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Showing posts from October, 2017

Bye Bye John...but what about amnesty programs?

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As expected, IRS Commissioner John Andrew Koskinen will step down in November.  It is expected that this may have implications for 2 key offshore voluntary compliance programs that we cover for many of our international clients. 

These are - 1. The streamlined initiative and 2. The OVDP http://www.derrenjoseph.com/2015/02/streamlined-foreign-offshore-procedures.html

After being tapped by President Obama, Commissioner Koskinen was sworn in as IRS Chief in December 2013.  By June 2014, major changes in the offshore voluntary compliance programs were announced -
https://www.irs.gov/newsroom/irs-makes-changes-to-offshore-programs-revisions-ease-burden-and-help-more-taxpayers-come-into-compliance


Earlier this week, President Trump named Assistant Treasury Secretary for Tax Policy - David Kautter as acting commissioner of the IRS.  David Kautter will serve in both posts until a new commissioner is named.   
Time to take advantage of the offshore voluntary compliance programs now!
Watch this…

Tax Court Declines to Follow Rev. Rul. 91-32 - Important Development for Foreign Investors!

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On July 13, 2017, the U.S. Tax Court (Tax Court) issued a 55-page opinion rejecting the long-standing position of the Internal Revenue Service (IRS) as set forth in Revenue Ruling 91-321 concerning the sale by a foreign person of an interest in a partnership that is engaged in a U.S. trade or business for U.S. federal income tax purposes.

Specifically, in this taxpayer victory, the Tax Court held that the foreign partner’s gain from the redemption of its partnership interest by a U.S. partnership (to the extent it was not attributable to U.S. real estate) was not U.S.-source income and was therefore also not gain effectively connected with a U.S. trade or business, thereby exempting such gain from U.S. taxation. 
This opinion, which the IRS may challenge on appeal, is potentially good news for foreign investors in U.S.-focused investment funds, joint ventures or investments in U.S. operating companies treated as partnerships for U.S. tax purposes.



Summary of the Case
In 2001, GMM, a f…