On January 19, 2024, Cynthia Brittain and Maria-Soledad Otero will present on the taxation of mobile executives at the Florida Institute of CPAs (FICPA) 42nd International Tax Conference in Miami. The presentation will consider issues affecting both the company and the executive/business owner who relocates to the U.S.
To register for the conference, click here.
Michael Karlin was recently quoted in a Thomson Reuters Tax and Accounting article on FIRPTA (Foreign Investment in Real Property Tax Act of 1980) withholding challenges, which also serves as a recap of his recent presentation at the New York University Tax Conference in Berkeley, California on taxation of inbound investment in U.S. real estate.
In exploring the hurdles that often arise in FIRPTA withholding, the article highlights potential issues with escrow agents, penalties for mismatches in payments, and the option of seeking a withholding certificate to reduce or avoid over-withholding.
On the topic of escrow, Michael explains, “Sometimes you can work with escrow to hold it in escrow funds while you try to apply for a withholding tax certificate or you apply for an ITIN for the client so that it can be tracked,” ... “But some with escrow agents are more sophisticated than others. Some just want to pay the tax and be done. And it can be very challenging, especially when after the fact you’re trying to go back and get that refund.”
Read the full article here.
Cynthia Brittain was featured in a recent Business Insider article entitled “How The Ultra-Rich Use Trusts to Protect the Family Fortune If Their Heirs Get Sued or Divorced,” which examines how the use of spendthrift trusts can shield assets when a beneficiary is sued or goes through a contentious divorce. The spendthrift clause dates back to 1875 and is still routinely used today as parents set up irrevocable trusts for the benefit of their children.
To strengthen the trust’s power, Cindy recommends “having external investment advisors and professional, respected trustees.” She notes that “it also helps to have a business purpose for the trust, such as preserving privacy or taking advantage of another jurisdiction's tax laws.”
On July 13, 2023, Cynthia D. Brittain and Maria-Soledad Otero will present “U.S. Beneficiaries of Foreign Trusts” at the CALCPA Estate and Trust Planning Conference. Their presentation will explore the unique challenges and considerations that arise when dealing with cross-border estate planning, such as the effects of domicile and how to navigate the differences in global tax regimes.
To register for the conference, click here.
Karlin & Peebles has again been recognized as a leading International Tax firm in the newly-released 2023 edition of The Legal 500 US. This prestigious selection highlights the firm’s eminence in advising businesses and high-net worth individuals on matters related to foreign investment planning, philanthropy, tax compliance and controversies.
In a testimonial given to The Legal 500, Karlin & Peebles is hailed as “one of the best firms for private clients especially with international issues.”
The Legal 500 US is an independent benchmarking guide widely considered to be a definitive voice on law firm excellence. Each year, The Legal 500’s team of research analysts conducts exhaustive research into individual firms in conjunction with recommendations received from clients and peers and uses this data to produce a comprehensive report on legal services providers in the US market.
On June 23, 2023, Maria-Soledad Otero and Robin Park of SingerLewak presented “International Tax Entertainment Issues” at the CalCPA Entertainment Industry Conference. Their session addressed prominent international tax considerations such as Domestic & International Film Production Tax Credit Regimes, Film Fund Financing/Structuring, Sourcing of Income, Foreign Tax Credit Regulations, Reporting, and more.
Access the presentation below.
Michael Karlin and Thomas Giordano-Lascari will again present during the NYU School of Professional Studies’ series of tax conferences, taking place in July of 2023. Their presentations on the topics of “Outbound Planning and Choice of Entity Considerations for Individuals” and “Planning for Foreign Individuals Moving to the United States” were well received in 2022 and will be further examined during the 2023 sessions.
The intensive summer series will feature in-depth sessions on domestic and international taxation and trusts and estates, as well as other key issues, and will bring together an audience of leading attorneys, accountants, and professionals from around the world.
2023 programming will be finalized in the coming weeks.
Cindy Zhou is appearing monthly on Chinese Radio Seattle’s “Evergreen Wealth Management” program to discuss trust and estate planning for new immigrant families. The Mandarin talk show is a hub for Chinese immigrants on the West Coast and highlights important issues facing the Chinese community.
Watch Cindy’s appearances below:
Evergreen Wealth Management Episode 1 - January 27, 2023
Evergreen Wealth Management Episode 2 - February 24, 2023
Evergreen Wealth Management Episode 3 - March 25, 2023
Cynthia Brittain spoke with Wealth Management about the latest developments in the Presley estate saga; namely, Priscilla Presley challenging the validity of one of the amendments to her late daughter Lisa Marie’s trust. The amendment removes Priscilla and Lisa Marie’s former business manager as the original trustees, and “completely cuts Priscilla out.”
Priscilla is arguing that the amendment is invalid for multiple reasons: the signature is mispelled, nobody was there to witness it, and that the amendment was never presented to the trustees for approval which was required in their trust agreement. Regarding the viability of Priscilla’s arguments, Cindy shared, “Case law and the Probate Code provide the analysis for the court.” She went on to explain that other factors like Lisa Marie’s heath, relationships at the time this amendment is said to have been signed, and circumstantial evidence will also play a role.
Cindy added that, “Methods are drafted into trust documents to ensure that a vulnerable person is not taken advantage of and to ensure there is no fraud. Those methods are designed to protect, and the court will likely respect the devices explicitly drafted into a duly executed and accepted trust.”
Maria-Soledad Otero and Cynthia Brittain will present “Mistakes Foreign Trustees make from a US Perspective: What not to do!” at the 2023 Transcontinental Trusts: Geneva conference. The presentation will take place on Thursday, 11 May 2023 at 2:20 PM local time in the Fairmont Grand Hotel Geneva. The conference gathers leading voices in foreign trusts to discuss the most pressing issues and network.
To register for the conference, click here.
In a recent letter to the editor published by Tax Notes International, Michael Karlin directs readers to his 2012 and 2015 articles, “Now You See Them: U.S. Reporting Requirements for Tax Treaty Nonresidents” and “Requesting Guidance For Treaty Nonresidents,” which criticize the IRS’s “apparent belief that an individual treated as a nonresident under the provisions of a tax treaty is nevertheless required to file various information reports relating to international assets” and note that “the treatment of treaty nonresidents as U.S. residents may turn unsuspecting NRAs into unintentional lawbreakers.” Karlin’s letter maintains this criticism for the government’s stance and emphasizes the lack of an adequate response from the IRS in the time that has followed.
Citing Aroeste v. United States case as an example and partial answer to the U.S. government’s position, Karlin shares “as a policy matter, I believe that the government should abandon its position in the Aroeste case. More broadly, it should not require tax reporting by treaty nonresidents as if they were residents. ”
Read the letter below.
Michael Karlin recently spoke to Wealth Management about how one of the U.K.’s biggest lottery winners chose to spend his fortune, and what an advisor might recommend to do differently. Colin Weir had won a jackpot of £161 million and had spent £40 million in the eight years following, until his death in 2019.
“In exchange for £40 million, he ended up owning cars, property and a football club. Assuming he didn’t overpay, he just exchanged cash for property and was no worse off at the moment of the exchange,” Michael said. On the topic of his less wise expenditures, Michael noted, “what did constitute spending was giving away the shares of the [soccer] club to the supporters’ trust or making outright gifts to family and friends. That’s a choice he was free to make, although I hope he took some tax advice, especially concerning the U.K. income and capital gains tax consequences of his investments and the U.K. inheritance tax (equivalent to the U.S. gift and estate taxes) consequences of his gifts and bequests.”