Search Results for: voluntary disclosure programs
New Favorable Court Decision: One penalty (not multiple) applies for late FBAR filing
…report these on her 2010 federal income tax return or disclose the accounts to the IRS. In 2012, the taxpayer asked to participate in the IRS’s Offshore Voluntary Disclosure Program,…
Beware: IRS Form 8938 Statement of Specified Foreign Financial Assets
…any voluntary disclosure submission, there could be harsh criminal (in addition to civil) penalties. The risks may outweigh the benefits. Patel Law Offices is a law firm dedicated to helping…
FATCAts
…comply with these obligations. To combat this perceived non-compliance, FATCA joins the existing FBAR reporting, recently enacted ‘foreign financial asset’ reporting, the 2011 Offshore Voluntary Disclosure Initiative (2011 OVDI), which…
In Addition to HSBC, Credit Suisse Also Being Investigated for Offshore Activities
…which is likely, it may be too late for U.S. taxpayers with undisclosed HSBC accounts to take advantage of the IRS Voluntary Disclosure Program for offshore accounts. The IRS says…
Cayman Islands Advisors Arrest Suggest U.S. Government Receiving More Information About Offshore Accounts
…result of this probe. Taxpayers are ineligible to participate in the IRS’s offshore voluntary disclosure program (OVDP) for undeclared offshore accounts if U.S. authorities already have their names. The program…
No tax = No Passport?
…taxpayers including those who default on installment agreements, including those who may default on payments under the Offshore Voluntary Disclosure Initiative (OVDI or OVDP). The legislation (in its current form)…
Educational Panel Discussion: The U.S. Government’s Global Crackdown on Tax Evasion: Where It Has Been and Where It Is Going
…described in detail the IRS expansive network of IRS global operations in dozens of countries. We discussed in detail the Offshore Voluntary Disclosure Program (OVDP), which is specifically designed for…
HSBC and NRI Bank Accounts: Could It Spread to Other Banks?
…the US IRS 2011 Voluntary Disclosure Program expires on August 31. A failure to disclose incomes by HSBC account holders before that date would result in severe action, apart from…
“Willfulness” When Deciding Whether to Opt Out of 2011 OVDI
The IRS recently posted guidance in its OVDI FAQs (#51) whether taxpayers should opt out of the 2011 Voluntary Disclosure Initiative’s (the “OVDI”) civil penalty structure. Taxpayers who participate in…
Foreign Account Tax Compliance Act (FATCA): More Information Sharing Agreements Expected
…the foreign funds. If a taxpayer is discovered before any voluntary disclosure submission, there could be harsh criminal (in addition to civil) penalties. The risks may outweigh the benefits. Patel…
Significant FBAR Penalties Upheld by Court
…the IRS on her tax return and on Foreign Bank Account Report (FBAR) forms. In 2009, when the IRS introduced its Offshore Voluntary Disclosure Program (OVDP), she joined the program…
Delinquent or unfiled IRS Form 5471
…amended U.S. federal tax return including a persuasive compelling reasonable cause statement. Contact our office to discuss this good option. Offshore Voluntary Disclosure Program (OVDP)The IRS OVDP is designed for…
New IRS procedures for Streamlined Filing Compliance Procedures for 2017 transition tax filers
…Streamlined Filing Compliance Procedures. Since the disclosure scope for a submission to the Streamlined Filing Compliance Procedures with a SFC will include tax years 2017 and/or 2018 and forward, noncompliant…
Beware of U.S. tax consequences to a foreign trust with a U.S. beneficiary
…FATCA Entity Reporting: FATCA imposes a 30% withholding tax on payments to “foreign financial institutions” (“FFIs”) that do not comply with certain disclosure requirements about their U.S. account holders. A…
Difference between Form 8938 and FBAR Requirements
Comparison of Form 8938 and FBAR Requirements Many holders of foreign financial assets must file two disclosure forms this year or else risk draconian penalties. They are Form…
Accountant-Client vs Attorney-Client Confidentiality
…a disclosure to an attorney, in nearly all cases (except for instance in furtherance of a crime) that disclosure will remain confidential. In summary, with sensitive matters (including IRS audits),…
Tax treaty tie-breakers
…advantage of tax treaty benefits, the taxpayer must also file IRS Form 8833 (Treaty-Based Return Position Disclosure Under Section 6114 or 7701(b)). The below steps should be followed: Check the…
More Tax Complexity: New Form 8938
…These disclosure reporting requirements all come loaded with the highest IRS penalties, starting at $10,000 per non-filing or incorrect filing incident. Some Frequently Asked Questions About FATCA What’s a specified…
The IRS publishes new proposed regulations for tax on transfers from covered expatriates
…estate tax paid to a country other than the United States with respect to the gift or bequest. Possible disclosure of expatriate’s return information The US recipient is responsible for…
Life insurance for disabled or special needs children
…the threshold for either Medicaid, SSI limitations, or other governmental entitlement programs, the disabled individual could be disqualified from obtaining services or benefits. It is highly unlikely that the child…
Is First-Time Abatement Applicable In International Penalty Cases?
The Internal Revenue Service (IRS) issued a memorandum from John E. Hinding, the Director of Specialized Examination Programs & Referrals, regarding penalty abatements for Forms 5471 and 5472. The memo…
Evaluating the Special Needs Estate Planning Attorney
…(ABA); and State Bar Associations Time/experience in trust, estate, and disability practice Community Involvement Articles written (commitment to educating the consumer evident?) Presentations made (especially to peers) Educational programs recently…
Supplemental Needs Trusts
…third-party trust does not need to include a D-4 “payback” provision reimbursing the State for the medical assistance of the beneficiary upon the beneficiary’s death. References http://www.seniorlaw.com/snt.htm http://www.nsnn.com/frequently.htm http://www.elderlawanswers.com/elder_info/elder_article.asp?id=2742#6 http://www.wid.org/programs/access-to-assets/fact-sheets/special-needs-or-supplemental-needs-trusts…
REPORTING FOREIGN ASSETS & ACTIVITIES: REQUIREMENTS AND CHALLENGES: Complimentary CPE Presentation
Join us for a Complimentary CPE Presentation on Reporting Foreign Assets & Activities: Requirements and Challenges Penalty structure Best practices in reporting IRS penalty avoidance programs Latest Supreme Court case impacting…
Planning for Dependent (or not Independent) Family Members
…legal issues to plan for: Use a Special Needs Trust. You can preserve the disabled person’s eligibility for government assistance programs, including Supplemental Security Income (SSI) and Medicaid, through the…
Passive Foreign Investment Company Tax & Mark-to-Market (MTM) election
…year open for review or audit forever until the report is filed. Form 8621 is very complex and not included in most tax software programs. The IRS also does not…
News from the 2014 Criminal Fraud and Tax Controversy Conference
…were in attendance. Below are some interesting observations: On the new IRS Streamlined program (including the SDOP and SFOP programs), David Horton LB&I director for international compliance (who is in…
Estate Planning When a Spouse is Confronting Health Issues (Estate Planning for the Healthy Spouse)
…a testamentary Special Needs Trust that will not affect his/her eligibility for Medicaid or other needs-based governmental programs. Under the state elective share statute, N.J.S.A. 3B:8-1, et seq., the surviving…
The Dreaded IRS Letter 6185: “We received information that you have a foreign account”
…IRS amnesty programs and making payment for applicable taxes, interest, and penalties. HOW TO RESPOND: If you received IRS Letter 6185, take it very seriously. Do not ignore the letter….
Special Needs Planning Mistakes
…programs can be greatly beneficial, it is not wise to rely solely on them to provide security. Instead, establish a special needs trust (SNT) which will not preclude a child…