by Fresh Start Tax | Aug 31, 2012 | FBAR, Representation, Tax Lawyer
Use Former IRS Agents and Appeals Officers to abate your FBAR penalties and interest.
Call us today for a no cost consult. 1-866-700-1040
What happens if an account holder is required to file an FBAR and fails to do so?
Failure to file an FBAR when required to do so may potentially result in civil penalties, criminal penalties or both. There is no two cases the same.
If you learn you were required to file FBARs for earlier years, you should file the delinquent FBAR reports and attach a statement explaining why the reports are filed late.It is best to hire or consult a FBAR expert.
No penalty will be asserted if the IRS determines that the late filings were due to reasonable cause.
There are numerous reasons that IRS will allow taxpayers to abate both penalties and interest. More can be found on our website. Go to the homepage.
Reasonable Cause for Late FBAR
Whether a failure to file or failure to pay is due to a reasonable cause is based on a consideration of the facts and circumstances of each unique case.
Reasonable cause relief is granted by the IRS when a taxpayer demonstrates that they used exercised ordinary business care and prudence in meeting your tax obligations but nevertheless failed to meet them.
In the abatement of penalties and interest, determining whether you exercised ordinary business care and prudence, the IRS will consider all available information,
1. The reasons given for not meeting your tax obligations,
2. Your compliance history with the IRS,
3. The length of time between your failure to meet your tax obligations and your subsequent compliance, IRS will want to see you took immediate steps to correct the action,
4. Documented circumstances beyond your control.
FBAR reasonable cause may be established if you show that you were not aware of specific obligations to file returns or pay taxes, depending on the facts and circumstances. Among the facts and circumstances that IRS will considered are:
a. Your education level, the higher the level the lesser the chance,
b. Whether or not you have previously been subject to the tax,
c. Whether you have been penalized by the IRS before,
d. Whether there were recent changes in the tax forms or law that you could not reasonably be expected to know about,
e. The level of complexity of a tax or compliance issue,
f. Reliance upon the advice of a professional tax adviser who was informed of the existence of the foreign financial account and the tax laws that apply,
g. Evidence that the foreign account was established for a legitimate purpose,
h. Evidence that there was no effort to intentionally conceal the reporting of income or assets.
As a general rule, Ignorance of the Law, if reasonable, along with a good faith effort to comply with the law if you could not reasonable be expected to know of the FBAR requirement.
As Former IRS agents there are many other compelling facts and factors for late FBAR Filing relief.
Call us today to find out the truth. 1-866-700-1040.
by Fresh Start Tax | Aug 31, 2012 | Income Tax Preparation, Tax Lawyer
There is many excellent income tax preparation tax firms in South Florida especially in Dade, Palm, and Broward County.
Fresh Start Tax LLC is one of those tax firms because of our care, excellence, and affordability.
We are “A” plus rated and without compliant.
Why choose Fresh Start Tax L.L.C.
1. We are comprised of Former IRS Agents with over 60 years of direct IRS experience in the local South Florida offices.
2. Our former IRS Agents were also teaching Instructors and Managers with the IRS.
3. We have prepared thousands of tax returns since 1982 all without audit if possible.
4. All tax returns are prepared and reviewed by two tax professionals for accuracy and making sure we got the most out of every possible tax deductions so you pay the lowest amount allowed by law.
5. We are affordable and assessable.
6. Also have on staff Board Certified Tax Attorneys and CPA’s.
7. We audit proof all tax returns to make sure your tax return gets processed without error and without audit.
Newsletter Tip
As part of our newsletter to our clients here are some tax tips for Students and Parents with College Expenses.
Back-to-School Tips for Students and Parents Paying College Expenses
The IRS offers some tips about education tax benefits that can help offset some college costs for students and parents and we need them all.
These benefits apply to you, your spouse or a dependent for whom you claim an exemption on your tax return.
American Opportunity Credit.
This tax credit, originally created under the American Recovery and Reinvestment Act, is still available for 2012.
This tax credit can be up to $2,500 per eligible student and is available for the first four years of post secondary education at an eligible institution. Forty percent of this credit is refundable, which means that you may be able to receive up to $1,000, even if you don’t owe any taxes.
Qualified expenses include:
1.tuition,
2. fees,
3.course related books,
4.supplies and equipment.
Lifetime Learning Tax Credit.
In 2012, you may be able to claim a Lifetime Learning Credit of up to $2,000 for qualified education expenses paid for a student enrolled in eligible educational institution
There is no limit on the number of years you can claim the Lifetime Learning Credit for an eligible student.
You can claim only one type of education credit per student in the same tax year. However, if you pay college expenses for more than one student in the same year, you can choose to take credits on a per-student, per-year basis. For example, you can claim the American Opportunity Credit for one student and the Lifetime Learning Credit for the other student.
For more information call us today for a no cost professional tax consultation. 954-492-0088
Income Tax Preparation, Former IRS Agents , Fresh Start Tax LLC, South Florida , Broward, Dade, Palm Beach County
by Fresh Start Tax | Aug 30, 2012 | FBAR, Tax Lawyer
Are you are US citizen living in Panama and need FBAR tax help and tax relief call us today and speak directly to a FBAR Tax Attorneys, Tax Lawyers, CPAs or Former IRS Agents.
Whether you have a Civil or Criminal Problem we can help you so stop the worry today.
1-866-700-1040. Panama, SKYPE available.
Because of the volume of US citizens living in Panama, the IRS will have a very active presence working the area of Panama and foreign tax compliance.
FBAR has resulted in the US government receiving over $5 billion in the inaugural years and the IRS intends to find fortunes of unreported income.
If you are in full compliance you have nothing to worry about whatsoever.
However if there are tax returns and FBAR reports outstanding, it would be in your best interest to contact a tax representative and find your way into full compliance with the IRS.
If you beat IRS to the punch by contacting them, the chance of criminal elements are virtual gone the majority of time. We can give you more info simply by calling us.
Bank Secrecy Act
The United States Congress passed the Bank Secrecy Act in 1970 as the first laws to fight money laundering in the United States.
The BSA requires businesses to keep records and file reports that are determined to have a high degree of usefulness in criminal, tax, and regulatory matters.
The documents filed by businesses under the BSA requirements are heavily used by law all major enforcement agencies, both domestic and international to identify, detect and deter money laundering whether it is in furtherance of a criminal enterprise, terrorism, tax evasion or other unlawful activity. This information is now share with many government agencies.
The IRS has there eyes set not only on terrorism and criminal drug activity but now have the resources to work and manage tax evasion.
The Internal Revenue Service is a partner in the U.S. National Money Laundering Strategy. This is a very power team of law enforcement agencies.
The IRS seeks to achieve a balance between enforcement of the money laundering laws and education.So far the IRS has done a very poor job regarding the education because the do it u r selvers are ages behind tax professionals.
New Reporting Requirements by U.S. Taxpayers Holding Foreign Financial Assets (Form 8938)
Taxpayers that have specified foreign financial assets that exceed certain thresholds must report those assets to the IRS on Form 8938, Statement of Specified Foreign Financial Assets.
The new Form 8938 filing requirement does not replace or otherwise affect a taxpayers requirement to file FBAR. A chart providing a comparison of Form 8938 and FBAR requirements, and other information to help taxpayers determine if they are required to file Form 8938.
Call us today for more details. 1-866-700-1040
Hear the truth and stop your worry.
by Fresh Start Tax | Aug 29, 2012 | FBAR, Tax Help, Tax Lawyer
FBAR is the new beast of the Internal Revenue Service.
This reporting form has been a wake up call those taxpayers and persons required to file FBAR reports. It is critical to those needing to file back tax returns to get to work and make sure you have full tax representation before engaging the Internal Revenue Service.
Call us today to hear more about filing and amending FBAR and back tax returns. 1-866-700-1040. Speak to tax attorneys, tax lawyers and former IRS Agents. We are your FBAR tax experts and resource center for FBAR Help.
Information about FBAR
What is the FBAR?
The FBAR is not a tax return.
FBAR is a report filed with the IRS stating that the person filing has a financial interest in, or signatory authority over, financial accounts in a foreign country with an aggregate value exceeding $10,000 at any time during the taxable year, remember that is a aggregate value.
As part of the FBAR reporting requirement, persons or individuals are instructed to indicate on their Form 1040, Schedule B, Part III whether the individual has an interest in a financial account in a foreign country by checking “Yes or “No” in the appropriate box.
The Schedule B will then direct the taxpayer ( individuals ) to the FBAR, which is used to report a financial interest in or authority over bank accounts in a foreign country.Call us if you are not sure about the foreign country application.
The deadline for filing an FBAR for each calendar year is on or before June 30th the following year, no later dates are given.
The FBAR is not attached to the taxpayer’s individual income tax return.
It is therefore not subject to the stringent disclosure restrictions of Internal Revenue Code and the information contained in the FBAR can be shared with other Federal, State and government agencies, other local agencies and authorities.
The instructions to the FBAR explain how tax compliance with the federal statute is accomplished and sets forth the details and the required information and those person(s) obligated to comply with the FBAR reporting requirements as prescribed under the code.
How to amend your FBAR.
Taxpayers or individuals who have previously filed a FBAR form can amend a previously filed FBAR by doing the following:
1. Checking the Amended box in the upper right-hand corner of the first page of the form,
2. Making the needed additions or corrections,
3. Stapling it to a copy of the original FBAR,
4. Attaching a statement explaining the additions or corrections.
Call us today to speak directly to tax attorneys, tax lawyers and former IRS agents who are tax experts in FBAR and all other IRS matters.
Call at 1-866-700-1040. Free tax consults.
by Fresh Start Tax | Aug 28, 2012 | FBAR, IRS Penalties, Tax Lawyer
FBAR Penalties – Tax Attorneys, Lawyers, Former IRS – FBAR Expert – Removing FBAR Penalties
Call us for help resolving your FBAR tax problems and issues.
Former IRS Agents know how to resolve cases. Free tax consult. 1-866-700-1040
For those who were suppose to report and pay taxes as a result of FBAR filings, the penalties phase that IRS imposing is frightening and very costly.
It is possible if reasonable cause exists to abate penalties and interest.
You should contact our office and speak directly to a tax attorney, tax lawyer or former IRS agent to discuss the details of your case for the removal of FBAR penalties.
FBAR Penalties Explained
IRS has a very specific FBAR Penalty Structure
A civil money penalty may be imposed by the IRS for an FBAR violation even if a criminal penalty is imposed for the same violation. Yes, this is double the trouble. This can be found under 31 U.S.C. § 5321(d).
Negligence Penalties for FBAR
There are two negligence penalties which apply generally to all BSA provisions
1. A negligence penalty up to $500 may be assessed against a business for any negligent violation of the BSA, including FBAR violations.
2. An additional penalty up to $50,000 may be assessed for a pattern of negligent violations.
As a general rule these two negligence penalties only apply to trades or businesses, not to individuals.
The FBAR penalties under section 5321(a)(5) and the FBAR warning letter, Letter 3800, should be adequate to address most FBAR violations that are identified. The FBAR warning letter may be issued in the cases where the revenue agent determines none of the 5321(a)(5) FBAR penalties are warranted.Each case is based on its own unique set of facts and can significantly vary due to IRS swings in policy changes.
If the revenue agent ( RA) believes, however, that assertion of a section 5321(a)(6) negligence penalty is warranted in a particular case, the revenue agent should contact a Bank Secrecy Act Program Analyst for guidance.As a general rule, these apply to high dollar cases where the negligence appears more warranted.
Negligence that applies to FBAR.
Actual knowledge of the reporting requirement is not required to find negligence.
If a financial institution or non-financial trade or business exercising ordinary business care and prudence for its particular type of business should have known about the FBAR filing and record keeping requirements, failure to file or maintain records is negligent. Remember, reasonable cause for penalty abatement’s can be tested.
If the failure to file the FBAR or to keep records is due to reasonable cause, and not due to the negligence of the person who had the obligation to file or keep records, the negligence penalty should not be asserted. This is where you need a seasoned tax professional to help you with a situation just like this.
Negligent failure to file does not exist when, despite the exercise of ordinary business care and prudence, the business was unable to file the FBAR or keep the required records.
IRS will use general negligence principles in determining whether or not to apply the negligence penalty.
Although this IRS tax regulation does not apply to FBARs, the information it contains may still be helpful in determining whether the FBAR violation was due to reasonable cause and not due to negligence.
Remember the facts and circumstances differ on each case and no two cases are the same.
Call us if you have questions or need tax representation.1-866-700-1040
