Theater Of The Courtroom

A new U.S. District court case has zeroed in on the definition of “willful” for purposes of applying the more serious penalties for failure to file tan FBAR. In U.S. v. Garrity, 2018 U.S. Dist. LEXIS 56888 (D. Conn. 2018), the United States District Court of Connecticut dealt taxpayers with undisclosed foreign accounts a hard blow. In advancing to the next stage of trial, the court said that the IRS could prove the elements of its FBAR penalty claim by a mere preponderance of the evidence. What's more, the IRS can carry its burden to prove willfulness by showing reckless conduct by the taxpayer, as opposed to the more stringent "intentional violation" standard required in the criminal context. In this podcast, I discuss the Garrity case and what it means for taxpayers with unreported foreign accounts. I also provide some background about the FBAR requirement and get into a robust discussion about the term, "willfulness" and willful blindness. Finally, I provide examples of situations in which willfulness may

As a general rule, corporations and LLCs are separate and distinct from their shareholders and members. This means that the owners are typically not liable personally for the debts and obligations (including judgments and settlements) of the company. However, sometimes courts see fit to pierce the corporate veil, bypassing the company and finding one or more of the owners personally liable. In this podcast, I discuss best practices that company owners should implement in order to decrease the chances that the corporate veil will be pierced. 

One of the key decisions you will have to make at the early stages of starting your new company is whether to operate your business as a sole proprietor or structure it as a limited partnership, limited liability company or corporation. In this podcast, I discuss the different legal entities, costs of formation and maintenance, tax consequences of each, and selecting the state in which your proposed entity will be formed.

Jersey Boys is by far my favorite Broadway musical.  For those who are unfamiliar with Jersey Boys, you must be living under a rock! Jersey Boys was a 2005 jukebox musical with music by Bob Gaudio, and book by Marshall Brickman and Rick Elice.  It is presented in a documentary-style format that dramatizes the formation, success and eventual break-up of the 1960s rock 'n' roll group The Four Seasons. The musical is structured as four "seasons", each narrated by a different member of the band who gives his own perspective on its history and music. Songs include "Big Girls Don't Cry", "Sherry", "December 1963 (Oh, What A Night)", "My Eyes Adored You", "Stay", "Can't Take My Eyes Off You", "Working My Way Back to You" and "Rag Doll", among others. The title refers to the fact that the members of The Four Seasons are from New Jersey and are men. The musical ran on Broadway from 2005 to 2017, and since its debut has seen two North American national tours and productions in London's West End, Las Vegas, Chicago, Tor

In part 2 of "The ABC's of Internet Law," I discuss the following topics: Collecting Emails Outreach Emails Trademarks The Future of Internet Regulation International Enforcement The key takeaways are as follows: Compel your users to accept your terms of service using a checkbox and keep server logs.
 When you update terms and conditions, force your users to accept them before they can continue using your site.
 Use disclaimers on your pages when giving advice such as health or financial advice that can affect people’s lives.
 Clearly display an earnings disclosure on your site if you are earning affiliate income.
 Linking to the original source of an image does not cloak you in a veil of immunity when it comes to copyright liability.
 Don’t steal photos - take your own or use stock photos. 

Use a third party email platform such as Constant Contact or MailChimp as they force you to comply with SPAM laws.
 Register your brand as a trademark or risk losing it to someone else.
 

You can never go wrong when

In this episode, I discuss the following topics: Jurisdiction Privacy Policy, Terms of Service & Terms and Conditions Terms of Service Privacy Policy Using Templates to Create Terms of Service & Privacy Policy Updating Terms and Conditions Requiring the User to Check a Box Giving Bad Information or Advice Criticism in Product Reviews Earnings Disclaimers Why Do We Need Disclaimers? What Does “Display Clearly” Mean? What is the FTC On the Lookout For? What Would Happen in Court? What Should You Do In Practice?

When it comes to deciding the best business entity for your small business, the question that is top of mind for entrepreneurs is usually, “What’s the difference between an LLC and an S Corporation?” In this episode, I discuss each.

In Cold Blood is a non-fiction novel by author Truman Capote, published in 1966. It chronicles the 1959 murders of four members of the Herbert Clutter family in the small farming community of Holcomb, Kansas. Herb Clutter was a wealthy farmer in western Kansas. He employed as many as 18 workers, who admired and respected him for his fair treatment and good wages. Two elder daughters, Eveanna and Beverly, had moved out and started their adult lives; Nancy, 16, and Kenyon, 15, were in high school. Two ex-convicts recently paroled from the Kansas State Penitentiary, Richard "Dick" Hickock and Perry Edward Smith, committed the robbery and murders. It happened in the early morning hours of November 15, 1959. The plan was hatched by Hickock who learned about Mr. Clutter from Floyd Wells, a former cellmate (yes, Hickock had a “jacket”). Wells had worked for Herb Clutter and told Hickock that Clutter kept large amounts of cash in a safe at his home. Hickock hatched the idea to steal the safe and start a new life in M

IRS audits are down, but there are still some red flags that are sure to attract the attention of the IRS. In this podcast, I discuss them.

On April 9, 2018, the IRS published a press release entitled, "IRS reminds those with foreign assets about U.S. tax obligations." In this podcast, I highlight some of the key points emphasized by the IRS for those with foreign assets.

In this episode (the finale), I discuss how to reduce the risk of your content being stolen so that you position yourself in the safest place possible. First, learn how to use the DMCA offensively by understanding the takedown notice process. We’ve already discussed the elements. Remember: The best defense is a good offense. For sample "takedown notices," you can do a Google search for “takedown notice." Second, protect yourself from a copyright infringement claim. Don't make yourself a target.  As obvious as this might sound, don’t use copyrighted content on your website. The temptation to use copyrighted images that are freely available online can be overwhelming, but resisting the urge at all costs. By far, the most surprising development in the DMCA space is that it applies to comments posted on a website. In other words, if you allow users to post comments on your website, you should adhere to a strict DMCA compliance process to ensure immunity from claims in the event that a user infringes on a third pa

In this episode, I discuss the DMCA procedures, from takedown notice to counter notice to the time-line required to respond to a counter notice by filing a copyright infringement case in federal court. If you find the DMCA takedown procedures to be daunting, do not fret. Most attorneys do not resort to them until they have sent a cease and desist letter to the infringing party. Paraphrasing, the letter usually sounds something like this, “I’m John Doe and I represent Mike Smith, the copyright owner of ABC Course. It has come to our attention that you are selling Mr. Smith’s course in an unauthorized manner.” You then demand that the infringer remove the content immediately and cease using it. This, combined with the potential damages that the infringer faces if found liable in court, is usually enough to do the trick.

In this episode, I discuss copyright infringement, specifically the Digital Millennium Copyright Act, which applies to the internet. We’ll talk about what it is, how to use it to your benefit if someone has stolen your content, and how to protect your website if you allows users to post comments on it. Let’s begin with a bread and butter definition of copyright infringement. Copyright infringement is the use of works protected by copyright law without permission, infringing certain exclusive rights granted to the copyright holder, such as the right to reproduce, distribute, display or perform the protected work, or to make derivative works. As far as terminology goes, “infringing” is used instead of “stealing” or “pirating” in the statute. The idea behind copyright infringement is simple: If you create some work, you hold the rights publish and distribute that work. The copyright holder is typically the work's creator, or a publisher or other business to whom copyright has been assigned. If you take someone’s

I'm a little slow in getting around to this one, but back on September 20, 2017, the Eastern District of Pennsylvania released a taxpayer-friendly opinion regarding the “willfulness” standard in FBAR penalty cases. In Bedrosian v. United States, Case No. 2:15-cv-05853-MMB (E.D. Pa., Sept. 20, 2017), the district court held that the government had not met its burden of proof in establishing that Bedrosian willfully violated his FBAR-reporting requirements. As a result, the court ordered the government to refund to Bedrosian a sum of $ 9,757.89, the amount that he paid in partial satisfaction of his allegedly willful violation of Section 5314. This opinion could have a ripple effect on the way the IRS reviews its offshore voluntary disclosure cases and may cause some taxpayers to rethink their strategy when it comes to deciding between the offshore voluntary disclosure program and the streamlined procedures. There is no blanket approach when it comes to addressing non-compliance vis-a-vis the FBAR and all cards

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Navigating the rules and procedures of U.S. Tax Court is like trying to navigate the maze in the annual Triwizard Tournament at Hogwart’s School of Witchcraft and Wizardry. For those unfamiliar with the Triwizard Maze, it was populated by various obstacles and dangers that each Champion had to overcome. The first wizard to successfully navigate the maze and reach the Cup would be declared the winner. This podcast will highlight some of the dangers and pitfalls to avoid while navigating the largely self-governing Article I court.

Taxpayers who have few assets and little prospect of generating sufficient income to pay a tax liability in full may be allowed to strike a settlement for less than the full amount due to settle their case.  The IRSʼs acceptance of an offer in compromise conclusively settles the liability, absent fraud or mistake.  The policy goal is to achieve collection of what is potentially collectible at the earliest possible time and at the least cost to the government while providing taxpayers with a fresh start toward future voluntary compliance.

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The explosive growth in the crypto-currency sector has created “questions about tax compliance.” Back in March 2014, the IRS issued long-awaited guidance (IRS Notice 2014-21) labeling cryptocurrency, including Bitcoin, as “intangible property.” Investors and traders hold Bitcoin as a capital asset, as if it were a precious metal or corporate stock. Because it’s a capital asset, the IRS requires American resident taxpayers to report Bitcoin trading income and losses worldwide on U.S. resident tax returns. In other words, if you trade bitcoin, you must report capital gains to the IRS. It doesn’t matter whether you repatriate funds back to the U.S., or not. As far as accounting goes, investors and traders holding cryptocurrency should use capital gain or loss tax treatment on sales and exchanges, with the realization method. For example, if you buy Bitcoins with U.S. dollars and later sell them for U.S. dollars, a capital gain or loss needs to be reported on that transaction. Americans also trade Bitcoins on Bit

In this episode, I talk about the United States' system of worldwide taxation and the impact it has on U.S. citizens and residents. It was recorded a couple years ago but is still relevant especially now with tax reform taking center stage. Enjoy!