New Form 8938 Statement of Specified Foreign Financial Assets   Leave a comment

The IRS Appears Poised to Prosecute Tax-Evaders   Leave a comment

Swiss Banks Under Pressure From U.S. to Give Up Tax-Evading Americans   Leave a comment

Mitt and Ann Romney’s $100 Million Trust for their Five Sons   Leave a comment

Attorney Morris Robinson was interviewed by CNN Money reporter, Blake Ellis, on February 3 and again on February 6, 2012 for her article about the $100 million family trust Mitt and Ann Romney established for their five sons. Attorney Robinson, a tax expert, identified the type of trust the Romneys’ have created as an “intentionally defective grantor trust.” This type of trust requires Mitt and Ann to pay the income taxes on the trust income. These tax payments escape both gift and estate taxation, leaving more money to the next generation. Blake Ellis’ article was published yesterday, February 6, 2012, on CNN Money. Click to read her article.

Last week, Attorney Robinson published an article on our blog that described the careful tax planning that went into the establishment of the Romney family’s $100 million trust.  His article demonstrates that all of the powerful tax-minimizing techniques successfully used by the Romney family are completely legal and most are easily available to most Americans. Click here to read Attorney Robinson’s article in full.

Contact M. Robinson and Company, P.C. for advice on minimizing your family’s overall effective income, gift and estate taxes.

New Insights on Mitt Romney’s Tax Returns   2 comments

Why Romney’s Effective 2010 Income Tax Rate is only 10.7 Percent

January 31, 2012

By Attorney Morris N. Robinson, CPA, LL.M.

BOSTON. Successful families manage to replicate themselves by transmitting their heritage, values, and wealth to the next generation. The next generation always receives what is left of the family fortune after inflation and income, gift, and estate taxes. Successful families, therefore, give more than passing attention to their overall effective tax rates.

Over the past few days, Attorney Morris N. Robinson reviewed the 2010 income tax returns of Mitt and Ann Romney and of various Romney family trusts including their private charitable foundation. He found that, contrary to published reports, the effective United States income tax rate on Mitt and Ann’s total 2010 income of $28 million was only 10.7 percent – and NOT 13.9 percent as reported by the press. Even if so-called Mitt Romney’s “carried interest” income, discussed below, is taxed at 35 percent (the highest regular tax) instead of at 15 percent, his overall effective tax rate rises to only 17.2 percent.

Mitt Romney’s 2010 income tax returns offer the general public insight as to how a very wealthy entrepreneur controls his overall effective income, gift, and estate tax rates. All techniques are completely legal. Many of these techniques are easily available to all Americans. These techniques acquire their impressive tax-saving power through thoughtful coordination by highly-competent tax attorneys, investment advisers, and tax accountants.

Read More on our Website

Attorney Morris N. Robinson in The Boston Globe   Leave a comment

Boston Globe reporter Todd Wallack quoted Attorney Morris N. Robinson, CPA, LL.M., in the conclusion of his article in today’s Boston Globe, January 19, 2012: “Few Americans Pay Full Tax Rate”. Read Attorney Robinson’s quote about Mitt Romney’s income tax payments or click below for the full article.

“Romney also probably benefited from an array of federal deductions that could push his effective tax rate even lower than 15 percent, said Morris N. Robinson, a Boston tax attorney. Robinson ticked off a list of strategies, including the use of investment losses to offset capital gains. He said he has used similar tactics to help his own clients. It’s completely legitimate,” he said, “but it means the highest rates that are advertised are not necessarily what people pay.”

Click for Full Article 

M. Robinson & Company Website

IRS Voluntary Classification Settlement Program   Leave a comment

Determining the status of an organization’s employees is often not a straightforward task. The penalties for misclassifying an employee as an Independent Contractor as defined by the IRS can be stiff. Employers who are found to have made this error can be subject to an IRS audit, back employment taxes, penalties and interest for prior years.

If your company has workers with questionable status, the IRS has recently enacted a new program that could save you a lot of money and anguish, The Voluntary Classification Settlement Program.

VCSP is one of several new initiatives (including the successful Offshore Voluntary Disclosure Initiative that ended August 31st of this year) that IRS Commissioner, Douglas Shulman, has enacted in an effort to motivate people to “come clean” about their tax liabilities. These programs also shine light on the fact that the IRS realizes that not all tax violations are committed consciously. Programs like this allow the government to collect some of the revenue (roughly ten percent) that was lost due to those taxpayers’ errors without making them amenable to the maximum penalty for their transgressions. This may be a good time to “come clean” because the IRS is enacting this program in tandem with a three-year program that increases the number of worker classification audits.

Applicants who are eligible must have:

  • Consistently treated workers as non employees
  • Filed all the required Forms 1099 for its workers for the previous 3 years
  • Not be under audit by the IRS or any other state agency concerning the classification of its workers.

Taxpayers who are eligible for this program will pay no interest and no penalties on their tax liability in exchange for classifying their workers as employees in the future. This program is a fantastic opportunity to get in line with the law with nominal costs, but one should consult with an attorney to ensure that your participation in the Amnesty program is the right choice for your business.

If you need a tax professional to guide you through this program, contact M. Robinson and Company, PC.