US Court finds non-willful FBAR penalty not limited to $10,000 per year

- By : Parag Patel

…of $10,000 under 31 U.S.C. § 5321(a)(5)(B) for non-willful violations relates to each foreign financial account. The taxpayer contended that, if there is a non-willful failure to file an FBAR,…

Taxpayer’s Beware: Proving Non-Willful Conduct in the new IRS Streamlined Filing Compliance Procedures

- By : Parag Patel

…demonstrate legal grounds for non-willfulness. Do not disclose too much and beware of badges (evidence) of willfulness, blind willfulness, concealment, etc. For more information see IRS IRM 4.26.16.4.5. It is…

Taxpayers’ Evidence of Non-Willfulness or Willfulness Factors

- By : Parag Patel

…is really non-willful. Unfortunately, the IRS has publicly stated that it will intentionally give no further definition of non-willful conduct for purposes of the Streamline Compliance Programs (SFOP or the…

How to Demonstrate Non-Willfulness Under The Streamlined Filing Compliance Procedures

- By : Parag Patel

…under penalties of perjury that their conduct was “non-willful.” For purposes of the streamlined procedures, non-willful conduct is defined as conduct that is due to negligence, inadvertence, or mistake or…

New Much-Needed Guidance for Non-Willful FBAR violations

- By : Parag Patel

…in FBAR case file information. We find that the guidance is much needed in light of the lack of uniformity in the IRS’ application of FBAR non-willful penalties. The memo…

Helpful Non-willful FBAR penalty case decided by court

- By : Parag Patel

…at some non-willful FBAR penalty litigation. The US district court has essentially dismissed a taxpayer’s challenges to his penalty for failing to file FBARs (Report of Foreign Bank and Financial…

New IRS Disclosure Program Announced for Non-Resident Taxpayers: Streamlined Foreign Offshore Procedures

- By : Parag Patel

non-willful (or possible willful) conduct and careful crafting of a certification of non-willfullness is required for each taxpayer. Qualified experienced legal counsel should analytically draft this certification, under attorney-client privilege,…

A solution in a tough tax season: the IRS Streamlined Offshore Procedures

- By : Parag Patel

…criteria. One critical criterion is that taxpayers must establish – to the satisfaction of the IRS – that their non-compliant behavior was non-willful. Non-willful conduct is defined as “negligence, inadvertence,…

ABA COMMENTS ON THE 2014 OFFSHORE VOLUNTARY DISCLOSURE PROGRAM AND THE STREAMLINED PROGRAMS

- By : Parag Patel

…FATCA regulations and the Intergovernmental Agreements is whether the person was born in the United States.   In theory, if the taxpayer’s noncompliance was due to non-willful conduct, the taxpayer…

Streamlined Filing Compliance Procedure’s New Revisions to Streamlined Foreign Offshore Procedures (SFOP)

- By : Parag Patel

…taxpayers with evidence of willful failure to disclose foreign assets. Specifically, SFCP is for taxpayers who non-willfully failed to disclose foreign assets. Under the SFCP, non-willful conduct is specifically defined…

Details of the Streamlined Foreign Offshore Procedures (SFOP)

- By : Parag Patel

…The IRS introduced SFCP in June 2014 for taxpayers who non-willfully failed to disclose foreign assets. Under the SFCP, non-willful conduct is specifically defined as “conduct that is due to…

New Warnings in the IRS’ Streamlined Filing Compliance Procedures

- By : Parag Patel

…income, pay all tax, and submit all required information returns, including FBARs, was due to non-willful conduct. I understand that non-willful conduct is conduct that is due to negligence, inadvertence,…

2018 ABA COMMENTS ON THE OFFSHORE VOLUNTARY DISCLOSURE PROGRAM AND THE STREAMLINED PROGRAMS

- By : Parag Patel

…domestic non-willful non-filers. This runs afoul of the intent of the SDOP because it penalizes non-willful taxpayers, including Accidental Americans who do not meet the SFOP residency requirement, students and…

New Streamlined Domestic Offshore Procedures (SDOP) is a Game Changer

- By : Parag Patel

…5472, 8938, 926, and 8621) with respect to the foreign financial asset, and (4) such failures resulted from non-willful conduct. Non-willful conduct is conduct that is due to negligence, inadvertence,…

Streamlined Filing Compliance Procedure’s New Revisions to Streamlined Domestic Offshore Procedures (SDOP)

- By : Parag Patel

…SFCP is for taxpayers who non-willfully failed to disclose foreign assets. Under the SFCP, non-willful conduct is specifically defined as “conduct that is due to negligence, inadvertence, or mistake or…

IRS Announces New Rules for FBAR Penalties

- By : Parag Patel

There are two types of penalties applicable to FinCEN Form 114 (Report of Foreign Bank and Financial Accounts) (FBARs): (1) Non-Willful and (2) Willful. The penalties are theoretically assessed per…

Avoiding and Defining Willfulness

- By : Parag Patel

willfulness is, it only uses vague terms to describe what it is not. The line between non-willfulness and willfulness remains unclear. Over the last few months, informal remarks of an…

Details of the Streamlined Domestic Offshore Procedures

- By : Parag Patel

…modified the non-willfulness certification form that individual taxpayers must submit to enroll in the streamlined filing compliance procedures (SFCP). Specifically, SFCP is for taxpayers who non-willfully failed to disclose foreign…

IRS announces new Streamlined Filing Compliance Procedures

- By : Parag Patel

…streamlined procedures must complete and submit the “non-willful” certification statement available athttp://www.irs.gov/pub/irs-utl/CertUSResidents.pdf. Advocacy is required to affirmatively and persuasively demonstrate legal grounds for non-willfulness. Do not disclose too much and…

IRS Official Provides Insights for the new IRS Streamlined Compliance Procedures

- By : Parag Patel

…streamlined procedures so both U.S. and non-U.S. residents who certify their tax noncompliance was non-willful can qualify for 5% or zero penalties. At the same time, the IRS said it…

Swiss Government and US Government Announce New Program for Cooperation and Disclosure by Swiss Banks

- By : Parag Patel

…of December 31, 2014, or the effective date of an FFI Agreement under the Swiss IGA, or the date of the Non-Prosecution Agreement or Non-Target Letter if that date is…

2016 US Dept of Justice (DOJ) Tax Division: FBAR penalty collection cases

- By : Parag Patel

…a complaint seeking a judgment for the penalties assessed against Ashish Patel for his non-willful failure to file FBARs in 2007-2011 reporting his interest in foreign bank accounts held at…

IRS Form 8938 and the Offshore Voluntary Disclosure Program (OVDP)

- By : Parag Patel

…untruthful) Form 8938 at this point is likely to turn previous non-willful non-compliance into a willful one. For example, Question 3a of Form 8938 indirectly asks a problematic question: the…

What Is The Difference Between the SDOP and the Current OVDP program?: Willfulness

- By : Parag Patel

…eligible to participate in the streamlined procedures is to ascertain whether the taxpayer’s compliance failure, including the failure to file an FBAR, was actually non-willful. The IRS has defined “nonwillful

Streamlined Procedures for U.S. Taxpayers Residing In the United States

- By : Parag Patel

…the foreign financial asset; and such failures resulted from non-willful conduct. Comment: It appears that the Domestic Streamlined Program is not available to non-filers. Scope and Effect of Domestic Streamlined…

New Comments of the IRS’ New Streamlined Filing Compliance Procedures for Non-Resident Non-Filer U.S. Taxpayers

- By : Parag Patel

…Streamlined Filing Compliance Procedures for Non-Resident, Non-Filer U.S. Taxpayers (see IRS Instructions here). David Horton, a senior official from the IRS, made some interesting statements about Non-Low Risk Account Holders…

New Court Case Limits the Reasonable cause exception to FBAR penalties

- By : Parag Patel

…taxpayer fails to file FBARs on time, he or she may be exposed to penalties. Assuming that non-disclosure was accidental or otherwise non-willful, the penalty is capped at $10,000 per…

New IRS Form 8938 Statement of Foreign Financial Assets is causing significant confusion

- By : Parag Patel

…the failure to file (or being untruthful) Form 8938 at this point is likely to turn previous non-willful non-compliance into a willful one. For example, Question 3a of Form 8938…

Reasonable Cause Defense Denied: FBAR Penalties Assessed by Court

- By : Parag Patel

…favor of the government to collect FBAR penalties for the non-willful failure to file FBARs to timely report foreign bank accounts. Agrawal represented himself, without legal counsel in court, which…

Instructions for New Streamlined Filing Compliance Procedures for Non-Resident, Non-Filer U.S. Taxpayers

- By : Parag Patel

…failure, and if the taxpayer relied on a professional advisor, the nature of the advisor’s engagement and responsibilities. This program has been established for non-resident non-filers. Generally amended returns will…