Tax haven Feed

Some come to the Cayman Islands for the beauty of Seven Mile Beach and other natural recreational areas. Others enjoy the Caribbean locale for financial and tax reasons. For more than a decade, wealthy U.S. tax evaders have taken advantage of a gaping tax law loophole that allows them to stash billions in foreign bank accounts, according to a recently released congressional report. Even though the 2010 Foreign Account Tax Compliance Act (FATCA) requires them to report any non-U.S. accounts and pay taxes on all income earned, too many non-taxpayers are using what the Senate Finance Committee report describes as... Read more →


Barclays Bank building in Madrid (Photo by M.Peinado from Alcalá de Henares, España - 001782 - Madrid, CC BY 2.0) It's not a crime to put your money into legitimate foreign financial institutions. However, if the amount meets a certain threshold, you are required to report that money to the U.S. government. When U.S. taxpayers ignore this process, officially known as filing of a Report of Foreign Bank and Financial Accounts, or FBAR, they can face costly consequences. That's the case in the FBAR collection complaint filed Aug. 15 by federal officials seeking judgment against the defendant who, per the... Read more →


Aaron Paul, as Jesse Pinkman (right), explaining legal representation needs to soon-to-be meth king Walter White, played by Bryan Cranston, in a scene from AMC's "Breaking Bad." As much as I loved that show and its "Better Call Saul" sequel, don't take Jesse's legal advice when it comes to tax troubles. Get honest and experienced professional help for any potentially criminal tax charges, like the ones noted below. Maybe it's because I'm still processing the end "Better Call Saul," the wonderful six-season exploration of television's best show about the evolution of, echoing the emphasis of Breaking Bad's Jesse Pinkman, a... Read more →


Robert J. Brockman speaking at the dedication of Centre College's Young Hall on in October 2011. (YouTube screenshot) The Texas billionaire charged in what Internal Revenue Service investigators called the largest U.S. tax fraud case ever died late Aug. 5 at his Houston home. The 81-year-old Robert J. Brockman suffered from Parkinson’s disease and dementia. In May, a federal judge deemed the former CEO of Reynolds & Reynolds, a software company for auto dealerships, was competent to face charges that he evaded taxes on $2 billion of income. A February 2023 trial date was set. So what happens now to... Read more →


Update, Monday, Aug. 8, 2022: Robert J. Brockman died at his Houston, Texas, home on Aug. 5, 2022. That effectively ends federal prosecutors' criminal tax evasion case against Brockman. Civil tax litigation, however, will continue against his estate. Shutterstock The billionaire charged in the largest U.S. tax fraud case ever is one step closer to facing trial. Robert J. Brockman, the former CEO of Reynolds & Reynolds, a software company for auto dealerships, was indicted on Oct. 1, 2020, on 39 counts of evading taxes on $2 billion of income. The 20-year scheme, according to the Internal Revenue Service Criminal... Read more →


In 2016, a law change moved the due date for the required filing of Reports of Foreign Bank and Financial Accounts, or FBAR, to coincide with the annual April individual federal tax return deadline. FBAR information is the federal government's way of tracking foreign bank and financial accounts owned by U.S. taxpayers. Since Tax Day gets a lot of attention every year, the date change was seen as a way to make sure more people were aware of FBAR filing requirements. So FBAR filings this year are due on April 18, a few days later than usual due to the... Read more →


Lewis Hamilton visiting fans at the 2018 Formula 1 British Grand Prix at Silverstone (Photo by Jen_ross83) It's the greatest time of the year for sports fans as a variety of games and events overlap. College and professional football games fill up our weekends, and for the National Football League (NFL) our Mondays and Thursdays. Pucks have dropped in National Hockey League (NHL) arenas. The National Basketball Association (NBA) preseason will give way next week to match-ups that count. And, of course, four Major League Baseball (MLB) teams are facing off to determine which two will make it into the... Read more →


The tax voyeur in all of us enjoyed the latest unsurprising revelations of how rich people hide money around the world, including a dozen U.S. states and D.C., to avoid paying taxes. The attention to this not really news item also is a good time to note the difference between illegal tax evasion and legal tax avoidance. The South Dakota capitol building is in the state's capital city of Pierre. The state itself is the U.S. capital as far as the most trusts identified in the Pandora Papers. (Photo by Jake DeGroot via Wikipedia) Last week we got news that... Read more →


The big deadline change for 2021 was when the Internal Revenue Service extended the regular income tax filing deadline from April 15 to May 17. But it also made a few more calendar moves, including one that this month affects folks with foreign financial accounts. The IRS left in place the due date for filing Form 114, Report of Foreign Bank and Financial Accounts, usually referred to as FBAR. Sort of. Although the tax agency didn't move the April deadline, it did grant FBAR filers an automatic extension until Oct. 15. That's right. Owners of foreign accounts now face the... Read more →


Looking to hide money from the Internal Revenue Service in another country? The tax agency makes finding such funds a priority, but one man accused of helping set up tax shelters has managed to slip through U.S. tax officials' hands. (Photo from Pixabay via Pexels) More than five years ago, 11.5 million leaked documents detailing information for more than 214,000 offshore companies were made public. The world was fascinated with the tale of how wealthy individuals, with the help of money managers and bankers, created tax shelters. That reveal by the International Consortium of Investigative Journalists, dubbed the Panama Papers... Read more →


If it feels like you just filed required federal forms about your overseas financial holdings, you're probably right. Last year, as we all were working to adjust to the myriad tax (and life) changes precipitated by the COVID-19 pandemic, lots of tax deadlines got pushed back. Some way back. One of those was the filing extension for Form 114, Report of Foreign Bank and Financial Accounts, usually referred to as FBAR. Some individuals didn't have to submit this document until Dec. 31, 2020. Now FBAR filers are facing a new deadline. Next week. On Thursday, April 15. That's right. The... Read more →


Uncle Sam is always on the lookout for people who try to evade taxes by hiding money in foreign accounts. To keep track of taxable money abroad, the federal government relies on two agencies, the Internal Revenue Service and its sister agency within the U.S. Treasury, the Financial Crimes Enforcement Network, usually referred to as FinCEN. FinCEN requires a special filing from some of Form 114, Report of Foreign Bank and Financial Accounts, usually referred to as FBAR. FBAR filings have long been a pain for Americans who hold assets abroad. A couple of years ago, Treasury tried to make... Read more →


Robert Smith surprised the 2019 class of Morehouse College graduates with a pledge to pay off their student loans. Watch the happy moment via Bloomberg Quick Take on YouTube. It was one of last year's best feel-good stories. On May 19, 2019, billionaire entrepreneur and philanthropist Robert F. Smith promised graduates of Morehouse College listening to his commencement address that he would pay off their college debt. The approximately 400 grads at the historically black college in Atlanta were stunned. Then delighted. And the country cheered Smith's benevolence and commitment to making at least a little bit of the United... Read more →


A walk along Long Bay in the British Virgin Islands (Photo courtesy Long Bay Beach Club Resort) The first Caribbean vacation the hubby and I took was to the British Virgin Islands (BVI). We had a lovely suite on a hillside overlooking Long Bay. The beaches were fantastic, the weather was ideal, the food superb and we — and by we, I mean the hubby — got in some scuba diving during a day-sail trip. I saw that barracuda in the water and opted to stay on deck. Since then, we've hit a few other island getaway spots, but BVI... Read more →


Even more intriguing, will Donald J. Trump now become social media's definitive Florida Man? Donald Trump, especially early in his presidency, spent a lot of time at Mar-a-Lago, his South Florida club and residence. Here, Trump and Melania in April 2017 welcomed the People's Republic of China president Xi Jinping and his wife Peng Liyuan to the Palm Beach abode. Now Trump says it, not Trump Tower in New York City, will be his official residence. (Photo via Trump's Twitter account and Wikipedia Commons). The hubby and I used to live in Donald J. Trump's future full-time home. Alas, for... Read more →


The Trump Administration currently is embroiled in a whistleblower controversy. But another situation where a witness to tax wrongdoing — not any alleged Donald J. Trump activity! — has worked out much more satisfactorily. A $11.5 million award has been presented to a person whose information led to the government collecting over $44.4 million in taxes, penalties and interest, according to the whistleblower attorneys involved in the case. In announcing the award, attorneys Stephen M. Kohn of the Washington, D.C. firm of Kohn, Kohn and Colapinto and Dean Zerbe of the Houston-based firm Zerbe, Miller, Fingeret, Frank & Jadav, lauded... Read more →


Darth Maul apparently — spoiler alert — was killed in The Phantom Menace, but later showed up in subsequent Star Wars productions. His persistence is akin phantom investment transactions that are created simply to lower multinational companies' tax bills. (Photo via Lucasfilm) What I consider the real Star Wars trilogy came out when I was in college. That's why I've not bothered to see any of the subsequent sequel/prequel movies. But they came to mind last week when the International Monetary Fund (IMF) and the University of Copenhagen released a new study on the growth of so-called phantom capital and... Read more →


Got enough money that you've diversified by investing in some international accounts? Good for you. If, however, those non-U.S. holdings are, shall we say, designed to be ultra-private, you might want to think about opening them up. Specifically, tell the Internal Revenue Service about that money you've been hiding from Uncle Sam or pay a big price when your tax haven money is discovered. One way to do that is by taking advantage of the IRS' Offshore Voluntary Disclosure Program (OVDP). That opportunity, however, is about to end. Closing OVDP: Back in March, the IRS announced that it was giving... Read more →


Cover photo from 2017 report Offshore Shell Games by ITEP and PIRG Offshore tax havens. The phrase immediate conjures up images of dubious financial guys who've traded in their high-powered jobs and three-piece suits for floral print shirts and umbrella-shaded drinks on a tropical beach, all funded by cash they stashed in island-based accounts, hidden from the U.S. tax collector. Sometimes that's true. Everyone knows by now of the scrutiny given to Cayman Island banks, as well as the hidden accounts revealed by the Panama Papers. But offshore in Internal Revenue Service parlance means any location outside United States boundaries.... Read more →


Lewis Hamilton was all hat and F1 2017 champion after he won the U.S. Grand Prix in Austin TX on Oct 29 2017. That was the race where the U.K. driver earned enough points to take another title. A few days later, Hamilton's name showed up in the Paradise Papers as one of the rich and famous individuals around the world who uses questionable tax shelters. (Photo courtesy Formula1.com) Formula 1's final race of the year was today in Abu Dhabi (no spoiler here unless you click the link), ending the 2017 season in which Lewis Hamilton claimed the motorsports'... Read more →