Search Results for: penalties
IRS Revises Delinquent International Information Return Submission Procedure (DIIRSP)
…statement. This could mean that penalties could be assessed without consideration of reasonable cause. This could also mean (doubtfully) that penalties may not be assessed at all. Again, unfortunately, the…
New IRS Guidelines for Willful FBAR violations
…some much-needed guidance to taxpayers and examiners alike for FBAR penalties. Since the actual amount of the penalties is still largely determined based upon “facts and circumstances” there remains a…
One Month Countdown: The Deadline is Nearing for U.S. Taxpayers with Undisclosed Accounts to Come Forward
…eight years as well as accuracy related and/or delinquency penalties; and participants must file all original and amended tax returns and include payments for taxes, interest and accuracy related penalties….
Instructions for New Streamlined Filing Compliance Procedures for Non-Resident, Non-Filer U.S. Taxpayers
…and owing. For returns determined to be high risk, failure to file and failure to pay penalties may be imposed in accordance with U.S. federal tax laws and FBAR penalties…
Top 10 factors to consider before deciding to opt out of OVDI or OVDP
…the taxpayer with certainty with respect to the magnitude of the penalties to be assessed and assurance that such penalties will not be greater than could otherwise be applied (including…
New FinCEN Form 114 (FBAR) Filing Rules Announced
…the penalties can be overwhelmingly high, there have been a host of Voluntary Disclosure Programs offered by the IRS that can potentially reduce or even eliminate the penalties noted above….
Substantially Completed Form 5471 is Required to be Filed
IRS has recently released a new International Practice Unit (IPU) providing guidance to its examiners on the monetary penalties applicable if certain categories of U.S. shareholders fail to comply with…
Comments on IRS Form 3520 to Report Foreign Gifts
…find the IRS ultimately abates (canceling) almost all such penalties. The last comment asks the IRS to abate Form 3520 late penalties via the expansion of its popular First Time…
Time Running Out for HSBC India accountholders sought by IRS
…imposition of additional taxes, interest and penalties. HSBC accountholders who want to avoid the excessive penalties that may be imposed by the IRS may consider the 2011 IRS Offshore Voluntary…
Internal Revenue Service again issues annual reminder to US persons to report foreign accounts and foreign income
…and beyond the civil penalties and a myriad of other penalties that may apply. The criminal penalties can include an additional fine up to $500,000 and up to 10 years…
Analysis: IRS New Disclosure Program
…It is not clear whether other civil penalties will be imposed on the other years in the disclosure period. Taxpayers who wish to request the imposition of lower accuracy-related penalties…
IRS Provides Form 5471 Information-Filing Relief For Dormant Foreign Corps.
…with respect to dormant foreign corporations and will not be subject to penalties related to the failure to timely file a complete Form 5471 and to timely furnish information requested…
IRS’s four offshore programs have netted 39,000 taxpayers and over $5.5 billion
…penalties greater than $1 million represented about 6 percent of all the 2009 OVDP cases, but accounted for almost half of all offshore penalties. Taxpayers from these cases disclosed a…
2 recent IRS developments that will impact Indian Americans
…foreign country with assets in excess of $10,000 Failure to comply with these can attract civil as well as criminal penalties. Civil penalties can be as high as 50% of…
American Citizens Abroad (ACA) writes letter to IRS Commissioner regarding unfair offshore asset treatment
…disclosure program (OVDP) unfairly, and she ordered several IRS divisions to take various steps to correct this treatment, including allowing taxpayers who had paid penalties under the OVDP to request…
To Opt Out or Not Opt Out: That is the Question
…mandatory under the 2011 OVDI/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…
The Risks of “Opting Out” of OVDI
Under the 2011 OVDI voluntary disclosure program, the penalties for failing to timely file Foreign Bank Account Reports, (FBAR’s) and the penalties for failure to file information returns (such as…
File a Protective Claim for Refund for Possible OVDP Opt Out Cases
…intent, then the decision to opt out of the voluntary disclosure program (and seek a regular examination with lower penalties) should be given serious consideration. After all, not every offshore…
New York State Bar Association Proposes OVDI Changes to IRS
…to stay in the voluntary disclosure programs and accept inappropriately large penalties because they fear that if they opt out, they automatically will be assessed with huge information return penalties….
Argue for No Penalty and a Warning Letter for FBAR Violations
The IRS may send a warning letter in lieu of asserting penalties for failure to file a Form TD F 90-22.1, “Report of Foreign Bank and Financial Accounts,” if it…
Form 3520 Penalty Relief
We have recently posted about the IRS’s broad relief for late filing penalties for 2019 and 2020 tax returns. During the height of the pandemic, taxpayers experienced many obstacles to…
2011 Offshore Voluntary Disclosure Initiative (OVDI)
…and provides for reduced civil penalties than would apply if the IRS were to discover the taxpayer’s noncompliance in this area. The terms of the 2011 OVDI differ from the…
National Taxpayer Advocate Fights for FTA Penalty Relief from the IRS
…these penalties, but there were about 4.3 million taxpayers eligible for relief from these penalties who did not receive it. The result was that a relatively small percentage of sophisticated…
Is First-Time Abatement Applicable In International Penalty Cases?
…also known as IRM, specifically IRM 8.11.5, Penalties Worked in Appeals, International Penalties. According to the IRM code, FTA waivers are generally not provided or applicable to international penalty cases….
Beware Expected Employee Retention Credit (ERC) Audits
…that was fraudulently claimed. In addition to the ERC fraud penalty, the IRS may also impose other penalties, such as accuracy-related penalties and interest. Accuracy-related penalties are imposed if a…
Analysis of the new 2012 Offshore Voluntary Disclosure Program (OVDP)
…the 2003 programs). The many voluntary disclosure initiatives typically offer reduced penalties in exchange for taxpayers voluntarily coming into compliance before the IRS is aware of their prior tax indiscretions….
Avoiding and Defining Willfulness
…Starting in 2009, the IRS offered the Offshore Voluntary Disclosure Program(“OVDP”) as a means for taxpayers to avoid criminal penalties and secure fixed terms when resolving civil liabilities. Under the…
What if You Missed the OVDI Deadline?
…expiration of the IRS’s OVDI program. While the civil penalties may be different (could be higher or lower than the penalties that were imposed under the OVDI program based on…
What HSBC India Accountholders Can Expect From the IRS
…(willingly or not) in the OVDI may face an IRS unwilling to negotiate, notwithstanding facts supporting the reduction or elimination of penalties. Taxpayers who believe their situation warrants reduced penalties…
Foreign bank account reports (FBARs) and the 2011 Offshore Voluntary Disclosure Initiative (2011 OVDI)
…would allow U.S. persons to report unreported foreign financial accounts and other foreign assets to the IRS and obtain a significant reduction in civil penalties as well as in the…