PREP Podcaster - ”Success Favours The PREPared Mind”
News:News Commentary
September 29, 2022 ...
When it comes to an FBAR filing requirement a recent decision in the Katholos case confirms:
“Although an ownership interest in an entity would certainly be considered a financial interest in that entity, ownership is not necessary to have a financial interest."
_______________________________________
Virginia La Torre Jeker - @VLJeker
and
John Richardson - @Expatriationlaw
discuss this issue in the context of the life of Americans abroad.
On August 10, 2022 a US District Court issued a ruling on the ongoing Katholos FBAR saga.
https://casetext.com/case/united-states-v-katholos
Of particular interest is the following paragraph:
"Here, it is undisputed that Katholos was a beneficial owner of the Storchen Finance Account. In general, a “beneficial owner” is “[o]ne recognized in equity as the owner of something because use and title belong to that person, even though legal title may belong to someone else; esp., one for whom property is held in trust.-Also terms equitable owners Owner, Black's Law Dictionary (11th ed. 2019). Though Katholos denies that her status as a beneficial owner is “tantamount to having a ‘financial interest' in the account that may give rise to the FBAR reporting requirements,” Dkt. 98-1, ¶ 25, the Court concludes that, as a beneficial owner, Katholos had an equitable claim or right to the Storchen Finance Account- even if she did not have legal title. And because “interest” includes equitable rights to property, Katholos's arguments regarding legal title, who funded the account, and direct interest are not dispositive. See Continental Cas. Co. v. Bowen, No. 2:09-cv-00810-TC, 2011 WL 222340, *4 (D. Utah Jan. 21, 2011) (“Although an ownership interest in an entity would certainly be considered a financial interest in that entity, ownership is not necessary to have a financial interest.”). Thus, based on her status as a beneficial owner, the Court concludes that Katholos had a financial interest in the Storchen Finance Account."
Bottom Line: The Katholos decision reinforces the principle that one can't avoid the FBAR filing requirement by keeping your name off the account.
SEAT Working Papers Series - Extraterritorial Taxation #5: Refuting the Rationales
To Renounce Or NOT To Renounce: The Problem is HOW To Make The Renunciation Decision
Moore v. United States -December 5, 2023 - The Argument Before The Court
December 5, 2023: Debriefing The Moore Case - A View From Inside The Courtroom - It’s All In The Snyder Report
SEAT Working Papers Series - Extraterritorial Taxation #4: Why Nothing Changes
The Ron Wyden ”Billionaires Tax Act” - The Future Of US Taxation And Income Realization
Twas The Night Before Moore - SEAT Members Discuss What They Expect In Moore Hearing
SEAT Working Papers Series -Extraterritorial Taxation #3: Education and Advocacy
SEAT Working Papers Series -Extraterritorial Taxation #2: How It Is Experienced
Coach Coutts - Leave The Purpose To US!
SEAT Working Papers Series - Extraterritorial Taxation #1: How It Has Evolved
John Alan Pod - Episode 214: Taxation And Americans Abroad
Responding To The Bittner FBAR Decision - The IRS ”Resets” The Penalty Principles
A US Social Security Primer With Katrina Haynes of HaynesHelp
Why The 3.8% NIIT (”Net Investment Income Tax”) Is Especially Unjust For Americans Abroad
Meeting Anthony Parent: The Man Behind IRS Medic
Should Digital Nomads Living Outside The USA Keep All Their Financial Accounts In The USA?
Gifts And Bequests From A Former US Person: Avoiding A 40% Tax Payable By The Recipient
Mi’Azhikwan: First Nation Status As Citizenship - Losing And Gaining Citizenship
Latin American Opportunities: Whether Retiring Or Seeking A Digital Nomad Visa
Create your
podcast in
minutes
It is Free
The Tucker Carlson Podcast
The Matt Walsh Show
The Glenn Beck Program
Mark Levin Podcast
The Michael Knowles Show