FBAR Penalty Guide Updated 10-9-14 http://bit.ly/1zagZTB 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. http://ift.tt/10ExfNv 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. http://ift.tt/1vbeI8E http://ift.tt/13idvR2 Anthony Parent
Thursday, December 18, 2014
2014 OVDP Webinar UPDATED 7/17/2014
2014 OVDP Webinar UPDATED 7/17/2014 http://ift.tt/URFeVp 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. http://ift.tt/1AMJZOl Anthony Parent
Tuesday, December 9, 2014
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