Page 18 – Tax, Estate Planning & Probate Law Center

HSBC officially provides information on clients having accounts in India to the US Department of Justice and IRS

29 Feb 12

HSBC this week publicly announced that it has provided available information in its possession to the US authorities probing whether any US-based client used accounts in HSBC India to evade federal income taxes. In April 2011, HSBC Bank USA received

Six Estate Planning Myths

28 Feb 12

The most time-consuming aspect of estate planning is educating clients and dispelling common misconceptions that most people have regarding Wills, Trusts, Estate Taxes and Probate. Over the years, we have identified six recurring misconceptions which many of our clients carry

NJ Tax Waiver Shortcut

21 Feb 12

New Jersey provides its taxpayers the opportunity to pay two “Death Taxes”: the New Jersey Inheritance Tax and the New Jersey Estate Transfer Tax. These taxes are transfer taxes (not income taxes, sales taxes or use taxes). They represent a

Top 7 Costly Estate Planning Mistakes and How To Avoid Them

17 Feb 12

1. Where There Is A “Will” Is There Is A Way? The biggest mistake is the failure to plan, having the wrong plan or even having an outdated plan. Everyone can benefit from a will or some other form of

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

30 Jan 12

The announcement by the IRS of the opening of the new Offshore Voluntary Disclosure Program (OVDP) on January 9, 2012 came as a surprise to most tax practitioners, especially since the 2011 OVDI just ended on September 9, 2011. However,

Analysis of the new 2012 Offshore Voluntary Disclosure Program (OVDP)

10 Jan 12

Yesterday the Internal Revenue Service opened its Offshore Voluntary Disclosure Program (OVDP) to encourage more taxpayers with assets in undeclared foreign bank accounts to come forward. While the OVDP was not expected by most tax lawyers and professionals, it may

IRS Announces New 2012 Offshore Voluntary Disclosure Program (OVDP)

09 Jan 12

The Internal Revenue Service today reopened the offshore voluntary disclosure program to help people hiding offshore accounts get current with their taxes. The IRS reopened the Offshore Voluntary Disclosure Program (OVDP) following continued strong interest from taxpayers and tax practitioners

Beware: IRS Form 8938 Statement of Specified Foreign Financial Assets

03 Jan 12

Form 8938, Statement of Specified Foreign Financial Assets, is a new reporting form. Form 8938 will be used to report certain foreign financial assets as required as part of the Hiring Incentives to Restore Employment Act (HIRE Act), which was

IRS Reminds U.S. citizens and dual citizens about U.S. filing requirements

12 Dec 11

In a fact sheet (IRS FS-2011-13) released last week, the IRS reminded U.S. citizens and dual citizens of the United States and foreign countries who live abroad about U.S. filing requirements, including Form TD F 90-22.1, Report of Foreign Bank

Another Bank Discloses Accountholders: Credit Suisse to Turn Over U.S. Account Data

28 Nov 11

Earlier this month Credit Suisse Group AG, Switzerland’s second-biggest bank, told U.S. clients it is giving confidential client account data to the Swiss tax authorities, who will decide whether to disclose it to the Internal Revenue Service. The U.S. is

Fifth HSBC India Customer indicted for tax evasion this year

19 Nov 11

A federal grand jury in San Jose, California, last week indicted Ashvin Desai of San Jose on three counts of tax evasion, two counts of willfully aiding the preparation of materially false tax returns and three counts of failing to

The Risks of “Opting Out” of OVDI

29 Oct 11

Under the 2011 OVDI voluntary disclosure program, the penalties for failing to timely file Foreign Bank Account Reports, (FBAR’s) and the penalties for failure to file information returns (such as Controlled Foreign Corporation tax returns) were combined into a single

Taxpayers Advised to Use Caution: Confirmed FBAR Information Request Scam

25 Oct 11

Our firm has become aware of a “phishing” scam, related to the filing of Report of Foreign Bank and Financial Accounts (FBAR). Under the scam, taxpayers receive an email notice, purportedly from the IRS Chief of Criminal Investigations, indicating there are

Another Foreign Bank Charged by U.S. Department of Justice

15 Oct 11

Earlier this week, two Julius Baer Group Ltd. client advisers were charged with helping U.S. customers of the Zurich- based bank evade taxes, according to an indictment and a person with knowledge of the matter. Daniela Casadei and Fabio Frazzetto

What if You Missed the OVDI Deadline?

07 Oct 11

Although the OVDI program has expired, a U.S. taxpayer can still make a voluntary disclosure of foreign accounts pursuant to the IRS’s general voluntary disclosure policy. For over 50 years, the IRS has maintained a voluntary disclosure policy, under which

Estate Planning For Women

06 Oct 11

Estate planning affects women more profoundly, so they should take charge of this process, or at least be equal participants. Among Americans 65 and older, 42% of women, but just 14% of men, are widowed. Women’s longer life expectancy, combined with their tendency

HSBC India Customer New Indictment Uncovers More HSBC Details

29 Sep 11

A Wisconsin neurosurgeon was re- indicted by a U.S. grand jury on new charges that he failed to declare an HSBC Holdings Plc (HSBA) account in India valued in 2009 at $8.7 million. Arvind Ahuja was indicted again by a

Employee or Contractor?: The IRS’s New Voluntary Classification Settlement Program (VCSP)

28 Sep 11

When the IRS says “voluntary” it can sound scary. The IRS is unlikely to use this word unless the potential liability is serious. The IRS would much rather have you come forward. If you do, you’re likely to get a

For Tax Professionals: A Guide to the IRS’s Voluntary Disclosure Practice

19 Sep 11

IRS Commissioner Shulman has invited persons with unreported foreign accounts to come forward and avail themselves of the IRS’s Voluntary Disclosure Practice. That practice is described in the Internal Revenue Manual 9.5.11.9. The Practice has a bearing upon whether the

IRS Publicizes and Celebrates OVDI Success

16 Sep 11

As expected, the United States Internal Revenue Service (IRS) has disclosed that the recently-completed offshore voluntary offshore initiative (OVDI) has pushed the total number of voluntary disclosures up to 30,000 since 2009. The IRS customarily publicizes (and celebrates) such accomplishments.

With No More Amnesty Program: Explore the IRS’s Traditional Voluntary Disclosure program

14 Sep 11

Even though the deadline for the Internal Revenue Service’s 2011 Offshore Voluntary Disclosure Initiative has concluded last week, U.S. taxpayers with undisclosed offshore accounts still have the opportunity to come forward through the IRS’s traditional Voluntary Disclosure program. Like the

New Extended Deadline for OVDI

30 Aug 11

Last week, late on Friday afternoon, August 26, 2011, the IRS issued a statement indicating that the due date for filing 2011 Offshore Voluntary Disclosure Initiative (OVDI) requests has been extended until September 9, 2011, due to the potential impact

Audit Beware: IRS’ Global High Wealth Industry Group

18 Aug 11

A recent article in the Wall Street Journal discussed the new IRS’ Global High Wealth Industry Group. Over 1 year ago we warned readers of the new group when Commissioner Shulman announced its formation in an address to the American

FATCAts

14 Aug 11

If the US dollar is as close as we have come to a global currency — accepted everywhere from Fifth Avenue boutiques to Coca-Cola stands in Afghanistan — why are some American citizens finding it hard to put their money

New York State Bar Association Proposes OVDI Changes to IRS

12 Aug 11

Our office is a proud member of the New York State Bar Association (NYSBA) after reading their tax section’s detailed comments on the OVDI program. This is not an anti-tax group or self-interested association with radical comments on the OVDI

One Month Countdown: The Deadline is Nearing for U.S. Taxpayers with Undisclosed Accounts to Come Forward

01 Aug 11

The deadline to enter a complete submission into the 2011 Offshore Voluntary Disclosure Initiative (OVDI) is August 31, 2011, only one month remains and time is running out. The OVDI provides an opportunity for taxpayers with undisclosed offshore accounts to

New Online System for Filing Your Report of Foreign Bank and Financial Accounts (FBAR)

19 Jul 11

The Treasury Department’s Financial Crimes Enforcement Network (FinCEN) on Monday said it has developed an electronic filing system for Form TD F 90-22.1, Report of Foreign Bank and Financial Accounts (FBAR). The reports can now be filed via FinCEN’s BSA E-Filing

In Addition to HSBC, Credit Suisse Also Being Investigated for Offshore Activities

16 Jul 11

On July 14, 2011, Credit Suisse received a letter notifying it that it is a target of a Justice Department investigation. A target letter is significant. It likely means that a considerable level of investigation has already been done and further criminal investigation

“Willfulness” When Deciding Whether to Opt Out of 2011 OVDI

11 Jul 11

The IRS recently posted guidance in its OVDI FAQs (#51) whether taxpayers should opt out of the 2011 Voluntary Disclosure Initiative’s (the “OVDI”) civil penalty structure. Taxpayers who participate in the OVDI, but feel that their failure to file the FBAR

What HSBC India Accountholders Can Expect From the IRS

09 Jul 11

Our firm recently informally met with a US Department of Justice official (name withheld because official was not authorized to officially speak) in Washington DC regarding the pending summons served on HSBC India to reveal account information (including names, addresses,

Patel Law Offices Blog