Search Results for: non-willful
The Strange Case of U.S. v. Hughes: Willful and Non-Willful (at the Same Time?)
…2010 and 2011 Hughes was non-willful and would be subject to non-willful FBAR penalties. It was a different story for 2012 and 2013 however. The Court held that not only…
US Court finds non-willful FBAR penalty not limited to $10,000 per year
…of $10,000 under 31 U.S.C. § 5321(a)(5)(B) for non-willful violations relates to each foreign financial account. The taxpayer contended that, if there is a non-willful failure to file an FBAR,…
Taxpayer’s Beware: Proving Non-Willful Conduct in the new IRS Streamlined Filing Compliance Procedures
…legal grounds for non-willfulness. Do not disclose too much and beware of badges (evidence) of willfulness, blind willfulness, concealment, etc. For more information see IRS IRM 4.26.16.4.5. It is likely…
Taxpayers’ Evidence of Non-Willfulness or Willfulness Factors
…is really non-willful. Unfortunately, the IRS has publicly stated that it will intentionally give no further definition of non-willful conduct for purposes of the Streamline Compliance Programs (SFOP or the…
How to Demonstrate Non-Willfulness Under The Streamlined Filing Compliance Procedures
…under penalties of perjury that their conduct was “non-willful.” For purposes of the streamlined procedures, non-willful conduct is defined as conduct that is due to negligence, inadvertence, or mistake or…
New Much-Needed Guidance for Non-Willful FBAR violations
…in FBAR case file information. We find that the guidance is much needed in light of the lack of uniformity in the IRS’ application of FBAR non-willful penalties. The memo…
Helpful Non-willful FBAR penalty case decided by court
…at some non-willful FBAR penalty litigation. The US district court has essentially dismissed a taxpayer’s challenges to his penalty for failing to file FBARs (Report of Foreign Bank and Financial…
New IRS Disclosure Program Announced for Non-Resident Taxpayers: Streamlined Foreign Offshore Procedures
…non-willful (or possible willful) conduct and careful crafting of a certification of non-willfullness is required for each taxpayer. Qualified experienced legal counsel should analytically draft this certification, under attorney-client privilege,…
A solution in a tough tax season: the IRS Streamlined Offshore Procedures
…criteria. One critical criterion is that taxpayers must establish – to the satisfaction of the IRS – that their non-compliant behavior was non-willful. Non-willful conduct is defined as “negligence, inadvertence,…
Solution: Streamlined Domestic Offshore Procedures
…criteria. One critical criterion is that taxpayers must establish – to the satisfaction of the IRS – that their non-compliant behavior was non-willful. Non-willful conduct is defined as “negligence, inadvertence,…
ABA COMMENTS ON THE 2014 OFFSHORE VOLUNTARY DISCLOSURE PROGRAM AND THE STREAMLINED PROGRAMS
…uncertainty over what constitutes “willful” conduct, compounding the burden on taxpayers and their advisors in evaluating and preparing an appropriate explanation of prior noncompliance.4 In more complicated cases, where…
New Court Ruling: FBAR penalties applied per form and not per account
…willful violations to relate to specific accounts and the penalty for non-willful violations not to. Non-willful FBAR reporting deficiencies constitute a single violation and carry a maximum annual $10,000 civil…
Streamlined Filing Compliance Procedure’s New Revisions to Streamlined Foreign Offshore Procedures (SFOP)
…taxpayers with evidence of willful failure to disclose foreign assets. Specifically, SFCP is for taxpayers who non-willfully failed to disclose foreign assets. Under the SFCP, non-willful conduct is specifically defined…
Details of the Streamlined Foreign Offshore Procedures (SFOP)
…The IRS introduced SFCP in June 2014 for taxpayers who non-willfully failed to disclose foreign assets. Under the SFCP, non-willful conduct is specifically defined as “conduct that is due to…
New Favorable Court Decision: One penalty (not multiple) applies for late FBAR filing
…of the account at the time of the violation for willful violations, and $10,000 for non-willful violations. The case is: United States v. Boyd, No. 19-55585 (9th Cir. March 24,…
New Warnings in the IRS’ Streamlined Filing Compliance Procedures
…income, pay all tax, and submit all required information returns, including FBARs, was due to non-willful conduct. I understand that non-willful conduct is conduct that is due to negligence, inadvertence,…
2018 ABA COMMENTS ON THE OFFSHORE VOLUNTARY DISCLOSURE PROGRAM AND THE STREAMLINED PROGRAMS
…without exception any taxpayer who did not file a required original return (e., non-filers), resulting in the exclusion from the program of all domestic non-willful non-filers. This runs afoul of…
New Streamlined Domestic Offshore Procedures (SDOP) is a Game Changer
…5472, 8938, 926, and 8621) with respect to the foreign financial asset, and (4) such failures resulted from non-willful conduct. Non-willful conduct is conduct that is due to negligence, inadvertence,…
Streamlined Filing Compliance Procedure’s New Revisions to Streamlined Domestic Offshore Procedures (SDOP)
…SFCP is for taxpayers who non-willfully failed to disclose foreign assets. Under the SFCP, non-willful conduct is specifically defined as “conduct that is due to negligence, inadvertence, or mistake or…
IRS Announces New Rules for FBAR Penalties
There are two types of penalties applicable to FinCEN Form 114 (Report of Foreign Bank and Financial Accounts) (FBARs): (1) Non-Willful and (2) Willful. The penalties are theoretically assessed per…
Avoiding and Defining Willfulness
…willfulness is, it only uses vague terms to describe what it is not. The line between non-willfulness and willfulness remains unclear. Over the last few months, informal remarks of an…
High Penalties for failure to file an FBAR: Not Really Enforced (yet)?
…you fail to meet the April 15 due date. You may be subject to penalties if you willfully or non-willfully fail to file your FBAR. WILLFUL AND NON-WILLFUL CONDUCT Non-willful…
An Ill-advised IRS Streamlined Filing Compliance Procedure Filing
…very ill-advised. The IRS’ SFCP is for taxpayers who non-willfully failed to disclose foreign assets. Under the SFCP, non-willful conduct is specifically defined as “conduct that is due to negligence,…
Details of the Streamlined Domestic Offshore Procedures
…modified the non-willfulness certification form that individual taxpayers must submit to enroll in the streamlined filing compliance procedures (SFCP). Specifically, SFCP is for taxpayers who non-willfully failed to disclose foreign…
IRS FBAR Penalties Are Now Unmitigated
…smaller accounts, provided the violations were non-willful. The new IRS guidance states it “should no longer be considered in calculating penalties for non-willful violations.” In most cases now, the penalties…
US Supreme Court to Rule on FBAR Penalties Case
…on how the non-willful penalty applies, increasing Bittner’s penalties to $2.72 million from $50,000. Before the Fifth Circuit’s ruling, the non-willful penalty issue had proved to be an exception to…
IRS announces new Streamlined Filing Compliance Procedures
…streamlined procedures must complete and submit the “non-willful” certification statement available athttp://www.irs.gov/pub/irs-utl/CertUSResidents.pdf. Advocacy is required to affirmatively and persuasively demonstrate legal grounds for non-willfulness. Do not disclose too much and…
Recent Court Decision Shows Risks of IRS Streamlined Filing Compliance Procedures
…non-willful conduct in a narrative statement signed under penalties of perjury. The certification should include the specific facts (good and bad) surrounding the non-filings, the taxpayer’s personal background, the source…
IRS Official Provides Insights for the new IRS Streamlined Compliance Procedures
…streamlined procedures so both U.S. and non-U.S. residents who certify their tax noncompliance was non-willful can qualify for 5% or zero penalties. At the same time, the IRS said it…
Happy Birthday Streamlined Filing Compliance Procedure
…years. The IRS introduced SFCP in June 2014 for taxpayers who non-willfully failed to disclose foreign assets. Under the SFCP, non-willful conduct is specifically defined as “conduct that is due…