For Tax Professionals: A Guide to the IRS’s Voluntary Disclosure Practice

- By : P. Patel

IRS Commissioner Shulman has invited persons with unreported foreign accounts to come forward and avail themselves of the IRS’s Voluntary Disclosure Practice. That practice is described in the Internal Revenue Manual 9.5.11.9. The Practice has a bearing upon whether  the IRS will conduct a criminal investigation and recommend that the Department of Justice  should commence

New Extended Deadline for OVDI

- By : P. Patel

Last week, late on Friday afternoon, August 26, 2011, the IRS issued a statement indicating that the due date for filing 2011 Offshore Voluntary Disclosure Initiative (OVDI) requests has been extended until September 9, 2011, due to the potential impact of Hurricane Irene. Prior to this statement, the deadline was set to occur on August

FATCAts

- By : P. Patel

If the US dollar is as close as we have come to a global currency — accepted everywhere from Fifth Avenue boutiques to Coca-Cola stands in Afghanistan — why are some American citizens finding it hard to put their money where they would like? According to several reports, and anecdotal evidence, some non-US retail and

Extension of the OVDI Deadline of August 31, 2011

- By : P. Patel

Our office represents dozens of OVDI applicants who will successfully file by the August 31, 2011 deadline. However, some taxpayers may be able to get an extension of the deadline. 90-Day Extension. Taxpayers may request an extension if they can demonstrate a good faith attempt to comply by August 31st. The extension is not automatic.

One Month Countdown: The Deadline is Nearing for U.S. Taxpayers with Undisclosed Accounts to Come Forward

- By : P. Patel

The deadline to enter a complete submission into the 2011 Offshore Voluntary Disclosure Initiative (OVDI) is August 31, 2011, only one month remains and time is running out. The OVDI provides an opportunity for taxpayers with undisclosed offshore accounts to benefit from structured penalties without criminal exposure but only if the taxpayer comes forward before

“Willfulness” When Deciding Whether to Opt Out of 2011 OVDI

- By : P. Patel

The IRS recently posted guidance in its OVDI FAQs (#51) whether taxpayers should opt out of the 2011 Voluntary Disclosure Initiative’s (the “OVDI”) civil penalty structure.  Taxpayers who participate in the OVDI, but feel that their failure to file the FBAR form on an annual basis was “non-will”, may considering opting out. Who makes the determination

As OVDI Amnesty Deadline Nears, Fourth HSBC client customer indicted for tax evasion and fraud this year

- By : P. Patel

Dr. Arvind Ahuja, a neurosurgeon and US citizen, from Greendale, Wis., was indicted yesterday by a federal grand jury in Milwaukee on four counts of willfully filing materially false tax returns and four counts of failing to file Reports of Foreign Bank and Financial Accounts (FBARs), the Department of Justice and Internal Revenue Service (IRS) announced

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

Navigating Foreign Waters: The Complex Requirements of Foreign Accounts Compliance

- By : P. Patel

Tomorrow night our firm will be presenting a three hour seminar to tax professionals on foreign account disclosure, FBARs, and OVDI at the Academy of Continuing Professional Education (ACPE): June 21, 2011 – 7:00 p.m. to 10:00 p.m. Navigating Foreign Waters: The Complex Requirements of Foreign Accounts Compliance Parag P. Patel, Esq. With the IRS

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