FinCEN Renewal of GTOs for High-End Cash Buyers in Six Markets

FinCEN announced today that it is renewing the existing Geographical Targeting Orders (GTOs) issued in July 2016 that require all title insurance companies to identify and report on the natural persons behind shell companies that make cash-only purchases of high-end real estate in six major metropolitan markets. View Full Post
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AICPA Suggests Adequate Disclosure Reference for Section 2704 Proposed Regulations

By | Legacy Advisors | February 22, 2017
The American Institute of Certified Public Accountants (AICPA) recently published recommendations for a disclosure statement to be included on a U.S. Gift (and Generation-Skipping Transfer) Tax Return (IRS Form 709) disclosing the transfer of an interest in a family partnership or family controlled entity made on the same date or after the issuance of the Internal Revenue Code (Code) Section 2704 proposed regulations. View Full Post
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Alabama Tax Tribunal Determines Taxpayer Properly Deducted Dividends from REIT

By Nicole Boutros and Eric Coffill The Alabama Tax Tribunal held that a taxpayer banking corporation properly deducted dividends received from an affiliated real estate investment trust (REIT) for financial institution excise tax purposes because the REIT qualified as a “corporation.” The Tribunal rejected the Department of Revenue’s assertion that the REIT was not a corporation based on its tax treatment as a REIT, explaining that the deduction applies more broadly to dividends received from payor entities that are corporations organized and existing under Alabama law. View Full Post
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Retaliation Claims by Corporate Whistleblowers – What is Too Far?

By | Tax Controversy 360 | February 22, 2017
This week, a French court announced an indictment against UBS related to its alleged treatment of Nicholas Forissier, a former audit manager who provided information to French authorities a decade ago in a tax evasion investigation of UBS.  According to at least one press account, the indictment alleges that Forissier was “forced to work under difficult conditions, including internal criticism and eventual dismissal for gross misconduct in 2009” in retaliation for his cooperation with French authorities. View Full Post
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Economist Challenges Currency Appreciation Doubters

By | Tax Reform and Transition | February 22, 2017
Alan Auerbach, a University of California economist and a leading advocate for the switch from an income tax system to a border adjusted cash flow tax (or DBCFT), released a note yesterday that seeks to reinforce his prior analysis detailing why the dollar will rise in response to the border adjustments contemplated by the DBCFT. View Full Post
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Combating Money Laundering and Terrorist Financing with a Distributed Ledger

By | Money Laundering Watch | February 21, 2017
Combating Money Laundering and Terrorist Financing with a Distributed Ledger Despite the staggering $8 billion figure estimated to be spent on global compliance in 2017, U.S.-based rules regarding Anti-Money Laundering (“AML”) and Combating the Financing of Terrorism (“CFT”) remain anchored in their 1970s design. Contrary to the generally slow pace of Congressional action, new technologies may reshape the global financial system (“GFS”) and with it, the ability to detect and disrupt money laundering schemes and terrorist plots. View Full Post
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Sixth Circuit Sets Limits On the Application of the Substance-Over-Form Doctrine

The judicial substance-over-form doctrine provides the IRS with the ability to set aside carefully orchestrated tax planning arrangements to treat a transaction consistent with its substance.  However, the doctrine does not give the Service carte blanche to deny tax benefits. In Summa Holdings, Inc. v. Commissioner, No. View Full Post
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TEI’s Audits & Appeals Seminar: Managing State and Local Tax Controversies

For more than 25 years, The Tax Executives Institute has met the tax controversy needs of the in-house professional community through its Audits & Appeals Seminar. Leading practitioners, regulators, policymakers and jurists join TEI annually to discuss the nuts, bolts and nuances of tax controversy. Eversheds Sutherland is delighted to participate in a full day (May 3, 2017) on Managing State and Local Tax Controversies, which includes sessions on: Filing strategies Audit management Assessments and protests Litigation and select controversy issues Panels featuring state tax judges and industry professionals **************************************************************************************************************** TEI’s Audits & Appeals Seminar will take place May 1-3, 2017, in Seattle, Washington: May 1-2: Insights and Skills for Federal Tax Controversy Success May 3: Managing State and Local Tax Controversies, sponsored by Eversheds Sutherland You are invited to register for all three seminar days, the first two days or the final day devoted to state and local tax controversy, depending on your individual needs. View Full Post
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CSBS Releases BSA/AML Risk and Controls Self-Assessment Tool

By | Money Laundering Watch | February 21, 2017
The Conference of State Bank Supervisors (CSBS) has continued its efforts to promote improvements in Bank Secrecy Act/Anti-Money Laundering compliance with the release in January 2017 of a new BSA/AML Self-Assessment Tool for banks. The optional tool is intended to help state-chartered banks enhance their risk assessment process. View Full Post
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California District Court Finds Failure to File FBARs Was Willful Despite Application for Voluntary Disclosure Program

By | Tax Controversy Sentinel | February 21, 2017
The Bank Secrecy Act requires U.S. taxpayers to file FBARs with the U.S. Treasury disclosing any interest in, or signature authority over, foreign financial accounts with assets in excess of $10,000. If a U.S. taxpayer fails to file an FBAR, the IRS can assess a penalty of $10,000 per violation per year for up to six years. View Full Post
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