Politico announced Trump’s nomination Of Charles P. Rettig, including the following excerpts:
Rettig, who specializes in settling complex tax disputes between his taxpayer clients and authorities like the IRS, known as tax controversies, has for more than three decades represented clients before the IRS, the Justice Department, state tax authorities and other jurisdictions.
Rettig is no stranger to the Washington tax policy community. Many IRS officials would be familiar with him because of tax litigation in which he’s been involved.
Rettig’s nomination would break a nearly two-decade practice of naming commissioners from the general business world, a trend that began after the IRS Restructuring and Reform Act of 1998. Prior to that, commissioners generally had tax backgrounds.
Continuing with the conversation from Media & Blogs thread, I see many mentions of the fact that his firm represented some 100 UBS clients (which may be why some of his articles concern the OVDP). I am trying to locate some actual court cases but the site that keeps coming up in references seems to be down. He also clearly, is respected for his work representing clients by his peers:
Rettig would also oversee the implementation of tax reform. Rettig has been a friend and mentor to many of us in the tax controversy bar over the years, and we are encouraged by the selection of someone from the private bar to the post.
Given he is a tax litigator, I don’t expect he would support a change to RBT (hope I am wrong about that) but some of his comments certainly suggest he understands what has happened and that our situation is very different from that of U.S. residents with foreign accounts.
Forbes IRS FBAR Streamlined Procedures Revisited, Am I Non-Willful
If, as some believe, the Streamlined Procedures are being used to entice unsuspecting taxpayers into placing their head onto the FBAR chopping block, the government should be held accountable. However, if, as most believe and our experience seems to support, the Streamlined Procedures were designed to provide not quite willful taxpayers an opportunity back into compliance through a simplified and expedited process, the IRS should respect the vast majority of Streamlined submissions (and requests for transitional treatment) and move on.
Forbes IRS FBAR Voluntary Disclosure Program Taxpayer Interviews
It should be anticipated that the IRS will pursue examinations of the amended returns of taxpayers residing in the United States in some manner. It remains uncertain whether the IRS would or could effectively pursue those residing outside the United States in any realistic manner. It should also be acknowledged that there remain viable alternatives to the OVDP, including the voluntary disclosure practice of the IRS set forth in Internal Revenue Manual (IRM) 126.96.36.199 [see Example 6(A)], Section 4.01 of the Criminal Tax Manual for the U.S. Department of Justice, and Section 3, Policy Directives and Memoranda, Tax Division of the U.S. Department of Justice.
Certainly, given the complexities of the Internal Revenue Code, other relevant statutes and life in general, many of the indiscretions associated with an income tax return or FBAR are anything but willful or intentional and definitely not fraudulent or criminal in nature. In these situations, an interview of the taxpayer and/or their return preparer can lead to an extremely quick and reasonable resolution.
Many, many articles penned by Mr. Rettig are available via SSRN and listed here.
Bubblebustin asked for this post to be based upon this paper. Unfortunately the most we can offer is the link and a few excerpts. Strongly suggest everyone read this particular article- Why the Ongoing Problem with FBAR Compliance? from the Journal of Tax Practice & Procedure, August-September 2016, published by CCH, a part of Wolters Kluwer.
A major point in the article is when government is trusted, is seen as legitimate, compliance tends to be a result. It probably does not help that the IRS emphasizes submissions coming from OVDP and Streamlined will be examined “in an effort to uncover leads for criminal prosecutions.” Mr. Rettig is also aware that eighty percent of non-resident filers will have no U.S. Tax Liability. Though again, that is a reference to income tax and does not cover some of our worst grievances.
Potential government actions should consider the
impact on those six-plus million U.S. people (and their
advisors) sitting in the bleachers domestically or in various
foreign countries trying to determine how best to pursue
some form of voluntary compliance, expatriation or to
possibly just continue sitting in the bleachers … “History
repeats itself because no one was listening the first time.”
badger – “I think that Streamlined was an attempt to make extraterritorial CBT more comfy – so as to reel in more to the net of compliance – word had gotten out more widely about their barbaric and unwarranted treatment of the minnows and small fry living outside the US”
I think the purpose of Streamlined always was, and still is, to trick USCs into incriminating themselves and signing their confession under penalty of perjury.
“If, as some believe, the Streamlined Procedures are being used to entice unsuspecting taxpayers into placing their head onto the FBAR chopping block, the government should be held accountable. However, if, as most believe and our experience seems to support, the Streamlined Procedures were designed to provide not quite willful taxpayers an opportunity back into compliance through a simplified and expedited process…”
Who believes this? Who is “most”? And what, pray tell, does “not quite wilful” mean?
I suspect Rettig like all other US tax “professionals” sees USCs and US-born former USCs as guilty (wilfully, non-wilfully or not-quite-wilfully) unless they can prove themselves innocent – which is what is meant by that creepy phrase “coming into compliance.”
That’s why it never strikes any of them as bizarre for the US to extort gigantic penalties for “non-wilful” non-deeds. How can a USC be required to prove that s/he didn’t non-wilfully or not-quite-wilfully not do something?
It’s just the same old shakedown rubbish.
@plaxy. Ditto. It’s all a ploy to make money simply that’s all. No where in US tax code a streamlined is mentioned as it is a marketing ploy to incriminate people and disclose and make money as per a Canadian CPA friend I talked to. He deals with both Canadian/US tax returns, lives in Canada and understood fully well the US nightmares that everyone around the world is facing. He told me better renounce quickly asap. I have some reservations about my children living in USA as they enjoy life there and for young people life is great in USA as I was living in my youth in USA and I loved US more than any other country and still do to this day. Yes I love US but it’s extra terroritorial taxation nightmares when dealing with banks and brokerages. The cost of my medications and insurance nightmares one deals with is a big turn off. When one is young and healthy US is a great country. As soon as you start getting older and need medication of any kind dealing with insurance is a big nightmare . My reason to live in Asia is the reason. I want to move to Malaysia in a few years as I read nomad capitalist too that it was very cost effective and medicines were dirt cheap when I visited it last year. Tried living in South America once but it’s not good as HK and Malaysia. HK was better for my business but I think I can do it from Malaysia too now that I was reading nomad capitalist for the advice. Many Europeans are moving to Malaysia as zero taxation on offshore income of any kind. Even for inland business it’s better and low taxation. Canada was always colder and my Canadian friends living in Toronto hate the weather there as some moved from US to Canada a long time ago. Many moved back to their country of origin after getting Canadian citizenship. I lived in Toronto too for six months. Weather was a big turn off for me and when Canada was giving landed immigration card to me for a job I turned it away thinking about the cold weather I had to encounter in my six months living in Canada. Now I regret not taking the landed immigrant card when it was offered. Could have moved away to better country without this yoke of slavery I put around my neck.
have travelled a lot in my life including all of US from small states to all bigger states . Canada is a very beautiful country especially Vancouver and areas all around it especially ferry ride to Victoria Islands (only cold weather is very harsh).
For semi retire and retirees Malaysia is the best option available. Weather in Penang is awesome. If you are retired or semi retired or have online income based business and want to move away from harsher colder climate try checking out Malaysia
I learned a lot from doing YouTube search for best residency options and after travelling to different places I find Portugal passport the best option as stated by someone here earlier and residency in Malaysia being the best option.
Those having a Canadian or U.K. or EU, Portugal is not the best option as you already have one available. This advice for Portugal is mainly for those with US yoke.
Try opening a US bank account or US brokerage account as non resident of US. They will immediately deny you. Sad truth. You have to use someone’s address in US to get your mail. I have small US bank account with friend’s address. Yes I fully comply with all their compliance forms but I am simply tired of being rejected by offshore banks and brokerages based on my one US passport only. Not being born in USA the banks told me to simply check off non US to satisfy their compliance teams but I am not into evasion ever or want to do this sort of problem or suggest to anyone as I know the reps are only concerned with satisfying their compliance teams. US govt is doing this to hurt people outside the country so banks and brokerages can’t accept US citizens or permanent residents. It’s not compliance it’s hurting people in their place of residences where they are paying taxes and business taxations and general taxations. HK is quite high in prices when one is living here and cost of living outweighs the taxes.
“President Trump last week nominated Rettig, a Beverly Hills tax attorney, to become the next IRS commissioner. If confirmed by the U.S. Senate, he would be the first IRS commissioner in decades to come from the tax world itself, and he would be tasked with overseeing the agency as it writes scores of rules to implement the new tax law.
That will involve hundreds of decisions ranging from how new tax documents should look to how to precisely define the types of overseas corporate earnings that will be subject to taxation, said Mark Mazur, director of the nonpartisan Tax Policy Center.
“The way this law was written — hastily and without a ton of debate — means there are many, many provisions that need a lot of interpretation,” he said.”
ICIJ asked Rettig for an interview. Their questions were answered by one of the other partners in the firm. Quite interesting.