Search Results for: penalties
New guidance on fixing a botched IRA stretch after it’s “too late”
…deal. On the other hand, if there are more years of failed RMDs and associated penalties, or if there’s a high risk the beneficiary will withdraw the funds more rapidly…
U.S. Taxpayers at New Risk of Audit from OVDP Declines and Withdrawals Campaign
…for full-compliance. However, prior to being selected for examination, taxpayers can still become compliant by amending and filing all required returns and making payment for all taxes, interest, and penalties….
Benefits and consequences of entering or failing to enter the Offshore Voluntary Disclosure Initiative program
…in Federal prison Extremely high civil tax and FBAR penalties Loss of professional licenses Immigration consequences such possible deportation or failure to re-enter U.S. Time lost away from family and…
A Change in Domicile to Florida Can Help Minimize Taxes
…an assessment, but also substantial interest and penalties. Where the result is uncertain, a change of domicile should not be attempted unless the taxes that will be saved are substantial….
FATCA-Compliant Institutions List Goes Online
…information on their U.S. account holders to the Internal Revenue Service or else face severe penalties. The law has attracted controversy abroad amid concerns that it violates other countries’ banking…
Problems with Joint Tenancy Property
…to die had children of a prior marriage, they can be easily cut out of any inheritance by the surviving joint tenant. Potential tax penalties: Gift tax penalty: The creation…
IRS Publishes Useful Chart Outlining Compliance Options for Offshore Assets
…past three years; and delinquent FBARs for the past six years. This seems to be a new EZPASS or express OVDP without any penalties. Taxpayers with higher compliance risk are…
Explore the OVDI opt-out option: Argue for Penalty Mitigation
…any evidence of willfulness fails to support any imposition of willfulness penalties. Our law firm expects unabated aggressive enforcement of the US tax laws, including increased criminal prosecutions and civil…
India issues FATCA Self-certifications and KYC Warnings
…has established several amnesty programs, under which a previously non-compliant individual can become compliant and avoid potentially very high penalties or criminal prosecution. However these amnesty programs generally require the…
Top FBAR Reporting Error
…who fail to resolve prior reporting errors can expect harsh treatment from U.S. tax authorities and remain exposed to substantial penalties and possible criminal prosecution. Similarly, U.S. courts have not…
Beware of Currency Seizures
…cash or certified checks/money orders (yes, certified checks must be reported!). The consequences for violating U.S. reporting laws are severe; penalties may include seizure of most or all of the…
IRS collects over $5 billion in its its offshore voluntary disclosure programs
…so far resulted in the collection of more than $5 billion in back taxes, interest and penalties from 33,000 voluntary disclosures made under the first two programs. In addition, another…
IRS offers tax opportunity to Americans living abroad
…forward without facing onerous penalties or the threat of prosecution. The agency said the reprieve, to begin Sept. 1, would also apply to U.S. expatriates with foreign retirement plans, including…
IRS Announces Penalty Mitigation for Smaller US Taxpayers Living Abroad
…procedures that will allow taxpayers who are low compliance risks to get current with their tax requirements without facing penalties or additional enforcement action. These people generally will have simple…
Should I close my foreign account?
…the little untidiness. Foreign accounts and assets are being scrutinized by the IRS and FinCEN (the Treasury Department subdivision that reviews FBARs). The stakes are high, with huge civil penalties…
Foreign Account Tax Compliance Act – Traps for the Unwary
…you about failing to file the 6038D and then socked you with $40,000 in penalties for not filing the attachment. And the killer is that the unlimited extension is “not…
IRS Investigating Employee Retention Credit (ERC) claims
…refund to withdraw their submission and avoid future repayment, interest, and penalties. Employers that submitted an ERC claim that’s still being processed can withdraw their claim and avoid the possibility…
No tax = No Passport?
…tax purposes. Most foreign banks will ultimately report U.S. depositor account information to IRS. The IRS will then be able to assess tax, interest and penalties on the unreported income…
New IRS Form 8938 Statement of Foreign Financial Assets is causing significant confusion
…Willful violations would also be subject to criminal penalties. Foreign Asset Reporting It is going to get harder to keep the IRS from learning about your foreign bank or brokerage…
Cayman Islands Advisors Arrest Suggest U.S. Government Receiving More Information About Offshore Accounts
…imposes steep penalties but offers protection against criminal prosecution. It is believed that U.S. authorities do have names of account holders in the Caymans. In March of last year, the…
IRS Form 8938 and the Offshore Voluntary Disclosure Program (OVDP)
…to criminal penalties. Form 8938 is likely to have a major impact on the number and depth of voluntary disclosures as taxpayers are forced to re-evaluate their tax compliance strategies….
India Expected to Sign FATCA Agreement Tomorrow
…to report foreign accounts and assets. With such comprehensive databases, noncompliant taxpayers should beware; the government has better and more complete information than ever. Significant penalties apply (and possibly criminal…
New Comments of the IRS’ New Streamlined Filing Compliance Procedures for Non-Resident Non-Filer U.S. Taxpayers
…Non-Resident U.S. Taxpayers seems to be a new EZPASS or express OVDP without any penalties. We are comprehensively exploring this alternative for our clients and expect to aggressively advocate for…
FBARs from Wuhan
…to do so can be criminal (but in my experience, in most cases, only civil penalties are imposed) According to a recent report by the Internal Revenue Service (IRS), those…
US passport and green-card has lost its glamour
…the most complex and sophisticated tax systems in the world. The failure to timely disclose and pay tax on undisclosed cash and property could lead to high penalties. Under FATCA,…
The Tax Heat is On
…cleaning up offshore accounts. The two programs have been very successful: Since commencement, the U.S. has collected more than $13.5 billion from individuals and financial firms in taxes and penalties…
Interesting 2023 Foreign Account Cases
…pay FBAR penalties because he had insufficient assets in the U.S. to pay the liability. In United States v. Xiao, 132 AFTR2d, 2023-5446, the US Seventh Circuit Court of Appeals…
IRS Announces New Clarifying FAQs for Streamlined Offshore Compliance Program
…compliant with reduced or no penalties. Under the streamlined offshore procedures for both U.S. residents and nonresidents, taxpayers must (1) file delinquent or amended tax returns, together with all required…
Foreign Retirement Plans: New IRS Exemption from Required Information Reporting on Forms 3520 and 3520-A
…of $1,000,000 or less. Rev. Proc. 2020-17, Sec. 5.03(4). Withdrawals from the trust must be conditioned upon reaching specified retirement age, disability, or death, or penalties must apply to withdrawals…
2020 New Year’s Tax Planning Resolutions: Resolve To Plan Better
…targeted taxpayers who may have foreign accounts (remember FATCA). Failure to report foreign accounts, or reporting them incorrectly, can have serious consequences, including high civil and criminal penalties. Since these…