How will bankruptcy affect FBAR penalties?

How will bankruptcy affect FBAR penalties?

FBAR penalties can be severe. We often have clients ask how bankruptcy will affect their FBAR penalties. http://ift.tt/1TUcrWR In this video, we talk first about how FBAR penalties are collected. Collecting FBAR penalties is not like collecting back taxes. Aside from intercepting tax refunds, the government actually has to file a lawsuit to collect FBAR penalties it has assessed. The government also has a limited amount of time to file a lawsuit to recover FBAR penalties. This is called the ‘FBAR Collection Statute Expiration Date’ (CSED). The FBAR CSED is two years from the date of the assessment of FBAR penalties. Generally, the IRS has 10-years to collect on an assessed tax debt. Normally, when you file bankruptcy, the CSED on taxes stops, or tolls. But with the FBAR — the CSED does not toll in Bankruptcy. So, if your bankruptcy petition is open for 12 months, that would be a year (plus some additional time) your CSED on taxes won’t run. This gives the IRS additional time to collect after you are no longer in bankruptcy (this assumes the Bankruptcy did not discharge your tax debts). Yet, if you file for Bankruptcy the two-year FBAR CSED continues to run! This means the government will be given at least 30-days to file a suit after the bankruptcy is withdrawn or closed-out. So, according the I.R.M 5.9.4.20.16, the technical answer is no, bankruptcy will not discharge FBAR penalties. But there are legal ways to use bankruptcy to your advantage. If you need assistance with a domestic of offshore tax issue, contact us. With over 10 years of experience, we know how to successfully navigate the muddy waters of the IRS. Any information you share will be subject to the attorney client privilege and will be kept confidential. http://ift.tt/24xCz51 IRSMedic, the Law offices of Parent & Parent, LLP 888-727-8796 info@irsmedic.com Serving taxpayers worldwide http://youtu.be/go9OR3WCnR0 IRS Medic

Obamacare penalties and IRS tax debts

Obamacare penalties and IRS tax debts

Obamacare is confusing enough on it's own, but it's also important to understand how it will affecting any past or future tax debts. If you need assistance with you tax issue, don't hesitate to contact us. http://ift.tt/1TUcrWR Obamacare imposes a penalty on individuals if they don’t carry health insurance and don’t qualify for an exemption. The maximum Obamacare penalty for 2015 is $975, but is increasing to $2085 in 2016. The penalty is called the “Shared Responsibility Payment,” or “SRP.” The IRS is in charge of administering assessment and collection of the SRP. But, due to how the law was written, the IRS does not have the same ability to collect the SRP as it does with unpaid income taxes. They can levy or garnish bank accounts and wages to pays for tax debts, but for these Obamacare penalties, the IRS is usually left to intercepting refund checks, if any. Many people have owed or will owe taxes along with an SRP. The problem is that new IRS tax debts default tax settlements — both installment agreements and Offers in Compromise. So how does the SRP work with both accepted and proposed installment agreements and Offers in Compromise? In this video, Attorney Parent and Claudine discuss the following scenarios: If you have an existing installment agreement and you incur additional SRP penalties only. Will this default your agreement? If you have an existing installment agreement and you incur an SRP and new tax liabilities. Would this default your existing Installment Agreement? If you owe taxes and SRP and want to get an Offer in Compromise accepted, can you roll in the SRP? (and should you?) And finally, if you had an Offer in Compromise accepted, but you have have just been assessed with an SRP. Will this SRP default your Offer in Compromise? If you need assistance with an Installment Agreement, Offer in Compromise, or any tax issue, contact us at 888-727-8796 or info@irsmedic.com. Your information will be kept confidential and is subject to the attorney client privilege. IRSMedic, the Law Offices of Parent & Parent, LLP Servicing US taxpayers worldwide http://ift.tt/24xCz51 http://youtu.be/I8IQuDt0H5Y IRS Medic

OVDP - Changes to the Offshore Voluntary Disclosure Program FAQ's

OVDP - Changes to the Offshore Voluntary Disclosure Program FAQ's

http://ift.tt/2dGzb1L There have been a couple of small changes to the IRS posted OVDP FAQ's. In this video, we talk not only about the changes, but our irritation when it comes to others trying to instill fear in taxpayers through agitation. Recently, we've seen haedlines like: "Beware of FAQ changes! Be careful out there!" The US tax code is already the most complicated thing in the history of time. Instilling fear is unnecessary. Taxpayers need help, not fear. The changes made are:  There was a duplicate paragraph they removed  The LDC fax number to request pre-clearance before making an offshore voluntary disclosure has been changed to 267-466-1115.  And a phone number change: “For all other offshore voluntary disclosure questions call the IRS OVDP Hotline at 267-466-0020.” If you need help with any offshore program, contact us to schedule a consultation. We won't try to scare you or make you commit to a program you don't need to sign up for. Your information will be kept confidential, and is subject to the attorney client privilege. info@irsmedic.com 888-727-8796 IRSMedic, the Law Offices of Parent & Parent, LLP Serving US taxpayers worldwide For more about our services and fees visit: http://ift.tt/1TUcrWR http://youtu.be/LODz8f4VGqI IRS Medic

Voluntary Disclosure of Foreign Assets & Income - When you need help

Voluntary Disclosure of Foreign Assets & Income - When you need help

http://ift.tt/2dGzb1L It is easy to get into trouble with the IRS. First, some things you may think of as non-taxable are things the IRS wants to know about… and collect taxes on. Foreign pensions, foreign life insurance, foreign gifts and trusts, and foreign bank accounts. If you own any of these, you probably have a reporting requirement. Second, something called “Universal Tax Jurisdiction” creates a lot of confusion. What it boils down to is that the US is the only country in the world that effectively taxes based on citizenship status. So, even if you're a US citizen living and working overseas, you're still subject to the IRS. The IRS has made it clear that they are looking for tax returns and incorrect voluntary disclosures with technical errors to scrutinize. They are looking at taxpayers as targets for quotas, and not as actual people. The IRS is the most complicated thing in the history of history. International taxation is even more complicated! We do not expect our clients to have a full (or even partial) understanding of the IRS. We know that you are probably confused, and don’t know the right questions to ask. We expect you to be nervous —with everything at stake, who wouldn’t be? If you’re concerned and need help, contact us to set up a consultation. Your information is subject to the attorney client privilege. 888-727-8796 or info@irsmedic.com. IRSMedic is the law office of Parent & Parent LLP, and we have over 10 years of experience in dealing with international tax issues like yours. We can answer questions like: Do you really have to pay the 27.5% (0r 50%) offshore, FBAR penalty? What if your bank is “blacklisted”? How to find out if you are really “willful.” Are there alternatives to using the Offshore Disclosure Program? How can you keep your wits about you through this whole process? Remember, you have the moral high ground — not the IRS. We have clients all around the globe, and while every case is unique, your issues — no matter how complicated — are probably things we have seen before and have dealt with successfully. http://ift.tt/1TUcrWR http://ift.tt/24xCz51 IRSMedic, the Law offices of Parent & Parent, LLP Located in Connecticut, serving taxpayers around the globe http://youtu.be/l6Xq4aYUV7M IRS Medic

Determining US Shareholder and CFC status for your Corporation

Determining US Shareholder and CFC status for your Corporation

http://ift.tt/1RfwK1f The IRS has publicly stated that they are targeting international issues in their audit process. They have even created something called an IPU, or International Practice Unit. These IPU's breakdown how to audit certain situations for the IRS employees. The IPU on determining US Shareholder and CFC status is an important one. Once the IRS determines this, they can then audit all the reporting requirements that go along with that status. For instance, did you file Subpart F or Form 5471? If not, there are steep penalties that you could owe. In this video, we talk about the IPU instructions. They list step by step instructions for the auditor to follow. First, they must determine if the foreign corporation is a CFC. This is dependent on the stakes that US shareholders hold in the corporation. They also outline what exactly makes someone a US shareholder. Once a determination is made, the IRS outlines exactly what other IPU's should be investigated to make sure you are in compliance! Even if they find you do not meet the CFC standards, they will still investigate other alternatives. And let's say we found some loopholes in their determination facts. If you have any questions about your corporation, or an international or domestic tax issue contact us for a consultation. Any information you share with us is subject to the attorney client privilege. IRSMedic, the law offices of Parent & Parent, LLP 888-727-8796 info@irsmedic.com http://youtu.be/9MRgvd4XL7M IRS Medic

How non-US persons can avoid tax traps when living or investing in the United States

How non-US persons can avoid tax traps when living or investing in the United States

http://ift.tt/2e7WQ94 The United States is the land of opportunity for non-US persons that are looking to live or invest here. It is also full of dangerous tax traps. The good news is that many of these traps can be avoided. In this video, we talk about the four biggest tax traps for those looking to live or invest in the US and how to avoid them. Trap #1 - the Capital Gains trap We discuss what a capital gain is, and what to do before you become a US citizen is if you own stocks. Trap #2 - the Foreign Life Insurance trap Bear in mind what "foreign" means in this case! It means "non-US". If you are from China and have a Chinese bank account, it's not foreign to you! But it is foreign to the US. Foreign life insurance is not considered to be life insurance under the US tax code. It is treated as an investment, which means you are taxed much more on it! also, you are also going to pay a 1% excise tax it...not yearly, but quarterly. The good news is that if you have any foreign life insurance, there are ways to handle it. Trap #3 - the Ownership of Real Estate Real estate should not be in your name for both tax and liability purposes. You need a plan in place to avoid heavy estate taxes (up to 35%!). Also bear in mind that if you own rental property, you will be taxed on that income. Trap #4 - Foreign Reporting Requirements There are NUMEROUS IRS forms that need to be filled out, some quarterly and some yearly. If you fail to file these forms, there are severe monetary penalties. You need to report things like foreign bank accounts and assets, mutual funds, and partnerships, just to name a few. If you are considering becoming a US person, or living/investing in the US, make sure you have a plan in place to avoid these nasty tax traps. Contact us for assistance. Our team of attorneys, CPAs and tax planners have international experience. Any information you share with us is subject to the attorney client privilege. 888-727-8796 info@irsmedic.com IRSMedic - The law offices of Parent & Parent, LLP http://youtu.be/toqTlc_oPDU IRS Medic

What medical expenses can be deducted from your taxes?

What medical expenses can be deducted from your taxes?

http://ift.tt/1TUcrWR A lot of people don't know that you can deduct some medical expenses on your taxes! It's important to understand all of the rules the IRS has about who can claim these deductions, and what are considered allowable expenses. The IRS allows you to deduct qualified medical and dental expenses if they exceed 10% of your adjusted gross income (AGI) for the tax year. Right now if you or your spouse is 65 or older, the threshold is 7.5% of your AGI, but that is scheduled to increase to 10% in 2017. You can add together expenses for yourself, your spouse, and your dependents. This actually includes not only your children, but "qualifying relatives" such as siblings and parents. In the video, we also discuss what is a "qualified" medical expense, along with the single most important thing to do if you are going to take advantage of this tax deduction. If you need assistance with any tax prep, planning, or resolution, contact us. We're here to help. IRSMedic, the law offices of Parent & Parent, LLP 888-727-8796 info@irsmedic.com IRSMedic.com is the website for Parent & Parent LLP, a tax law firm of IRS resolution attorneys, Certified Public Accountants, and Enrolled Agents who want to be the team that permanently resolves your tax problem where others have failed. We have developed a proven system of solving any tax problem in the least amount of time, for the smallest amount of headache. We serve US taxpayers worldwide for IRS, US Tax Court and state revenue agency issues. http://ift.tt/1jKT9Ip http://youtu.be/TWyoWCfE5pU IRS Medic

How long should I keep my tax records?

How long should I keep my tax records?

http://ift.tt/1RfwK1f We have had so many clients ask us this question. As with many IRS and tax issues, the answer is "it depends". In this video, Attorney Parent and Claudine discuss why you should err on the side of caution and hold on to them as long as possible. There are two instances in which you may need to hold onto your tax records indefinitely. First, if the IRS suspects you filed a fraudulent return. But wait, if you didn't file a fraudulent return you would have gotten rid of your records so how would you be able to prove it wasn't fraudulently filed?! Second, the IRS is outright targeting those who have money overseas. There are many reporting requirements for those that have money in offshore accounts. With many of the forms, if you do not file them (or improperly file them), your return could remain open for assessment FOREVER. Learn more about the ASEDs here (assessment statute expiration date). IRSMedic.com is the website for Parent & Parent LLP, a tax law firm of IRS resolution attorneys, Certified Public Accountants, and Enrolled Agents who want to be the team that permanently resolves your tax problem where others have failed. We have developed a proven system of solving any tax problem in the least amount of time, for the smallest amount of headache. We serve US taxpayers worldwide for IRS, US Tax Court and state revenue agency issues. If you need assistance with a tax issue or tax planning, contact us. We're here to help. IRSMedic The Law offices of Parent & Parent LLP 888-727-8796 info@irsmedic.com http://youtu.be/mzyOPW2fzc4 IRS Medic