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New FBAR Court Case Makes it Easier for Taxpayers to be Deemed Willful

- By : Parag Patel

the trend and require the higher “clear and convincing evidence” standard. “Recklessness” Means “Willfulness” In addition to applying the lower “preponderance of the evidence” standard for determining a “willful” FBAR…

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…

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…

New IRS Guidelines for Willful FBAR violations

- By : Parag Patel

…a FBAR violation occurred and, for willful violations, that the violation was in fact willful. Because the FBAR penalty provision only provides maximum penalty amounts, the IRS is tasked with…

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…

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

…affirmatively and persuasively demonstrate credible 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…

The legal standard of “willfulness”: Opt out to avoid high penalties

- By : Parag Patel

…is willful or non-willful is based on the facts of each case. Willfulness has been defined as the voluntary, intentional violation of a known legal duty, see Cheek 498 US…

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

- By : Parag Patel

…needs to be prepared to defend filing a SDOP and be able to demonstrate their non-willfulness and show there was no fraud. Nonwillfulness certification In the streamlined procedures, taxpayers must…

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

- By : Parag Patel

…allows the IRS to conduct a fair and appropriate evaluation of “willfulness.” Relevant court decisions have only added to the uncertainty over what constitutes “willful” conduct, compounding the burden on…

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,…

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…

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,…

Federal District Court Holds that FBAR Penalties in Excess of $100,000 is Unlawful

- By : Parag Patel

…penalties. The IRS assessed penalties for willful failure to timely file FBARs from 2007 to 2010. The individual had four separate FBAR violations in 2007, and the associated penalties totaled…

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

- By : Parag Patel

…we (DOJ) filed a complaint against Jeffrey P. Pomerantz seeking to reduce to judgment penalties for willful failure to file Reports of Foreign Bank and Financial Accounts (FBARs) for 2007,…

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…

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…

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…

IRS Official Provides Insights for the new IRS Streamlined Compliance Procedures

- By : Parag Patel

…in. The government carries the burden of proving willfulness into the courtroom where “willfulness” has generally required demonstrating that the government prove the taxpayer’s actions were as a result of…

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…

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,…

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,…

The New IRS Voluntary Disclosure Practice: Not a Good Deal for Noncompliant Taxpayers

- By : Parag Patel

…accordance with existing IRS penalty guidelines under IRM 4.26.16 and 4.26.17. Interesting, a taxpayer may request the non-willful FBAR penalties (generally $10,000) instead of willful penalties, but the taxpayer must…

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…

New FinCEN Form 114 (FBAR) Filing Rules Announced

- By : Parag Patel

…Foreign Bank and Financial Accounts) (FBARs): (1) Non-Willful and (2) Willful. The penalties are theoretically assessed per account and not per FBAR; however, in practice, our firm has seen application…

The Risks of “Opting Out” of OVDI

- By : Parag Patel

…conduct is willful or non-willful. Because of the integration of BSA and Code penalties, the participants in the OVDI program should explore the tax cases that define reasonable cause may…

New Post-OVDP IRS Voluntary Disclosure Procedures Announced

- By : Parag Patel

…Again, in exceptional circumstances with convincing evidence, the taxpayer can instead request the lower non-willful FBAR penalties (e.g., $10,000) instead of willful penalties. Again, compelling legal advocacy will be very…

New Court Case Limits the Reasonable cause exception to FBAR penalties

- By : Parag Patel

…in the U.S. Court of Federal Claims suggests that CPA advice may not be enough to stop the IRS from assessing FBAR penalties for non-willful reporting violations. Background: Who Must…