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ALERT – U.S. IRS Offshore Voluntary Disclosure Program Closing September 2018

By admin | March 23th, 2018 | Tags: , , , | 0 Comments.

Teeple Hall, LLP. – U.S. IRS Offshore Voluntary Disclosure Program Closing September 2018

On March 26, 2009, the IRS announced the Offshore Voluntary Disclosure Program (“OVDP”) which was extended and modified on
February 8, 2011 (as the 2011 Offshore Voluntary Disclosure Initiative or “OVDI”) and January 9, 2012 (as the “2012 OVDP”). The initial
program was a result of the IRS’s perceived non-compliance with U.S. tax laws governing the disclosure and reporting by U.S. persons of
foreign assets. While the programs were available on a worldwide basis notwithstanding the location of a taxpayers’ accounts, a high
percentage of cases involved disclosure of accounts held in Swiss private banks.

On March 13, 2018, the IRS announced that the OVDP will formally close on September 28, 2018. While the OVDP is ending, other
approved disclosure options will remain, including: Streamlined Filing Compliance Procedures; delinquent international information
return submission procedures; delinquent FBAR submission procedures; and, the traditional IRS Voluntary Disclosure Practice.
These traditional and continuing disclosure procedures, however, do not afford the same protections against penalties or criminal
prosecution as the OVDP.

While many U.S. taxpayers have brought their foreign assets into compliance, there are most certainly taxpayers who remain noncompliant
and face potentially significant civil and/or criminal penalties. Now is the time to resolve these outstanding issues within the
framework of a formal program. While the IRS has maintained informal voluntary disclosure procedures for many decades and will most
certainly continue to do so, the favorable penalties and general pass on criminal charges within the OVDP, remain attractive options.

A cornerstone of the latest program iteration was the introduction of the foreign and domestic streamlined procedures for taxpayers who
could state, under penalty of perjury, that they were not willful in failing to report their foreign assets and associated income. With FATCA,
CRS and dramatically enhanced compliance programs instituted by financial institutions, it seems harder (if even possible) for a taxpayer
to take a position that they were unaware of U.S. filing obligations which, in turn, may present challenges when taxpayers are ultimately
forced to disclose. Therefore, while the Streamlined Filing Compliance Procedures and other traditional IRS disclosure procedures remain
in place as of now, the availability for taxpayers will be significantly limited.

In order to ensure ongoing compliance with filing requirements or to identify deficiencies in their position, taxpayers should consult with
experienced tax/legal advisors to:

1. Review their foreign activities and assets
2. Review and understand their tax and/or asset disclosure obligations that citizenship (single, dual or otherwise), tax residence and
domicile may trigger – NOTE: in our experience, many taxpayers are unaware of their U.S. citizenship or their continued U.S. tax
resident status!
3. Review their relationship to foreign (non-U.S.) trusts/foundations as settlor, beneficiary, trustee or other fiduciary position — NOTE:
a trust governed under the law of a U.S. state could be a “foreign” trust for U.S. tax and reporting purposes!
4. Review their ownership (direct or indirect) with foreign (non-U.S.) corporations, partnership and other entities — NOTE: the 2017
Tax Reform Act substantially changed the attribution rules for ownership tests in foreign entities!

For further information, please contact Todd Douglas Hall, Esq., Partner, or B. Roland Freasier, Jr., Esq., at Teeple Hall, LLP

Alert – March/April 2018 Breakout Sessions – Asia: Select Strategies for US Inbound Wealth Transfers

By admin | March 23th, 2018 | Tags: , , , | 0 Comments.

Teeple Hall, LLP. – Asia: Select Strategies for US Inbound Wealth Transfers

Select Strategies for US Inbound Wealth Transfers

1291Group Ltd. and Teeple Hall, LLP are pleased to announce a series of one-on-one meetings in key Asian markets. This is a great opportunity for HNW individuals, families and family offices to meet and discuss with us the powerful benefits that private placement life insurance and variable annuities (PPLI and PPVA) can provide for the tax efficient management of assets in a US tax environment.

Experienced practitioners frame the basic issues underlying US inbound wealth or migration flows. They will then layout how PPLI/PPVA strategies can serve to protect wealth and provide a tax efficient platform for substantially leveraging the mid- and long-term growth potential for financial assets.

Discussion points will include:

  • The importance of reviewing, updating and augmenting estate plan structures to comply with changes in the law and
    client objectives frequently arising in the highly dynamic estate and tax planning arena.
  • US inbound estate and tax planning in the aftermath of Trump’s 2017 Tax Reform Act – what changed and what didn’t.
  • When talking about Foreign Grantor Trusts, the tax benefits should not be the only driver in the conversation – asset
    protection, succession planning for family businesses, and long-term financial stability are key factors often overlooked.
  • PPLI and PPVA are grounded in very basic concepts of US tax law and every advisor to HNW families with US tax exposure
    (now or future) should understand the value that appropriately designed, implemented and managed policies can add
    to overall wealth accumulation.
  • Effective implementation and management of PPLI/PPVA strategies requires a team approach.Teeple Hall, LLP is a San Diego based boutique law firm, providing legal services in three core practice areas:
  • Corporate/Advisory
  • Civil Litigation
  • Private Client Services
  • Within the Private Client Services group, the firm provides a range of bespoke services:
  • Income and estate tax planning
  • Foreign asset compliance and reporting
  • International trust and estate planning
  • Design and implementation of private placement life insurance strategies
  • The firm also provides a range of private office services, tailored to assist high net worth individuals, families and family offices in building,
    preserving and transferring wealth to future generations or in furtherance of philanthropic and charitable objectives.
  • Complex international tax and estate planning matters
  • Asset protection planning
  • Family governance matters
  • His highly varied legal experience includes asset structuring, integration of privately held businesses into estate plans, succession planning, risk
    analysis and in-depth coordination of third party advisors located throughout the world, necessary to implement complex planning solutions.

1291Group, located in Switzerland, Liechtenstein, Asia, North and Latin America specializes in providing tailormade international insurance and
investment solutions to financial professionals and investors.The 1291Group Asia Ltd. is overseen by Chief Executive Officer, Mr. Yannick Häni.

Our solutions optimize the client’s situation with respect to investments, asset protection, taxation and estate planning. With our team of internationally experienced specialists and our exclusive team of external advisors, we cater to financial and tax professionals, family offices, entrepreneurs, private investors and affluent families.

Mr. Todd Hall and Mr. Yannick Häni would be delighted to meet you during their trip in Hong Kong (26th March 2018 to 29th March 2018) and in Singapore (3rd April 2018 to 5th April 2018).Please contact them directly under:For further information, please contact Todd Douglas Hall, Esq., Partner, or Mr. Yannick Häni at Teeple Hall, LLP

ALERT – Paradise Papers Release

By admin | November 14th, 2017 | Tags: , , , | 0 Comments.

Teeple Hall, LLP. – Paradise Papers Release

Since 2009, the IRS and DOJ have aggressively pursued U.S. persons who may have failed to report foreign assets on tax and information returns, particularly in “tax haven” jurisdictions. The IRS’s 2009 Offshore Voluntary Disclosure Program (“OVDP”), the 2011 Offshore Voluntary Disclosure Initiative (“OVDI”), and the 2012 OVDP depict the IRS’s unrelenting efforts to find and unveil previously undisclosed foreign assets of U.S. persons. Under these programs, the taxpayer discloses all foreign account(s) and the taxpayer’s identity to the IRS Criminal Investigation Division. These programs may afford the taxpayer with protection from criminal prosecution by providing penalty structures for taxpayers who come forward voluntarily and report their previously undisclosed foreign accounts and assets.
The Panama Papers release in 2016, where over 11.5 million documents related to financial/tax planning were leaked to the public and government agencies, reinvigorated the efforts of the IRS and DOJ. In early November 2017, an additional 13.4 million confidential documents related to offshore investments (referred to as the “Paradise Papers”) were revealed, and while only limited information has been released to date, more information is expected to be released in the next few days. Among the release are records obtained from the international law firm Appleby, offshore fiduciary Estera, and international trust and corporate services company Asiaciti Trust. Clients who are U.S. persons with foreign assets, held either individually or through structures, should be aware and sensitive to these developments, and clients who have engaged with Estera, Asiaciti Trust, or Appleby should be extra diligent to ensure that their reporting and compliance positions are in order.

U.S. citizens and residents (including green card holders) are subject to taxation on their worldwide income, regardless of whether it is earned and/or held outside U.S. borders, and also have reporting obligations on worldwide assets. The omission of income, or failure to file required information returns, could be a criminal tax offense. Even inadvertent, non-willful, or negligent non-compliance may subject a taxpayer to the assessment of tax, interest and penalties. Many U.S. persons who have foreign assets and/or income whichSince 2009, the IRS and DOJ have aggressively pursued U.S. persons who may have failed to report foreign assets on tax and information returns, particularly in “tax haven” jurisdictions. The IRS’s 2009 Offshore Voluntary Disclosure Program (“OVDP”), the 2011 Offshore Voluntary Disclosure Initiative (“OVDI”), and the 2012 OVDP depict the IRS’s unrelenting efforts to find and unveil previously undisclosed foreign assets of U.S. persons. Under these programs, the taxpayer discloses all foreign account(s) and the taxpayer’s identity to the IRS Criminal Investigation Division. These programs may afford the taxpayer with protection from criminal prosecution by providing penalty structures for taxpayers who come forward voluntarily and report their previously undisclosed foreign accounts and assets.
The Panama Papers release in 2016, where over 11.5 million documents related to financial/tax planning were leaked to the public and government agencies, reinvigorated the efforts of the IRS and DOJ. In early November 2017, an additional 13.4 million confidential documents related to offshore investments (referred to as the “Paradise Papers”) were revealed, and while only limited information has been released to date, more information is expected to be released in the next few days. Among the release are records obtained from the international law firm Appleby, offshore fiduciary Estera, and international trust and corporate services company Asiaciti Trust. Clients who are U.S. persons with foreign assets, held either individually or through structures, should be aware and sensitive to these developments, and clients who have engaged with Estera, Asiaciti Trust, or Appleby should be extra diligent to ensure that their reporting and compliance positions are in order.

U.S. citizens and residents (including green card holders) are subject to taxation on their worldwide income, regardless of whether it is earned and/or held outside U.S. borders, and also have reporting obligations on worldwide assets. The omission of income, or failure to file required information returns, could be a criminal tax offense. Even inadvertent, non-willful, or negligent non-compliance may subject a taxpayer to the assessment of tax, interest and penalties. Many U.S. persons who have foreign assets and/or income which was not properly disclosed may qualify for the Streamlined Filing Compliance Procedures (“SFCP”) introduced in June of 2014. If your failure to disclose foreign assets or income was non-willful, the SFCP provides for substantially reduced penalties (or no penalty in certain circumstances). U.S. persons and companies with offshore holdings, whether affected by the data breach at this time or not, could benefit immensely from having a current review and assessment of their U.S. tax reporting positions. Programs such as the OVDP, OVDI and SFCP are only available to taxpayers prior to the IRS initiating audit procedures.

For further information, please contact Todd Douglas Hall, Esq., Partner, or B. Roland Freasier, Jr., Esq., at Teeple Hall, LLP.