Thursday, December 18, 2014

FBAR Penalty Guide Updated 10-9-14

FBAR Penalty Guide Updated 10-9-14 In this updated webinar, recorded October 9, 2014, we discuss the entire history of the law that spawn this dreadful form -- the Bank Secrecy Act of 1970. The FBAR requirement was intended to catch the worst types of criminals, but now retired grandmothers, holocaust survivors, international sport stars -- people who had no intent to defraud the IRS of a penny, but found themselves on the wrong side of a bad law. The BSA Act is a failure and should go away. But is only if we lived in a sane world, with sane laws. In this video we discuss how to avoid significant FBAR penalties whether you are inside or outside an IRS OVDP. One of the worst things you could do is file a "soft" or "quiet" disclosures. We have heard cases of IRS District counsel loaded for bear and assessing 50% FBAR penalties simply in cases were taxpayers were given bad advice. Now, just because the IRS assesses an FBAR penalty, unlike taxes they have to sue you in federal district court to covert their assessment in to a judgment that means something They have to convince a jury you should be held willful. So if you have a appetite for litigation you may be frustrate IRS counsel from doing anything with their assessment; this is certainly a legitimate strategy when there are hundreds of thousands of dollars or millions of the line. Anthony Parent

2014 OVDP Webinar UPDATED 7/17/2014

2014 OVDP Webinar UPDATED 7/17/2014 The IRS announced significant changes, some helpful, some not, to the IRS Offshore Voluntary Disclosure Program (OVDP). The worst news is that for some holders of foreign accounts, a 50% offshore penalty will be automatically applied for the standard OVDP, for others it remains 27.5%. However, the IRS has indicated that this standard OVDP is really for the types of people the old tradition, pre-2009 Voluntary Disclosure program was intended for --- those with actual criminal exposure. For some people though who want protection from criminal charges, they can still use the standard OVDP and opt-out of the traditional penalty structure. However the legal fee for doing so, becomes very high as some of the simplified accounting processes like mark-to-market PFIC computations are NOT available during an opt-out. For most people, for those who made an innocent or negligent mistake, the steamlined programs offer a much better was to come clean than prior to the 2014 rules. The IRS somewhat clarified rules on those with unfiled FBARs but no other tax compliance. The look-back period is now 3 years, not 8. For those who meet the test for living overseas the offshore penalty is 0%. For those who live in the US, the offshore penalty is 5% but is based on highest year end balance, not highest balance during the year. Also certain assets come off the penalty base --- a significant change is foreign rental property. In 2013 and 2014 many US Swiss account holders were presented with an uncomfortable decision. Prove to their Swiss bank that they were in an OVDP or the Swiss bank would disclose their names to the IRS. As other countries implement the one our requirements of FATCA, letters will be going to to US taxpayers, even those who closed their account as long ago as 2009. Anthony Parent

Tuesday, December 9, 2014

2014 OVDP Webinar

2014 OVDP Webinar

2014 OVDP Webinar Anthony Parent

Wednesday, November 5, 2014

GTi is little but not bad

GTi is little but not bad

Sport mode! Anthony Parent

Thursday, October 23, 2014

Delinquent FBAR filing procedures and Streamlined OVDP FAQs

Delinquent FBAR filing procedures and Streamlined OVDP FAQs For US expatriates who have reported all foreign-sourced income, or did not have any foreign income to report, the IRS has made the delinquent FBAR filing procedures *relatively* straight-forward and *relatively* easy to understand. But here's where things get ugly. This is only true for taxpayers who do not have any unreported income in the last 3 years. Things get complicated in situations where there in no unreported income in the last three years, but unreported income in any one of the three years prior. In this article we will demonstrate the apparent contradictions, and offer strategies for the not-too uncommon issue of having unreported foreign income, not in the last 3 years, but rather, 4-6 years ago. The IRS published Domestic Streamlined OVDP FAQs on October 8, 2014 --- purportedly to clear the air. The IRS is attempting to be intelligent and foresee the questions people will ask. The problem is we only see more confusion. Read more to judge for yourself. Commentary is interspersed with italics, to denote possible future changes, or items of inconsistency. 2014 OVDP Webinar Anthony Parent

Monday, September 15, 2014

FBAR filing instructions -- don't follow the IRM

FBAR filing instructions -- don't follow the IRM

According to the Internal Revenue Service Internal Revenue Manual, Sec (07-01-2008) link here:, "[t]he FBAR is filed by mailing it to the U.S. Department of the Treasury, Post Office Box 32621, Detroit, MI 48232-0621." But this is not true. We have an IRS webpage (linnk here: that says the FBAR "is only available online through the BSA E-Filing System website." (link here: So if the IRS can't get its own FBAR rules straight, what kind of standard of conduct should they impose on you? Anthony Parent

Wednesday, September 3, 2014

Has your OVDP Pre-Clearance or voluntary disclosure been declined or rejected?

Has your OVDP Pre-Clearance or voluntary disclosure been declined or rejected? Was your IRS OVDP or OVDI declined or rejected? If you have produced that which in turn you thought was timely, everything you believed had been complete, Pre-Clearance or Offshore Voluntary Disclosure Plan (OVDP) submission, you can get a letter back from your IRS Criminal Investigation Division informing you which your own voluntary disclosure has been declined regarding not becoming timely and/or complete. In this video, I discuss what should you do in the big event you received this OVDP rejection letter. First thing: A Person must absolutely come together with an attorney for the OVDP. You need a lawyer --- not just a CPA, not an Enrolled Agent, not your better buddy whom usually got anyone out of trouble (unless, involving course, she as well as he is an attorney). Period. If the OVDP was not complete, that's usually an even more straight-forward, but nevertheless difficult, task. It involves receiving with each other all regarding the required documents, neatly organized along with presented inside a method in which benefits a person the most. We've seen way a lot of professionals present disclosures towards the IRS throughout ways inside which benefits the IRS. Therefore many practitioners "mail it in" and cross their particular fingers as well as hope your IRS won't damage their own client too much. Nevertheless guess what? while it holds true which a lengthy time ago, not many IRS agents could view the extremely complexity associated with such items as foreign lifestyle insurance, PFICs, controlled Foreign Corporations and Subpart F income, that's will zero longer true. IRS OVDP Examiners are usually mastering by carrying out and becoming higher level training. They tend to be acquiring much better --- a great deal better. However are getting at representing the particular government! Therefore anyone absolutely have to make positive you do not have a rookie -- whether they're in a big firm or even are solo --- understanding the OVDP ropes along together with your fortune at stake. If your own OVDP had been declined regarding not really being timely If your current OVDP had been declined for not really getting timely you will find a couple of main factors why this could potentially be the case: The IRS already has a civil examination or perhaps criminal investigation one against you The IRS offers notified anyone in which the intends to commence civil examination or criminal investigation The IRS offers received information through a third party alerting the particular IRS for you to your particular non-compliance The IRS provides initiated a civil examination or perhaps criminal investigation of a range of other entity which is directly associated for the specific liability of you, or The IRS has acquired details straight related for the specific liability against from the criminal enforcement action (e.g, search warrant or even grand jury subpoena). So do the thing is how significant this is? Throughout both case --- if your current OVDP or perhaps Pre-Clearance was rejected for not being total as well as timely, for you to protect your current fortune as well as your security, you get to create sure you have an OVDP attorney you are 100% comfortable with. We possess seen a lot of individuals who produced small mistakes along with taxes after which increase the actual danger for larger error of getting low-powered tax help. It is heart-breaking, honestly. people function along with conserve therefore tough to generate wealth upon which they will believed they could rely upon, only to notice their own fortune function as the really factor your IRS uses in order to terrorize these --- people that are just not the biggest criminal masterminds inside the world. If you are confused in what the complete OVDP process is, please watch my 2014 OVDP webinar which is now on replay. Hyperlink here. When you're wondering if we might be the best OVDP firm with regard to you, watch these videos I developed to explain which we have got been not the actual OVDP law firm for everyone, nevertheless then again, might just be the proper firm for you. http:/// Anthony Parent