Checklist of tax forms for taxpayers with foreign assets

- By : P. Patel

This year, there is at least one new tax form for US taxpayers to be aware of: Form 8938: Statement of Foreign Financial Accounts. Since there are a number of sometimes obscure U.S. tax forms that U.S. taxpayers are required to file, we have put together the following checklist to help you keep track of

Frequent Scenarios in Offshore Voluntary Disclosures

- By : P. Patel

I have frequently seen the following scenarios in working with clients to determine whether a offshore voluntary disclosure program filing (OVDP) is appropriate and how they should report foreign account. First, a parent or grandparent entrusts a younger generation family member with management of family assets. Often these assets are set aside by persons who

Eleven foreign financial institutions to share their US customer account information

- By : P. Patel

US authorities have offered eleven financial institutions a settlement agreement in which the US government’s investigations in those financial institutions — for aiding tax evasion — and potential prosecution would be dropped. The eleven financial institutions are: 1. Credit Suisse (including Clariden Leu) 2. HSBC Holdings 3. Basler Kantonalbank 4. Wegelin & Co 5. Zuercher

The Teeth of the Foreign Account Tax Compliance Act (FATCA)

- By : P. Patel

The Foreign Account Tax Compliance Act (FATCA) is about disclosure and transparency, but in part is to catch Americans trying to stash money overseas. Controversially, FATCA orders every foreign bank to track down its U.S. account holders, and then share those account holders’ balances and receipts with the IRS.  Uncooperative foreign banks are subject to

American Citizens Abroad (ACA) writes letter to IRS Commissioner regarding unfair offshore asset treatment

- By : P. Patel

American Citizens Abroad (ACA) has written to IRS Commissioner Doug Shulman of the IRS to express the organization’s profound concern that he has not answered the Directive issued by National Taxpayer Advocate Nina Olson. In her report to Congress issued on December 31st, 2011, Ms Olson raised concerns about certain IRS practices, including the way

No tax = No Passport?

- By : P. Patel

The United States Senate has passed a provision in proposed legislation that would allow the State Department to deny, limit or revoke passports to citizens with “seriously” delinquent taxes. The passport provision is part of the Fight Offshore Tax Abuses amendment offered by Senator Carl Levin. The provision is part of the larger highway transportation

New IRS Form 8938 Statement of Foreign Financial Assets is causing significant confusion

- By : P. Patel

As anticipated, IRS Form 8938 Statement of Foreign Financial Assets is causing significant confusion among taxpayers attempting to complete these Forms for filing. Form 8938, Statement of Specified Foreign Financial Assets, is a new reporting form, which will be used to report certain foreign financial assets as required as part of the Hiring Incentives to Restore

HSBC officially provides information on clients having accounts in India to the US Department of Justice and IRS

- By : P. Patel

HSBC this week publicly announced that it has provided available information in its possession to the US authorities probing whether any US-based client used accounts in HSBC India to evade federal income taxes. In April 2011, HSBC Bank USA received summons from the Internal Revenue Service (IRS) asking the entity to produce records with respect

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