W MAKE GROW LIVE CURATOR Gulfstream’s New GS650ER Raises the Bar; An Interview with Wall Street’s Top Cop; Big Banks in Trouble HighTower’s Elliot Weissbluth Versus the Wire Houses; The Boom in Southeast Asia; Millennials and Their Money Miami Beach’s New Mayor; Watch Wisdom from JeanClaude Biver; 10 Best Fitness Programs Zegna’s New Power Suit; Four Whiskies Aged to Perfection; Luxury Coupes from Aston Martin, BMW and Mercedes ® THE EVOLUTION OF FINANCIAL INTELLIGENCE THE 100 MOST POWERFUL PEOPLE IN FINANCE 32 WORTH.COM VOLUME 23 | EDITION 05 Los Angeles, CA Leading Wealth Advisor The Glowacki Group LLC Michael V. Glowacki, CPA, CFP®, MBT, President Donald I. Gettinger, JD, CFP®, MA, Capital Confidant Are Swiss bank accounts a relic of the past? By Michael V. Glowacki Every James Bond movie seems to involve transactions in a Swiss bank account. Certainly, secrets are sexy, and Swiss banks have historically been protected by bank secrecy laws. But the benefit of these special privileges, along with the attraction of holding funds offshore, may be coming to an end: The U.S. government is now turning up the heat on tax compliance, as the procedures for a new tax law start to kick in. U.S. income tax laws require all residents and citizens to report each year, on their personal income tax return, worldwide earnings from investments held both inside and outside the United States. However, it is estimated that noncompliance in reporting foreign income costs the U.S. Treasury $100 billion annually. To address this issue, Congress in 2010 enacted the Foreign Account Tax Compliance Act (FATCA). The law’s reporting requirements recently became effective. FATCA imposes new reporting requirements on both foreign institutions and individual taxpayers. Starting this past July, foreign financial institutions such as banks are required to enter into an agreement with the IRS to identify their U.S. individual account holders and disclose their names, tax identification numbers, addresses and transactions involving most account types. This requirement also applies to non-U.S. trusts and underlying corporations, which may identify interest you may have been unaware of, especially if you moved to the U.S. from a foreign country or have family outside the U.S. and are a beneficiary of their interests. Some types of accounts, notably retirement savings and other tax-favored products, may be excluded from reporting on a country-by-country basis. Although compliance appears to be voluntary on an institution-byinstitution basis, noncompliance by a foreign institution may result in the requirement that U.S. payers withhold 30 percent of proceeds from the noncompliant institution. In 2013, the Swiss Parliament approved a change in Swiss law allowing Swiss banks to cooperate with United States tax authorities as FATCA specifies. Starting with their 2013 federal tax return, individual taxpayers with foreign accounts must file the new IRS Form 8938 as an attachment to Form 1040. IRS Form 8938 is required for assets held in a foreign country above a specified amount. Although the form for individuals may be new, the requirement to report foreign accounts is not. U.S. taxpayers have previously been required to check a box each year on their annual IRS Form 1040, Schedule B, if they held an interest in, or were signatory on, a foreign account at any time during the calendar year. “Evading” U.S. income taxes is illegal. Evading tax laws means not complying with them. On the other hand, “avoiding” U.S. income taxes is not illegal: You may avoid taxes legally by structuring your holdings and transactions to minimize taxes while remaining in compliance with tax laws. Although many strategies exist for avoiding U.S. income and estate tax laws, they are complex and may require significant loss of control over those assets. If you have accounts or investment holdings with foreign institutions, you should review your specific situation with your financial and tax advisors. If you have family or close friends living abroad, or you moved to the U.S. from abroad, you may want to review your specific situation with an international tax specialist. It is in your best interest to identify whether you may be listed as a beneficiary of any foreign trusts and/or corporations. In short, were James Bond a U.S. resident this year, he might have to report some of those Swiss banking transactions on his U.S. tax return. Hopefully, Miss Moneypenny is reading this article. live “A change in U.S. law imposes new reporting requirements on both foreign institutions and individual taxpayers.” How to reach Michael V. Glowacki grow I prefer face-to-face meetings with prospective clients. My assistant will happily schedule a convenient time to meet. You can reach Beth Andre at 310.473.0100. make —Michael v. Glowacki Th e G lowack i G rou p llc Michael V. Glowacki Donald I. Gettinger About The Glowacki Group LLC iI l Ll Lu Us St Tr Ra At T iI o On N b By Y k Ke Ev V iI n N s Sp Pr Ro Ou Ul Ls S Michael V. Glowacki, founder of The Glowacki Group LLC, which provides comprehensive wealth management and family office services, has more than 35 years of financial, investment, tax and planning experience. He began his career as a CPA with Grant Thornton, the fifth-largest national accounting firm in the U.S. Subsequently, he was the CFO of a real estate company, a start-up venture and a family office. Mr. Glowacki earned his master of business degree in taxation and became a certified financial planner. He is also a certified professional coach and integrates coaching into his work with affluent clients, asking them relevant questions to better understand their intent and provide tailored planning for their wealth management. Donald I. Gettinger has over 25 years of legal, financial and investment experience. He began his career as a corporate attorney, and later worked as a film acquisition executive at HBO, negotiating the licensing of motion pictures. He then moved on to manage turn-around situations for several businesses, which included handling bankruptcy negotiations and facilitating major management transitions. Mr. Gettinger’s path to financial planning began when his parents developed degenerative diseases, requiring him to preserve their estate and protect their legacy. He earned his juris doctor degree and is a certified financial planner. He also earned a masters in spiritual psychology to enhance his coaching experience with clients. assets under Management $330 million Compensation Method Asset-based and retainer fees Minimum Fee for initial Meeting None required primary Custodian for investor assets Charles Schwab and Fidelity Minimum net Worth requirement $5 million professional services provided Planning, investment advisory and philanthropic consulting largest Client net Worth $150 million association Memberships FPA, NAPFA Financial services experience 35 years+ (Glowacki) Website www.glowackigroup.com The Glowacki Group LLC email [email protected] 11400 West Olympic Boulevard, Suite 1500, Los Angeles, CA 90064 worTh.com 310.473.0100 ocTober-november 2014 139 Michael V. Glowacki, CPA, CFP®, MBT President Donald I. Gettinger, JD, CFP®, MA Capital Confidant The Glowacki Group LLC 11400 West Olympic Boulevard, Suite 1500 Los Angeles, CA 90064 Tel. 310.473.0100 [email protected] www.glowackigroup.com REPRINTED FROM ® the evolution of financial intelligence The Glowacki Group LLC is featured in Worth® 2014 Leading Wealth Advisors™, a special section in every edition of Worth® magazine. All persons and firms appearing in this section have completed questionnaires, have been vetted by an advisory group following submission by Worth®, and thereafter paid the standard fees to Worth® to be featured in this section. The information contained herein is for informational purposes, and although the list of advisors presented in this section is drawn from sources believed to be reliable and independently reviewed, the accuracy or completeness of this information is not guaranteed. No person or firm listed in this section should be construed as an endorsement by Worth®, and Worth® will not be responsible for the performance, acts or omissions of any such advisor. It should not be assumed that the past performance of any advisors featured in this special section will equal or be an indicator of future performance. Worth®, a Sandow Media publication, is a financial publisher and does not recommend or endorse investment, legal or tax advisors, investment strategies or particular investments. Those seeking specific investment advice should consider a qualified and licensed investment professional. Worth® is a registered trademark of Sandow Media LLC. See “About Us” for additional program details at http://www.worth.com/index.php/about-worth.
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