Swiss Government and US Government Announce New Program for Cooperation and Disclosure by Swiss Banks

- By : Parag Patel

…31, 2014, or the effective date of an FFI Agreement under the Swiss IGA, or the date of the Non-Prosecution Agreement or Non-Target Letter if that date is earlier than…

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

- By : Parag Patel

…a complaint seeking a judgment for the penalties assessed against Ashish Patel for his non-willful failure to file FBARs in 2007-2011 reporting his interest in foreign bank accounts held at…

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

- By : Parag Patel

…untruthful) Form 8938 at this point is likely to turn previous non-willful non-compliance into a willful one. For example, Question 3a of Form 8938 indirectly asks a problematic question: the…

New Webinar: Resolving International Tax Compliance Disputes: FBAR Controversy, Penalties, Appeals, Form 3520/3520-A, Form 5471

- By : Parag Patel

…stemming from Forms 3520/3520-A and 5471, navigating FBAR assessments and litigation, the evolution of the “non-willful” standard, and managing administrative appeals, federal district court, and U.S. Court of Federal Claims…

All the Many FBAR Late Filing Procedures

- By : Parag Patel

…Taxpayer can qualify for the DFSP when they correctly reported any income on their tax return but non-willfully failed to report an FBAR or non-willfully failed to include an account…

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

- By : Parag Patel

…the foreign financial asset; and such failures resulted from non-willful conduct. Comment: It appears that the Domestic Streamlined Program is not available to non-filers. Scope and Effect of Domestic Streamlined…

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…

New Comments of the IRS’ New Streamlined Filing Compliance Procedures for Non-Resident Non-Filer U.S. Taxpayers

- By : Parag Patel

…Streamlined Filing Compliance Procedures for Non-Resident, Non-Filer U.S. Taxpayers (see IRS Instructions here). David Horton, a senior official from the IRS, made some interesting statements about Non-Low Risk Account Holders…

New Court Case Limits the Reasonable cause exception to FBAR penalties

- By : Parag Patel

…taxpayer fails to file FBARs on time, he or she may be exposed to penalties. Assuming that non-disclosure was accidental or otherwise non-willful, the penalty is capped at $10,000 per…

Reasonable Cause Defense Denied: FBAR Penalties Assessed by Court

- By : Parag Patel

…favor of the government to collect FBAR penalties for the non-willful failure to file FBARs to timely report foreign bank accounts. Agrawal represented himself, without legal counsel in court, which…

New IRS Form 8938 Statement of Foreign Financial Assets is causing significant confusion

- By : Parag Patel

…the failure to file (or being untruthful) Form 8938 at this point is likely to turn previous non-willful non-compliance into a willful one. For example, Question 3a of Form 8938…

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

- By : Parag Patel

…failure, and if the taxpayer relied on a professional advisor, the nature of the advisor’s engagement and responsibilities. This program has been established for non-resident non-filers. Generally amended returns will…

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…

IRS Announces Major New changes to the Offshore Voluntary Disclosure Program

- By : Parag Patel

…OVDP. The expanded streamlined procedures are intended for U.S. taxpayers whose failure to disclose their offshore assets was non-willful. More than 45,000 taxpayers have participated in the IRS programs so…

Difference between Form 8938 and FBAR Requirements

- By : Parag Patel

…apply If non-willful, up to $10,000; if willful, up to the greater of $100,000 or 50 percent of account balances; criminal penalties may also apply Types of Foreign Assets and…

FBAR compared to Form 8938: Differences, Which to File, When to File, etc.

- By : Parag Patel

…assessment prior to Aug 1, 2016, if non-willful, up to $10,000; if willful, up to the greater of $100,000 or 50 percent of account balances; criminal penalties may also apply…

Comparison of Form 8938 and FBAR Requirements

- By : Parag Patel

…potential maximum penalty of $60,000; criminal penalties may also apply If non-willful, up to $10,000; if willful, up to the greater of $100,000 or 50 percent of account balances; criminal…

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…

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…

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 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…

Major changes to IRS offshore voluntary compliance programs

- By : Parag Patel

…obligations: The Offshore Voluntary Disclosure Program (OVDP); Taxpayers whose conduct was likely willful are directed to the OVDP—where they pay a much higher 27.5% miscellaneous offshore penalty; A new non-willful

New Leak of Offshore Accountholders Highlights the Need to Clean Up

- By : Parag Patel

…IRS Streamlined program for non-willful violations is far simpler and much less costly. The Streamlined programs came with the 2014 improvements to the OVDP, which sparked and renewed interest in…

Delinquent or unfiled IRS Form 5471

- By : Parag Patel

…or 5% penalty. The streamlined program was significantly expanded by the IRS in June 2014 in order to provide a meaningful way for non-willful taxpayers to remedy past non-compliance with…

Received a FATCA Letter from Your Foreign Bank?

- By : Parag Patel

…qualify for criminal amnesty or reduced civil fines. Non-compliance with tax obligations can also lead to a civil tax action or criminal tax charges. A non-willful violation of FBAR obligations…

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…

IRS Updated Voluntary Disclosure Practice is a Game-Changer

- By : Parag Patel

…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…

The Tax Heat is On

- By : Parag Patel

…IRS Streamlined program for non-willful violations is far simpler and much less costly. The Streamlined programs came with the 2014 improvements to the OVDP, which sparked and renewed interest in…

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

- By : Parag Patel

…the income in your tax return and was the failure to file “willful.” The civil penalties range from the civil, non-willful penalty of $10,000 to as much as the civil…

Happy Birthday Streamlined Filing Compliance Procedure!

- By : Parag Patel

…Each program has its own set of specific procedures and eligibility requirements. The SFCP was designed for taxpayers whose failure to disclose their offshore accounts was “non-willful,” due to a…