Search Results for: irs appeal
New IRS procedures for Streamlined Filing Compliance Procedures for 2017 transition tax filers
The IRS quietly created new procedures for Streamlined Filing Compliance Procedures earlier this month relating to filings with “transition tax” due under Internal Revenue Code Section 965. The new procedures…
Form 3520 Penalty Relief
…the IRS to implement a comprehensive remedy including penalty abatements. To its credit, the IRS announced a broad late filing administrative penalty relief program on August 25, 2022, and has…
New Comments on the IRS Voluntary Disclosure Program
We are members of the American Bar Association Section of Taxation, which on September 28, 2021 submitted comments to the IRS on the IRS Voluntary Disclosure Program (“VDP”), the Streamlined Domestic Offshore Program…
How to Limit a Executor’s Personal Liability for Taxes
…taxes. See 31 U.S.C. §3713(b) and IRS Manual 5.17.13.8 (10-16-2007). There are three risk-management tools every probate lawyer needs to know about and incorporate into his or her practice: •IRS…
U.S. Signs FATCA Pacts with Malta, Netherlands, Bermuda, Jersey, Guernsey and Isle of Man
…List Frequently Asked Questions (FAQs) have been posted to the same IRS FATCA Web site. The IRS also released Announcement 2014-1 last Friday, providing an update on FATCA financial institution…
New York State Bar Association Proposes OVDI Changes to IRS
…It is unfortunate that the IRS did not solicit such commentary before launching the OVDI program (the IRS generally solicits input from interested parties in promulgating IRS regulations and certain…
Audit Beware: IRS’ Global High Wealth Industry Group
A recent article in the Wall Street Journal discussed the new IRS’ Global High Wealth Industry Group. Over 1 year ago we warned readers of the new group when Commissioner…
IRS FBAR Penalties Are Now Unmitigated
…to recent Internal Revenue Service (IRS) internal guidance. The IRS will no longer routinely reduce the penalty for non-willful failure to file Reports of Foreign Bank and Financial Accounts (FBAR)…
Avoiding and Defining Willfulness
U.S. taxpayers with unreported foreign accounts or assets are in a challenging position. The IRS has repeatedly announced that it is devoting resources to finding and penalizing taxpayers who do…
Beware: IRS Form 8938 Statement of Specified Foreign Financial Assets
…domestic entities in addition to individual reporting requirement, the IRS has currently suspended the reporting requirement for domestic entities until it issues final regulations covering domestic entities. Last month the…
Crypto is not = Cash currency for IRS reporting
The IRS released Announcement 2024-4, providing transitional guidance under section 6050I with respect to reporting transactions involving the receipt of digital currency. Generally, when receiving more than $10,000, IRS reporting…
Questionable ERC could mean trouble for CPAs
…criminal cases in the ERC space, enforcement efforts will only continue to expand. IRS Commissioner Danny Werfel has also made it clear that the IRS is taking erroneous ERC claims…
FATCA Deadlines Extended
…series of intergovernmental agreements with tax authorities in foreign countries, most of which allow them to act as intermediaries before the information is given to the IRS. IRS Notice 2015-66,…
How to Fix an Erroneous Filed Tax Return without Penalties
…but before the IRS has taken certain actions that either put the taxpayer on notice of a possible understatement or otherwise indicate that the IRS is already on the path…
New IRS Guidelines for Willful FBAR violations
…We find that the guidance is much needed in light of the lack of uniformity in the IRS’ application of FBAR penalties. The IRS has the burden of showing that…
India Signs FATCA Model Intergovernmental Agreement to Share Account Information with the US
…institutions need not sign an FFI agreement, but they will need to register on the IRS’s FATCA Registration Portal or file IRS Form 8957. Who is Reported? Indian financial institutions…
New IRS Form 8938 Statement of Foreign Financial Assets is causing significant confusion
As anticipated, IRS Form 8938 Statement of Foreign Financial Assets is causing significant confusion among taxpayers attempting to complete these Forms for filing. Form 8938, Statement of Specified Foreign Financial…
New Favorable Court Decision: One penalty (not multiple) applies for late FBAR filing
The U.S. Court of Appeals for the Ninth Circuit today—in a case of first impression for the circuit—held that the IRS is limited to imposing one penalty for the untimely…
IRS Streamlines its Streamlined Offshore Procedures with More User Friendly Forms
…forms (the old forms were basic PDF text documents) will likely standardize the IRS’ review process for Streamline program eligibility and guide the IRS examiner in spotting issues. In spite…
New IRS Forms Informs Beneficiaries of Asset Basis Values
Instructions to IRS Form 8971 for reporting the asset basis of estates have now been finalized. Form 8971, Information Regarding Beneficiaries Acquiring Property From a Decedent, tells estate executors and…
Upcoming live video webinar: “FBAR and U.S. Tax Reporting: Compliance Requirements for Foreign Assets”
…March 16, 1:00pm-2:30pm EDT. The IRS has continually reaffirmed its commitment to cracking down on U.S. taxpayers failing to disclose reportable foreign assets. The IRS is intensifying audits for foreign…
OVDP New Forms Announced by IRS
…Letter Attachment The new forms (the old forms were simple Word documents) will likely standardize the IRS’ review process for OVDP eligibility, guide the IRS examiner in OVDP “issue spotting”,…
IRS Targets Non-Resident Indians with HSBC Accounts
…to be charged with in the issue focusing on whether HSBC is involved with the clients in hiding their assets from the IRS. Dahake, an Indian native who became U.S….
Foreign Retirement Plans: New IRS Exemption from Required Information Reporting on Forms 3520 and 3520-A
In recent IRS Revenue Procedure 2020-17, the IRS has created a procedure where certain U.S. persons having an interest in tax-favored foreign trusts established and operated exclusively or almost exclusively…
Streamlined Filing Compliance Procedure’s New Revisions to Streamlined Domestic Offshore Procedures (SDOP)
…States. The Internal Revenue Service (IRS) recently modified the non-willfulness certification form that individual taxpayers must submit to enroll in the streamlined filing compliance procedures (SFCP). The IRS introduced SFCP…
OVDI: Requesting issuance of a FBAR warning letter instead of penalties
…Bank and Financial Accounts,” if it would be sufficient to bring the individual into compliance, an IRS official said May 17. See Matthew Dalton, IRS May Issue Warning Letters on…
New Warnings in the IRS’ Streamlined Filing Compliance Procedures
…significantly expanded by the IRS in June 2014 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…
New voluntary disclosure program for offshore accounts in 2011
…their money and pay taxes owed. An IRS spokesman said that the program would be formally announced very shortly and would not offer terms as generous as those put forth…
Start or review an “Accountable Plan”
Accountable Plans, established under IRS Reg. Section 1.62-2(c)(4), are important tools to help a business optimally classify expenses paid to employees without fear of the payments being treated as taxable…
IRS Issues Reminders for FBARs and other International Requirements
…of those assets exceeds certain thresholds. See the instructions for this form for details. IRS Reporting for Canadian Retirement Accounts: The IRS eliminated a special annual reporting requirement that applied…