Search Results for: willful
IRS Announces Major New changes to the Offshore Voluntary Disclosure Program
…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…
IRS Form 8938 and the Offshore Voluntary Disclosure Program (OVDP)
…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 IRS Form 8938 Statement of Foreign Financial Assets is causing significant confusion
…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…
The Tax Heat is On
…accommodate a broader group of US taxpayers. The OVDP remains the safest and most foolproof program, with amnesty even for willful acts. But for those with the right facts, the…
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….
Correcting Common FBAR Errors
…requires careful consideration. The IRS may impose penalties if it later determines that the FBAR error was willful or due to negligence. On the other hand, no penalties may be…
IRS Announces New Statistics Regarding Voluntary Disclosures
…tax and submit all required information returns, including FBARs (FinCEN Form 114) being due to non-willful conduct. Moreover, while returns submitted under the Streamlined Filing Compliance Procedures would not be…
Reasonable Cause Defense Denied: FBAR Penalties Assessed by Court
…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…
IRS announces an update to its Voluntary Disclosure Practice Preclearance Request and Application
…increasingly captivated the IRS’s attention in recent years. And all indicators point to further increasing IRS resources and attention devoted to monitoring this area. As such, willful taxpayers who still…
For Tax Professionals: A Guide to the IRS’s Voluntary Disclosure Practice
…have the resources to prosecute every willful evader, and the risks of prosecution, even in cases of willfulness, will vary depending on such factors as the scope and duration of…
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…
One Month Countdown: The Deadline is Nearing for U.S. Taxpayers with Undisclosed Accounts to Come Forward
…owing –but the obligation is that annual returns must be filed. The penalties for not filing returns can be harsh. For example, under the general rules, civil penalties for “willful”…
Comparison of Form 8938 and FBAR Requirements
…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…
Analysis: IRS New Disclosure Program
…most cases, the IRS will assert a willful FBAR penalty of 50 percent applied to the year with the highest aggregate balance of all unreported foreign financial accounts during the…
File a Protective Claim for Refund for Possible OVDP Opt Out Cases
…confused. This discussion attempts to clarify the measures associated with addressing and correcting these foreign tax reporting matters. Opting Out: If the client did not carry the indicia of willful…
Difference between Form 8938 and FBAR Requirements
…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…
Happy Birthday Streamlined Filing Compliance Procedure!
…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…
IRS Streamlined Filing Compliance Procedures Seminar
…The expanded streamlined procedures are intended for U.S. taxpayers whose failure to disclose their offshore assets are non-willful. The streamlined filing compliance procedures are available to taxpayers certifying that their…
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…
National Taxpayer Advocate calls IRS Penalties Draconian and Inefficient
…the burden to establish willfulness by clear and convincing evidence before asserting a civil willful Report of Foreign Bank and Financial Accounts (FBAR) penalty and that the government cannot meet…
Received a FATCA Letter from Your Foreign Bank?
…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…
FBAR compared to Form 8938: Differences, Which to File, When to File, etc.
…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…
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…
OVDI: Requesting issuance of a FBAR warning letter instead of penalties
…authority to assess FBAR civil penalties. There are civil penalties for negligence, pattern of negligence, non-willful, and willful violations. Whenever there is an FBAR violation, the examiner will either issue…
Full Analysis of Updated 2012 OVDP Program
…penalties, willful and nonwillful FBAR penalties, penalties for failure to file various information returns, civil fraud penalties, and even criminal penalties. However, outside the 2012 OVDP, the revenue agent has…
New offshore voluntary disclosure program (OVDP) changes expected to be favorable to taxpayers
…[the IRS is] considering whether voluntary programs have been too focused on those willfully evading their tax obligations and are not accommodating enough to others who do not necessarily need…
A Lesson to be Learned from US v. Schwarzbaum: Bring Back the Foreign Funds to Pay FBAR Penalties
…gifts were deposited into Swiss bank accounts which were controlled by Schwarzbaum. Thereafter, Schwarzbaum did not timely file his FBARs for said foreign accounts and a willful FBAR penalty case…
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…
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 Defend Against FBAR Penalties
…which warrants a referral to the IRS Criminal Investigation Division. Critical to any FBAR examination are issues surrounding willfulness, which directly impacts the imposition of penalties. To establish a willful…