Search Results for: non-willful
New IRS guidance Announced for IRS Streamlined Offshore Procedures.
…programs require U.S. taxpayers to certify that their prior non-compliant conduct was non-willful. The IRS earlier this month announced new guidance under the Streamlined programs. The new guidance announces three…
How to Avoid Criminal Prosecution Through Voluntary Disclosure
…knowingly or willfully were non-compliant and thus not able to certify to being non-willful and qualify for any other filing procedures. Taxpayers who participate in this practice do so to…
What is the U.S. tax on Inheritances from a Non-U.S. Person to U.S. Person?
…inheritance (whether received from a U.S. or non-U.S. person). However, there are IRS informational reporting requirements when receiving a gift or inheritance from a non-U.S. person (non-resident alien and/or non-U.S….
Estate Planning for Non-US citizens
Estate Planning for Non-US citizens By Parag Patel Esq. Non-US citizens (greencard holders or H-1 visaholders) are severely discriminated against by US estate tax laws. Since estate taxes are based…
Caution: Increased FBAR Enforcement
…The willful FBAR penalty requires that the failure to report be willful. In the FBAR civil penalty context, the Courts have held willfulness is (i) specific knowing failure to file or…
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…
Unfiled FBAR Penalties Survive Death
…in numerous foreign bank accounts that had an aggregate balance of more than $10,000. The Government asserted that the failures to file were non-willful, but assessed FBAR Penalties of $740,848…
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…
IRS Announces New Statistics Regarding Voluntary Disclosures
…June 2014. The streamlined filing compliance procedures, which is for non-willful taxpayers, require a 5% penalty for resident taxpayers and a 0% penalty for nonresident taxpayers. This IRS statistic is…
ABA Conference with Government Officials
…in streamlined suggests that the program is working and that most practitioners are appropriately channeling the small non-willful clients. Statistics were announced that show 18,000 streamlined submissions in the last…
Delinquent FinCen Form 114 (FBAR) Filings
…in order to provide a meaningful way for non-willful taxpayers to remedy past non-compliance with respect to non-U.S. bank accounts and income associated with those accounts. Read this article. Warning…
Article Discusses Termination of Offshore Voluntary Disclosure Program (OVDP) and the Streamlined Filing Compliance Procedures (SFCP)
…requirements. Non-willful US taxpayers who enter SDOP must only pay a five percent penalty of undisclosed foreign assets during the disclosure period (three years), and US taxpayers who enter SFOP…
Abatement of the NJ Amnesty Non-Participation Penalty is Still Possible for Some Taxpayers
…Praxair, however, the Tax Court concluded that the non-participation penalty was inappropriate. Under the statute (N.J.S.A. 54:53-17b and -18b) the non-participation penalty applies only to “tax liabilities eligible to be…
Federal District Court Holds that FBAR Penalties in Excess of $100,000 is Unlawful
…penalties. The IRS assessed penalties for willful failure to timely file FBARs from 2007 to 2010. The individual had four separate FBAR violations in 2007, and the associated penalties totaled…
Implications of United States v. Horowitz: Reckless = Willful?
…failure to file FBARs in 2007 and 2008 was reckless and therefore willful and they would have to pay penalties accordingly. The court in determining willfulness looked to the Supreme…
Willful FBAR Penalties
…return. Taxpayers who willfully file an FBAR late or not at all will be subject to high penalties for willful FBAR violations. A taxpayer will be considered willful if there…
New IRS Guidelines for Willful FBAR violations
…a FBAR violation occurred and, for willful violations, that the violation was in fact willful. Because the FBAR penalty provision only provides maximum penalty amounts, the IRS is tasked with…
New EZPASS OVDP Without Any Penalties for Non-Resident U.S. Taxpayers
Yesterday, as expected, the IRS announced its new New Filing Compliance Procedures for Non-Resident U.S. Taxpayers that taxpayers presenting “low compliance risk” should file delinquent tax returns, including delinquent information…
Pre-immigration estate planning
…indefinitely or permanently. If the foreign national will become a US income tax resident for only a few years (for example, a work assignment under a non-immigrant visa category),…
Educational Panel Discussion: The U.S. Government’s Global Crackdown on Tax Evasion: Where It Has Been and Where It Is Going
…prosecutions. Davis said that the government is comparing records from the Swiss bank program with OVDP filings and streamlined program certifications of non-willfulness and will likely prosecute some willful taxpayers….
New IRS IRM with Updated Streamlined Filing Compliance procedures
…including FBARs, resulted from non-willful conduct o The miscellaneous offshore penalty amount is accurate. 3. LB&I will review the submissions for statute considerations. LB&I will complete the “AM Streamline Coversheet”…
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…
Opting-out of the Offshore Voluntary Disclosure Initiative: FBAR Penalty Mitigation Guidelines
…more than $250,000, Level III-NW applies to that account. Level III-NW is $10,000 for each Level III-NW account violation, the statutory maximum for non-willful violations. Willfulness Penalties To Qualify for…
How to Defend Against FBAR Penalties
…of conduct. Willfulness is difficult to prove and our law firm has aggressively defended numerous FBAR cases resulting in a non-willfulness finding. A skilled tax attorney should carefully monitor an…
Pandora’s Box Has Opened: Pandora Papers
…for non-compliance. The penalties for FBAR noncompliance are higher than the tax penalties ordinarily imposed for delinquent taxes. For non-willful violations it is $10,000 per account per year going back…
New offshore voluntary disclosure program (OVDP) changes expected to be favorable to taxpayers
…protection from criminal prosecution because their compliance failures have been of the non-willful variety.” “For example, we are well aware that there are many US citizens who have resided abroad…
Full Analysis of Updated 2012 OVDP Program
…rules could result in a non-willful penalty of up to $10,000 per account per calendar year under 31 U.S.C. Section 5321(a)(5), for failure to file Form TD F 90-22.1 or…
Vatican Signs FATCA Agreement
…under the umbrella of the Offshore Voluntary Disclosure Program (OVDP). Last year, the IRS announced its new streamline program for non-willful taxpayers with lower penalties to make it more appealing…
FATCAts
…some American citizens finding it hard to put their money where they would like? According to several reports, and anecdotal evidence, some non-US retail and private banks are considering refusing…
The IRS publishes new proposed regulations for tax on transfers from covered expatriates
…or bequest from a covered expatriate to a US person, including a citizen or resident individual, US domestic trust or non-US trust that has elected to be treated as a…