such topics as How to Clone Your Clients, What`s your Point of Difference?, The ‘Ben Franklin Method’ For Winning People Over, How to Cultivate A Network of Endless Referrals, and Marketing to the Millennials,” said William Byrnes. 

“I invite my readers to attend a soft skills webinar based upon the book, sponsored by Advisys, where Robert and I will be speaking about obtaining and maintaining clients. Hundreds of professionals attended our March 5 webinar that focused on lead development.  April 2 will focus on client cloning, including: asking intriguing questionsC2C qualified introductionsrepeating your successful formulae and finally, client crowd sourcing

William Byrnes continued “Jeremy Evans (Thomas Jefferson ’11) invited me to discuss on April 16 at the San Diego County Bar Association ‘Prospecting in the Twenty-First Century’ for a noon panel.”

The book is available at National Underwriter Sales Essentials: Prospecting

To Join the no-cost April 2 Webinar, contact WilliamByrnes@gmail.com

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IRS Small Business Tax Center ….

Posted by William Byrnes on March 7, 2014


IRS Tax Tip 2014-09 posted February a couple weeks ago and I excerpt relevant portions for the small business community, many actively engaging with their tax preparers for tax season.

The Center includes these resources:

  • You can apply for an Employer Identification Number, get a form or learn about employment taxes.
  • IRS Video Portal.  Watch helpful videos and webinars on many topics. Find out about filing and paying business taxes or about how the IRS audit process works. Under the ‘Businesses’ tab, look for the ’Small Biz Workshop.’ Watch it when you want to learn the basics about small business taxes.
  • Online Tools and Educational Products.  The list of Small Business products includes the Tax Calendar for Small Businesses and Self-Employed. Install the IRS CalendarConnector tool and access important tax dates and tips right from your smart phone or computer, even when you’re offline.
  • Small Business Events.  Find out about free IRS small business workshops and other events planned in your state.

Go to the Small Business and Self-Employed Tax Center and use the A-Z index to find whatever you need.

For more than half a century, Tax Facts has been an essential resource designed to meet the real-world tax-guidance needs of professionals in both the insurance and investment industries.  For over 110 years, National Underwriter has been the first in line with the targeted tax, insurance, and financial planning information you need to make critical business decisions.

2014_tf_on_individuals_small_businesses-m_1Due to a number of recent changes in the law, taxpayers are currently facing many questions connected to important issues such as healthcare, home office use, capital gains, investments, and whether an individual is considered an employee or a contractor. Financial advisors are continually looking for updated tax information that can help them provide the right answers to the right people at the right time. This brand-new resource provides fast, clear, and authoritative answers to pressing questions, and it does so in the convenient, timesaving, Q&A format for which Tax Facts is famous.

“Our brand-new Tax Facts title is exciting in many ways,” says Rick Kravitz, Vice President & Managing Director of Summit Professional Network’s Professional Publishing Division. “First of all, it fills a huge gap in the resources available to today’s advisors. Small business is a big market, and this book enables advisors to get up-and-running right away, with proven guidance that will help them serve their clients’ needs. Secondly, it addresses the biggest questions facing all taxpayers and provides absolutely reliable answers that help advisors solve today’s biggest problems with confidence.”

tax-facts-online_medium

The company also points out that the expert authors—Robert Bloink, Esq., LL.M., and William H. Byrnes, Esq., LL.M., CWM®—are delivering real-life guidance based on decades of experience.

“The authors’ knowledge and experience in tax law and practice provides the expert guidance for National Underwriter to once again deliver a valuable resource for the financial advising community,” added Kravitz.

Anyone interested can try Tax Facts on Individuals & Small Business, risk-free for 30 days, with a 100% guarantee of complete satisfaction.  For more information, please go to www.nationalunderwriter.com/TaxFactsIndividuals or call 1-800-543-0874.

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LexisNexis releases next edition of Money Laundering, Asset Forfeiture and Recovery Global Guide

Posted by William Byrnes on March 6, 2014


book cover

Graduating Thomas Jefferson juris doctor candidate Emmanuel Rayes co-authored with Dr. David Utzke the chapter “Virtual-Currency Regulatory Developments” for LexisNexis new release of Money Laundering, Asset Forfeiture and Recovery and Compliance — A Global Guide (LexisNexis).  Ashley Paulson, currently working in a DEA internship position and also about to graduate from Thomas Jefferson, leveraged her professional network and work expertise to create three new compliance oriented chapters for banks, including one on politically exposed persons (‘PEPs’).

Emmanuel Rayes reported “Associate Dean William Byrnes provided many great resources in helping me prepare Emmanuel Rayesthis publication. He has valuable connections in the legal and business fields not only in the United States but all over the World. Dean Byrnes introduced me to Dr. Utzke who is the lead IRS agent for virtual currencies and offshore compliance. Dr. Utzke’s guidance and insight was pivotal in completing this publication.”

professionalpicture_Medium“At the DEA one of my supervisors was impressed that I was working with Associate Dean William Byrnes,” related Ashley Paulson. “With the experience gained from my government work and from consulting other expert attorneys in this area, I was able to analyze three areas of chief concern for financial institutions: suspicious activity reporting (‘SAR’), currency transaction reporting (‘CTR’) and PEPS.  My interest in PEP compliance grew after the International Consortium of Investigative Journalists exposed thousands of instance of major banks thwarting PEP guidelines, leading to corresponding allegations of corruption by those PEPs and their families.” 

“Virtual currencies are changing the perception of what money is and what money can do,” Emmanuel Rayes described.  “The amount of excitement and interest surrounding this topic is comparable to the introduction of the Internet or the Smartphone.”

 “After passing the Bar, I plan to stay involved with this publishing as a Thomas Jefferson alumni,” declared Ashley Paulson.  “I encourage students to attend William Byrnes’ lectures and learn about these unique opportunities for his students to engage with experts to assist them in authoring articles on current topics.”  

Mr. Rayes added, “I think that being a featured author in a major LexisNexis publication that so many lawyers and banks rely upon is a career game changer.  It’s already opening doors.”

“I agree”, said Ms. Paulson, “Having been an author for chapters that banks are referencing, and my experience with the DEA, has distinguished me from other graduates for career opportunities.”

“I match my Thomas Jefferson students with co-authorship opportunities in my graduate publication seminar that they may connect with professionals and begin to build a network,” explained William Byrnes.  “I am hosting a Tax Society lunch on March 25th featuring renown European Court of Justice expert and author Dr. Dennis Weber and will discuss the next set of networking opportunities with those attending.”

Money Laundering, Asset Forfeiture and Recovery and Compliance — A Global Guide

William H. Byrnes, IV,

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Taxable and Nontaxable Income

Posted by William Byrnes on March 5, 2014


The IRS published another tax tip (2014-12) to assist tax filers this tax season addressing when income is taxable, and when it is not.

With individual tax returns due at the post office within 6 weeks, the IRS is stepping up efforts to help guide taxpayers with basic income tax questions and filing requirements.  Excerpted below, in its Tax Tip, the IRS states:

Taxable income includes money you receive, such as wages and tips. It can also include noncash income from property or services. For example, both parties in a barter exchange must include the fair market value of goods or services received as income on their tax return.

Some types of income are not taxable except under certain conditions, including:

  • Life insurance proceeds paid to you are usually not taxable. But if you redeem a life insurance policy for cash, any amount that is more than the cost of the policy is taxable.
  • Income from a qualified scholarship is normally not taxable. This means that amounts you use for certain costs, such as tuition and required books, are not taxable. However, amounts you use for room and board are taxable.
  • If you got a state or local income tax refund, the amount may be taxable. You should have received a 2013 Form 1099-G from the agency that made the payment to you. If you didn’t get it by mail, the agency may have provided the form electronically. Contact them to find out how to get the form. Report any taxable refund you got even if you did not receive Form 1099-G.

Here are some types of income that are usually not taxable:

  • Gifts and inheritances
  • Child support payments
  • Welfare benefits
  • Damage awards for physical injury or sickness
  • Cash rebates from a dealer or manufacturer for an item you buy
  • Reimbursements for qualified adoption expenses

For more on this topic see Publication 525, Taxable and Nontaxable Income.

IRS YouTube Videos:

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The Child Tax Credit May Cut Your Tax

Posted by William Byrnes on March 4, 2014


IRS Tax Tip 2014-18 reminds taxpayers whom have a child or children under 17, then the Child Tax Credit may save money at tax time.  Key facts the IRS wants taxpayers to know about the Child Tax Credit:

• Amount.  The non-refundable Child Tax Credit may help cut the federal income tax by up to $1,000 for each qualifying child claimed on a tax return.

• Qualifications.  A child must pass seven tests to qualify for this credit:

1. Age test. The child was under age 17 at the end of 2013.

2. Relationship test. The child is a son, daughter, stepchild, foster child, brother, sister, stepbrother, or stepsister. A child can also be a descendant of any of these persons. For example, a grandchild, niece or nephew will meet this test. Adopted children also qualify. An adopted child includes a child lawfully placed with a taxpayer for legal adoption.

3. Support test. The child did not provide more than half of his or her own support for 2013.

4. Dependent test. Claim the child as a dependent on your 2013 federal income tax return.

5. Joint return test. A married child can not file a joint return with their spouse.

6. Citizenship test. The child must be a U.S. citizen, U.S. national or U.S. resident alien.

7. Residence test. In most cases, the child must have lived with the taxpayer for more than half of 2013.

• Limitations. Taxpayer’s filing status and income may reduce or eliminate the credit.

• Additional Child Tax Credit.  If the taxpayer receives less than the full Child Tax Credit, may still qualify for the refundable Additional Child Tax Credit. This means taxpayer may receive a refund even if no tax is owed.

• Schedule 8812.  A taxpayer may need to file Schedule 8812, Child Tax Credit, with the tax return. A taxpayer claiming the Additional Child Tax Credit must complete and attach Schedule 8812.

• Interactive Tax Assistant Tool.  Use the ITA tool to determine whether it is possible to claim the Child Tax Credit.

For more than half a century, Tax Facts has been an essential resource designed to meet the real-world tax-guidance needs of professionals in both the insurance and investment industries.

2014_tf_on_individuals_small_businesses-m_1Due to a number of recent changes in the law, taxpayers are currently facing many questions connected to important issues such as healthcare, home office use, capital gains, investments, and whether an individual is considered an employee or a contractor. Financial advisors are continually looking for updated tax information that can help them provide the right answers to the right people at the right time. This brand-new resource provides fast, clear, and authoritative answers to pressing questions, and it does so in the convenient, timesaving, Q&A format for which Tax Facts is famous.

“Our brand-new Tax Facts title is exciting in many ways,” says Rick Kravitz, Vice President & Managing Director of Summit Professional Network’s Professional Publishing Division. “First of all, it fills a huge gap in the resources available to today’s advisors. Small business is a big market, and this book enables advisors to get up-and-running right away, with proven guidance that will help them serve their clients’ needs. Secondly, it addresses the biggest questions facing all taxpayers and provides absolutely reliable answers that help advisors solve today’s biggest problems with confidence.”

The company also points out that the expert authors—Robert Bloink, Esq., LL.M., and William H. Byrnes, Esq., LL.M., CWM®—are delivering real-life guidance based on decades of experience.

tax-facts-online_medium

The authors’ knowledge and experience in tax law and practice provides the expert guidance for National Underwriter to once again deliver a valuable resource for the financial advising community,” added Kravitz.

Anyone interested can try Tax Facts on Individuals & Small Business, risk-free for 30 days, with a 100% guarantee of complete satisfaction.  For more information, please go to www.nationalunderwriter.com/TaxFactsIndividuals or call 1-800-543-0874.

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Eight Tax Savers for Parents

Posted by William Byrnes on March 3, 2014


IRS Tax Tip 2014-11

The IRS published eight tax benefits parents should look out for when filing their federal tax returns this year, excerpted below.

1. Dependents.  In most cases, you can claim your child as a dependent. This applies even if your child was born anytime in 2013. For more details, see Publication 501, Exemptions, Standard Deduction and Filing Information.

2. Child Tax Credit.  You may be able to claim the Child Tax Credit for each of your qualifying children under the age of 17 at the end of 2013. The maximum credit is $1,000 per child. If you get less than the full amount of the credit, you may be eligible for the Additional Child Tax Credit. For more about both credits, see the instructions for Schedule 8812, Child Tax Credit, and Publication 972, Child Tax Credit.

3. Child and Dependent Care Credit.  You may be able to claim this credit if you paid someone to care for one or more qualifying persons. Your dependent child or children under age 13 are among those who are qualified. You must have paid for care so you could work or look for work. For more, see Publication 503, Child and Dependent Care Expenses.

4. Earned Income Tax Credit.  If you worked but earned less than $51,567 last year, you may qualify for EITC. If you have three qualifying children, you may get up to $6,044 as EITC when you file and claim it on your tax return. Use the EITC Assistant tool at IRS.gov to find out if you qualify or see Publication 596, Earned Income Tax Credit.

5. Adoption Credit.  You may be able to claim a tax credit for certain expenses you paid to adopt a child. For details, see the instructions for Form 8839, Qualified Adoption Expenses.

6. Higher education credits.  If you paid for higher education for yourself or an immediate family member, you may qualify for either of two education tax credits. Both the American Opportunity Credit and the Lifetime Learning Credit may reduce the amount of tax you owe. If the American Opportunity Credit is more than the tax you owe, you could be eligible for a refund of up to $1,000. See Publication 970, Tax Benefits for Education.

7. Student loan interest.  You may be able to deduct interest you paid on a qualified student loan, even if you don’t itemize deductions on your tax return. For more information, see Publication 970.

8. Self-employed health insurance deduction.  If you were self-employed and paid for health insurance, you may be able to deduct premiums you paid to cover your child under the Affordable Care Act. It applies to children under age 27 at the end of the year, even if not your dependent. See Notice 2010-38 for information.

IRS YouTube Videos:

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Highlights of the Tax Reform Act of 2014

Posted by William Byrnes on March 2, 2014


Highlights of the Tax Reform Act of 2014 (excerpted from the Ways & Means release)

New Individual and Corporate Rate Structure:  Flattens the code by reducing rates and collapsing today’s brackets into two brackets of 10 and 25 percent for virtually all taxable income, ensuring that over 99 percent of all taxpayers face maximum rates of 25 percent or less.  The plan also reduces the corporate rate to 25 percent. 

Larger Standard Deduction:  Makes the code simpler and fairer by providing a significantly more generous, inflation-adjusted standard deduction of $11,000 for individuals and $22,000 for married couples.

Larger Child Tax Credit:  Increases the child tax credit to $1,500 per child, adjusts it for inflation going forward and expands the number of families that can claim the credit.

Simpler, Improved Taxation of Investment Income:  Taxes long-term capital gains and dividends as ordinary income, but exempts 40 percent of such income from tax – resulting in a three percentage point decrease from the maximum rates individuals pay today on such income while also achieving the lowest level of double taxation on investment income in modern history.

No AMT:  In addition to lowering tax rates for families and all job creators, the plan repeals the Alternative Minimum Tax (AMT) for individuals, pass-through businesses and corporations.

Easier Education Benefits: Adopts recommendations stemming from the bipartisan working groups to consolidate education tax benefits so, along with the additional money from stronger economic growth, families can more easily afford the costs of a college education.

Modernized International System: Modernizes the international tax code for the first time in more than 50 years while protecting jobs, wages and profits from being shipped overseas.

Permanent R&D Incentive:  Invests in innovation by making permanent an improved Research & Development Tax Credit.

More Affordable Healthcare: While the plan generally leaves ObamaCare policies untouched and for a later debate on healthcare, there are two main exceptions given strong bipartisan support for: (1) repeal of the medical device tax and (2) repeal of the medicine cabinet tax, which prohibits use of funds from tax-free accounts to purchase over-the-counter medication without first obtaining a prescription.

IRS Accountability:  Cracks down on IRS abuses and reduces massive waste, fraud and abuse.  The plan also contains provisions prohibiting implementation of recently proposed rules affecting 501(c)(4) organizations and provides victims with information regarding the status of investigations into violations of their taxpayer rights.

Infrastructure Investment:  Dedicates $126.5 billion to the Highway Trust Fund (HTF) to fully fund highway and infrastructure investment through the HTF for eight years.

Simplification for Seniors:  Reflecting a proposal supported by AARP and ATR, the plan requires the IRS to develop a simple tax return to be known as Form 1040SR, for individuals over the age of 65 who receive common kinds of retirement income like annuity and Social Security payments, interest, dividends and capital gains.

Charitable Giving:  Expands opportunities to make tax-deductible contributions past the end of the tax year, makes permanent conservation easement incentives, simplifies exempt organization taxes and sets a floor instead of a cap to the amount of donations that can be deducted.  The economic growth in this plan will increase charitable giving by $2.2 billion annually.

Shrinks and Simplifies the Income Tax Code:  In addition to easing complexity and compliance burdens by adopting a larger standard deduction, enhanced child tax credit and lower rates, the plan repeals over 220 sections of the tax code; cutting the size of the income tax code by 25 percent.

In keeping with previously released drafts, the Committee seeks input and feedback on technical and policy issues raised by the draft released today.  The Committee also invites input on the accompanying technical explanation prepared by the JCT staff, a document that could serve as the basis for similar legislative history on any future tax reform legislation that may be considered by the Committee.  Additionally, as it further examines options arising from the budgetary and economic analysis, the Committee is especially interested in receiving constructive feedback on areas listed below.

1. Extenders Policy ($1 Trillion):  The proposal has been scored by JCT as deficit neutral; it does not increase the budget deficit relative to the projected deficits for the FY2014-23 budget window.  CBO’s revenue baseline for this period assumes that a number of tax policies expire and are not renewed.  However, CBO has noted that “[n]early all of those provisions have been extended previously; some, such as the research and experimentation tax credit, have been extended multiple times.”  Including a permanent extension of these policies would result in the revenue baseline being almost $1 trillion lower over the FY2014-23 budget window than projected.  In such a scenario, the proposal would therefore reduce the deficit – mostly through revenue increases – potentially by as much as $1 trillion (without considering all potential interactions among those policies and the proposal). CBO annually presents an “alternative fiscal scenario” that assumes these tax provisions are made permanent – the same assumption generally used for spending programs in CBO’s traditional baseline.  The Committee is interested in feedback on which (including none or all) of these expiring tax provisions should be included in the revenue baseline for purposes of determining whether the proposal is deficit neutral.

2. Dynamic Revenue ($700 Billion):  JCT’s analysis shows that the additional economic growth that would result from the enactment of tax reform would generate up to an additional $700 billion in tax receipts over the FY 2014-2023 budget window as a result of increased employment and higher wages.  This additional revenue, however, is not taken into account as part of JCT’s determination that the proposal is deficit neutral.  As a result, under the proposal as currently structured, this additional revenue would be available to the Federal government for a variety of purposes.  The Committee is interested in feedback on how this additional revenue should be treated (e.g., should it be used to further lower tax rates or to provide other tax benefits, should it be dedicated to deficit reduction, or should it be dedicated to some combination of the two).

3. Household Impact:  The proposal has been scored by JCT as being distributionally neutral; it does not significantly change the share of taxes paid by or the average tax rate for each income cohort reported by JCT.  However, each income cohort reported by JCT includes a heterogeneous mix of taxpayers.  For example, the combination of lower rates, the increase in the size of the standard deduction, and the reforms to the child tax credit and EITC will affect households differently depending on the number of children in the household and whether the taxpayer files jointly.  The Committee is interested in feedback as to whether and how these more detailed circumstances should be analyzed and whether there are certain distributional outcomes that are more preferable than others (e.g., effects on households with multiple children versus households without children within the same income cohort).

4. Economic Modeling:  JCT’s analysis of the proposal includes an analysis of the macroeconomic effects of tax reform on the U.S. economy, which is sometimes referred to as a dynamic score.  This dynamic score shows that the proposal would result in substantial additional economic growth and job creation as compared to the status quo.  JCT used two different economic models and a variety of assumptions to calculate the dynamic score.  The two models take different approaches to modeling the impact of the proposal on the U.S. economy.  For example, one model, the MEG model, cannot fully account for the breadth of the changes to international tax policy made by the proposal and therefore understates the extent of additional investment in the U.S economy, particularly for investment in high-technology, IP-intensive sectors.  The OLG model, on the other hand, contains a fiscal constraint that requires the debt to GDP ratio to be held constant between the pre- and post-reform economy, thus failing to capture the full benefits of reduced budget deficits on the economy.  The Committee is interested in feedback on the methodology and parameter estimates used by JCT in performing the macroeconomic analysis and recommendations on how this analysis can be improved.

5. Greater Compliance:  The current complexity of the tax code makes compliance difficult and facilitates billions of dollars in improper payments and fraud.  The most recent estimate shows that the tax gap amounts to $450 billion annually.  The proposal includes a number of reforms that would substantially simplify the tax code and improve reporting and compliance.  This improved compliance is partially – but not fully – incorporated into JCT’s analysis of the proposal. The Committee is interested in feedback on how to analyze the impact of the proposal on improving compliance, closing the tax gap, and reducing improper payments and fraud.  The Committee is interested in receiving analysis that would quantify the extent of the improved compliance and recommendations for how measurements of improved compliance should be factored into any analysis in determining whether the proposal is deficit neutral.

The draft legislation can be viewed here along with a detailed section by-section and JCT materials.  More information can be found at tax.house.gov.

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Seven Facts about Dependents and Exemptions

Posted by William Byrnes on March 2, 2014


The IRS Tax Tip 2014-22 released this past week included a synopsis of the tax rules for rules for exemptions  and dependents – these generally affecting every taxpayer who files a federal income tax return.  

Seven facts about these rules:

1. Exemptions cut income.  There are two types of exemptions: personal exemptions and exemptions for dependents. A taxpayer can usually deduct $3,900 for each exemption claimed on the 2013 tax return.

2. Personal exemptions.  A taxpayer can usually claim an exemption for him or herself.   If married and filing a joint return, the taxpayers can also claim another exemption for the spouse.   Filing a joint return and claiming two exemptions will lead to a $7,800 deduction from the couple’s reported income.

However, if a taxpayer files a separate return, then he / she can claim an exemption for the spouse only if your spouse had no gross income, is not filing a return, and was not the dependent of another taxpayer.

3. Exemptions for dependents.  A taxpayer can usually claim an exemption for each of his/her dependents.  A dependent is either the taxpayer’s child or a relative that meets certain tests.  The taxpayer can claim a spouse as a dependent.  The taxpayer must list the Social Security number of each dependent claimed.

4. Some people don’t qualify.  A taxpayer generally may not claim married persons as dependents if they file a joint return with their spouse. There are some exceptions to this rule.

5. Dependents may have to file.  People that are claimed as a dependent may have to file their own federal tax return. This depends on many things, including the amount of their income, their marital status and if they owe certain taxes.

6. No exemption on dependent’s return.  If a person is claimed as a dependent, then that person can’t claim a personal exemption on his or her own tax return.  This is true even if the taxpayer chooses not to actually claim that person as a dependent on the tax return.  The rule applies because the taxpayer has the right to claim that person as a dependent.

7. Exemption phase-out.  The $3,900 per exemption is subject to income limits (high income earners). This rule may reduce or eliminate the amount depending on a taxpayer’s income.

tax-facts-online_medium 

The company also points out that the expert authors—Robert Bloink, Esq., LL.M., and William H. Byrnes, Esq., LL.M., CWM®—are delivering real-life guidance based on decades of experience.

The authors’ knowledge and experience in tax law and practice provides the expert guidance for National Underwriter to once again deliver a valuable resource for the financial advising community,” added Rick Kravitz.

Anyone interested can try Tax Facts on Individuals & Small Business, risk-free for 30 days, with a 100% guarantee of complete satisfaction.  For more information, please go to www.nationalunderwriter.com/TaxFactsIndividuals or call 1-800-543-0874.

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Too Many FATCA Loopholes!

Posted by William Byrnes on March 1, 2014


Too Many FATCA Loopholes

According to the 175-page bipartisan staff report FATCA’s implementing regulations have created multiple loopholes, without statutory basis, in the disclosure requirements.

Among other problems, the Senate Subcommittee stated that the FATCA regulatory loopholes will:

  1. require disclosure of only the largest dollar accounts;
  2. permit banks to ignore, in most cases, bank account information that is kept on paper rather than electronically;
  3. allow banks to treat accounts opened by offshore shell entities as non-U.S. accounts even when the entity is owned by a U.S. taxpayer; and
  4. remaining disclosure requirements can be easily circumvented by U.S. persons opening accounts below the reporting thresholds of $50,000 at more than one bank.

Treaty Requests Not Obtaining Compliance

The Senate Subcommittee stated: “the revised U.S.-Swiss tax treaty, which has yet to be ratified by the Senate, applies only to requests for accounts that were open after its signing date in September 2009, which excludes the years in which the bulk of misconduct by Swiss banks and their U.S. clients took place. The treaty also has a convoluted process for obtaining the names of accountholders who can seek to block disclosure in Swiss courts, and Swiss law has created new evidentiary burdens for U.S. requests seeking information about unnamed U.S. taxpayers with accounts at Swiss financial institutions.”

The Senate Subcommittee cited a 2011 GAO study of how the United States leveraged its treaty network, including tax treaties, TIEAs, and MLATs. “GAO found that the United States had used the agreements to establish automatic information exchanges with 25 foreign jurisdictions that, in 2010 alone, provided the IRS with about 2.1 million data items. GAO also determined that, over the five year period from 2006 to 2010, the IRS had made a comparatively limited number of requests for information about specified taxpayers, initiating a total of about 900 such requests, ranging from a low of 165 to a high of 236 requests per year. Each of those requests could refer to one or multiple taxpayers. GAO further noted that the U.S. request activity was concentrated among a small group of countries, and that about 700 of the 900 requests made by the IRS involved a single foreign jurisdiction… GAO also observed that the median time to resolve a U.S. request for information was 149 days, or about five months.”

$6 Billion Collected Over 6 Years

According to the GAO Report and the Subcommittee report, the 2008, 2011, and the ongoing 2012 offshore voluntary disclosure initiative (OVDI) have led to 43,000 taxpayers paying back taxes, interest and penalties totaling $6 billion to date, with more expected.

However, the vast majority of this recovered money is not tax revenue but instead results from the FBAR penalties assessed for not reporting a foreign account.  The Taxpayer Advocate found that for noncompliant taxpayers with small accounts, the FBAR and tax penalties reached nearly 600% of the actual tax due!  The median offshore penalty was about 381% of the additional tax assessed for taxpayers with median-sized account balances.

Is $150 Billion Actually Lost Each Year to Offshore Noncompliance?

Check back next Saturday (March 8) to discover the answer…. 

LexisNexis FATCA Compliance Manual

book coverFifty contributing FATCA experts, each advising major institutions and financial service companies, authored 600 pages of analysis within the LexisNexis® Guide to FATCA Compliance (2nd Edition): many perspectives – one voice crafted by the primary author Professor William Byrnes.

The LexisNexis® Guide to FATCA Compliance (2nd Edition) comprises 34 Chapters grouped in three parts: compliance program (Chapters 1–4), analysis of FATCA regulations (Chapters 5–16) and analysis of Intergovernmental Agreements (IGAs) and local law compliance challenges (Chapters 17–34), including intergovernmental agreements as well as the OECD’s TRACE initiative for global automatic information exchange protocols and systems. The 34 chapters include many practical examples to assist a compliance officer contextualize the regulations, IGA provisions, and national rules enacted pursuant to an IGA.  Chapters include by example an in-depth analysis of the categorization of trusts pursuant to the Regulations and IGAs, operational specificity of the mechanisms of information capture, management and exchange by firms and between countries, insights as to the application of FATCA and the IGAs within new BRIC and European country chapters.

FATCA Experts Selected for the Lexis’ Guide  (please contact williambyrnes@gmail.com for an introduction to any of the below FATCA implementation experts)

Theodore C. Ahlgren, Esq. Ted Ahlgren concentrates his practice on international tax, trust, and estate planning. He has advised numerous U.S. and non-U.S. financial institutions, corporations, high net worth individuals, and their advisors on a variety of U.S. federal income, transfer, and withholding tax issues and has represented individuals and financial institutions in audits and voluntary disclosures. He participated in the submission of comments to Treasury and the IRS on the proposed FATCA regulations, and has written and spoken extensively on FATCA and other topics of relevance to international tax and estate planning. Contributions include chapter 7: Foreign Financial Institutions.

Devang Ambavi Devang Ambavi is Manager at PricewaterhouseCoopers Pvt. Ltd, India (PwC). He has over six years of experience in advising clients in multidisciplinary areas including international tax, domestic tax, exchange control and regulatory matters. More recently, he was on a two year secondment to PwC New York where he advised US based Funds on global structuring and international tax issues on a cross-jurisdictional basis. Contribution includes chapter 34: Exchange of Tax Information and Impact of FATCA for India.

Kyria Ali FCCA CIA CFE MCSI Kyria Ali, with her in-depth experience and qualifications in securities and investment (CISI), internal and forensic auditing (CIA and CFE) and financial background (FCCA) is strategically positioned as a leading business advisor in the BVI, Eastern Caribbean and Central American region. Very knowledgeable of the offshore sector, she has assisted many organisations, in the financial services industry, with risk management, compliance, FATCA and other tax related matters; just some of the areas addressed by the suite of business advisory services she provides. Contribution includes chapter 26: Exchange of Tax Information and Impact of FATCA for the The British Virgin Islands.

Michael Alliston, Esq.  Michael Alliston is a solicitor in the London office of Herbert Smith Freehills LLP. He advises on a range of corporate tax matters including mergers and acquisitions, corporate reorganizations, general finance and capital markets transactions. He also has particular experience in real estate and investment fund transactions and much of his work involves a cross-border element. Michael regularly advises clients on the transactional implications of FATCA from a UK law perspective and presents externally on the subject. Contribution includes chapter 24: U.K.-U.S. Intergovernmental Agreement and Its Implementation.

Maarten de Bruin, Esq. Maarten de Bruin advises on domestic and international tax aspects of commercial and (structured) finance transactions for Stibbe Simont. Maarten joined Stibbe’s tax department in 1989 and moved to the New York office in 1993 where he became partner in 1997. While in New York he graduated from New York University (tax LLM) and spent 6 months in the tax department of Cravath Swaine & Moore. He returned to the Amsterdam office of Stibbe in 1999 where he focused on clients in the industrial and real estate sector. His clients include Accor, Tata, APG and Super de Boer. Contribution includes chapter 30: Exchange of Tax Information and Impact of FATCA for the Netherlands.

Jean-Paul van den Berg, Esq. Jean-Paul van den Berg is a tax partner of Stibbe Simont whose areas of expertise include the application of tax treaties and EU law, major public and private cross-border mergers and acquisitions, private equity transactions (fund formation and investments), tax structuring, structured finance, debt restructuring, and corporate reorganizations. He is a regular speaker and author of articles in his practice area. He is currently based in our Amsterdam office. Previously, from 2008–2012 he was the resident tax partner in Stibbe’s New York offices and from 2002–2005 he was based in Stibbe’s London office. Contribution includes chapter 30: Exchange of Tax Information and Impact of FATCA for the The Netherlands.

Prof. William H. Byrnes, Esq.  William Byrnes has achieved authoritative prominence with 30 book and compendium volumes, 97 book & treatise chapters and book supplements, 1,000 articles, and the monthly subscription Tax Facts Intelligence available via Lexis.com. He is the author of several Lexis multi-volume publications including Foreign Tax & Trade Briefs; Tax Havens of the World; Money Laundering, Asset Forfeiture and Recovery, and Compliance—A Global Guide, and a Practical Guide to U.S. Transfer Pricing. Professionally, William Byrnes was a Senior Manager then Associate Director of international tax for Coopers and Lybrand based in its Johannesburg office. Academically, William Byrnes obtained the title of tenured law professor in 2005 at St. Thomas University and in 2008 the level of Associate Dean at Thomas Jefferson School of Law. William Byrnes pioneered online legal education in 1995, and established the first online LL.M. offered by an ABA accredited law school. The International Tax & Financial Services graduate program enrolls approximately 200 professionals annually pursuing a Master or Doctorate.

Amanda Castellano, Esq.   Amanda Castellano, an attorney working on tax, business, nonprofit and estate planning matters spent three years as an auditor with the Internal Revenue Service. She is currently a tax consultant based in Portland, Oregon. She graduated summa cum laude from Thomas Jefferson School of Law, where she served as Chief Notes Editor on the Thomas Jefferson Law Review. Contribution includes chapter 1: Introduction (Accidental American).

Luzius Cavelti, Esq. Luzius obtained his law degree from the University of Fribourg, Switzerland. He is qualified as certified tax expert (specialization in international tax) and holds an LL.M. degree from the Columbia School of Law. Luzius is admitted to the bar in Zurich and works as associate at Tappolet & Partner in Zurich. Luzius is specialized in international and domestic tax law. Contribution includes chapter 23: Switzerland-U.S. Intergovernmental Agreement and Its Implementation.

Peter Cotorceanu, Esq. Peter Cotorceanu is the Head of Product Management for Trusts and Foundations at UBS AG in Zurich. He was previously UBS’s Head of Wealth Structuring Consulting for UHNW clients in Zurich. In his current role, Peter is responsible for UBS’s FATCA compliance for trusts, foundations, and other fiduciary structures. Before joining UBS, Peter practiced law for over 20 years, both in Switzerland and the U.S., most recently at Baker & McKenzie Zurich. His practice concentrated on trust and estate planning and transfer taxes. Peter was also a law professor for a number of years at Washburn University School of Law, Topeka, Kansas and (as an adjunct) at the Marshall-Wythe School of Law, College of William and Mary, in Williamsburg, Virginia.  Peter is a former member of the Board of Governors of Virginia State Bar’s Trusts and Estates Section, as well as the Kansas Judicial Council’s Probate Advisory Committee and Estate Tax Advisory Sub-Committee.  Peter is admitted to practice in New Zealand as well as in Maryland and Virginia. He has an LL.B. (Hons) from Victoria University, Wellington, New Zealand, a J.D. (With Distinction) from Duke University, Durham, North Carolina, and an Executive LL.M. (Tax) from the New York University School of Law.  Peter is certified as a Trusts and Estates Practitioner (TEP) by STEP, and is a member of the International Bar Association and International Tax Planning Association, among other professional organizations.  Contribution includes chapter 9: FATCA and the Offshore Trust Industry.

Bruno Da Silva, LL.M.  Bruno da Silva works at Loyens & Loeff, European Direct Tax Law team, is a tax treaty adviser for the Macau special administrative region of the People’s Republic of China, and is also a researcher at the Amsterdam Centre for Tax Law of the University of Amsterdam. He lectures at different institutions such as the University of Leiden, University of Amsterdam, International Bureau of Fiscal Documentation (IBFD), Universidade Católica Portuguesa and IBDT (Brazil). He obtained an LL.M. in International Tax Law and he is currently pursuing his Ph.D. Contribution includes chapter 17: European Union Cross Border Information Reporting; and chapter 18: The OECD Role On Exchange Of Information: The TRACE Project, FATCA, and Beyond.

Prof. J. Richard Duke, Esq.  Richard Duke,  attorney, is  a member of the Alabama and the Florida Bar, specializing over forty years in income and estate tax planning and compliance, as well as asset protection, for high net wealth individuals. He served as Counsel to the Ludwig von Mises Institute for Austrian Economics 1983–1989 and a Fellow and Honorary Legal Scholar of the International Academy of Tax Advisors. Over his career he has served on numerous American Bar Association Committees and written many articles for legal and financial publications, several books, and was named to the list of “Top 100 Attorneys” in the U.S., Worth magazine, December 2005-2008. He is a Professor of Law of the LL.M. International Tax Program of Thomas Jefferson School of Law, San Diego, California and was an Adjunct Professor of Law at the Cumberland School of Law of Samford University International for Tax and Asset Protection Planning from 1983–1999. Contribution includes chapter 10: Withholding and Qualified Intermediary Reporting, chapter 11: Withholding and FATCA, chapter 12: “Withholdable” Payments, and chapter 13: Determining and Documenting the Payee.

Dr. Jan Dyckmans, Esq.  Jan Dyckmans is a German attorney at Flick Gocke Schaumburg in Frankfurt am Main, Germany where advises clients on corporate tax law in general and on international tax law matters in particular. He studied law at the University of Würzburg, Germany, where he was awarded his doctorate in 2008.  Contribution includes chapter 19: Exchange of Tax Information and Impact of FATCA for Germany.

Umurcan Gago, Esq., Umurcan Gago is a partner of PwC Turkey. He is a member of the Istanbul Bar and an Independent Chartered Accountant and Financial Advisor. Umurcan is specialised in cross border financial transactions, financial structures/products, conventional and structured financial products, investment banking products, international tax planning, securities law related matters, and financial structuring.   Contribution includes chapter 33: Exchange of Tax Information and the Impact of FATCA for Turkey.

Dr. F. Alfredo García Dr. F. Alfredo García is professor of Financial and Tax Law at the University of Valencia and Jean Monnet Chair of EU Law and Taxation. He is professor of European Taxation at Thomas Jefferson School of Law in California, and has been visiting professor at the Universities of London, Harvard, Leiden, Leuven, Bergamo and Georgetown.  Contribution includes chapter 28: Spain-U.S. Intergovernmental Agreement and its Implementation.

Dr. Valcir Gassen Dr. Valcir Gassen is a Professor of Federal University of Brasilia (UnB), participating with the support CAPES Foundation, Ministry of Education of Brazil. His hold a law degree from the University of Northwest of State of Rio Grande do Sul; an LL.M. from the Federal University of Santa Catarina; Ph.D. from the Federal University of Santa Catarina and Post-doctoral research from the University of Alicante, Spain. He coordinates since 2009 the Research Group in State, Constitution and Tax Law, with undergraduate and graduate students in UnB. Contribution includes chapter  25: Exchange of Tax Information and the Impact of FATCA for Brazil.

Arne Hansen Arne Hansen is a legal trainee of the Hanseatisches Oberlandesgericht (Higher Regional Court of Hamburg), Germany and previously undertook his stage at the Frankfurt office of Flick Gocke Schaumburg. He studied law at the University of Bayreuth, Germany, and the Victoria University of Wellington, New Zealand. He further completed an additional qualification in economics with the focus on finance and taxation at the University of Bayreuth. He is finalizing his doctoral thesis on a topic of international tax law with special regard to double tax treaties. Contribution includes chapter 20: Exchange of Tax Information and Impact of FATCA for Germany.

Mark Heroux, J.D. Mark Heroux, Principal in the Tax Services Group at Baker Tilly Virchow Krause, LLP, joined the firm in 2008. He has more than 25 years of tax litigation, technical, and program management experience. Mark began his career in 1986 with the IRS Office of Chief Counsel, and left public service in 2000. Mark specializes in IRS procedures including the withholding requirements of the US Internal Revenue Code, and dispute resolution including transfer pricing and the negotiation of Advance Pricing Agreements. He leads the IRS Practice and Procedures group, and has provided tax and business advisory services to large and mid-size financial institutions, and high net worth individuals. Contribution includes chapter 26: Exchange of Tax Information and Impact of FATCA for the The British Virgin Islands.

Véronique Hoffeld, Esq. Véronique Hoffeld, attorney-at-law, is a member of the Management Committee of Loyens & Loeff Luxembourg and heads the Luxembourg Commercial and Litigation department.  She can be considered as a generalist lawyer, whose activities cover matters in the areas of commercial law (negotiation of contracts), litigation and arbitration, bankruptcy & restructuring, IP law, real estate law, environment law, E-commerce and new technologies. Véronique is also occasionally involved in maritime and administrative law matters.  Prior to joining Loyens & Loeff Luxembourg, Véronique worked for more than 10 years in another important Luxembourg law firm at which she was made partner in 2003. Véronique is a member of the Luxembourg Bar since 1996.  Contributions include chapter 31: Exchange of Tax Information and Impact of FATCA for Luxembourg.

Rob. H. Holt, Esq. Rob H. Holt is a practicing attorney of thirty years licensed in New York and Texas representing real estate investment companies, university professors, and a variety of other business owners in the formation of their entities, business contracts, and distribution and channel documentation. He is currently completing his LL.M. in Taxation from Thomas Jefferson School of Law. Rob and his wife of 29 years live in College Station/Bryan, Texas. He is an avid, amateur ballroom dancer and loves the waltz, foxtrot, and tango. Contribution includes chapter 7: Foreign Financial Institutions.

Rajul Jain Rajul Jain is Senior Manager at PricewaterhouseCoopers Pvt. Ltd, India (PwC). He has more than 11 years of  International professional experience which involves proactively leading global teams and providing Financial and Strategic analysis, advice on RBI and Regulatory frameworks,  Designing  Compliance frameworks, Project management  advice and performing Enterprise risk reviews. Contribution includes chapter 34 Exchange of Tax Information and Impact of FATCA for India.

Richard Kando, CPA  Richard Kando, a Certified Public Accountant (New York) is a Director at Navigant Consulting. Richard specializes in forensic accounting and compliance matters relating to Government investigations, anti-money laundering and the Foreign Account Tax Compliance Act (“FATCA”). Richard is a leader of Navigant’s FATCA task force. Previously, Richard served as a Special Agent with the IRS Criminal Investigation Division where he received the U.S. Department of Justice—Tax Division Assistant Attorney General’s Special Contribution Award. Contribution includes chapter 2: Practical Considerations for Developing a FATCA Compliance Program.

Denis Kleinfeld, Esq., CPA. Denis Kleinfeld is Of Counsel to Fuerst Ittleman David & Joseph, PL, in Miami, Florida and a Professor of Law of the LL.M. International Tax Program of Thomas Jefferson School of Law, San Diego, California. The author of chapters in prominent legal publications, he has written extensively in professional and general circulation magazines and publications on a wide variety of tax, insurance, estate planning, treaty planning, domestic and international asset protection, and investment issues as well as observations on relevant political, social and economic issues. Mr. Kleinfeld is the founder of, and now serves as co-chairman for, the Florida Annual Wealth Protection Conference and is a speaker at a wide variety of professional conferences, seminars, and symposiums in the United States and around the world. After obtaining his B.S. degree in Accountancy from the University of Illinois in 1967 and obtaining his license as a Certified Public Accountant, Mr. Kleinfeld enrolled at the Loyola University of Chicago School of Law, graduating in 1970. He was admitted to the Illinois Bar in 1970 and was employed as an attorney with the Internal Revenue Service in the Estate and Gift Tax Division for four years before going into private practice. Mr. Kleinfeld has been a member of the Florida Bar since 1983, and is also a member of the Florida Institute of Certified Public Accountants, the American Bar Association, and the American Institute of Certified Public Accountants. Contribution includes chapter 1: Introduction and chapter 5: FBAR & 8938 FATCA Reporting.

Richard L. Knickerbocker, Esq. Richard L. Knickerbocker is the senior partner in the Los Angeles office of the Knickerbocker Law Group. He is the former City Attorney of the City of Santa Monica. He was designated Super Lawyer five years running by Los Angeles magazine, made numerous television appearances and has extensive publications. He has taught law in various colleges and law schools and is a certified civil trial advocate and appellate specialist. He graduated from the University of Southern California Gould School of Law with both a J.D. and an LL.M. degree. Contributions include chapter 11: Withholding and FATCA and chapter 13: Determining and Documenting the Payee.

Saloi Abou-Jaoude’ Knickerbocker  Saloi Abou-Jaoude’ Knickerbocker is a Legal Administrator in the Los Angeles office of the Knickerbocker Law Group. She holds LL.M. (Summa Cum Laude) in International Taxation and Financial Services has earned her J.D. (Summa Cum Laude). She has concentrated her practice and research on shari’a finance. She has published Shari’a Finance: Rapid Expansion With the Islamic Golden Age—Some International Taxation Implications in the TaxTalk Magazine (South Africa).  Contributions include chapter 11: Withholding and FATCA and chapter 13: Determining and Documenting the Payee.

Shinjini Kumar Shinjini Kumar is Executive Director at PricewaterhouseCoopers Pvt. Ltd, India (PwC). She is the Sector leader for Banking and Capital Markets and also heads Financial Services regulatory practice at PwC India. Prior to joining PwC in 2010, Shinjini has held senior positions at the Reserve Bank of India (RBI) and Bank of America-Merill Lynch. Her vast experience with the regulator and industry gives her the distinctive opportunity to engage with the industry, media and policy makers on important issues affecting the industry. Contribution includes chapter 34 Exchange of Tax Information and Impact of FATCA for India.

Mathias M. Link, Esq., LL.M.  Mathias Link is a counsel in the Frankfurt office of Hengeler Mueller. He is qualified as German attorney-at-law and tax consultant, holds an LL.M. degree from Columbia University and is also admitted to the New York bar. He advises corporate clients, banks and financial services institutions on a variety of tax matters including mergers and acquisitions, reorganizations, finance and capital markets transactions. He has particular expertise in the structuring of private equity, real estate and investment fund transactions and his main focus is on international tax aspects. Mathias regularly advises clients on the implications of FATCA from a German law perspective.  Contribution includes chapter 19: Germany.-U.S. Intergovernmental Agreement and Its Implementation.

Jinghua Liu, JD Jinghua Liu is a partner in the Tax group at Baker & McKenzie and is based in the Beijing office. She heads the tax dispute resolution practice in China. She joined Baker & McKenzie in 2004 and has been practicing China tax law since then. She is a frequent speaker at international tax conferences on PRC taxation and international tax planning, and authored and co-authored various articles in leading tax publications. Chambers Asia Pacific lists her as one of the recommended lawyers for tax in 2011 and 2012.  Contribution includes chapter 29: Exchange of Tax Information and Impact of FATCA for China.

Jeffrey Locke, Esq. Jeffrey Locke is Director at Navigant Consulting. At Navigant, he is a leader of the FATCA Task Force and has drafted numerous white papers and articles concerning the practical implementation of FATCA. Prior to joining Navigant, he served as an assistant New York state attorney general in the Criminal Prosecutions Bureau, worked in the prosecutor’s office for the United Nations in Kosovo and was an assistant public defender in Philadelphia. He received his law degree from Columbia Law School. Mr. Locke recently contributed a chapter to the book “International Prosecutors” published by Oxford University Press. Contribution includes chapter 2: Practical Considerations for Developing a FATCA Compliance Program.

Josh Lom  Josh works at Herbert Smith Freehills LLP having graduated from Oxford University. Contributions include chapter 24: UK-U.S. Intergovernmental Agreement and Its Implementation.

Jason R. Miller  Jason R. Miller recently spent the summer as a stagier at PwC Istanbul working with Umurcan Gago to author several chapters on Turkey for Lexis publications.  He will graduate in 2014 from Thomas Jefferson School of Law with his Juris Doctorate specializing in Global Legal Studies and Business Law.  Jason has a BS in Business Administration from California Polytechnic State University, San Luis Obispo, with a concentration in Human Resources.  He has contributed to publications for LexisNexis and Wolters Kluwer, including chapters on Company Law, AML, FATCA, and Foreign Tax and Trade Briefs.  Jason is an Editor of the Thomas Jefferson Law Review.   Contribution includes: chapter 33 Exchange of Tax Information and the Impact of FATCA for Turkey.

Dr. Robert J. Munro Dr. Robert Munro is the author of 35 published books including Lexis’ three volume Tax Havens of the World, two volume Foreign Tax & Trade Briefs, and Money Laundering, Asset Forfeiture and Recovery, and Compliance—A Global Guide. He is a Professor of the International Tax & Financial Services Graduate Program of Thomas Jefferson School of Law, San Diego, California. A former Law Librarian at University of Florida College of Law, Dr. Munro was the Director of the Center for International Financial Crimes Studies at UF and continues as a Senior Research Fellow and Director of Research for North America of CIDOEC at Jesus College, Cambridge University, England. He has addressed audiences at Cambridge University, the University of Florida, the University of London, the CIA and the U.S. State Department and created, organized and chaired over twenty conferences in Miami, Aruba, Curacao, the Bahamas, Washington, D.C., New York City, Cambridge, England and San Francisco.

Rachel O’Toole  Rachel O’Toole BA, LL.B, BL, is a barrister-at-law licensed in Ireland and holds the Master of Laws, International Taxation & Financial Services (Thomas Jefferson School of Law, San Diego). She practices a wide range of civil litigation. Besides her role as trial advocate, her work includes advice in financial and debt related issues, planning law compliance, implementation and compliance of European environmental law, and construction and contract disputes. She is an accredited civil and commercial mediator. She has researched and presented papers on current and emerging areas of financial law and compliance facing practitioners in Ireland. Contribution includes Chapter 20: Ireland-U.S. Intergovernmental Agreement and Its Implementation.

Dr. Maji C. Rhee  Maji C. Rhee is a professor of Waseda University located in Tokyo, Japan where she teaches courses on language and legal communications. Rhee received her Ed.D. from Rutgers, her LL.M. in International Taxation & Financial Services from Thomas Jefferson School of Law and is currently finishing her J.S.D. dissertation on transfer pricing in Japan. Contribution includes chapter 21: Japan-U.S. Intergovernmental Agreement and Its Implementation.

Jean Richard, Esq. Jean Richard, a Canadian attorney, previously worked for the Quebec Tax Department, as a Senior Tax Manager with a large international accounting firm and as a Tax & Estate consultant for a pre-eminent Canadian insurance company. He is currently the Vice President and Sr. Wealth Management Consultant of the BMO Financial Group. He completed a LL.L. at University of Montreal, was admitted to the Quebec Bar Association in 1981. He also completed the Canadian ‘In Depth Tax Course’ (Canadian Institute of Chartered Accountant), a Master in International Taxation with the Australian School of Taxation (ATAX), University of New South Wale, Sydney, Australia and a LL.M. in International Tax and Financial Services (International Taxation) with the Thomas Jefferson School of Law. He is a licensed financial planner and financial security advisor.  Contribution includes chapter 27: Exchange of Tax Information and Impact of FATCA for Canada.

Michael J. Rinaldi, II, CPA.  Mr. Rinaldi represents U.S. and foreign institutions and families in a broad range of advisory activities including private equity real estate opportunity funds, with regard to formation, acquisitions, operations, dispositions and development of significant properties and portfolios. He is a Professor in the graduate international tax law program at Thomas Jefferson School of Law, where he teaches on Trusts, Private Equity Funds and Tax Treaties. Professor Rinaldi has authored several publications for Kluwer Law International, Jordan’s and LexisNexis. He is licensed as a certified public accountant in the District of Columbia and is a member of the International Tax Planning Association (ITPA), the Society of Trust and Estate Practitioners (STEP) and the American Bar Association, Tax Section-Partnership and US Activities of Foreigners & Tax Treaties Committees. He holds graduate degrees in accounting and tax law (both US and International). Contributions includes chapter 6: Determining U.S. Ownership Under FATCA; chapter 7: Foreign Financial Institutions; and chapter 8: Non-Financial Foreign Entities.

Edgardo Santiago-Torres, Esq. Edgardo Santiago-Torres is an attorney at law, principal of Santiago Law Group, LLC, and of counsel of the Knickerbocker Law Group, representing individuals and entities in corporate, taxation, and estate planning litigation. Mr. Santiago is also a Certified Public Accountant and a Chartered Global Management Accountant, pursuant to the AICPA and CIMA rules and regulations, admitted by the Puerto Rico Board of Accountancy to practice Public Accounting in Puerto Rico. He holds an LL.M. in International Taxation and Financial Services (highest honors) and a Juris Doctor (honors) of the University of Puerto Rico School of Law.  Contributions include chapter 11: Withholding and FATCA and chapter 13: Determining and Documenting the Payee.

Hope M. Shoulders, Esq.  Hope M. Shoulders is a licensed attorney in the State of New Jersey. She is currently consulting for a major insurance company assisting with their implementation of FATCA. She is also an adjunct professor for the Thomas Jefferson School of Law. She  previously worked for General Motors, National Transportation Safety Board and the Department of Commerce. She completed her LL.M. in International Taxation from Thomas Jefferson School of Law in San Diego, California. She is a contributor of numerous articles and completed her thesis on OECD transfer pricing and business restructuring. She earned her J.D. and her MBA from the University of Tennessee and a Bachelors of Science from the University of Virginia. Contribution includes chapter 10: FATCA and the Insurance Industry.

Jason Simpson, LL.M., CRA, CCA  Jason Simpson is the Director of the Miami office for Global Atlantic Partners, overseeing all operations in Florida, the Caribbean and most of Latin America. He has worked previously as a bank compliance employee and advisor at various large and mid-sized financial institutions over the past ten years. He has been a key component in the removal of Cease and Desist Orders as well as other written regulatory agreements within a number of Domestic and International Banks, and designed complete AML/BSA units for domestic as well as international banks with over ten million accounts. He is an Adjunct Faculty Member of Thomas Jefferson School of Law for Compliance, AML and Fraud, where he holds a Master of Laws in International Taxation with a concentration specialized in Anti-Money Laundering, Anti-Terrorist Financing and Compliance. Through various online venues, he creates and teaches specialized webinars in both English and Spanish focused compliance. Contribution includes chapter 3: FATCA Compliance and Integration of Information Technology; and chapter 4: Financial Institution Account Remediation.

Dr. Alberto Gil Soriano, Esq. Alberto Gil Soriano is a Spanish attorney who holds a Ph.D. in Tax Law at University of Bologna (Italy), LL.M. in International Taxation and Financial Services at Thomas Jefferson School of Law in San Diego (California) and is Law degree from the University of Valencia (Spain). He has worked at the University of Valencia, at the European Commission’s Anti-Fraud Office in Brussels, and most recently at the Legal Department of the International Monetary Fund’s Financial Integrity Group in Washington, D.C. He currently works at the Fiscal Department of Uría Menéndez Abogados, S.L.P in Barcelona (Spain). Contributions include chapter 1: Introduction and chapter 15: Framework of Intergovernmental Agreements.

Krisztina Szombathy, Esq.  Krisztina Szombathy joined the Commercial & Litigation Department of Loyens & Loeff Luxembourg in October 2013.  She specializes in dispute resolution, and advises on commercial and civil law. Her areas of expertise also include European law, energy law and intellectual property. Before joining Loyens & Loeff, Krisztina acquired experience in legal drafting, notably in European and energy law matters during an internship at the European Court of Justice in Luxembourg.  Krisztina has been a member of the Luxembourg Bar since spring 2013.  Contributions include chapter 31: Exchange of Tax Information and Impact of FATCA for Luxembourg.

Debora de Souza Correa Talutto  Debora de Souza Correa Talutto is the International Transfer Pricing Manager at Temenos Banking Software Co., and a professor of international transfer pricing at Thomas Jefferson School of Law International Tax graduate program.  She is a sought after Brazilian tax authority, having authored the Brazilian chapter of LexisNexis’ Foreign Tax and Trade Briefs, the Brazilian chapter of Lexis’ Anti Money Laundering, Asset Forfeiture, & Recovery Guide, and most recently the Cost Sharing Arrangement chapter of Lexis’ Practical Guide to U.S. Transfer Pricing.    Ms. Talutto previously served as a tax consultant at Deloitte (Brazil) before earning her LL.M. in International Tax from University of Florida.  She holds an MBA, an LL.B. (Brazil), as well as a post-graduate degree in Brazilian taxation.  Contributions include chapter 25: Exchange of Tax Information and Impact of FATCA for Brazil.

Andrey Tereschenko, Esq.  Andrey Tereschenko is a tax partner in the Moscow office of Pepeliaev Group LLC. He focuses on tax law and has a high level of expertise in providing advice to major Russian and foreign companies on a wide range of tax issues but especially the implementation of compensation tax arrangements. Andrey has participated in projects to set up businesses in Russia, including assessment of the tax environment in the chosen business region, investment agreements with regional authorities and tax support for due diligence. Andrey has been directly involved in tax structuring of investment projects, particularly in the sphere of construction, land and real estate acquisition. Contributions include chapter 32: Exchange of Tax Information and Impact of FATCA for Russia.

Lily L. Tse, CPA.  Ms. Tse, a partner of Rinaldi & Associates (Washington, D.C.), represents US and foreign real estate private equity funds and property owners with regard to financial reporting and international tax matters. Her area of practice includes real estate development and leasing, joint ventures, consolidations and mezzanine financing. She has significant experience in U.S. withholding issues effecting foreign partnerships and trusts. Ms. Tse also heads the firm’s audit practice specializing in the development and operation of multi-family housing. Ms. Tse has been qualified as an expert witness in Federal Court, providing testimony in the area of real estate financing. Ms. Tse is licensed as a certified public accountant in the District of Columbia and holds graduate degrees in business and taxation. Contributions include chapter 7: Foreign Financial Institutions.

Dr. Oliver Untersander, Esq.  Oliver Untersander obtained his law degree and his PhD from the University of Zurich. Her holds a LL.M. from the New York University (international tax) and is admitted to the bar in Zurich (Switzerland). He is partner at Tappolet & Partner in Zurich. He is experienced in Swiss and international corporate taxation, corporate reorganizations and tax litigation. Contribution includes chapter 23: Switzerland-U.S. Intergovernmental Agreement and Its Implementation.

Mauricio Cano del Valle, Esq.  Mauricio Cano del Valle is a Mexican attorney who has previously worked for the Mexican Ministry of Finance (Secretaría de Hacienda),  Deloitte Mexico and the Amicorp Group. He is the founding partner of Brook & Cano SC, a Mexican boutique Law Firm, specializing on private clients, HNWI, UHNWI, their families and their businesses. Mauricio has been a professor at both the undergraduate and the graduate level at ITAM, the author of the book “Game Theory and Tax Evasion” published in Mexico in 2006, and the most recently published paper on “Game Theory and Minimum Taxes” included as part of a book on “Game Theory and Contemporary Law” published in Mexico in 2009. He holds a Law Degree, a Masters Degree in Law and Economics, and an MBA. Contribution includes chapter 22: Mexico-U.S. Intergovernmental Agreement and Its Implementation.

Janneke Versantvoort  Janneke Versantvoort is an international tax specialist and a member of the general tax practice at Loyens & Loeff Luxembourg. She is specialized in international tax law, focusing on advising multinational clients on cross-border transactions, group restructurings, project financing and transfer pricing. She worked for three years at the Loyens & Loeff Rotterdam office and is seconded to the Luxembourg office for two years.  Janneke is a member of the Dutch Association of Tax Advisers (NOB) and a member of the Young IFA in Luxembourg.  Contributions include chapter 31: Exchange of Tax Information and Impact of FATCA for Luxembourg.

John Walker, Esq.  John M. Walker, Esq., LL.M., is an international tax attorney who earned his LL.M. in International Taxation and Financial Services. He focuses on international tax compliance for high-net worth individuals as well as foreign trust compliance and structuring under the Foreign Account Tax Compliance Act (FATCA). He is Of Counsel to Duke Law Firm, P.C., and Michael Rinaldi & Co, LLP . Contributions include chapter 6: Determining U.S. Ownership Under FATCA, chapter 12: FATCA Withholding Compliance, chapter 13: “Withholdable” Payments Under FATCA, and chapter 14: Determining and Documenting the Payee.

Prof. Bruce Zagaris, Esq.  Bruce Zagaris is a partner at the Washington, D.C. law firm Berliner, Corcoran & Rowe, LLP, where he practices tax controversy and international criminal law, including representing individuals on voluntary disclosures, audits, and litigation as well as consulting and serving as an expert witness. He represents foreign governments, including helping negotiate treaties. He is an adjunct law professor of the LL.M. in International Taxation and Financial Services at Thomas Jefferson School of Law in San Diego. Mr. Zagaris is founder and editor of the International Enforcement Law Reporter (www.ielr.com). He is the author of International White Collar Crime (Cambridge U. Press 2010). Contribution includes chapter 15: Analysis of Current Intergovernmental Agreements.

Qiguang (Hardy) Zhou, LL.M., CPA  Qiguang (Hardy) Zhou works in the Tax group at Baker & McKenzie and is based in the Shanghai office. He obtained an LL.M. in International Tax Law. Contribution includes chapter 29: Exchange of Tax Information and Impact of FATCA for China.

Chapter 1 Background and Current Status of FATCA
Chapter 2 Practical Considerations for Developing a FATCA Compliance Program
Chapter 3 FATCA Compliance and Integration of Information Technology
Chapter 4 Financial Institution Account Remediation
Chapter 5 FBAR and Form 8938 Reporting and List of International Taxpayer IRS Forms
Chapter 6 Determining U.S. Ownership of Foreign Entities
Chapter 7 Foreign Financial Institutions
Chapter 8 Non-Financial Foreign Entities
Chapter 9 FATCA and the Offshore Trust Industry
Chapter 10 FATCA and the Insurance Industry
Chapter 11 Withholding and Qualified Intermediary
Chapter 12 FATCA Withholding Compliance
Chapter 13 ”Withholdable” Payments
Chapter 14 Determining and Documenting the Payee
Chapter 15 Framework of Intergovernmental Agreements
Chapter 16 Analysis of Current Intergovernmental Agreements
Chapter 17 European Union Cross Border Information Reporting
Chapter 18 The OECD Role in Exchange of Information: The Trace Project, FATCA, and Beyond
Chapter 19 Germany-U.S. Intergovernmental Agreement and its Implementation
Chapter 20 Ireland-U.S. Intergovernmental Agreement and its Implementation
Chapter 21 Japan-U.S. Intergovernmental Agreement and its Implementation
Chapter 22 Mexico-U.S. Intergovernmental Agreement and its Implementation
Chapter 23 Switzerland-U.S. Intergovernmental Agreement and its Implementation
Chapter 24 The United Kingdom-U.S. Intergovernmental Agreement and its Implementation
Chapter 25 Exchange of Tax Information and the Impact of FATCA for Brazil
Chapter 26 Exchange of Tax Information and the Impact of FATCA for The British Virgin Islands
Chapter 27 Exchange of Tax Information and the Impact of FATCA for Canada
Chapter 28 Exchange of Tax Information and the Impact of FATCA for Spain
Chapter 29 Exchange of Tax Information and the Impact of FATCA for China
Chapter 30 Exchange of Tax Information and the Impact of FATCA for Netherlands
Chapter 31 Exchange of Tax Information and the Impact of FATCA for Luxembourg
Chapter 32 Exchange of Tax Information and the Impact of FATCA for Russia
Chapter 33 Exchange of Tax Information and the Impact of FATCA for Turkey
Chapter 34 Exchange of Tax Information and the Impact of FATCA for India

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