The Essential Tax Podcast with Mishkin Santa, Season 2, Episode 9

In this episode of The Essential Tax Podcast, Mishkin Santa discusses recent news items related to FinCEN Form 114 (FBAR) requirements, and how they will affect US and international tax reporting.

Tune in for these key takeaways:

• A brief history of the FBAR’s origins in the Bank Secrecy Act of 1970.

• A summary of which taxpayers need file an FBAR and an explanation of the aggregate reporting threshold that triggers the requirement.

• Tips for recordkeeping and due diligence that can aid in making ongoing FBAR reporting and potential audit defense more manageable.

• A discussion of recent court cases that have affected judicial treatment of FBAR disputes and penalty assessments.

• An overview of current penalties for noncompliance with FBAR filing requirements.

Further Resources:

• Bank Secrecy Act of 1970 - https://www.fincen.gov/resources/statutes-and-regulations/bank-secrecy-act

• IRS FBAR Practice Unit - https://www.irs.gov/pub/fatca/int_practice_units/fincen-form114-fbar.pdf

• IRS Schedule B - https://www.irs.gov/forms-pubs/about-schedule-b-form-1040

• United States v. Timberly E. Hughes - https://law.justia.com/cases/federal/appellate-courts/ca9/23-15712/23-15712-2024-08-21.html

• IRM 4.26.16.4.4.1 - https://www.irs.gov/irm/part4/irm_04-026-016

• United States v. Saydam - https://dockets.justia.com/docket/california/candce/4:2022cv07371/404157

• United States v. Rohrbasser - https://dockets.justia.com/docket/connecticut/ctdce/3:2024cv00959/159875

• United States v. Rotta - https://www.justice.gov/opa/pr/wealthy-miami-man-pleads-guilty-decades-long-scheme-defraud-irs

• United States v. Leeds - https://law.justia.com/cases/federal/district-courts/idaho/iddce/1:2022cv00379/50692/36/

• United States v. Gernot John Noell - https://www.courtlistener.com/docket/65386409/united-states-v-noell/

• United States v. Stephen M. Kerr - https://www.courtlistener.com/docket/16355120/united-states-v-kerr/

• United States v. Sagoo - https://dockets.justia.com/docket/texas/txndce/4:2024cv01159/397369

• Kurotaki v. United States - https://law.justia.com/cases/federal/district-courts/hawaii/hidce/1:2022cv00063/157629/50/

• Bittner v. United States - https://www.supremecourt.gov/opinions/22pdf/21-1195_h3ci.pdf

• IRS Memo SBSE-04-0723-0034 - https://www.irs.gov/pub/foia/ig/sbse/sbse-04-0723-0034-redacted.pdf

• 2025 FBAR Penalty Adjustment Table - https://www.federalregister.gov/documents/2025/01/17/2025-01374/financial-crimes-enforcement-network-inflation-adjustment-of-civil-monetary-penalties

***********************************

About The Essential Tax Podcast:

In each episode of The Essential Tax Podcast, Mishkin Santa takes on the complex world of tax — all the jargon, acronyms, and stuff that makes your eyes glaze over, and explains it in an impactful way to understand the complex and unknown areas.

Watch or listen to more episodes of The Essential Tax Podcast:

* YouTube: https://www.youtube.com/@TheWolfGroupPC

• Apple: https://podcasts.apple.com/us/podcast/the-essential-tax-podcast/id1754660944

• Spotify: https://open.spotify.com/show/2beZfOpwfBlBgWHlNelAOf

Connect and learn more from your host, Mishkin Santa:

• Connect with Mishkin on LinkedIn: https://www.linkedin.com/in/msanta

• Follow The Wolf Group on LinkedIn: https://www.linkedin.com/company/the-wolf-group-pc

• Read Mishkin’s bio on The Wolf Group’s website: https://thewolfgroup.com/our-people/mishkin-santa

Title: Substantiation for Conversion of Personal Residence to Rental Property

Show Notes:

• Smith v. Commissioner, T.C. Memo 2025-24 (March 24, 2025)

• Treasury Regulation 1.167(g)-1: https://www.law.cornell.edu/cfr/text/26/1.46-3

About The Essential Tax Podcast:

In each episode of The Essential Tax Podcast, MishkinSanta takes on the complex world of tax — all the jargon, acronyms, and stuffthat makes your eyes glaze over, and explains it in an impactful way tounderstand the complex and unknown areas.

Watch or listen to more episodes of The Essential TaxPodcast:

 * YouTube: https://www.youtube.com/@TheWolfGroupPC

 * Apple: https://podcasts.apple.com/us/podcast/the-essential-tax-podcast/id1754660944

 * Spotify: https://open.spotify.com/show/2beZfOpwfBlBgWHlNelAOf

 Connect and learn more from your host, Mishkin Santa:

 * Connect withMishkin on LinkedIn: https://www.linkedin.com/in/msanta

 * Follow The WolfGroup on LinkedIn: https://www.linkedin.com/company/the-wolf-group-pc

 * Read Mishkin’s bio on The Wolf Group’swebsite: https://thewolfgroup.com/our-people/mishkin-santa

Title: Placed in Service Rules Update

Show Notes:

• Lentine v. Commissioner, T.C. Docket No. 12443-21 (March 25, 2025)

• Treasury Regulation 1.167(a)-10: https://www.law.cornell.edu/cfr/text/26/1.167(a)-10

• Treasury Regulation 1.46-3: https://www.law.cornell.edu/cfr/text/26/1.46-3

About The Essential Tax Podcast:

In each episode of The Essential Tax Podcast, MishkinSanta takes on the complex world of tax — all the jargon, acronyms, and stuffthat makes your eyes glaze over, and explains it in an impactful way tounderstand the complex and unknown areas.

Watch or listen to more episodes of The Essential TaxPodcast:

 * YouTube: https://www.youtube.com/@TheWolfGroupPC

 * Apple: https://podcasts.apple.com/us/podcast/the-essential-tax-podcast/id1754660944

 * Spotify: https://open.spotify.com/show/2beZfOpwfBlBgWHlNelAOf

Connect and learn more from your host, Mishkin Santa:

 * Connect withMishkin on LinkedIn: https://www.linkedin.com/in/msanta

 * Follow The WolfGroup on LinkedIn: https://www.linkedin.com/company/the-wolf-group-pc

 * Read Mishkin’s bio on The Wolf Group’swebsite: https://thewolfgroup.com/our-people/mishkin-santa

Title: Foreign Rental Property and Qualified Business Reporting

Show notes:                                       IRS: Form 8858: https://www.irs.gov/pub/irs-pdf/f8858.pdf                         IRC 168: https://www.law.cornell.edu/uscode/text/26/168                             Treasury Regulation 1.989(a)-1: https://www.law.cornell.edu/cfr/text/26/1.989(a)-1About The Essential Tax Podcast:

In each episode of The Essential Tax Podcast, MishkinSanta takes on the complex world of tax — all the jargon, acronyms, and stuffthat makes your eyes glaze over, and explains it in an impactful way tounderstand the complex and unknown areas.

Watch or listen to more episodes of The Essential TaxPodcast:

 * YouTube: https://www.youtube.com/@TheWolfGroupPC

 * Apple: https://podcasts.apple.com/us/podcast/the-essential-tax-podcast/id1754660944

 * Spotify: https://open.spotify.com/show/2beZfOpwfBlBgWHlNelAOf

Connect and learn more from your host, Mishkin Santa:

 * Connect withMishkin on LinkedIn: https://www.linkedin.com/in/msanta

 * Follow The WolfGroup on LinkedIn: https://www.linkedin.com/company/the-wolf-group-pc

 * Read Mishkin’s bio on The Wolf Group’swebsite: https://thewolfgroup.com/our-people/mishkin-santa

The Essential Tax Podcast with Mishkin Santa, Season 2, Episode 8

In this episode of The Essential Tax Podcast, Mishkin Santa speaks with Austin C. Carlson, JD, CPA, Partner at Gray Reed. As a business lawyer and CPA, Austin brings a unique and rare set of skills and perspectives to every area of his practice, which includes corporate and tax counsel on M&A deals, complex corporate and tax planning for domestic and international transactions, foreign account and income disclosure and penalty abatement issues. Give this episode a listen to learn more about non-willful statements and their importance to the IRS’s Streamlined Filing Compliance Procedures.

Tune in for these key takeaways:

• A brief history of the IRS Offshore Voluntary Disclosure Program (OVDP), Streamlined Filing Compliance Procedures (SFCP), and Amnesty Programs in general

• The role of accountant vs. an attorney in amnesty program disclosures with a specific discussion related to the preparation of the Non-Willful Statement

• The timeline of involvement for an attorney in an amnesty program disclosure

• The key differences of Willful vs. Non-Willful behavior including the associated civil penalties

• A comprehensive discussion of the best practices and contents required for the Non-Willful Statement required for a Streamlined Filing Compliance Procedures (SFCP)

• A discussion related to the IRS processing time, expected responses, follow ups post Streamlined Filing Compliance Procedures (SFCP) submission

Learn more about Austin C. Carlson:

• Visit the News & Resources page on Gray Reed’s website: https://www.grayreed.com/NewsResources
• View Austin C. Carlson’s profile on Gray Reed’s website: https://www.grayreed.com/Our-People/Austin-C-Carlson

• Connect with Austin C. Carlson on LinkedIn: https://www.linkedin.com/in/austin-carlson-jd-cpa-63031029/

• Follow Gray Reed on LinkedIn: https://www.linkedin.com/company/grayreed/

• Visit Gray Reed’s YouTube Channel: https://www.youtube.com/@GrayReedLaw

• Follow Gray Reed on Facebook: https://www.facebook.com/GrayReedLaw/

Further Resources:

• SDOP FAQ 13: https://www.irs.gov/individuals/international-taxpayers/streamlined-filing-compliance-procedures-for-us-taxpayers-residing-in-the-united-states-frequently-asked-questions-and-answers

***********************************

About The Essential Tax Podcast:

In each episode of The Essential Tax Podcast, Mishkin Santa takes on the complex world of tax — all the jargon, acronyms, and stuff that makes your eyes glaze over, and explains it in an impactful way to understand the complex and unknown areas.

Watch or listen to more episodes of The Essential Tax Podcast:

• YouTube: https://www.youtube.com/@TheWolfGroupPC

• Apple: https://podcasts.apple.com/us/podcast/the-essential-tax-podcast/id1754660944

• Spotify: https://open.spotify.com/show/2beZfOpwfBlBgWHlNelAOf

Connect and learn more from your host, Mishkin Santa:

• Connect with Mishkin on LinkedIn: https://www.linkedin.com/in/msanta

• Follow The Wolf Group on LinkedIn: https://www.linkedin.com/company/the-wolf-group-pc

• Read Mishkin’s bio on The Wolf Group’s website: https://thewolfgroup.com/our-people/mishkin-santa

The Essential Tax Podcast with Mishkin Santa, Season 2, Episode 8

In this episode of The Essential Tax Podcast, Mishkin Santa speaks with Nick Hart, VAT Partner, Saffery – United Kingdom; Michael Salman, Director, Nexia DHW – Netherlands; and Tobias Barkschat – Senior Manager, Nexia GmbH – Germany. Nick, Michael, and Tobias have a wealth of combined experience in navigating the European VAT. Join us for this episode to learn more about how this tax could apply to your business or you personally.

Tune in for these key takeaways:

• Critical information about the purpose, process to register, and collection procedures for the European Value Added Tax (VAT)

• How to obtain and utilize an Article 23 license in the Netherlands to assist in minimizing VAT burden

• Inventory and physical presence requirements in the UK, Germany, and the Netherlands, and recommendations for best practices to navigate them as a US business owner
• Similarities between permanent (fixed) establishment versus local entity establishment in the Netherlands and Germany, and how this choice can affect the VAT

• A comparison of the UK VAT burden in business-to-business and business-to-consumer setups, and how this supply chain variation can shift the tax liability between business and consumer

• The European Union’s ‘one-stop shop’ proposition and how it could simplify VAT among different European countries

• A discussion of VAT invoices, deadline requirements, reporting thresholds, and other variances between the UK, Germany, and the Netherlands

• An overview of the rapid evolution of VAT and how it can affect businesses entering the European marketplace

• Tips for corrective VAT compliance, amnesty programs, and a discussion of potential penalties

• Information about VAT pitfalls to eCommerce entry into the European market, and how to avoid them

• A brief overview of the Nexia network structure and the many advantages the cooperation amongst its practitioners offers to international taxpayers and businesses

Learn more about today’s guests:

• Connect with Nick Hart on LinkedIn: https://www.linkedin.com/in/nick-hart51/?originalSubdomain=uk

• View Nick Hart’s profile on Saffery’s website: https://www.saffery.com/our-people/nick-hart/

• Visit Saffery’s YouTube Channel: https://www.youtube.com/channel/UCXR88yBPil9YZLO_5A__lzQ

Connect with Michael Salman on LinkedIn: https://www.linkedin.com/in/michaelsalman/

• Visit De Hooge Waerder’s YouTube Channel: https://www.youtube.com/user/dehoogewaerder

• Follow De Hooge Waerder on Facebook: https://www.facebook.com/dehoogewaerder/photos/?locale=nl_NL&_rdr

• Connect with Tobias Barkschat on LinkedIn: https://www.linkedin.com/in/tobias-barkschat-2a0b53142/?originalSubdomain=de

• View Tobias Barkschat’s profile on Nexia GmbH’s website: https://www.nexia.de/en/our-people/detail/tobias-barkschat

• Visit Nexia’s YouTube Channel: https://www.youtube.com/channel/UCbY1iQu_U1vzIhAPCEtQJGQ

Further Resources:

• VAT eCommerce - One Stop Shop: https://vat-one-stop-shop.ec.europa.eu/news-reports/report-application-vat-e-commerce-package-2024_en

• EU Taxation & Customs Union VAT Landing Page: https://taxation-customs.ec.europa.eu/taxation/vat_en

• VAT Rules & Rates: https://europa.eu/youreurope/business/taxation/vat/vat-rules-rates/index_en.htm

• Nexia Slides on European Indirect Tax Services for US Outbounds: https://thewolfgroup.com/wp-content/uploads/2025/07/Nexia-European-VAT-for-US-outbounds-July-2025.pptx

Watch or listen to more episodes of The Essential Tax Podcast:

• YouTube: https://www.youtube.com/@TheWolfGroupPC

• Apple: https://podcasts.apple.com/us/podcast/the-essential-tax-podcast/id1754660944

• Spotify: https://open.spotify.com/show/2beZfOpwfBlBgWHlNelAOf

Connect and learn more from your host, Mishkin Santa:

• Connect with Mishkin on LinkedIn: https://www.linkedin.com/in/msanta

• Follow The Wolf Group on LinkedIn: https://www.linkedin.com/company/the-wolf-group-pc

• Read Mishkin’s bio on The Wolf Group’s website: https://thewolfgroup.com/our-people/mishkin-santa

The Essential Tax Podcast with Mishkin Santa, Season 2, Episode 6 

In this episode of The Essential Tax Podcast, Mishkin Santa speaks with Austin C. Carlson, JD, CPA, Partner at Gray Reed. As a business lawyer and CPA, Austin brings a unique and rare set of skills and perspectives to every area of his practice, which includes corporate and tax counsel on M&A deals, complex corporate and tax planning for domestic and international transactions, foreign account and income disclosure and penalty abatement issues including the Streamlined Filing Compliance Procedures and Delinquent International Information Return Submission Procedures. Tune in to hear Austin and Mishkin discuss key provisions of the One Big Beautiful Bill Act (OB3) that was recently signed into law by President Trump. 

Tune in for these key takeaways: 

• A comprehensive review of the Qualified Opportunity Zone (QOZ) Rules introduced under the 2017 Tax Cuts and Jobs Act (TCJA) 

• A discussion of the continuation and modification of the QOZ Rules under OB3 

• Potential tax planning strategies and special opportunities for taxpayers under the modified QOZ Rules 

• A comprehensive review of the Bonus Depreciation rules under TCJA  

• A discussion of the continuation and modification of the Bonus Depreciation Rules under OB3 

• Potential tax planning strategies related to the Bonus Depreciation Rules for domestic and foreign businesses looking to create or onshore business entities in the United States 

• A comprehensive review of the Qualified Small Business Stock (QSBS) Rules under TCJA 

• A discussion of the continuation and modification of the QSBS Rules under OB3 

• Potential tax planning strategies for United States C-Corporations under the QSBS Rules for 2025 and beyond 

• A discussion related to tax liability insurance and how this may be utilized for uncertain tax positions related to QSBS  

Learn more about Austin C. Carlson: 

• Visit the News & Resources page on Gray Reed’s website: https://www.grayreed.com/NewsResources 

• View Austin C. Carlson’s profile on Gray Reed’s website: https://www.grayreed.com/Our-People/Austin-C-Carlson 

• Connect with Austin C. Carlson on LinkedIn: https://www.linkedin.com/in/austin-carlson-jd-cpa-63031029/ 

• Follow Gray Reed on LinkedIn: https://www.linkedin.com/company/grayreed/ 

• Visit Gray Reed’s YouTube Channel: https://www.youtube.com/@GrayReedLaw 

• Follow Gray Reed on Facebook: https://www.facebook.com/GrayReedLaw/ 

Further Resources: 

• OB3 - https://www.congress.gov/bill/119th-congress/house-bill/1/text 

• Tax Cuts and Jobs Act of 2017 - https://www.congress.gov/crs-product/R48485  

• QOZ IRCs - https://www.law.cornell.edu/uscode/text/26/subtitle-A/chapter-1/subchapter-Z 

• Map of QOZs: https://opportunityzones.com/location/ 

• IRC 179 (bonus depreciation) - https://www.law.cornell.edu/uscode/text/26/179 

• IRC 1202 (QSBS) - https://www.law.cornell.edu/uscode/text/26/1202  

• Tax Liability Insurance - https://www.aon.com/apac/transaction-liability/tax-insurance.jsp  

*********************************** 

About The Essential Tax Podcast: 

In each episode of The Essential Tax Podcast, Mishkin Santa takes on the complex world of tax — all the jargon, acronyms, and stuff that makes your eyes glaze over, and explains it in an impactful way to understand the complex and unknown areas. 

Watch or listen to more episodes of The Essential Tax Podcast: 

•  YouTube: https://www.youtube.com/@TheWolfGroupPC 

•  Apple: https://podcasts.apple.com/us/podcast/the-essential-tax-podcast/id1754660944 

•  Spotify: https://open.spotify.com/show/2beZfOpwfBlBgWHlNelAOf 

Connect and learn more from your host, Mishkin Santa: 

•  Connect with Mishkin on LinkedIn: https://www.linkedin.com/in/msanta 

•  Follow The Wolf Group on LinkedIn: https://www.linkedin.com/company/the-wolf-group-pc 

•  Read Mishkin’s bio on The Wolf Group’s website: https://thewolfgroup.com/our-people/mishkin-santa 

The Essential Tax Podcast with Mishkin Santa, Season 2, Episode 5 

In this episode of The Essential Tax Podcast, Mishkin presents and analyzes a brief history and some significant tax provisions of the One Big Beautiful Bill Act (OB3) that was recently signed into law by President Trump. 

Tune in for these key takeaways: 

• A discussion of widely publicized provisions that may have been expected, but were ultimately not included in the bill, such as the Trump Gold Card (tax treatment of certain international entrepreneurs) 

• Important changes to the standard deduction and the state and local tax (SALT) deduction 

• Changes to Charitable deduction rules and requirements 

• Details of the “no tax on tips” rules, including a definition of qualified tips, phase out amounts, limitations, and time restrictions to utilize this provision 

• An explanation of the new deduction for overtime pay and recommendations for specific filing statuses to maximize its benefit 

• Changes to IRC 529 plans and what to know about the new Trump Accounts (fka MAGA Accounts) 

• Important information about the extension and modification of limitation on gambling and wagering losses, including an explanation of the changes in session netting 

• Details about the extension of the TCJA gift and estate tax exemption 

• Important changes made by OB3 regarding business entity types, and which ones to utilize when setting up a new business 

• A discussion of the continuation and modification of the Bonus Depreciation Rules and qualified business income deduction under OB3 

• A discussion of the continuation and modification of the qualified small business stock (QSBS) rules under OB3 

• An overview of the continuation and modification of the qualified opportunity zone (QOZ) rules under OB3 

• OB3’s termination of many energy credits and how to maximize deductions before the changes take effect 

• Relevant information about Congress’s technical correction of the error in the TCJA downward attribution of stock ownership 

• Changes to certain provisions and limitations relating to remittance transfer tax 

• Recent changes to IRS staffing and how it may affect tax processing and response times 

Further Resources: 

• OB3 - https://www.congress.gov/bill/119th-congress/house-bill/1/text 

• Tax Cuts and Jobs Act of 2017 - https://www.congress.gov/crs-product/R48485  

• QOZ IRCs - https://www.law.cornell.edu/uscode/text/26/subtitle-A/chapter-1/subchapter-Z 

• Map of QOZs: https://opportunityzones.com/location/ 

• IRC 179 (bonus depreciation) - https://www.law.cornell.edu/uscode/text/26/179 

• IRC 1202 (QSBS) - https://www.law.cornell.edu/uscode/text/26/1202  

• Tax Liability Insurance - https://www.aon.com/apac/transaction-liability/tax-insurance.jsp  

• CIV Enforcement Memo Re Denaturalization: https://www.justice.gov/civil/media/1404046/dl?inline 

*********************************** 

About The Essential Tax Podcast: 

In each episode of The Essential Tax Podcast, Mishkin Santa takes on the complex world of tax — all the jargon, acronyms, and stuff that makes your eyes glaze over, and explains it in an impactful way to understand the complex and unknown areas. 

Watch or listen to more episodes of The Essential Tax Podcast:  

•  YouTube: https://www.youtube.com/@TheWolfGroupPC 

•  Apple: https://podcasts.apple.com/us/podcast/the-essential-tax-podcast/id1754660944 

•  Spotify: https://open.spotify.com/show/2beZfOpwfBlBgWHlNelAOf 

Connect and learn more from your host, Mishkin Santa: 

•  Connect with Mishkin on LinkedIn: https://www.linkedin.com/in/msanta 

•  Follow The Wolf Group on LinkedIn: https://www.linkedin.com/company/the-wolf-group-pc 

•  Read Mishkin’s bio on The Wolf Group’s website: https://thewolfgroup.com/our-people/mishkin-santa 

Tune in to this mini episode of The Essential Tax Podcast for practical tips and updates on a timely topic in the international tax realm. Your host, Mishkin Santa, will briefly guide you through the most up-to-date information on this hot tax topic as well as provide his invaluable analysis and expert recommendations. 

About The Essential Tax Podcast: 

In each episode of The Essential Tax Podcast, Mishkin Santa takes on the complex world of tax — all the jargon, acronyms, and stuff that makes your eyes glaze over, and explains it in an impactful way to understand the complex and unknown areas. 

Watch or listen to more episodes of The Essential Tax Podcast: 

 * YouTube: https://www.youtube.com/@TheWolfGroupPC 

 * Apple: https://podcasts.apple.com/us/podcast/the-essential-tax-podcast/id1754660944 

 * Spotify: https://open.spotify.com/show/2beZfOpwfBlBgWHlNelAOf 

Connect and learn more from your host, Mishkin Santa: 

 * Connect with Mishkin on LinkedIn: https://www.linkedin.com/in/msanta 

 * Follow The Wolf Group on LinkedIn: https://www.linkedin.com/company/the-wolf-group-pc 

 * Read Mishkin’s bio on The Wolf Group’s website: https://thewolfgroup.com/our-people/mishkin-santa 

Tune in to this mini episode of The Essential Tax Podcast for practical tips and updates on a timely topic in the international tax realm. Your host, Mishkin Santa, will briefly guide you through the most up-to-date information on this hot tax topic as well as provide his invaluable analysis and expert recommendations.

About The Essential Tax Podcast: 

In each episode of The Essential Tax Podcast, Mishkin Santa takes on the complex world of tax — all the jargon, acronyms, and stuff that makes your eyes glaze over, and explains it in an impactful way to understand the complex and unknown areas. 

Watch or listen to more episodes of The Essential Tax Podcast: 

 * YouTube: https://www.youtube.com/@TheWolfGroupPC 

 * Apple: https://podcasts.apple.com/us/podcast/the-essential-tax-podcast/id1754660944 

 * Spotify: https://open.spotify.com/show/2beZfOpwfBlBgWHlNelAOf 

Connect and learn more from your host, Mishkin Santa: 

 * Connect with Mishkin on LinkedIn: https://www.linkedin.com/in/msanta 

 * Follow The Wolf Group on LinkedIn: https://www.linkedin.com/company/the-wolf-group-pc 

 * Read Mishkin’s bio on The Wolf Group’s website: https://thewolfgroup.com/our-people/mishkin-santa