The Essential Tax Podcast with Mishkin Santa, Episode 03
In this episode of The Essential Tax Podcast, Mishkin Santa breaks down complex tax topics from June 2024. He covers proposed IRS foreign trust regulations, U.S. exit tax, notable cases like Loper Bright and Farhi, and the impact of scams targeting the elderly. These topics are relevant on a national and international scale.
Tune in for these key takeaways:
* Mishkin’s Credentials — Mishkin breaks down all the letters seen after his name and explains their meaning
* Proposed IRS Foreign Trust Regulations
* Potential U.S. Exit Tax Regulations — the U.S. exit tax is imposed upon a U. S. citizen who gives up their citizenship or a green card holder who’s held their green card for longer than eight years
* The Loper Bright Supreme Court Case, decided on June 28th, 2024, which overrules what's called the Chevron Doctrine
* Understanding IRS Regulations and Chevron Deference
* Foreign Trust Regulations and Treaty Tiebreakers
* IRS Field Advice and Reporting Requirements
* The Farhy Case and IRS Penalties — Farhy challenged the IRS's ability to assess what they call a 10,000 penalty on failure to file form 5471, which is the control of foreign corporation form.
* IRS Scams Targeting the Elderly — people are impersonating the IRS, Social Security, Medicare
* Suspension of US-Russia Tax Treaty
* Future of the Tax Cuts and Jobs Act — signed into law in 2017 is up to expire in December 2025
* IRS Proposed Foreign Trust Regulations: https://www.federalregister.gov/documents/2024/05/08/2024-09434/transactions-with-foreign-trusts-and-information-reporting-on-transactions-with-foreign-trusts-and
* Comments to Proposed Foreign Trust Regulations: https://www.regulations.gov/document/IRS-2024-0022-0001/comment
* Aroeste v. United States, No. 3:22-cv-00682 (S.D. Cal. 2023): https://kpmg.com/xx/en/home/insights/2023/11/flash-alert-2023-226.html
* IRS Field Advice on Treaty Tie-Breaker and Form 5471: https://www.irs.gov/pub/irs-lafa/20223302f.pdf
** IRC 877A: https://www.law.cornell.edu/uscode/text/26/877A
** Notice 2009-85: https://www.irs.gov/pub/irs-drop/n-09-85.pdf
** Rev. Proc. 2020-17: https://www.irs.gov/pub/irs-drop/rp-20-17.pdf
* Foreign Gift and Inheritance: https://www.law.cornell.edu/uscode/text/26/6039F
* Draft Form 1041NR: https://us.aicpa.org/content/dam/aicpa/advocacy/tax/trustestategift/downloadabledocuments/56175899-draft-5-page-1-5.pdf & https://www.thetaxadviser.com/content/tta-home/issues/2007/sep/newforeigntrusttaxformproject1041nr.html
* Supreme Court Loper Bright Case: https://www.supremecourt.gov/opinions/23pdf/22-451_7m58.pdf
* IRS Supervisory Approval of Penalties: https://www.law.cornell.edu/uscode/text/26/6751
* First Time Penalty Abatement
** IRS Memo on Forms 5471 and 5472: https://www.irs.gov/pub/foia/ig/spder/ap-08-1222-0018.pdf
* Reasonable Cause Exception
** Treasury Regulation 1.6038A-4b(2)(ii): https://www.ecfr.gov/current/title-26/chapter-I/subchapter-A/part-1/subject-group-ECFR31749dec6d4756f/section-1.6038A-4
* Farhy Appeal Case: https://www.cadc.uscourts.gov/internet/opinions.nsf/5BC5C418EAC233C385258B12004F2575/$file/23-1179-2052712.pdf
* IRS Notice 2024-55: https://www.irs.gov/pub/irs-drop/n-24-55.pdf
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Watch or listen to more episodes of The Essential Tax Podcast:
* 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, P.C. on LinkedIn: https://www.linkedin.com/company/the-wolf-group-pc
* Read Mishkin’s bio on Wolf Group, P.C.’s website: https://thewolfgroup.com/our-people/mishkin-santa
