Search Results for: penalties
Willful FBAR Penalties
…return. Taxpayers who willfully file an FBAR late or not at all will be subject to high penalties for willful FBAR violations. A taxpayer will be considered willful if there…
The legal standard of “willfulness”: Opt out to avoid high penalties
…based on the presumption that they can show willfulness in every case and can impose high penalties on all cases. Depending on the circumstances, we recommend some taxpayers to…
The IRS is Assessing Form 3520 Foreign Information Reporting Penalties
…this cause within the IRS Appeals process. Over the years, our office has successfully represented numerous taxpayers with protests of Form 3520 penalties. Patel Law Offices has consulted with hundreds…
Full Analysis of Updated 2012 OVDP Program
…penalties, willful and nonwillful FBAR penalties, penalties for failure to file various information returns, civil fraud penalties, and even criminal penalties. However, outside the 2012 OVDP, the revenue agent has…
2016 US Dept of Justice (DOJ) Tax Division: FBAR penalty collection cases
…FBARs. Pomerantz has a pending case in the U.S. Tax Court contesting tax deficiencies and fraud penalties asserted for 2007, 2008, and 2009. The deficiencies and fraud penalties asserted by…
ABA COMMENTS ON THE 2014 OFFSHORE VOLUNTARY DISCLOSURE PROGRAM AND THE STREAMLINED PROGRAMS
…to “opt out” and have their cases evaluated on their individual merits by the IRS, with the understanding that this could result in either lower overall penalties, or higher penalties….
Fantastic Recommendations for Form 3520
The American Institute of CPAs (AICPA) recently sent excellent recommendations to the Internal Revenue Service (IRS) against the IRS’ systemic assessment of penalties for late-filed Forms 3520, Annual Return To…
The New IRS Voluntary Disclosure Practice: Not a Good Deal for Noncompliant Taxpayers
…the old Offshore Voluntary Disclosure Program (OVDP), taxpayers do not receive automatic protection against criminal/civil penalties and the IRS has wide discretion to impose penalties based on the taxpayer’s level…
Significant FBAR Penalties Upheld by Court
Taxpayers have lost and the US Internal Revenue Service has scored a victory over the taxpayer in Kimble v USA, a court case concerning the reporting of foreign bank accounts….
New FATCA / CRS reporting penalties in India
The new 2023 Tax Budget in India has many new proposals. However, the most important proposal for investors, especially non-resident Indians, is a new penalty for providing inaccurate information for…
Appeals of penalties imposed during the Offshore Voluntary Opt-Out
When a taxpayer has a tax increase though a civil tax audit (or examination, in IRS terminology), a taxpayer has the right to appeal that increase administratively and through court,…
Form 8938, FATCA, FBAR and penalties for all (including bankers)
The IRS and US Treasury have stepped up their efforts toward tracking down delinquent tax payers and enforcing payment of overdue taxes. One of these initiatives is the “Foreign Account…
New Much-Needed Guidance for Non-Willful FBAR violations
…account. The memorandum also notes, however, that lesser penalties (e.g., only imposing the penalty in one year) or greater penalties (i.e., per account penalties) may be imposed when appropriate. Attachment…
Penalty relief for International Information Forms 5471, 5472, and 8865
…that during the processing of the delinquent information return: “Penalties may be assessed in accordance with existing procedures…penalties may be assessed without considering the attached reasonable cause statement. It may…
The IRS’s First-Time Abatement (FTA) Penalty Waiver
…civil penalties. At the same time, the IRS abated nearly $9 billion in penalties. In other words, almost a third of penalties were abated. Few people know about the IRS’s…
IRS gives widespread penalty relief: ACTION REQUIRED
…3520-A (which can generate significant penalties based on the value of the trust/gift) and incurred penalties via the campus assessment program should note that their penalties should now be automatically…
New IRS Disclosure Program Announced for Non-Resident Taxpayers: Streamlined Foreign Offshore Procedures
…instructions outlined below will not be subject to failure-to-file and failure-to-pay penalties, accuracy-related penalties, information return penalties, or FBAR penalties. Even if returns properly filed under these procedures are subsequently…
New Post-OVDP IRS Voluntary Disclosure Procedures Announced
…or accept payments. 3. PENALTIES: The civil penalties could be higher and more uncertain than what would have been assessed under the old Offshore Voluntary Disclosure Program. The civil fraud…
2018 ABA COMMENTS ON THE OFFSHORE VOLUNTARY DISCLOSURE PROGRAM AND THE STREAMLINED PROGRAMS
…penalties or criminal prosecution. However, taxpayers who choose to participate do so at considerable cost in terms of time and resources. While we recognize the Service needs to do…
Helpful Non-willful FBAR penalty case decided by court
…penalties, Mr. Moore was interviewed, received a notice proposing to assess the penalties, afforded an appeal process, and was issued notice of assessment. For 2005, although there was no meaningful…
Forms 3520, 5471 and 5472 Penalty Relief
In IRS Notice 2022-36, the IRS granted relief from certain failure-to-file penalties and certain international information return penalties for most individual and business taxpayers who did not file tax returns…
New Streamlined Domestic Offshore Procedures (SDOP) is a Game Changer
…subject only to the Title 26 miscellaneous offshore penalty and will not be subject to accuracy-related penalties, information return penalties, or FBAR penalties. Even if returns properly filed under these…
Correcting Common FBAR Errors
…requires careful consideration. The IRS may impose penalties if it later determines that the FBAR error was willful or due to negligence. On the other hand, no penalties may be…
New IRS IRM with Updated Streamlined Filing Compliance procedures
…resulted in unduly harsh penalties for inadvertent conduct. Under the revised procedures, in addition to avoiding criminal prosecution, qualifying taxpayers enjoy significantly reduced penalties, and in the case of certain…
IRS posts its “wins” involving offshore accounts
…IRS and to pay more than $2.5 million in civil penalties failing to file Reports of Foreign Bank and Financial Accounts (FBARs). July 25, 2012 — Luis A. Quintero, of…
The Strange Case of U.S. v. Hughes: Willful and Non-Willful (at the Same Time?)
…US taxpayer will pay willful FBAR penalties, non-willful FBAR penalties, or no FBAR penalties. U.S. v. Hughes is a strange case however because the court held that the taxpayer was…
IRS’ first-time penalty abatement administrative waiver (FTA)
…failure-to-deposit penalties. The IRS is not explicit in its Internal Revenue Manual (IRM), but in practice, the IRS has granted FTAs for S corporation and partnership late-filing penalties. For individual…
The “Quiet” or “Silent” Disclosure
…the 2012 OVDP, these penalties are merely discretionary under a “quiet” disclosure. An examiner reviewing a “quiet” disclosure has the ability to assess penalties in excess of those under 2012…
New voluntary disclosure program for offshore accounts in 2011
…any new program is likely to follow the same approach of providing certain penalties for all participants. One reasonable possibility is that a second program might have enhanced understatement penalties…
For Tax Professionals: A Guide to the IRS’s Voluntary Disclosure Practice
…is not designed to address the IRS’s discretion whether to impose civil tax or FBAR penalties. The Internal Revenue Manual states that a voluntary disclosure made by a taxpayer will…