New Post-OVDP IRS Voluntary Disclosure Procedures Announced

- By : Parag Patel

…determine tax liabilities and penalties. The IRS will continue to use IRM 9.5.11.9 (no audit, no investigation, no illegal activity, etc.) to determine taxpayer eligibility for “preclearance”. After “preclearance”, taxpayers…

HSBC Customer Avoids Jail in Tax Evasion Case

- By : Parag Patel

…including increased criminal prosecutions and civil audit examinations. We have been advising our clients to expect the unexpected (and the worst) in their tax treatment and disclosure of offshore assets….

Delinquent FinCen Form 114 (FBAR) Filings

- By : admin

…filings have caused confusion over the various IRS programs in place for individuals who need to become compliant with FBARs. Due to the risk of audit and high penalties, we…

New Form 3520 Penalties

- By : Parag Patel

…unreported foreign accounts and income. Similarly, this would allow delinquent taxpayers who are not under audit to come into compliance without penalties or to have Taxpayers be able to engage…

New IRS Subpoenae and IRS Data Mining Expected

- By : Parag Patel

…the US tax laws, including increased criminal prosecutions and civil audit examinations. We have been advising our clients to expect the unexpected (and the worst) in their tax treatment and…

Sales Tax for Home Improvements

- By : Parag Patel

…and keep all documentation related to tax exemptions. Contractors must have proper documentation in the event of a New Jersey sales tax audit. Contractors receive an ST-5 certificate if they…

Passive Foreign Investment Company Tax & Mark-to-Market (MTM) election

- By : Parag Patel

…year open for review or audit forever until the report is filed. Form 8621 is very complex and not included in most tax software programs. The IRS also does not…

Opting Out of the Offshore Voluntary Compliance Initiative Programs

- By : Parag Patel

…for a potential audit and imposition of appropriate penalties. The 2012 OVDP program continues the procedures announced in 2011 regarding decisions to “opt out” of the voluntary disclosure penalty structure….

New IRS Voluntary Disclosure in 7 Steps

- By : Parag Patel

…accordance with standard examination procedures, i.e., normal audit rules apply. Assuming taxpayer cooperation, the voluntary disclosure will be finally resolved by a closing agreement with full payment of all taxes,…

New Report: Delinquent Taxpayers Could be Identified at US Border Crossings

- By : Parag Patel

…now that the Swiss bank non-prosecution program participation deadline of September 15, 2014 has passed. U.S. taxpayers who have been placed on the “recalcitrant” list should expect tax audit letters…

ERC Disallowance Letters 105C Sent to Taxpayers

- By : Parag Patel

…105C aims to help ineligible taxpayers avoid audits, repayment, penalties, and interest, protect taxpayers by preventing an incorrect refund from going to an ERC promoter, and save IRS resources by…

Top myths of US tax compliance for Foreign Accountholders

- By : Parag Patel

…the IRS to audit income and assets that could otherwise remain hidden offshore. FATCA accomplishes this objective by compelling the aid of “withholding agents,” defined under FATCA as any U.S….

Difference between Form 8938 and FBAR Requirements

- By : Parag Patel

…enforcement of the US tax laws, including increased criminal prosecutions and civil audit examinations. We have been advising our clients to expect the unexpected (and the worst) in their tax…

Foreign bank account reports (FBARs) and the 2011 Offshore Voluntary Disclosure Initiative (2011 OVDI)

- By : Parag Patel

…be cautious about relying on this “safe harbor” rule. If the taxpayer files the returns outside the 2011 OVDI, and, on a later audit, the IRS were to discover an…

Is the IRS Finally Receiving Increased Funding?

- By : Parag Patel

…Act would spend nearly $80 billion on the IRS and would give the IRS authority to hire 87,000 additional IRS agents to ramp up audits on small businesses and taxpayers….

How to Avoid Employee Retention Credit (ERC) Scams

- By : Parag Patel

…supply of critical goods or materials that caused the inability of the employer to operate. Issues Raised on IRS Audit The IRS will be aggressively auditing ERC refund claims. Employers…

Tax Strategies to Explore Now

- By : Parag Patel

…guide a client through the process and build up a defense to a possible state income tax audit. In summary, there is no time like the present to utilize these…

IRS Official Announces New Focus on Offshore Assets in Indian Banks

- By : Parag Patel

…aggressive enforcement of the US tax laws, including increased criminal prosecutions and civil audit examinations. We have been advising our clients to expect the unexpected (and the worst) in their…

New Jersey Division of Taxation Now Issuing Letter Rulings

- By : Parag Patel

…that the Division may contact for questions regarding the request or for redaction confirmation •Disclose any ongoing New Jersey tax matter, such as audit, refund or appeal with the Division’s…

Delinquent or unfiled IRS Form 5471

- By : Parag Patel

…to the risk of audit and high penalties, we strongly recommend that individuals considering becoming Form 5471 complaint and contact our law office prior to curing the noncompliance. What you…

Argue for No Penalty and a Warning Letter for FBAR Violations

- By : Parag Patel

…criminal prosecutions and civil audit examinations. We have been advising our clients to expect the unexpected (and the worst) in their tax treatment and disclosure of offshore assets. Patel Law…

IRS Uses New Funding to Target US Persons with Malta Accounts

- By : Parag Patel

…We have heard rumors that dozens of new IRS personnel are currently being trained to examine (i.e., investigate or audit) US persons with Malta accounts. US persons with Malta accounts…

New York State Bar Association Proposes OVDI Changes to IRS

- By : Parag Patel

…to opt out of the programs and undergo an audit. We agree that, given the large number of voluntary disclosures, this is an appropriate way to evaluate the culpability of…

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

- By : Parag Patel

…CID is not interested in pursuing a criminal investigation, the matter will be referred to IRS Exam for a civil audit. On the other hand, a “noisy disclosure” involves contacting…

What if You Missed the OVDI Deadline?

- By : Parag Patel

…and interest determined to be due. A voluntary disclosure is generally considered to be “timely” if it is made before the government has initiated an investigation or audit of the…

IRS Announces new OVDP Declines-Withdrawals Campaign

- By : Parag Patel

…those taxpayers who could not enter the program, because they are under civil audit, criminal investigation, or the IRS is otherwise aware of the account(s) at issue in the disclosure,…

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

- By : Parag Patel

…and civil audit examinations. We have been advising our clients to expect the unexpected (and the worst) in their tax treatment and disclosure of offshore assets. Patel Law Offices is…

U.S. Tax Court: What to Expect

- By : Parag Patel

Reasons to Take Your Matter Before the United States Tax Court: You’ve recently undergone an audit or examination. You have taken the proper administrative steps to argue your case but…

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

- By : Parag Patel

…information return penalties or FBAR penalties. Even if returns properly filed under these procedures are subsequently selected for audit, no such penalties will be imposed unless the examination results in…

Eleven foreign financial institutions to share their US customer account information

- By : Parag Patel

…accounts has increased manifold with far reaching bank investigations. The consequences for failure to comply with the proper disclosure and filing requirements may lead to audits, severe financial penalties, and…