Tax Law

Recent Posts

HSBC to Pay Record Money Laundering Penalty
Posted on 12 Dec 2012 by David T. Soborski

Multiple outlets are reporting that HSBC Holdings PLC has reached a $1.9 billion settlement with U.S. authorities. The U.K.-based banking company is expected to forfeit nearly $1.3 billion as part of a deferred prosecution agreement, the largest-ever... Read More

Reporting Obligations of U.S. Beneficiaries of Foreign Trusts and New Form 8938
Posted on 20 Apr 2012 by Diane L. Mutolo

In 2010, Congress enacted the Foreign Account Tax Compliance Act (FATCA) as part of the Hiring Incentives to Restore Employment Act ("the HIRE Act"), and the legislation amended the Internal Revenue Code with the goal of increasing foreign account... Read More

HSBC Reportedly Being Investigated for Money Laundering
Posted on 27 Jan 2012 by Jack Townsend

The U.S. Senate is reportedly investigating HSBC for money laundering. See Carrick Mollenkamp, Exclusive: Senate Investigating HSBC for Money Laundering (1/25/12), here . I don't know precisely what that means in terms of the topic of this blog. I... Read More

Implications of Disallowed Foreign Deductions for Multinational Enterprises
Posted on 12 Nov 2012 by LexisNexis Tax Law Community Staff

by Nicholas L. Raby, Susan W. Stanley and Elizabeth A. Sweigart * Although the majority of U.S.-based multinational enterprises make efforts to document and charge for headquarters general and administrative services provided to foreign affiliates... Read More

New Indictment of U.S. Tax Return Preparers & Enablers re Offshore Bank & Related Activity
Posted on 18 Jun 2012 by Jack Townsend

In a First Superseding Indictment, here , filed June 14, 2012 in CD CA, three principals of a tax return preparation service, United Revenue Service ("URS") were indicted. The DOJ Tax Press Release is here, Three Tax Return Preparers Charged... Read More

FATCA Taxpayer Account Information Exchange Begins
Posted on 8 Oct 2015 by Neil Aragones

The IRS has announced that the exchange of financial account information under FATCA has begun, meeting the September 30 date set by the Service. (See the FATCA timeline on the IRS website for important dates at Read More

Will Developed Countries Learn to Tax?
Posted on 6 Mar 2012 by Allison Christians

In 1963, Nicholas Kaldor published a paper in Foreign Affairs about the ongoing fiscal problems of poor countries, entitled " Will Underdeveloped Countries Learn to Tax? " It turns out Kaldor should have aimed this advice at his own country... Read More

Rufus Rhoades on the foreign tax credit generator, offsetting temporary regulations issued by the Department of Treasury, and the codification of the "economic substance doctrine"
Posted on 3 May 2010 by Rufus Rhoades

On this edition, Rufus Rhoades, co-author of Rhoades & Langer, U.S. International Taxation and Tax Treaties, published by LexisNexis Matthew Bender, outlines the purpose and practical impact of the foreign tax credit generator and codification of... Read More

Final Regulations Clarify FBAR Reporting Requirements
Posted on 27 Oct 2011 by LN Tax Law Staff

[ Editor's Note: This narrative is derived from Taxation of Financial Institutions § 26.04 (Matthew Bender).] Under the Bank Secrecy Act, financial institutions must report and maintain records for transactions in cash or currency that exceed... Read More

Managing the Competent Authority Process for U.S.-Based Multinational Enterprises
Posted on 13 Feb 2013 by LexisNexis Tax Law Community Staff

by Barry Shott, Richard Barrett and Elizabeth Sweigart * Under pressure to close revenue gaps and to address perceived aggressive tax positions related to the pricing of cross-border transactions, both the U.S. and foreign tax authorities are imposing... Read More

Taxing Financial Pollution
Posted on 28 Jan 2013 by Martin A. Sullivan

European finance ministers ("finance minister" is equivalent to our Treasury Secretary) voted on January 22 to move forward with a plan to tax trades of stock, bonds, and other financial instruments. As a result a financial transactions tax... Read More

New Section 892 and 6038D Regulations...
Posted on 5 Jan 2012 by Ivan Mitev

Section 892 Proposed Regulations Clarify Some Sovereign Fund Issues Section 892 provides that the income of foreign governments received from investments in the United States in investment securities, financial instruments, or interest on deposits in... Read More

Tax Protestors Alive and Well and Living in Canada
Posted on 16 Apr 2012 by Allison Christians

The tax protestor movement is alive and well in Canada and getting some publicity just in time to serve as a warning to Canadian taxpayers readying their annual returns.* I read with interest the recent case of Russell Porisky and his wife Elaine Gould... Read More

The UBS Birkenfeld Whistleblower Case
Posted on 4 Feb 2013 by LexisNexis Tax Law Community Staff

by Sheryl Phipps * Birkenfeld Case On September 11, 2012, the Internal Revenue Service (IRS) paid former Union Bank of Switzerland (UBS) banker Bradley Birkenfeld $104 million in awards for assisting them in collecting more than $5 billion in unpaid... Read More

Rambo Judge Grants Mercy to Convicted Foreign Account Holder
Posted on 13 Mar 2012 by Jack Townsend

In United States v. Purpura , 2012 U.S. Dist. LEXIS 28748 (MD PA 2012), Judge Sylvia H. Rambo granted the convicted defendant's motion to withdraw his plea of guilty to two counts of tax perjury, Section 7206(2) related to a false answer to the Schedule... Read More