Committee Newsletter TABLE OF CONTENTS MEET THE BOARD >> 1 ARTICLES >> 3 NEWS AND ANNOUNCEMENTS >>...5 UPCOMING EVENTS >>.6 IMPORTANT TAX DEADLINES >> 6 MEET THE BOARD >> In this first issue, we would like to introduce the board members of the Tax Law Committee. Please feel free to reach out to any of the board members about questions related to the Tax Law committee, participation in the ABA events, membership, publications, or any other ABA related questions. Vlad Frants, Co-Chair JD, MST, LL.M. (917) 861-2084 vlad.frants@gmail.com Vlad is an associate in the Newark office of McCarter & English, LLP, in the Tax, Employee Benefits & Private Clients practice group. Vlad focuses his practice on corporate and business tax planning and controversy work at the federal, state and local levels. Most recently, Vlad was a judicial law clerk at the United States Tax Court. Prior to that he was a senior associate on the International Tax Services team at Ernst & Young and a transfer pricing law clerk at American International Group, Inc. He is an Adjunct Professor of Federal Tax Research and Procedure at Fordham Gabelli School of Business. LL.M. in Taxation, Georgetown University Law Center, with distinction, 2014 M.S.T., Fordham Graduate School of Business, 2010 J.D., Brooklyn Law School, 2009 B.A., State University of New York at Stony Brook, summa cum laude, 2005
Michael is an associate at Brett Hendee, PA. Michael focuses his practice on estate planning, wills and trusts and business law. LL.M. in Taxation, University of Florida, 2014 J.D., University of Florida Levin College of Law, cum laude, 2013 M.Acc., University of Florida Fisher School of Accounting, cum laude, 2010 B.S., University of Florida, Fisher School of Accounting, cum laude, 2010 Certified Public Accountant, Alabama, 2013 Michael Hendee, Co-Chair JD, LL.M. (813) 397-2406 mhendee23@gmail.com Drew Cummings serves as a law clerk to Judge Albert G. Lauber at the United States Tax Court. LL.M. in Taxation, Georgetown University Law Center, with distinction, 2013 J.D., University of Kansas School of Law, Order of the Coif, 2011 B.S., Kansas State University, magna cum laude, 2008 Drew Cummings, Co Vice Chair JD, LL.M. drewacummings@gmail.com Chelsea Tryder is an associate at Preti Flaherty, LLP in Portland, Maine in the Taxation and Business Law practice groups. Chelsea focuses her practice on federal and state income tax issues, public finance, exempt organizations and tax credit programs. Chelsea Tryder Co Vice Chair, JD (207) 791-3156 ctryder@preti.com LL.M. in Taxation, Boston University School of Law, pending 2017 J.D., Suffolk University Law School, 2013 B.A., Bates College 2
Adam Landy, Co Vice Chair, JD, LL.M. (803) 799-9800 alandy@mcnair.net Adam is an associate at McNair Law Firm, P.A. in Columbia, South Carolina. Adam focuses his practice on tax law, where he represents and advises clients in tax and estate planning, probate administration and tax controversy matters. He represents clients before the Internal Revenue Service and South Carolina Department of Revenue in audit/examinations, appeals and tax collection matters. Adam also has experience representing and advising clients with foreign bank account disclosures, including the filing of Report of Foreign Bank and Financial Accounts and client representation in the IRS Offshore Voluntary Disclosure Program. LL.M. in Taxation, Northwestern University, 2010 J.D., University of South Carolina, 2009 M.S., University of South Carolina, 2006 B.S., University of South Carolina, 2004 Asel Mukeyeva is an associate in the Kansas City office of Husch Blackwell LLP. Asel focuses her practice on corporate and partnership tax law, tax controversy, state and local taxation and taxation of exempt organizations. In 2014, Asel founded the Kansas City Tax Club for young tax professionals in the area. Asel is also a member of the board of the Heart of America Tax Institute and she serves on the pro bono panel of the University of Missouri Kansas City Tax Clinic. Asel Mukeyeva Co Vice Chair JD, LL.M. (816) 983-8239 asel.mukeyeva@hu schblackwell.com LL.M. in Taxation, New York University, 2013 J.D., Washburn University, cum laude, 2012 B.S., Georgetown University McDonough School of Business, cum laude 2002 B.A., Washburn University in Accounting, magna cum laude, 2008 Certified Public Accountant, Kansas, 2013 ARTICLES >> Congress Moves Up Due Date to Report Ownership of Foreign Bank Accounts By: Adam B. Landy If you have a foreign bank account, take note: You now have less time than before to report your interest in a foreign account with the IRS and Department of Treasury. All U.S. persons having a financial interest in or signatory authority over foreign financial accounts ( FFA ) must file FinCEN Form 114, Report for Foreign Bank and Financial Accounts ( FBAR ) if the aggregate value of your foreign financial accounts equals $10,000 or more at any one-time during the calendar year. 3
On July 31, President Obama signed the Surface Transportation and Veterans Health Care Choice Improvement Act of 2015, which changed the annual filing deadline for FBARs from June 30th to April 15th although you can now request an extension to file until October 15th. The change in the law will apply to the 2016 FBAR, which is now due on April 15, 2017, but the due date for the 2015 FBAR will remain June 30, 2016 unless the IRS issues further guidance changing the due date. Some good news, though: The new law also provides that the penalty for failing to timely file an FBAR may be waived by the IRS for those taxpayers filing an FBAR for the first time who fail to file by April 15th. A foreign financial account is a financial account located outside the U.S. or the territories and possessions of the U.S. An account maintained with a branch of a U.S. bank that is physically located outside of the U.S. is also considered an FFA. Conversely, an account maintained with a branch of a foreign bank that is physically located in the U.S. is not considered a FFA. A U.S. person has a financial interest in a FFA if: the U.S. person is the owner of record or holder of legal title, regardless of whether the account is maintained for the benefit of the U.S. person or for the benefit of another person; or the owner of record or holder of legal title is one of certain listed entities, which include (a) an agent, a nominee, attorney, or a person acting in some other capacity on behalf of the U.S. person with respect to the account, or (b) any of entities controlled by the U.S. person. A U.S. person has an FBAR filing requirement with respect to an entity if he or she directly or indirectly owns more than 50% of the total value of stock or voting power, interest in partnership income profits, or a beneficial interest in assets or income of a trust. Even those without an interest in a FFA who merely have signatory authority over a FFA can have a filing requirement. There are some exceptions to this general definition, including: certain accounts jointly owned by spouses; consolidated FBAR filings; certain governmental entities; IRA owners and beneficiaries; or participants in and beneficiaries of qualified retirement plans. Federal tax law requires a U.S. person, defined as a U.S. citizen, a U.S. permanent resident or a corporation, partnership, trust or limited liability company formed under the 4
laws of the U.S. or any state, that has a financial interest in or signature authority over FFAs, to file an annual FBAR if the aggregate value of the FFA equals $10,000 or more at any one-time during the calendar year. For example, if William, a U.S. permanent resident, has a bank account in France with BNP Paribas, and the account balance on April 28, 2015 was $275,000, regardless of what the account balance is on December 31st, William will be required to file an FBAR electronically on or before the deadline, unless an extension is granted. The FBAR filing requirement is the same if William owns more than a 50% interest in Eiffel Tower Store, Inc., a U.S. corporation, and the corporation has an FFA with BNP Paribas with the same account balances as the prior example. The potential penalty for failing to file an FBAR on time depends on whether the failure is judged to be a violation of a known legal duty, or the conduct is not due to negligence, inadvertence, or mistake or resulting from a good faith misunderstanding of the requirements of the law. The IRS may assess a minimum annual penalty of $10,000 for any non-willful violation. The non-willful penalty can be imposed by the IRS simply for missing the April 15th deadline without reasonable cause. For willful violations, the penalty can rise to $100,000, or 50% of the balance in the account at the time of the violation, whichever is greater. The IRS may determine that a willful violation has occurred when there is a voluntary or intentional violation of a known legal duty to file an FBAR. If you do not meet the filing requirements, the IRS will find you. Beginning with the much-published proceedings by the IRS against UBS bank, the IRS has sought the identities of U.S. persons holding interests in foreign bank accounts. For instance, in September 2015, the U.S. Department of Justice announced a resolution with Swiss bank, Schroder & Co. Bank AG, and levied a $10.3M penalty against the bank for failing to declare and provide information regarding U.S.-related accounts. The IRS has prosecuted U.S. citizens and permanent residents whose identities, and foreign bank account interests, were disclosed to the IRS by foreign banks. The IRS will continue to prosecute U.S. persons for the foreseeable future for failing to file FBARs. The revised due date for filing the 2016 FBAR and beyond should help alleviate problems taxpayers have had in timely filing and reporting their interests in foreign accounts. NEWS AND ANNOUNCEMENTS >> Member Services Projects On October 14, the ABA YLD will host a Twitter chat at 3PM PT/6 PM ET entitled Addressing Mental Health Stigmas in the Legal Profession. Rachael Barrett of The Dave Nee Foundation will host the chat. On October 15, Hilary Chaney will present an Ethics-CLE program entitled The Bipolar Attorney: When the Mental Impairment is Your Own. 5
On October 16, Judi Cohen of Warrior One will present a CLE program entitled Chaos to Mindfulness. On October 15 through 17, the Fit to Practice program will be launched at the Fall Conference. YLD Public Service Project The Public Service Team will hold its inaugural World Wise Web ( WWW ) outreach on Friday, October 16, 2015 at 9:00 a.m. at Henderson Middle School in Little Rock, Arkansas. This outreach is in conjunction with the ABA YLD Fall Conference. If anyone is interested in volunteering for this outreach, please contact Casey Kannenberg at ckannenb@fclaw.com. UPCOMING EVENTS >> 10/15/15 to 10/17/15 YLD Fall Conference in Little Rock, AR 10/20/15 Webinar on Green Building: A Practical Guide to Transactional and Litigation Issues 10/20/15 Webinar on Workplace Gambling: High Stakes Ethical Dilemmas 10/28/15 Webinar on Time Management for Lawyers: If You Don t Manage Your Time, You Can t Manage Your Practice November, 2015 YLD Tax Law Happy Hour in Washington, D.C. More information about the time and place of the event is to follow. Please view the upcoming events section on the ABA website homepage for more information. IMPORTANT TAX DEADLINES >> OCTOBER 15 Final deadline to file individual tax returns for the year 2014 that have been extended from April 15, 2015 Final deadline to fund SEP-IRA and 401(k) for those that request automatic extension to file DECEMBER 31 Last day for any end of the year tax-related transactions 6
MARCH 15, 2016 First deadline to file tax returns for C and S corporations APRIL 15, 2016 First deadline to file individual tax returns First deadline to file partnership returns First deadline to file tax returns for trusts and estates JUNE 30, 2016 First deadline to file FBAR report 7