Beware: IRS Form 8938 Statement of Specified Foreign Financial Assets

- By : P. Patel

Form 8938, Statement of Specified Foreign Financial Assets, is a new reporting form. Form 8938 will be used to report certain foreign financial assets as required as part of the Hiring Incentives to Restore Employment Act (HIRE Act), which was signed into law in 2010 by President Obama. Form 8938 is effective for 2011 and

OVDI Deadline Extended to September 9, 2011

- By : P. Patel

While our law firm is expeditiously filing OVDI applications and extensions for new OVDI applications, the IRS has extended the OVDI deadline to September 9, 2011 because of the potential impact of Hurricane Irene on taxpayers. The IRS’ announcement was published only three hours ago. The IRS had previously given taxpayers until August 31 to

New York State Bar Association Proposes OVDI Changes to IRS

- By : P. Patel

Our office is a proud member of the New York State Bar Association (NYSBA) after reading their tax section’s detailed comments on the OVDI program. This is not an anti-tax group or self-interested association with radical comments on the OVDI program. On August 5, 2011, the New York State Bar Tax Section submitted written comments

Opt-Out Guidance for the 2011 OVDI

- By : P. Patel

The recent IRS FAQ update clarifies the procedures for opting out of the 2011 OVDI and highlights certain situations in which the IRS recognizes opting out to be justified (or in fact the preferred approach).  This generally includes taxpayers with reasonable cause for failure to file their FBARs. The IRS’ 2011 OVDI FAQ 51 for

Opting-out or Opting-in of OVDI

- By : P. Patel

The IRS last week explained fully the possibility of opting-out of the OVDI and taxpayers’ taking their chances with an IRS examination, particularly where the non-disclosure of assets or income could be proved to not be “wilful”, and has also re-specified the conditions under which taxpayers making voluntary disclosures may qualify for a 5% offshore

For the First Time IRS Issues Information on 2011 Offshore Voluntary Disclosure Initiative (OVDI) in Hindi Language

- By : P. Patel

In an effort to reach all taxpayers, including those ensnared in the pending HSBC subpoena to disclose customer names of non-resident indian customers with offshore accounts, the IRS has published its OVDI materials in Hindi. मीिडया सम्बन्ध कायार्लय वािशंगटन, डी.सी. मीिडया सम्पकर् : 202.622.4000 www.IRS.gov/newsroom लोक सम्पकर् : 800.829.1040 ःवैिच्छक खुलासे की दूसरी िवशेष पहल

2011 Offshore Voluntary Disclosure Initiative (OVDI)

- By : P. Patel

On February 8, 2011, the IRS announced the 2011 Offshore Voluntary Disclosure Initiative (OVDI), designed to bring offshore money back into the U.S. tax system and help people with undisclosed income from hidden offshore accounts get current with their taxes. The OVDI covers calendar years 2003 to 2010, and is available through August 31, 2011