Search Results for: penalties
Comparison of Form 8938 and FBAR Requirements
…tax return. Penalties Up to $10,000 for failure to disclose and an additional $10,000 for each 30 days of non-filing after IRS notice of a failure to disclose, for a…
Silent Disclosure: The Qualified Amended Return (QAR)
…cannot sleep because the stance they took on their tax return was too aggressive). Filing a QAR in these situations may allow a taxpayer to avoid penalties stemming from the…
Protective Filing of Information Returns
…a protective filing should be considered to get the statute of limitations running. Avoid Failure to File Penalties Another advantage of making a protective filing is to avoid failure to…
Implications of United States v. Horowitz: Reckless = Willful?
In a recent court case, a court found that “willfulness” in the context of civil FBAR penalties is satisfied by recklessness and does not require disregard of a known…
Most Swiss banks participating in the US Department of Justice (DOJ) amnesty program seek extension to disclose
…paying taxes due plus interest. Applying to the OVDP involves submitting eight amended tax returns with taxes, penalties and interest, eight FBARs, and a 27.5% miscellaneous offshore penalty. Once Swiss…
Opting Out of the OVDI Program: Argue for No Penalty and a Warning Letter
…results for some of our clients. Under IRM 4.26.16.4 (FBAR Penalties) (07-01-2008) whenever there is an FBAR violation, the examiner will either issue the FBAR warning letter, Letter 3800, or…
IRS Announces Major New changes to the Offshore Voluntary Disclosure Program
…far, paying about $6.5 billion in taxes, interest and penalties. As FATCA and more global bank transparency kicks in July 1, 2014, the IRS can expect even more. The changes…
New IRS FBAR Practice Unit
…Unlike other federal income tax penalties, the IRS is limited to making an assessment of FBAR penalties up to six (6) years from the date of the FBAR reporting deadline….
Beware IRS Letter 6291
…structures, accounts, or assets. However, taxpayers must comply with income tax and information reporting requirements associated with these foreign activities, otherwise, they are subject to penalties and possible criminal prosecution….
The Dreaded IRS Letter 6185: “We received information that you have a foreign account”
…income tax and information reporting requirements associated with these foreign activities, otherwise, they are subject to penalties and possible criminal prosecution. Via FATCA and subpoenaed bank records, the IRS is…
Offshore Compliance Programs Generate $8 Billion; IRS Urges People to Take Advantage of Voluntary Disclosure Programs
…obligations. Both the Offshore Voluntary Disclosure Program (OVDP) and the streamlined procedures enable taxpayers to correct prior omissions and meet their federal tax obligations while mitigating the potential penalties of…
IRS announces two new intriguing targeted enforcement campaigns
…they are subject to penalties and possible criminal prosecution. The OVDP was structured as a tax amnesty program since it allowed US taxpayers to come forward and avoid criminal prosecution…
IRS Passport Revocation or Denial for Unpaid Taxes
…tax debt in excess of $50,000. That includes interest and penalties, and the threshold changes annually based on inflation. According to Mary Beth Murphy, commissioner of the IRS Small Business/Self-Employed…
IRS Releases FAQs for the Delinquent International Information Return Submission Procedures
…penalties may be imposed under the Delinquent International Information Return Submission Procedures if the Service does not accept the explanation of reasonable cause. The longstanding authorities regarding what constitutes reasonable…
IRS Releases Training Documents on Offshore Voluntary Disclosure Program
…material used in training IRS personnel in the Offshore Voluntary Disclosure Program, determining program penalties and instructing IRS employees about the program. The purpose of the OVDP is for individuals…
Are You Ready For New FATCA Enforcement in 2020?
…Treasury each year. It also requires FFIs to report identifying information about their U.S. account holders to the IRS. Failure to comply can result in high penalties, account freezes and,…
FBAR Deadline Slightly Extended
…deadline.) FBARs have been required since 1970, though many people with foreign accounts do not know about the filing requirement FBARs are important, and penalties can be punitive if unfiled….
Opting Out of the Offshore Voluntary Compliance Initiative Programs
As with other IRS’ 2009 and 2011 offshore voluntary compliance initiatives, the 2012 program gives no discretion to the IRS agents to reduce penalties. If a participant does not believe…
AICPA Makes Useful Recommendations For International Forms 3520/3520
…them incorrectly. Even worse, our clients have received many Form 3520 penalties over the years, and we have successfully appealed them, but Forms 3520 and 3520-A are unfortunately very complex….
FBAR statute of limitations court case ruling
…summons was finally resolved. On Dec. 8, 2014, the IRS issued a notice of income tax deficiency determining deficiencies and accuracy-related penalties for the years 2006 through 2008. In a…
Caution: Increased FBAR Enforcement
…of the Department of the Treasury can levy high penalties for each year that a timely Form FinCEN 114 (also known as the FBAR) is not filed. In United States v….
Hiding Money or Income Offshore Among the “Dirty Dozen” List of Tax Scams for the 2015 Filing Season
…significant penalties and interest and possible criminal prosecution. IRS Criminal Investigation works closely with the Department of Justice (DOJ) to shut down scams and prosecute the criminals behind them. Hiding…
New FBAR Court Case Makes it Easier for Taxpayers to be Deemed Willful
…the higher penalties up to half of the balance of unreported accounts at the time of the violation. The Garrity court is certainly not alone in this view. Unfortunately, the…
Delinquent FinCen Form 114 (FBAR) Filings
…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…
HSBC Customer Avoids Jail in Tax Evasion Case
…penalties, and disclosing offshore accounts and bankers. Dahake’s cooperation “revealed many others that were involved in acting in a similar fashion in a very large scheme involving these undeclared bank…
Beware of FATCA Letters
…The program means preparing three years of tax returns and six years of FBAR forms. The benefit is the IRS discount penalties. This process generally takes 1-2 months, which is…
Questionable ERC could mean trouble for CPAs
…their clients of the option to file an amended return, as well as penalties for noncompliance. In short, Section 10.22(a) cited in the guidance binds accountants to diligence as to…
Non-Resident Estate Tax Trap
…spouse isn’t a U.S. citizen, no deduction is available. The result in this case is that the husband’s estate now owes over US$4 million in estate taxes and penalties. And…
Watch Out: Malta Pension Plans Become Listed Transaction
…the IRS and may be subject to significant penalties if they do not. Penalties that may be imposed on taxpayers who participate in a listed transaction: Accuracy-related penalty of 20%…
Delinquent or unfiled IRS Form 5471
IRS Form 5471 is a form required to be filed by US owners of foreign corporations. The form and filing requirements are complicated, and the penalties and consequences for non-filing…