Reciprocal FATCA Reporting: Treasury Issues Proposed Rules To Enhance Financial Transparency
On July 30, 2014, the Treasury Department’s Financial Crimes Enforcement Network (“FinCEN”) proposed rules requiring U.S. financial institutions to collect “Customer Due Diligence” information. The purpose of these proposed rules is to prevent unscrupulous individuals from using anonymous companies to engage in or launder the proceeds of illegal activity in the U.S. financial sector. These […]
Common Pitfalls To Avoid When Calculating the FBAR Penalty
To fully understanding your legal duty with respect to disclosing a foreign account on an FBAR, it is first necessary to understand the instructions promulgated by the IRS to prepare an FBAR. A person must file an FBAR informational return if all of the following conditions are met: (1) a “U.S. person”; (2) had a […]
Can the Streamlined Compliance Procedures Be Used to Correct Defective Returns that Go Back Beyond the Most Recent Three Tax Years?
The issue that this blog seeks to address is whether a non-willful taxpayer with an undisclosed offshore account can use the streamlined compliance procedures to correct defective tax returns that go back beyond the most recent three tax years? In other words, are the streamlined procedures limited to the most recent three years of troublesome […]
How Do I Calculate My Offshore Penalty Under The Offshore Voluntary Disclosure Program?
Unlike FBAR penalties that can be asserted for multiple years (up to six under the six-year statute of limitations for FBARs), the offshore penalty is a one-time penalty. The values of foreign accounts and other foreign assets are aggregated for each year and the penalty is calculated at 27.5 percent of the highest year’s aggregate […]
Fighting the Post-Bankruptcy Survival of FederalTax Liens on Property That Is Excluded from the Bankruptcy Estate (Part 2)
How Do I Determine My Liability For FBAR Penalties Under the Penalty Mitigation Guidelines?
The IRS has authority to assert FBAR civil penalties. Contrary to popular belief, an FBAR violation doesn’t automatically mean that a penalty will be asserted. Examiners are expected to exercise discretion, taking into account the facts and circumstances of each case, in determining whether penalties should be asserted. For example, the examiner may determine that […]
Fighting the Post-Bankruptcy Survival of Federal Tax Liens on Property That Is Excluded from the Bankruptcy Estate (Part 1)
Fighting the Post-Bankruptcy Survival – Part I