Search Results for: offshore bank accounts
An exception to PFICs in Foreign Pension Plan Accounts
Certain US persons may become subject to the passive foreign investment company (PFIC) regime if they own an interest in a foreign corporation that invests primarily in passive investments (or…
Top 4 Exceptions to FBAR Filing Requirement
FBARs are due this week (again). Below are the top 4 exceptions we often see for the FBAR filing requirement. Certain Accounts Jointly Owned by Spouses – the spouse of…
First Indictment for FATCA Violation Announced
Federal prosecutors charged six men Tuesday with running a complicated offshore scheme that allegedly enabled clients to manipulate stocks, avoid U.S. taxes and launder hundreds of millions of dollars. An…
New Extended Deadline for OVDI
…Account (FBAR), in prior years to report a foreign bank account or signature authority over a foreign bank account owned by an employer. Similar is permitted for delinquent Form 5471,…
What Is The Difference Between the SDOP and the Current OVDP program?: Willfulness
What Is The Difference Between the SDOP and the Current OVDP program? The Streamlined Offshore Procedures (SDOP and SFOP) liberalizes the old restrictions and rewards taxpayers that disclose their offshore…
IRS Updated Voluntary Disclosure Practice is a Game-Changer
…change other IRS programs, such as the IRS Streamlined Compliance Procedures (for non-willful US persons) including the popular Streamlined Domestic Offshore Procedures and Streamlined Foreign Offshore Procedures. The Updated VDP…
Happy Birthday Streamlined Filing Compliance Procedure
…the disclosure of foreign assets. SFCP has two sub-programs: one for US residents (Streamlined Domestic Offshore Procedures or “SDOP”) and one for non-US residents (Streamlined Foreign Offshore Procedures or “SFOP”)….
Audit Beware: IRS’ Global High Wealth Industry Group
…That is starting to change Given the IRS’ zeal for unreported offshore accounts and income, high wealth taxpayers playing the “audit lottery” may have more to worry about than audits….
Corporate Transparency Act (CTA) Reporting Company Analysis and FAQs
…any such Indian tribe, State, or political subdivision. Bank. Any bank, as defined in (A) Section 3 of the Federal Deposit Insurance Act; (B) Section 2(a) of the Investment Company…
New IRS Enforcement Letters Warn of Cryptocurrency Non-Compliance
…on cryptocurrency and the prior targeting of offshore accounts. Investigations into offshore accounts began with subpoenas to financial institutions and eventually became a full-fledged IRS compliance initiative. The IRS anticipates…
Watch Out for PFIC Status
…If a foreign corporation or investment vehicle meets either of the two conditions below, it will be deemed to be a PFIC. 1) If passive income accounts for 75% or…
Becoming Un-American: Record number of US citizens renounce their US citizenship
…number of renunciations is related to an enforcement campaign by U.S. officials against undeclared offshore accounts. It intensified in 2009, after Swiss banking giant UBS AG admitted that it encouraged…
IRS Announces “Good Faith” 90 Day Extension of Voluntary Disclosure Deadline
…of time to assess tax (including tax penalties) and to assess penalties for failure to file Form TD F 90-22.1, Report of Foreign Bank and Financial Accounts (FBAR). Requests for…
IRS Announces Penalty Mitigation for Smaller US Taxpayers Living Abroad
…September 1, 2012. The IRS is aware that some U.S. taxpayers living abroad have failed to timely file U.S. federal income tax returns or Reports of Foreign Bank and Financial…
Helpful Non-willful FBAR penalty case decided by court
…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 FBAR Deadline applies to 2016 Tax Year Onwards
…Bank and Financial Accounts (FinCEN Form 114) (the FBAR) for 2016 and future years. The FBAR must be filed by a U.S. person (i.e., an individual who is a U.S….
IRS Announces New international campaigns
…Compliance: Form 1120F Chapter 3 and Chapter 4 Withholding Swiss Bank Program Foreign Earned Income Exclusion Verification of Form 1042-S Claimed on Form 1040NR Cross Border Activities: Corporate Direct (Section…
Unfiled FBAR Penalties Survive Death
…in numerous foreign bank accounts that had an aggregate balance of more than $10,000. The Government asserted that the failures to file were non-willful, but assessed FBAR Penalties of $740,848…
Problems with Joint Tenancy Property
…tenant to the others. There is no need for a formal probate (unless all the joint tenants die). Convenience: Bank accounts held in joint tenancy can be withdrawn by any…
FATCA Deadlines Extended
Many of our tax-noncompliant clients are fearful of being involuntary discovered through the impending FATCA disclosures of their foreign accounts by their foreign banks. The Internal Revenue Service has issued…
What FATCA Means to You and Your Investments
…phone numbers, customers with regular payments made to US payees, etc. Under FATCA, financial institutions, including banks, deposit taking non-banking finance companies, mutual funds, private equity funds, custodians and life…
Planning in the Time of Coronavirus
…can find it. Include all your important passwords, online accounts (including email, social media, banks, etc.), and digital property (including domain names and virtual currency). Use password management apps such…
IRS delinquent FBAR submission procedure
…delinquent or amended tax returns to report and pay additional tax, but who: have not filed a required Report of Foreign Bank and Financial Accounts (FBAR) (FinCEN Form 114, previously…
Foreign Retirement Plans: New IRS Exemption from Required Information Reporting on Forms 3520 and 3520-A
…accounts must be reported on FBAR FinCEN 114 and Form 8938. In addition, filing of Form 8621 for accounts invested in non-US mutual funds required if the balance exceeds the…
Estate Planning: List of To-Do Items
…the assets At your death, your taxable estate will include your home, other real estate, investment accounts, retirement accounts, life insurance, bank accounts, business interests, vehicles and other items of…
Start 2021 with a few New Year’s tax planning resolutions
…The IRS recently began mailing warning letters to certain targeted taxpayers who may have foreign accounts. Failure to report foreign accounts, or reporting them incorrectly, can have serious consequences, including…
Our Best Net Investment Income Tax (NIIT) Tax Minimization Planning Strategies
…contributions to tax-favored retirement accounts such as 401(k) and self-employed SEP accounts to reduce your MAGI to avoid the NIIT, Increasing deductions to reduce your MAGI to avoid the NIIT,…
The IRS has woken up.
…in 2018 or previous years.” 3. Offshore Tax Evasion. The IRS Commissioner last month again verified that offshore tax reporting enforcement remains one of the IRS’s absolute top priorities. He…
Penalty relief for International Information Forms 5471, 5472, and 8865
…are two distinct sets of procedures, one for U.S. residents (Streamlined Domestic Offshore Procedures) and one for non-U.S. residents (Streamlined Foreign Offshore Procedures). The notable distinction between the domestic procedures and…
OVDP New Forms Announced by IRS
The IRS has simplified the process of entering the OVDP Program by issuing the following forms: Form 14457 – Offshore Voluntary Disclosure Letter Form 14454 – Offshore Voluntary Disclosure Program…