Patel Law Offices Blog

Parag Patel Esq. speaks at New Jersey Society of Certified Public Accountants (NJCPA) Webinar “What Tax Professionals Should Know About Trusts and Estates: Estate Tax Reform and the 2021 Planning Window”.

21 Sep 21

Parag Patel Esq. will be a featured speaker at a virtual New Jersey Society of Certified Public Accountants (NJCPA) Webinar panel entitled “What Tax Professionals Should Know About Trusts and Estates: Estate Tax Reform and the 2021 Planning Window”. Mr.

Upcoming live video webinar: U.S.-India Tax Planning: Reporting Issues, Traps to Avoid, Tax Treaties, FTC, FACTA/FBAR Reporting, Passive Income

17 Sep 21

I am pleased to announce that I will be speaking in an upcoming Strafford live video webinar, “U.S.-India Tax Planning: Reporting Issues, Traps to Avoid, Tax Treaties, FTC, FACTA/FBAR Reporting, Passive Income” scheduled for Thursday, October 21, 1:00pm-2:30pm EDT. Our panel will provide

The IRS Needs Help

14 Sep 21

The IRS is a malfunctioning mess.  A recent report from the National Taxpayer Advocate, states that the IRS has failed to answer taxpayers’ requests for assistance. I have been a tax lawyer for decades and have seen many different IRS problems over

Parag Patel Esq. presents new tax law changes at Broward Chapter of The Florida Society of Enrolled Agents (FSEABC) Webinar

14 Sep 21

Parag Patel Esq. will be the main speaker at a virtual Broward Chapter of The Florida Society of Enrolled Agents (FSEABC) Webinar panel entitled “Upcoming federal tax law changes: What to Expect”. Mr. Patel will discuss the new tax changes

New Tax Changes are Blowing in the Wind

08 Sep 21

There are several tax proposals that are under Congressional consideration, and the Biden administration released information concerning his proposal, the “American Families Plan.” Although the most prominent bills before the Senate include proposals to lower the estate tax exemption and

New IRS procedures for Streamlined Filing Compliance Procedures for 2017 transition tax filers

31 Aug 21

The IRS quietly created new procedures for Streamlined Filing Compliance Procedures earlier this month relating to filings with “transition tax” due under Internal Revenue Code Section 965. The new procedures apply to Streamlined Domestic Offshore submissions and Streamlined Foreign Offshore

Unfiled FBAR Penalties Survive Death

20 Aug 21

Do FBAR penalties survive death? According to a new court ruling, the answer is clearly yes (unfortunately). In United States v. Gill, 2021 U.S. Dist. LEXIS 12203 (S.D. Tex. 6/30/21), the court ultimately held that an FBAR nonwillful penalty survives

FBAR Deadline Automatic Extension

18 Aug 21

All U.S. citizens and permanent residents are required to annually file a U.S. income tax return reporting their worldwide income from all sources. Additionally, U.S. citizens and permanent who have an interest in or signatory authority over foreign bank and

Solution: Streamlined Domestic Offshore Procedures

14 Aug 21

In the midst of tough tax season, many U.S taxpayers are unfortunately surprised to discover that they have a U.S. tax reporting obligation on financial accounts or assets held overseas. Once they discover their tax and reporting obligation, there are

Dormant foreign corporations not subject to complicated Form 5471 filing requirements

09 Aug 21

The reporting requirements for IRS Form 5471 are complex, including ‘category of filer’ and required schedules.  However, very few taxpayers know that there are special simplified filing rules for a foreign dormant corporation. Although not widely published, IRS Revenue Procedure

Happy Birthday Streamlined Filing Compliance Procedure

09 Aug 21

The Streamlined Filing Compliance Procedure (SFCP) was “born” six years ago.  Six years ago the IRS publicly announced the SFCP, which has been used by many non-compliant US taxpayers with the disclosure of foreign assets. SFCP has two sub-programs: one

What is a SLAT?

04 Aug 21

While a slat is commonly known as a thin, narrow strip or bar of wood or metal, a SLAT is also known to estate planning professionals as a Spousal Lifetime Access Trust (SLAT). With the current lifetime estate and gift

New Form 3520 Penalties

01 Aug 21

In November 2020, the IRS changed the rules for assessing penalties for Form 3520, the Annual Return to Report Receipt of Foreign Gifts. Form 3520 is filed for any U.S. Taxpayer who receives a foreign gift or inheritance totaling over

Money Laundering 101

23 Jun 21

Over the years, some clients and advisors have asked us about how to detect possible money laundering activities. To do so, an explanation of the basics is required. Money laundering is the process in which criminals obscure the origins of

Consequences of Filing False Streamlined Filings

19 Jun 21

The IRS Streamlined Domestic Offshore Program (“SDOP”) allows eligible U.S. Taxpayers who failed to disclose foreign financial accounts to voluntarily disclose their conduct to the IRS and pay a reduced penalty. However, to be eligible for the SDOP program, the

Implications of United States v. Horowitz: Reckless = Willful?

15 Jun 21

            In a recent court case, a court found that “willfulness” in the context of civil FBAR penalties is satisfied by recklessness and does not require disregard of a known legal duty. In United States v. Horowitz, (4th Cir. Oct.

The IRS’ Complex Statute of Limitations

13 Jun 21

An IRS tax audit can be expensive and stressful. That is why is always important to check whether the IRS statute of limitations has expired for the audit. The expiration of the statute of limitations can terminate an audit. When

Willful FBAR Penalties

10 Jun 21

U.S. Citizens who have a financial interest in or signature authority over foreign bank accounts that hold an aggregate amount greater than $10,000 are required to report the accounts to the IRS each year by filing a Report of Foreign

What to do After Receiving Notice CP 15 or CP 215 for Failure to Timely File Form 3520

28 May 21

When receiving a penalty for failure to timely file Form 3520, Notice CP 15 or CP 215 is sent to the taxpayer notifying the taxpayer which requires a timely response. When receiving Notice CP 15 or CP 215 a Taxpayer

Penalties for Not Filing Form 3520

26 May 21

The IRS requires a U.S. person receiving a gift from a foreign individual, corporation, partnership, or estate to report by filing Part IV Form 3520. Failure to file or late, incorrect, or incomplete filing is subject to a severe penalty.

Foreign Gifts and the Uncommon Form 3520: A Trap for the Unwary

24 May 21

When a U.S. person receives a gift from a foreign individual, corporation, partnership, or estate which is treated as a gift or bequest and excluded from gross income, the recipient may be required to file Part IV of Form 3520.

Expect new aggressive IRS targeted enforcement next year.

27 Apr 21

For years, the government has known about the widening tax gap, which reports uncollected taxes among US taxpayers. However, typically, the government does not do much to address the increasing loss of tax revenue. It appears that is about to

The big question on a tax increases is not “if” but “when”

23 Apr 21

We expect taxes to increase. The big question however is when the increase(s) will take effect. Although it is politically unpopular and unfair to change tax laws after people rely on them in making transactions through the year, legally (and

The Dreaded IRS Letter 6185: “We received information that you have a foreign account”

20 Apr 21

Many of our clients have recently received IRS Letter 6185, which begins with “Why we’re writing to you: We received information that you held an interest in one or more foreign financial accounts, foreign entities, or foreign financial assets.” This

Increased IRS Enforcement Expected Against High-Income Taxpayers

07 Apr 21

The US Treasury Inspector General for Tax Administration (TIGTA), in two recent reports, said that the IRS collected more tax revenue in 2019 than in any other previous year but, at the same time, overlooked high-income delinquent taxpayers and so

New Favorable Court Decision: One penalty (not multiple) applies for late FBAR filing

25 Mar 21

The U.S. Court of Appeals for the Ninth Circuit today—in a case of first impression for the circuit—held that the IRS is limited to imposing one penalty for the untimely filing of a single accurate “Report of Foreign Bank and

Parag Patel to be Speaker for Estate Planning at Practicing Law Institute’s NJ Basic CLE Marathon 2021

16 Feb 21

Parag Patel will be a speaker on Estate Planning at the Practicing Law Institute’s (PLI) New Jersey Basic CLE Marathon 2021. Mr. Patel’s presentation will be a general introduction for attorneys practicing in estate planning matters seeking to learn about common

Parag Patel to be Speaker for Estate Administration at Practicing Law Institute’s NJ Basic CLE Marathon 2021

15 Feb 21

Parag Patel will be a speaker on Estate Administration at the Practicing Law Institute’s (PLI) New Jersey Basic CLE Marathon 2021. Mr. Patel’s presentation will be a general introduction for attorneys practicing in Estate Administration and probate matters seeking to learn

New IRS Relief for Taxpayers Experiencing COVID-related Difficulties

15 Feb 21

The IRS has announced new initiatives to help taxpayers experiencing Covid-related difficulties (which probably applies to most people) who have unpaid federal tax liabilities. Specifically, the IRS has announced the below relief: ·  The IRS is highlighting reasonable cause assistance

New Tax Laws Predicted

13 Feb 21

When elected, most Presidents have successfully enacted many significant tax proposals in the first two years in office. President Biden is doing things a little differently. Because of the coronavirus pandemic, Biden has divided his tax proposals into two efforts.

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