{"id":1309,"date":"2012-09-02T09:03:44","date_gmt":"2012-09-02T14:03:44","guid":{"rendered":"http:\/\/www.patellawoffices.com\/blog\/?p=774"},"modified":"2012-09-02T09:03:44","modified_gmt":"2012-09-02T14:03:44","slug":"new-ezpass-ovdp-without-any-penalties-for-non-resident-u-s-taxpayers","status":"publish","type":"post","link":"https:\/\/patellawoffices.com\/blog\/planning-for-tax-minimization\/new-ezpass-ovdp-without-any-penalties-for-non-resident-u-s-taxpayers\/","title":{"rendered":"New EZPASS OVDP Without Any Penalties for Non-Resident U.S. Taxpayers"},"content":{"rendered":"

Yesterday, as expected, the IRS announced its new\u00a0New Filing Compliance Procedures for Non-Resident U.S. Taxpayers<\/a>\u00a0that taxpayers presenting \u201clow compliance risk\u201d should file delinquent tax returns, including delinquent information returns, for the past three years; and delinquent FBARs for the past six years.\u00a0 This seems to be a new EZPASS or express OVDP without any penalties.<\/p>\n

Taxpayers with higher compliance risk are not eligible for the New Filing Compliance Procedures for Non-Resident U.S. Taxpayers. Such taxpayers will be subject to a \u201cmore thorough review and possibly a full examination, which in some cases may include more than three years, in a manner similar to opting out of the Offshore Voluntary Disclosure Program\u201d.<\/p>\n

Opting may not be a bad situation. \u00a0Depending on the circumstances, we sometimes recommend some of our OVDI clients to opt out<\/a>\u00a0of the\u00a0voluntary disclosure<\/a>\u00a0initiative and allow us to demonstrate the absence of willfulness and avoid the normal\u00a0FBAR<\/a>\u00a0penalty regime. We have been aggressively pursuing\u00a0OVDI<\/a>\u00a0opt outs<\/a>\u00a0for some of our clients. In doing so we have been persuasively advocating for no penalties or the\u00a0FBAR<\/a>\u00a0Penalty Mitigation guidelines to apply.<\/p>\n

Under the new New Filing Compliance Procedures for Non-Resident U.S. Taxpayers<\/a>\u00a0there\u00a0is an IRS Questionnaire<\/a>\u00a0required for entrants.\u00a0If you filed returns but did not report all income it appears you cannot amend via this new program since amended returns are “high risk”, except for the sole purpose of filing Form 8891 regarding retirement or savings plans by treaty. Also,\u00a0once a taxpayer attempts this new streamlined program, the OVDP is no longer available. \u00a0Even worse, there appears to be no immunity from criminal prosecution through this new program (if the IRS determines high risk or ineligibility). Therefore, careful full legal analysis of all risk factors is required. \u00a0Legal counsel is strongly recommended.<\/p>\n

In spite of all restrictive eligibility criteria, is this a new alternative to OVDP for Non-Resident U.S. Taxpayers? Our law firm absolutely thinks so. \u00a0We intend to comprehensively explore this alternative for our clients and expect to aggressively advocate for a very wide new EZPASS or express OVDP lane for entrants.<\/p>\n

Patel Law Offices is a law firm dedicated to helping clients resolve complicated tax, criminal tax, and international tax problems. Our firm assists (and defends) clients and their advisors to legally disclose (and legitimize) foreign accounts.<\/p>\n","protected":false},"excerpt":{"rendered":"

Yesterday, as expected, the IRS announced its new\u00a0New Filing Compliance Procedures for Non-Resident U.S. Taxpayers\u00a0that taxpayers presenting \u201clow compliance risk\u201d should file delinquent tax returns, including delinquent information returns, for the past three years; and delinquent FBARs for the past six years.\u00a0 This seems to be a new EZPASS or express OVDP without any penalties. […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_daextam_enable_autolinks":"","_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"footnotes":""},"categories":[1],"tags":[20,23,24,52,64,63,68,27],"class_list":["post-1309","post","type-post","status-publish","format-standard","hentry","category-planning-for-tax-minimization","tag-asset-protection","tag-fbar","tag-foreign-account","tag-offshore","tag-opt-out","tag-ovdi","tag-ovdp","tag-voluntary-disclosure"],"_links":{"self":[{"href":"https:\/\/patellawoffices.com\/blog\/wp-json\/wp\/v2\/posts\/1309","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/patellawoffices.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/patellawoffices.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/patellawoffices.com\/blog\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/patellawoffices.com\/blog\/wp-json\/wp\/v2\/comments?post=1309"}],"version-history":[{"count":0,"href":"https:\/\/patellawoffices.com\/blog\/wp-json\/wp\/v2\/posts\/1309\/revisions"}],"wp:attachment":[{"href":"https:\/\/patellawoffices.com\/blog\/wp-json\/wp\/v2\/media?parent=1309"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/patellawoffices.com\/blog\/wp-json\/wp\/v2\/categories?post=1309"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/patellawoffices.com\/blog\/wp-json\/wp\/v2\/tags?post=1309"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}