Search Results for: non-willful
Another Swiss Bank Discloses Customer Names to the US
…held in the accounts from tax authorities, according to a non-prosecution agreement signed on Monday. As part of the deal, BSI agreed to cooperate in any related criminal or civil…
IRS Reduces Administrative Burden (for the first time) of Filing Some Forms 3520 and/or Forms 3520-A
A Revenue Procedure just released by the U.S. Internal Revenue Service (IRS) provides U.S. persons an exemption from the information reporting requirements for certain tax-favored foreign retirement and non-retirement savings…
New Jersey to repeal estate tax
…tax will be repealed altogether. For non-residents, the proposal eliminates a provision that imposed estate tax on the New Jersey property of non-resident decedents. But inheritance tax remains As well…
New Law’s Reporting Requirements Make It Very Likely That the IRS Will Now Know About Your Foreign Account
…account, and criminal prosecution for non-disclosure and non-reporting will likely follow. Successful criminal prosecution will result in a fine of 50% of the highest value of the account or entity,…
HSBC Expected to Disclose Account Holders Names
…non-resident Indian clients of HSBC have told IRS investigators that they were given the same assurance of being able to invest in HSBC accounts in India without paying US income…
IRS list of “dirty dozen” tax scams
…law or IRS guidance. Nontaxable Social Security Benefits with Exaggerated Withholding Credit The IRS has identified returns where taxpayers report nontaxable Social Security Benefits with excessive withholding. This tactic results…
What HSBC India Accountholders Can Expect From the IRS
…consultation regarding the voluntary disclosure program with a non-attorney (including the taxpayer’s accountant) is not a privileged communication. If the decision were made not to enter the OVDI, and the…
Pennsylvania’s 2010 Tax Amnesty Program
…not apply to any tax administered by another state or the federal government/Internal Revenue Service. Any delinquent taxes as of June 30, 2009, and any non-filed returns due as of…
American Citizens Abroad (ACA) writes letter to IRS Commissioner regarding unfair offshore asset treatment
…her Report to Congress issued December 31st, 2011. Tax Analysts, a non-profit publisher of tax information, has reported that “IRS Commissioner Douglas Shulman has no plans to respond in writing…
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…
IRS announces an update to its Voluntary Disclosure Practice Preclearance Request and Application
…away from paper filing and include an expanded section on reporting virtual currency. These revisions to the Voluntary Disclosure form allow for the disclosure of a wider range of noncompliance,…
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…
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…
How to Avoid Jail and Clean Up Tax Problems
…(c) non-compliance narrative. The narrative must include a thorough discussion of all Title 26 and Title 31 willful failures to report income, pay tax, and submit all required information and…
Another Taxpayer Found Guilty of Failure to File FBARs and Report Foreign Income
…statement on a tax return can be a felony as is the willful failure to file an FBAR form. Mukhi is lucky that he wasn’t also charged with tax evasion…
New Comments on the IRS Voluntary Disclosure Program
…all tax due in respect of those assets, but certify that the failure did not result from willful conduct, with a streamlined procedure for filing amended or delinquent returns, and…
BE-10 Report: A New Overlooked International Reporting Form
…Willful failure to file can result in a penalty of no more than $10,000 and up to one year in prison for an individual filer, or both. Below are answers…
Tax Relief for Strategic Investments
…“Qualified investment” means the non-refundable transfer of cash to a New Jersey emerging technology business by a taxpayer that is not a related person (80% or more direct or indirect…
New FATCA / CRS reporting penalties in India
The new 2023 Tax Budget in India has many new proposals. However, the most important proposal for investors, especially non-resident Indians, is a new penalty for providing inaccurate information for…
Buy-Sell Agreements
…the owner of a small business can involve complex tax and non-tax issues when developing a buy-sell agreement among shareholders. From the standpoint of the corporation and the remaining shareholders,…
New Report: Delinquent Taxpayers Could be Identified at US Border Crossings
…that the IRS does not have reliable statistics on the rate of noncompliance of taxpayers with their U.S. tax obligations. In addition, there is no process to measure the value…
Most Swiss banks participating in the US Department of Justice (DOJ) amnesty program seek extension to disclose
…obtained from banks to identify, audit, and prosecute noncompliant individuals. If the IRS identifies you noncompliance through the amnesty program you face near certain IRS scrutiny, significant liabilities, severe and…
IRS Releases New IRS Form W8-BEN: U.S. persons beware of completing such form at the request of a third party
…is living outside the U.S. in a country which has a U.S. income tax treaty with the U.S. Form W-8 is generally filled out by foreign non-US entities or persons…
US passport and green-card has lost its glamour
…taxation to that person, you look at the tie-breaker rules to exclude income in the non-resident country. This opportunity is different than the normal foreign tax credit calculations (which presumes…
What FATCA Means to You and Your Investments
…phone numbers, customers with regular payments made to US payees, etc. Under FATCA, financial institutions, including banks, deposit taking non-banking finance companies, mutual funds, private equity funds, custodians and life…
Protective Filing of Information Returns
…assets and transactions. Many taxpayers (including non-U.S. persons who might not otherwise consider themselves U.S. taxpayers) should resolve any reasonable doubt they might have in favor of filing. Information Return…
IRS Announces Increased 2023 Gift Tax Annual Exclusion, Gift, and Estate Tax Exemptions
…on a non-taxable basis, and a married couple with four (4) children may give each child a total of $34,000 in 2023 on a non-taxable basis. In addition, the combined…
What Client Tax Advisors Should Do About the New Corporate Transparency Act
…must comply with the CTA by January 1st, 2024, by filing BOI reports with FinCEN. Failure to comply can incur significant penalties, including: Financial penalties: $500 per day of non-compliance, up to…
Beware: IRS Reminds Taxpayers of FBAR Deadline
…IRS has been targeting FBAR compliance over the last several years and has prosecuted numerous non-compliant taxpayers. FBAR filings have risen dramatically in recent years as the Foreign Account Tax…
Estate Planning for Families with Special Needs Children
…public benefits. In most families, it is best to consider selecting an independent, non-family member to serve as your Special Needs Trustee. The range of options includes: a parent, sibling…