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Advising Domestic Business Ventures: A Trade or Business for Purposes of Section 199A

In 199A by Jason FreemanLeave a Comment

Freeman Law advises domestic and international ventures with corporate and tax compliance. Clients with flow-through entity structures may need to consider the impact of section 199A. Planning for section 199A may significantly impact a client’s bottom line and investor returns. This resource provides additional background on the concept of a trade or business for section 199A purposes. Section 199A was …

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Advising International Business Ventures: Tax Reform’s New GILTI Tax

In GILTI, International Tax, Tax Reform by Jason FreemanLeave a Comment

Freeman Law frequently advises international business ventures. International operations often give rise to unique (and sometimes unanticipated) compliance obligations and complex reporting requirements. Recent tax reform rules and regulations have imposed a number of new requirements.  The IRS and Treasury Department have elaborated on these new rules through proposed regulations and other guidance.  This post focuses on, and provides a short …

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The Evolving “Yates” Memo—The Department of Justice Revises its Policies on Individual Accountability and Corporate Enforcement

In White Collar by Jason FreemanLeave a Comment

The Justice Department recently announced revisions to the so-called “Yates” memo.  The revisions, announced by Deputy Assistant Attorney General, Rod Rosenstein, represent significant changes to the Department’s white-collar enforcement policies and impact the Justice Manual’s policies with respect to corporate enforcement and individual accountability.   The Yates memo, originally issued September 9, 2015, set forth DOJ policies with respect to …

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Advising Domestic Business Ventures: Section 199A and Flow-Through Structures

In Uncategorized by Jason FreemanLeave a Comment

Freeman Law advises domestic and international ventures with corporate and tax compliance.  Clients with flow-through entity structures may need to consider the impact of section 199A.  Planning for section 199A may significantly impact a client’s bottom line and investor returns.  For more on section 199A, see our other Insights, such as A Practical Roadmap Through Section 199A, Choice of Entity After …

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Advising International Business Ventures: Passive Foreign Investment Companies (PFICs)

In International Tax, PFIC by Jason FreemanLeave a Comment

Freeman Law frequently advises international business ventures. International operations often give rise to unique (and sometimes unanticipated) compliance obligations and complex reporting requirements. Recent tax reform rules and regulations have imposed a number of new requirements.  This post focuses on, and provides a short introduction to, the Passive Foreign Investment Company (“PFIC”) rules.   U.S. taxpayers investing in foreign corporations may …

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Tax Crimes: Section 7203 and Willful Failures to File a Tax Return

In Criminal, Evasion, Fraud by Jason FreemanLeave a Comment

Section 7203 of the Internal Revenue Code creates the federal crime of willfully failing to (1) file a tax return, (2) supply information, or (3) pay a tax.  The Department of Justice’s position is that this misdemeanor offense of willfully failing to file a tax return, pay tax, keep records or supply information should only be charged when a defendant …

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Advising International Business Ventures: Controlled Foreign Corporations and Subpart F

In CFC, International Tax by Jason FreemanLeave a Comment

Freeman Law frequently advises international business ventures. International operations often give rise to unique (and sometime unanticipated) compliance obligations and complex reporting requirements. Recent tax reform rules and regulations have imposed a number of new requirements.  This post focuses on, and provides a short introduction to, the Controlled Foreign Corporation (“CFC”) rules under Subpart F of the Code.   Historically, U.S. …

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Advising International Business Ventures: Tax Reform and a Quasi-Territorial Tax System

In CFC, International Tax, Participation Exemption, Tax Reform by Jason FreemanLeave a Comment

The Tax Cuts and Jobs Act (“TCJA”) led a shift from a “worldwide” tax system towards a territorial tax system—more accurately, a “quasi”-territorial tax system.  The TCJA accomplished this through several major reforms.  First, it enacted a “toll charge,” or transition tax—a one-time tax on the deemed repatriation of earnings held offshore. In exchange, it implemented a “Participation Exemption System” that …

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The Willful FBAR Penalty: Bedrosian and New Insights

In FBAR, Penalties by Jason FreemanLeave a Comment

The Third Circuit Court of Appeals recently issued its much-anticipated decision in Bedrosian v. United States.  The opinion reviewed a lower court’s decision refusing to apply the willful FBAR penalty.  See our prior post on the case here.  The appellate court’s decision ultimately remanded the case back to the lower court for further analysis.   The FBAR Reporting Requirement:  Congress …

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Innocent Spouse Relief

In Innocent Spouse Relief by Jason Freeman and Katie ManworrenLeave a Comment

When a married couple files a joint tax return, both taxpayers are jointly and severally liable for any taxes owed and any penalties or interest assessed. This is true even if the couple later divorces or if one spouse was the sole income earner. Section 6015 of the Internal Revenue Code provides a few avenues of relief for a spouse …