Another foreign bank customer found guilty of foreign income under-reporting and FBAR violations.

- By : P. Patel

…his foreign income and one count of failing to file a Report of Foreign Bank and Financial Accounts (FBAR). It appears that he was not convicted for most of the…

FBAR statute of limitations court case ruling

- By : P. Patel

…Bank Account Reporting, or FBAR forms from 2006 through 2008. The court held that the Internal Revenue Service could not go back beyond the general three-year limitations period. FBAR requirements…

Comparison of Form 8938 and FBAR Requirements

- By : P. Patel

…each form for which they meet the relevant reporting threshold.   Form 8938, Statement of Specified Foreign Financial Assets FinCEN Form 114, Report of Foreign Bank and Financial Accounts (FBAR)…

Form 8938, FATCA, FBAR and penalties for all (including bankers)

- By : P. Patel

…assets. FATCA created Form 8938, an additional foreign account reporting requirement over and above the Report of Foreign Bank and Financial Accounts (FBAR) or Form TD F 90-22.1 that needs…

FBAR Deadline is June 28, 2013

- By : P. Patel

the postmark to establish timely filing. Significant penalties apply to taxpayers who fail to timely fail their FBAR. This will be the last year individuals may file paper FBARs. Beginning…

Taxpayers Advised to Use Caution: Confirmed FBAR Information Request Scam

- By : P. Patel

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,…

Another Taxpayer Found Guilty of Failure to File FBARs and Report Foreign Income

- By : P. Patel

…is more than $10,000, they are required to file a Report of Foreign Bank and Financial Accounts, Form TD F90-22.1 (FBAR). According to the indictment, Mukhi failed to disclose the…

IRS Issues Reminders for FBARs and other International Requirements

- By : P. Patel

…Accounts (FBAR) is now the same as for a federal income tax return. This means that the 2016 FBAR, Form 114, must be filed electronically with the Financial Crimes Enforcement…

IRS posts its “wins” involving offshore accounts

- By : P. Patel

…failing to file a Report of Foreign Bank and Financial Accounts (FBAR) form and failing to disclose his UBS bank account. Oct. 3, 2014 — Howard Bloomberg pleaded guilty to…

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

- By : P. Patel

…Bank Account Report (FBAR) with FinCEN or a Form 8938 filed with a tax return. Like the 2014 OVDP asset-based   penalty, this 5% penalty must be paid with the…

Permanent annual automatic extensions granted for FBARs to October 15

- By : P. Patel

The Treasury Department’s Financial Crimes Enforcement Network (FinCEN) announced last week that, to implement the new due date for FinCEN Form 114, Report of Foreign Bank and Financial Accounts (FBAR),…

Financial Crimes Enforcement Network (FINCEN) Issue Final Rules

- By : P. Patel

…a period of five years. The FBAR has become a difficult and comprehensive reporting requirement for individuals with foreign accounts. The penalties for failuer to file an FBAR are extrememly…

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

- By : P. Patel

…5472, 8938, 926, and 8621), (2) for each of the most recent 6 years for which the FBAR due date has passed (the “covered FBAR period”), file any delinquent FBARs…

Numerous Criminal Prosecutions of Taxpayers with Unreported Offshore Accounts

- By : P. Patel

FBAR penalty of $20.8 million, an amount equal to 50% of the highest value of his UBS accounts for the years in which he failed to file FBAR’s. Robbins also…

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

- By : P. Patel

…all required information returns; for each of the most recent six years for which the FBAR due date has passed (the “covered FBAR period”), file any delinquent FBARs; pay a…

The Risks of “Opting Out” of OVDI

- By : P. Patel

FBAR be brought as a civil case in the United States District Court, rather than under the assessment provision of the Code. The IRS in its FBAR Frequently Ask Questions…

IRS Reminds (again) Taxpayers to Report Foreign Income and Assets

- By : P. Patel

…(FinCEN) Form 114 (“FBAR.”) Remember there are also other obligations on tax forms to disclose foreign holdings. A few important things to consider when filing and FBAR: a) All FBAR

Method to Cure Delinquent or Incomplete Foreign Information Returns Without Penalties

- By : P. Patel

…for failure to file the FBAR, when the taxpayer has properly reported—and paid tax on—all taxable income, but only recently learned that it was subject to the FBAR reporting requirement….

More Tax Complexity: New Form 8938

- By : P. Patel

…of limitation rules apply. Form 8938 is separate from the FBAR form and its requirements. The FBAR (90-22.1) is filed with the US treasury while Form 8938 is filed with…

Explore the OVDI opt-out option: Argue for Penalty Mitigation

- By : P. Patel

…of the voluntary disclosure initiative and allow us to demonstrate the absence of willfulness and avoid the normal FBAR penalty regime. We have been aggressively pursuing OVDI opt-outs for some…

Full Analysis of Updated 2012 OVDP Program

- By : P. Patel

…use the voluntary disclosure process. Rather, they should file the delinquent FBAR reports according to the FBAR instructions (send to Department of Treasury, Post Office Box 32621, Detroit, MI 48232-0621)…

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

- By : P. Patel

…have only recently learned about their obligation to file U.S. income tax returns or FBARs, the IRS said in the fact sheet. Generally, FBAR must be filed by U.S. persons…

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

- By : P. Patel

…procedures. For each of the most recent 6 years for which the FBAR due date has passed, file delinquent FBARs according to the FBAR instructions and include a statement explaining…

The “Quiet” or “Silent” Disclosure

- By : P. Patel

…original filed return). The filing of a delinquent FBAR also has heighted audit risk (probably significantly greater than a timely filed FBAR). Also there are other factors. For no FBAR

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

- By : P. Patel

…114 (Reports of Foreign Bank and Financial Accounts) (“FBARs”). We are mindful that the burden estimates for the collection of information often do not reflect the actual burden imposed, but…

Internal Revenue Service again issues annual reminder to US persons to report foreign accounts and foreign income

- By : P. Patel

…as the “FBAR.” The FBAR is same as the Financial Crimes Enforcement Network Form 114. The law requires U.S. citizens, business entities and permanent residents to submit Form 114 each…

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

- By : P. Patel

…IRS; If FBAR penalties have been previously assessed against the taxpayer or if the taxpayer has previously received an FBAR warning letter; If the taxpayer has a financial interest or…

Opting Out of the OVDI Program: Argue for No Penalty and a Warning Letter

- By : P. Patel

…results for some of our clients. Under IRM 4.26.16.4 (FBAR Penalties) (07-01-2008) whenever there is an FBAR violation, the examiner will either issue the FBAR warning letter, Letter 3800, or…

Beware of U.S. tax consequences to a foreign trust with a U.S. beneficiary

- By : P. Patel

…and an interest charge. Report of Foreign Bank and Financial Accounts (“FBAR”) Filings: FBAR filings on Form TD-F 90-22.1 are generally required to be made by U.S. persons who have…

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

- By : P. Patel

…the Taxpayer was a grantor of, or transferor to a foreign trust (which requires filing Form 3520).   A willful failure to file a FBAR can lead to a felony…

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