On December 21, 2021, the Internal Revenue Service (“IRS”) announced that the competent authorities of the U.S. and Malta entered into a Competent Authority Agreement (the “CAA”) confirming the meaning of “pension fund” as relating to the interpretation of the U.S. – Malta Income Tax Treaty (the “Treaty”). The IRS had previously expressed their position that the meaning of “pension fund” was being mischaracterized and that persons were relying on the Treaty to take aggressive tax positions.  Following the execution of the CAA, the IRS is actively examining taxpayers who utilized Malta pension plans and intends to seek enforcement action when deemed appropriate. The IRS admonishes such taxpayers to fully review any such Malta pension planning with an independent tax advisor prior to filing their 2021 tax returns.

Read the full IRS Press Release here:  https://www.irs.gov/newsroom/united-states-malta-sign-a-competent-authority-arrangement-caa-confirming-pension-fund-meaning

Starting in the early 2000’s the IRS, Treasury Department, and the Department of Justice greatly expanded their enforcement actions on the U.S. reporting obligations for U.S. Persons with interests in foreign trusts, entities and financial accounts. These expanded enforcement activities against perceived and actual tax evasion, reporting and compliance evasion, and non-compliance, resulted in a number of initiatives and programs by the IRS to press for compliance while providing an opportunity to bring recalcitrant U.S. taxpayers into compliance. Though the IRS OVDI and OVDP programs of the 2007 – 2018 reporting era have ended, a number of voluntary disclosure options remain. However, a key element of any voluntary disclosure is that it is made on a timely, voluntary and complete basis, before (i) any disclosure of a name or account has occurred or (ii) existence of any audit or investigation.

If you have questions or concerns regarding U.S. compliance and tax matters for your foreign financial accounts, assets or structures (including the utilization of Malta pension plans), please contact our office to discuss your matter in a confidential and privileged manner.

Teeple Hall, LLP is pleased to announce that Michael L. Tajima, J.D., LL.M., has joined the firm as an Associate Attorney. At Teeple Hall, LLP, Mr. Tajima handles a variety of legal matters in the Firm’s Tax, Private Client, and Corporate & Transactional Practice Groups, including work on domestic and international tax matters, estate planning for high-net-worth individuals and families, and mergers and acquisitions. 

Mr. Tajima has been practicing law since 2014 and has experience in tax controversy, tax planning and structuring, and advanced estate planning techniques including representing clients in (i) income tax analysis and planning, (ii) implementing complex estate including self-settled trusts, qualified personal residence trusts, life insurance trusts, and foreign asset protection trusts, (iii) collection due process hearings, appeals, audit reconsiderations, U.S. Tax Court petitions, and Taxpayer Advocate Services (TAS) when appearing before the IRS and the California Franchise Tax Board, and (iv) negotiating and drafting of contracts for both corporate and private clients.

Mr. Tajima holds a Bachelor of Arts degree in Political Science from the University of California, San Diego, (International Comparative Politics) a Juris Doctor from Loyola Law School, and a Master of Laws (LL.M.) from Boston University School of Law (International and Financial Taxation). Mr. Tajima’s professional memberships include the California Bar Association (General; Trust and Estates Section), the Japanese Bar Association and the Korean Bar Association. Mr. Tajima is also fluent in English, Japanese, and Korean.

Today, the U.S. Department of Justice for the Southern District of New York filed a criminal information charging Swiss Life Holdings AG and three subsidiaries (together, “Swiss Life Entities”) with conspiring to commit tax evasion for U.S. taxpayers through the use of illicit life insurance policies.  The DOJ also announced that they entered into a Deferred Prosecution Agreement (a “DPA”) with Swiss Life Entities by which they agreed to accept responsibility for their criminal conduct.   The DOJ’s actions today represent yet another step in the DOJ and U.S. Treasury Department’s campaign to expose and prosecute those who are involved in the setup and use of foreign financial accounts, products and structures that assist U.S. taxpayers to circumvent and evade their U.S. tax obligations.  

Read the full DOJ Press Release here.

https://www.justice.gov/usao-sdny/pr/switzerland-s-largest-insurance-company-and-three-subsidiaries-admit-conspiring-us

Starting in the early 2000’s and rapidly expanding during the period 2005 – 2007, the IRS, Treasury Department, and the Department of Justice greatly expanded their enforcement actions on the U.S reporting obligations for U.S. Persons with interests in foreign trusts, entities and financial accounts. These expanded enforcement activities against perceived and actual tax evasion, reporting and compliance evasion, and non-compliance, resulted in a number of initiatives and programs by the IRS to press for compliance while providing an opportunity to bring recalcitrant U.S taxpayers into compliance. Though the IRS OVDI and OVDP programs of the 2007 – 2018 reporting era have ended, a number of voluntary disclosure options remain.   However, a key element of any voluntary disclosure is that it is done voluntarily, before (i) any disclosure of a name or account has occurred or (ii) existence of any audit or investigation.

If you have questions or concerns regarding U.S. compliance and tax matters for your foreign financial accounts, assets or structure, please contact our office to discuss your matter in a confidential and privileged manner.

Teeple Hall, LLP is pleased to announce that Spencer T. Higgins, JD, LLM has been appointed the Publications Co-Chair for the California Lawyers Association, Taxation Section, Corporate and Passthrough Entities Committee. The Corporate and Passthrough Entities Committee focuses on issues faced by corporate and passthrough entity taxpayers and provides opportunities for practitioners and corporate tax counsel to maintain a level of expertise in the field of corporate and passthrough entity tax law, expand their professional contacts, and serve the profession, the public and the legal system. 

Teeple Hall, LLP is pleased to announce their co-sponsorship of the twenty-third annual American Law Institute Continuing Legal Education Webinar on International Trust and Estate Planning 2020 to be held December 9 – 10, 2020.  Join this comprehensive annual program for the latest information and high-level guidance on taxation, trusts, and estate planning for U.S. and international estate planning clients. 

Teeple Hall, LLP is pleased to announce their co-sponsorship of the twenty-second annual American Law Institute Continuing Legal Education conference on International Trust and Estate Planning 2019 to be held November 14 – 15, 2019 in Washington, DC.  This annual event is the premier course offering the high-level information and strategies necessary to effectively advise both U.S. and international trust estate planning clients. 

Teeple Hall, LLP is pleased to announce their sponsorship of this one-of-a-kind program by the American Law Institute Continuing Legal Education conference on Estate Planning for the Family Business Owner 2019 to be held October 24–25, 2019 in Phoenix, Arizona.  This comprehensive program on estate planning for family business owners is designed for estate lawyers, accountants, those who advise privately-owned businesses, and those who own private businesses.

Teeple Hall, LLP is pleased to announce that Spencer T. Higgins, JD, LLM has joined the firm as an Associate Attorney, effective November 6, 2017. Spencer’s prior work experience has taken him from The White House to PWC San Francisco where he most recently worked as a Senior Associate in the firm’s international Mergers and Acquisitions Group. He will be working with the Firm’s Corporate Practice with a focus on Tax and will also support the Private Client Group working primarily with international HNW families and family offices.