Jan 18, 2023
In this episode of ABCast Janathan Allen discusses some real life scenarios of how Allen Barron has been able to provide valuable services to solve our client's problems and fix integrated legal, tax and accounting issues both domestically and internationally. The conversation begins with issues relating to a trust (or lack of one). What happens when you pass away without a trust or will? What is funding a trust and why is this so important? When might it not be a good idea to put something into a trust? Jan reviews the high cost of probate and how an effective trust strategy saves substantial time, money and hassle. The conversation turns to domestic tax planning, international tax planning and transactional planning. We discuss a few examples of how international tax planning has helped to restructure our client's strategy to reduce taxation and increase profits. Jan discusses the substantial difference between how investments and income are taxed abroad versus here in the United States and how Europe's method of reporting investment income actually results in almost doubling an American investor's taxation due to PFIC calculations. The conversation turns to FBAR reporting, Crypto investments and other associated vehicles. Jan discusses the concepts of "willful" versus "non-willful" behavior on the part of a US taxpayer and how to come into compliance easily and efficiently if you have failed to report offshore accounts or activity. The conversation includes a discussion on the protections of the attorney-client privilege and why it is almost never in the interests of a US taxpayer to speak directly to the IRS.