TAX BLOG

In IRS v Reyes , the US Court of Appeals for the Second Circuit has held that 'wilful' failure to report a foreign bank account under the Bank Secrecy Act includes reckless, as well as intentional, conduct. Similar conclusions have been reached by six other circuits, reinforcing the Internal Revenue Service's policy of imposing penalties of 6 per cent of the undeclared sum: USD2 million held in a Swiss account, in the case of the Reyes defendants. Continue reading...

This presentation outlines practical planning issues tied to owning and managing foreign assets, with a focus on how U.S. estate and tax rules often conflict with non-U.S. legal systems. It explains how title to foreign property, use of U.S. or non-U.S. entities, and reliance on trusts can lead to unexpected tax exposure, forced heirship outcomes, or outright nonrecognition abroad. The material stresses early identification of citizenship, residency, and asset location to avo

The PDF linked below provides a structured overview of planning considerations for U.S. persons who own assets outside the United States. It explains how foreign legal systems, limits on trust recognition, ownership restrictions, and forced heirship rules can disrupt otherwise valid U.S. estate plans. The material highlights risks tied to holding foreign real estate, using U.S. or non-U.S. entities, and assuming U.S. wills or powers of attorney will function as intended abroa