Flying the Flag

What is the only State flag in the United States that is not a rectangle?

Moonlighting as La La Land!

The real name of the awards given out by the Academy of Motion Picture Arts & Sciences each year is The Academy Award of Merit.

Harry S. Truman

“It is amazing what you can accomplish if you do not care who gets the credit.”

US Treasury Regulation Changes Could Impact Foreign Owned Single Member LLCs

Melinda Fellner Bramwit, Partner, Rimon, P.C.

Changes to US Treasury Regulations Under Section 6038 of the Internal Revenue Code could affect filings for single member LLCs owned by non-US individuals or entities.

Many non-resident individuals and non-resident entities maintain title to real estate and other assets in single member limited liability companies incorporated under state law in the United States, for a variety of reasons.  Under Federal tax law, such an entity is disregarded for tax purposes unless the owner elects otherwise.  From a corporate perspective, these limited liability companies can be used to harness assets in an entity separate from the owner, providing a layer of corporate protection and perhaps anonymity for the ultimate owner.  These entities are also reasonably simple to form and maintain.

Changes to U.S. Treasury Regulations effective December 13, 2016, throw a wrinkle into the use of this malleable entity in some circumstances, which can be managed with some planning.

These changes require that a non-resident owning 100% of a United States limited liability company (“LLC”) file a Form 5472, an information return, when certain transactions occur between certain parties (“related” parties) and the LLC.

The following example from the regulations illustrates a scenario where this filing would be triggered:

In year 1, F, a foreign corporation forms and contributes assets to US-LLC, a U.S. limited liability company that is a disregarded entity for US Federal tax purposes.  In year 2, F contributes funds to US-LLC, and in year 3, US-LLC makes a payment to F.

Under the modified regulations, F’s payment to US-LLC as well as US-LLC’s payment back to F are both reportable transactions for which a Form 5472 would be required with respect to US-LLC.

This is a simple, yet common situation which triggers the filing requirement. It is important to note that this requirement is applicable to tax years of entities beginning on or after January 1, 2017 and ending on or after December 13, 2017 (Note: This is not a typo. The date is the 13th, not the 31st).  As such, there is a window of opportunity for tax planning to avoid the requirement of this form and if you want to know more or need help, don’t hesitate to contact me, Melinda Fellner Bramwit, a partner here at Rimon, P.C.

Of course, if you need assistance, you may always contact me, Joe Rosenbaum, or any of the lawyers with whom you routinely work at Rimon Law.

. . . and the Oscar Goes To

What is the actual name of the honor and award referred to as the “Oscar” given out by the Academy of Motion Picture Arts & Sciences?

Traveling Down the Highway on Wings

Listed below, in answer to this past UBCF trivia question are the members of each band (and for Wings, some of their past members as well) for your reminiscing pleasure.

Wings: Paul McCartney (Beatles), Linda McCartney, Denny Laine (The Moody Blues), Henry McCullough (Spooky Tooth) and Jimmy McCulloch (Stone the Crows). Past members included Denny Seiwell, Geoff Britton, Joe English, Steve Holley and Laurence Juber. The group also used the names Suzy and the Red Stripes and The Country Hams during their run (pardon the pun).

The Highwaymen: Johnny Cash, Waylon Jennings, Willie Nelson and Kris Kristofferson.

Traveling Wilburys: Roy Orbison (who died shortly after the first album was released), Tom Petty (Tom Petty and the Heartbreakers), George Harrison (Beatles), Bob Dylan and Jeff Lynne (Electric Light Orchestra).

To give you some extra food for musical thought, consider all the bands Eric Clapton has played with or been associated with during his career: The Yardbirds, John Mayall & the Bluesbreakers, Cream, Plastic Ono Band, George Harrison, Blind Faith, Delaney & Bonnie and Friends, Derek and the Dominos, J. J. Cale and B.B. King.

Forensic DNA and Missing Children: The Legal & Ethical Issues

Since 1983, when the day was designated by U.S. President Ronald Reagan as National Missing Children’s Day in the United States and spreading internationally through the Global Missing Children’s Network (GMCN), May 25th has been celebrated as International Missing Children’s Day.  GMAC is a jointly sponsored venture of the U.S. National Center for Missing & Exploited Children (NCMEC) and the International Centre for Missing & Exploited Children (ICMEC),  that focuses on educating parents on steps they can take in protecting their children, as well sharing best practices and information in investigating cases of child abduction, trafficking and illegal adoptions.

This year, I have the distinct privilege and great honor of speaking at the conference for Missing Children and Genetic Identity, organized by the Portuguese Association for Missing and Exploited Children [Associaçāo Portuguesa de Crianças Desaparecidas] and sponsored by Genomed, to be held at Lusófona University in Lisbon on the 25th of May 2017 – International Missing Children’s Day.

The conference will explore the connection between modern genetics and forensic science and on national and international efforts to aide investigations of missing and abused children.  The legal and ethical issues surrounding DNA collection and use, the pros and cons of storing DNA samples and maintaining a database of digital DNA ‘fingerprints’ as well as other bio metric information from individuals – convicted criminals, arrested individuals, victims, family members and even the general public – continues to be hotly debated on the national and international level throughout the world.  In addition to issues of privacy and security, the use and potential abuse of genetic and other bio metric evidence, whether to exonerate individuals or convict guilty individuals, is not just complicated, it is inconsistent across jurisdictional borders.  Sharing of critical information that may help identify a child or investigate a missing person, whether or not a crime may have been committed, is neither assured nor routine – despite the obvious benefits a regulated and carefully constructed information sharing system might be to family members, law enforcement and the forensic scientific community.

The conference, one of many throughout  the world on May 25th, will attract distinguished guests and provide a forum for discussion and shine a much needed spotlight on the legal and ethical challenges and opportunities at the intersection of science, law and law enforcement. I will publish a copy of my presentation and remarks after the conference concludes, but if you would like to know more about the conference, feel free to contact me, Joe Rosenbaum, or the organizers directly.

 

Bands on the Run

Can you name all the members (and, if applicable their original groups), that made up Wings, The Highwaymen and the Traveling Wilburys?

One Ring To Rule Them All

J.R.R. Tolkien only uses the word “she” once in The Hobbit when referring to Mrs. Bilbo Baggins!