Search Results for: willful
An Ill-advised IRS Streamlined Filing Compliance Procedure Filing
…very ill-advised. The IRS’ SFCP is for taxpayers who non-willfully failed to disclose foreign assets. Under the SFCP, non-willful conduct is specifically defined as “conduct that is due to negligence,…
The New IRS Voluntary Disclosure Practice: Not a Good Deal for Noncompliant Taxpayers
…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…
New Streamlined Domestic Offshore Procedures (SDOP) is a Game Changer
…5472, 8938, 926, and 8621) with respect to the foreign financial asset, and (4) such failures resulted from non-willful conduct. Non-willful conduct is conduct that is due to negligence, inadvertence,…
Streamlined Filing Compliance Procedure’s New Revisions to Streamlined Domestic Offshore Procedures (SDOP)
…SFCP is for taxpayers who non-willfully failed to disclose foreign assets. Under the SFCP, non-willful conduct is specifically defined as “conduct that is due to negligence, inadvertence, or mistake or…
New Warnings in the IRS’ Streamlined Filing Compliance Procedures
…income, pay all tax, and submit all required information returns, including FBARs, was due to non-willful conduct. I understand that non-willful conduct is conduct that is due to negligence, inadvertence,…
US Supreme Court to Rule on FBAR Penalties Case
…on how the non-willful penalty applies, increasing Bittner’s penalties to $2.72 million from $50,000. Before the Fifth Circuit’s ruling, the non-willful penalty issue had proved to be an exception to…
IRS FBAR Penalties Are Now Unmitigated
…smaller accounts, provided the violations were non-willful. The new IRS guidance states it “should no longer be considered in calculating penalties for non-willful violations.” In most cases now, the penalties…
The Risks of “Opting Out” of OVDI
…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…
Details of the Streamlined Domestic Offshore Procedures
…modified the non-willfulness certification form that individual taxpayers must submit to enroll in the streamlined filing compliance procedures (SFCP). Specifically, SFCP is for taxpayers who non-willfully failed to disclose foreign…
New FinCEN Form 114 (FBAR) Filing Rules Announced
…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…
New Post-OVDP IRS Voluntary Disclosure Procedures Announced
…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…
New Webinar: Resolving International Tax Compliance Disputes: FBAR Controversy, Penalties, Appeals, Form 3520/3520-A, Form 5471
…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…
Major changes to IRS offshore voluntary compliance programs
…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…
IRS Updated Voluntary Disclosure Practice is a Game-Changer
…accuracy-related penalty. The FBAR penalty has also been changed under the new procedures whereby the IRS will assert willful FBAR penalties. In most cases a penalty for a willful FBAR…
Happy Birthday Streamlined Filing Compliance Procedure
…years. The IRS introduced SFCP in June 2014 for taxpayers who non-willfully failed to disclose foreign assets. Under the SFCP, non-willful conduct is specifically defined as “conduct that is due…
Penalty relief for International Information Forms 5471, 5472, and 8865
…file is due to reasonable cause and not willful neglect, the period of limitation on assessment is extended only for the item or items related to the failure. Penalty relief Where…
Streamlined Procedures for U.S. Taxpayers Residing In the United States
…required to certify that the failure to report all income, pay all tax and submit all required information returns, including FBARs, was due to non-willful conduct. If the IRS has…
New Court Case Limits the Reasonable cause exception to FBAR penalties
…in the U.S. Court of Federal Claims suggests that CPA advice may not be enough to stop the IRS from assessing FBAR penalties for non-willful reporting violations. Background: Who Must…
All the Many FBAR Late Filing Procedures
…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…
IRS announces new Streamlined Filing Compliance Procedures
…grounds for non-willfulness. Do not disclose too much and beware of badges (evidence) of willfulness, blind willfulness, concealment, etc. For more information see IRS IRM 4.26.16.4.5. Taxpayers in either…
IRS Reminds U.S. citizens and dual citizens about U.S. filing requirements
…and does not impose a tax, although failure to file it can incur penalties. Non-willful failure to file may be penalized by up to $10,000 per violation, unless the failure…
New IRS IRM with Updated Streamlined Filing Compliance procedures
…nonresidents, penalties may be excused entirely. However, to take advantage of these new procedures, individuals must demonstrate to the satisfaction of the IRS that their conduct was not “willful.” At…
Numerous Criminal Prosecutions of Taxpayers with Unreported Offshore Accounts
…one count of willful failure to file an FBAR under 31 U.S.C. §§ 5314 and 5322. Abrahamsen admitted that he willfully failed to file a foreign bank account report and…
Method to Cure Delinquent or Incomplete Foreign Information Returns Without Penalties
…general, the civil penalty for each non-willful failure to report a foreign financial account on Form TD F 90-22.1, Report of Foreign Bank and Financial Accounts, (the “FBAR”) can range…
Delinquent or unfiled IRS Form 5471
…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…
Significant FBAR Penalties Upheld by Court
…maximum penalty for willful non-filing of an FBAR and must pay $700,000 for her ‘reckless disregard’ of her duty. The court opinion makes the FBAR willful penalty a strict liability…
Consequences of Filing False Streamlined Filings
…penalty. However, to be eligible for the SDOP program, the Taxpayer in failing to report foreign financial accounts must have been due to non-willful conduct. It is illegal for a…
Internal Revenue Service again issues annual reminder to US persons to report foreign accounts and foreign income
…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…
Unfiled FBAR Penalties Survive Death
…determined that the FBAR civil nonwillful penalty was remedial, which survives death and becomes an estate liability. Many cases in the past have held that the FBAR willful penalty, which…
New Leak of Offshore Accountholders Highlights the Need to Clean Up
…the OVDP, and the newer streamlined procedures. The OVDP remains the safest and most foolproof program, with amnesty even for willful acts. But for those with the right facts, the…