EFTA02585027.pdf

From: Dlugash, Alan < Sent: Friday, June 13, 2014 3:11 PM To: Richard Kahn; Jeffrey Epstein Cc: David Hasson Subject: RE: JEE Form 8621 = I am writing regarding the tax issue=of what triggers the termination of the extension of time to pay the PFIC =ax. We have deferred the tax otherwise due from 1999 through 2006, but we have been paying the tax on all earnings reported since then. Th= termination of the extension is basically triggered by either or both of = occurances: 1) the distribution fr=m the PFIC to the shareholder of the income whose tax is being deferred. 1= our case, this would be a distribution from the PFIC to the investment pa=tnership in which Haze is the investor. Typically there would not be distributions as long as the PFIC investment =ontinues being held by the investment partnership. If there are any distri=utions, they would be deemed to come out of the most RECENT earnings • per=ect in our case, since these would be the earnings on which we have already paid tax. 2) the disposition of =he shares to which the deferral is attributable. It appears that each PFIC=share would carry with it its share of the deferral from each year. Our on=y wrinkle is that it is not the investment partnership selling its PFIC shares, but rather Haze is selling a share of=its investment in the investment partnership. Let's di=cuss. Alan =b>ALAN DLUGASH CPA Marks Paneth LLP 685 Third Avenue, New York, NY, 10017 P. F. E.<=pan style=""> 1 EFTA_R1_01764261 EFTA02585027 From: Richar= Kahn [mailto Sent: Thursday, June 12, 2014 4:06 PM To: Dlugash, Alan Subject: Re: JEE 8621 please call me as we need to know t=x rules, then review with jee before monday withdrawal deadline thanks Richard Kahn HBRK Associates Inc. 575 Lexington Avenue 4th Floor New York, NY 10022 tel fax cell On Jun 11, 2014, at 7:11 PM, Dlugas=, Alan < <mailto >> wrote: The (obvious) answer was that the info was per th= Form 8621 (PFIC information return) that was attached to Jeff's 1040, a= it has been every year. &=bsp; Alan ALAN DLUGASH CPA Original Message From: Sayar, Edward 2 EFTA_R1_01764262 EFTA02585028 Sent: Wednesday, June 11, 2014 5:38 PM To: Dlugash, Alan Subject: FW: JEE 8621 It was included as an attachment to his 2012 1040= EDWARD A. SAYAR, EA, Manager Tax Marks Paneth LLP 685 Third Avenue, New York, NY, 10017 P. F. E. <mailto IRS CIRCULAR 230 DISCLOSURE: Treasury Regulations require us to inform you that any Federal tax advice contained in this communication (including any attachments) is not intended or written to be used, and cannot be used, for the purpose of (i) avoiding penalties under the Internal Revenue Code or (ii) promoting, marketing or recommending to another party any transaction or CONFIDENTIALITY NOTE: This transmission may contain confidential and/or privileged information. This information is intended for use by the individual or entity named above. If you are not the intended recipient, be aware that any disclosures, copying, 3 EFTA_R1_01764263 EFTA02585029 distribution or use of the contents of this information is prohibited. If you have received this transmission in error, please notify this office immediately. <ECOPY07BMSGJDAPMAIL_06112014-1=2529.pdf> IRS CIRCULAR 230 DISCLOSURE: Treasury Regulations require us to inform you that any Federal tax advice contained in this communication (including any attachments) is not intended or written to be used, and cannot be used, for the purpose of (i) avoiding penalties under the Internal Revenue Code or (ii) promoting, marketing or recommending to another party any transaction or CONFIDENTIALITY NOTE: This transmission may contain confidential and/or privileged information. This information is intended for use by the individual or entity named above. If you are not the intended recipient, be aware that any disclosures, copying, distribution or use of the contents of this information is prohibited. If you have received this transmission in error, please notify this office immediately. 4 EFTA_R1_01764264 EFTA02585030