by Fresh Start Tax | Sep 27, 2012 | Expatriate Tax, FBAR, Tax Lawyer
We are FBAR & Expatriate Tax Experts. We are comprised of Tax Attorneys, Tax Lawyers, Former IRS Agents who have over 205 years of professional tax experience and over 60 years of working directly for the IRS.
We can file FBAR reports, amended tax returns and work out a tax settlement.
Free tax consults. 1-866-700-1040.
Stop the worry today. We are a different tax firm from most because we taught tax law at the IRS and know the system and tax policies.
Important news for those living in Greece, Cyprus and the surrounding areas.
The latest news that came out of Lichtenstein regarding FBAR was not a good sign for taxpayers who need to file FBAR and amended tax returns.
Earlier this year Liechtenstein finally informed on their Bank Clients on the U.S. Tax Evasion Request. Lichtenstein was a haven for taxpayers to hide there monies out of the long arm of the IRS and the US government. Uncle Sam won and is pressing on to bigger targets.
The US Government Request of Records.
Request of records were made by the US government of the Bank accounts at’ Liechtensteinische Landesbank AG (LLB)” that contained at least $500,000 at any time since the beginning of 2004 are covered by the information request, according to a May 30 letter sent to a client by the principality’s tax authority.
The US also announced that in the Liechtenstein group request, U.S. authorities are also targeting lawyers, accountants, financial advisers, asset managers and those responsible for professional “asset protection,” who “conspired with a U.S. taxpayer to commit U.S. crimes or provided assistance,” according to the letter.
IRS is continuing to amass more information and pursue more people internationally, the risk to individuals hiding assets offshore is increasing.
Our advice, file before IRS finds you! We can limit your exposure today.
Some of the areas that IRS announced initiatives were in Greece, Cyprus, Dubai , Hong Kong and Japan. The long arm of the IRS will be making its way soon.
The IRS collected over $5 Billion big ones as a result of the first two FBAR initiatives and the IRS already knows were to hunt. The fear of criminal prosecution looms large.
IRS wants to give those hiding money in foreign accounts a tough, fair way to resolve their tax problems once and for all. And it gives people a chance to come in before IRS find you.
The goal of the Internal Revenue Service is to get people back into the U.S. tax system. Criminal investigators and Revenue Agents are teaming up to combat international tax evasion. New Government Divisions are being set up to make this a top priority for the IRS.
IRS also has additional cases and banks under review. The situation will just get worse in the months ahead for those hiding assets and income offshore.
IRS is even so bold as to post all FBAR victories including prison sentences on their website.
We have successfully handled a number of FBAR cases and we can take the fear and worry away. Call us today. 1-866-700-1040.
FBAR, Greece, Cyprus, Unfiled, Late FBAR , Tax Attorney Lawyers, Former IRS , Representation, Civil & Criminal , Expatriate Help
by Fresh Start Tax | Sep 27, 2012 | Expatriate Tax, FBAR, IRS Tax Problem, Tax Lawyer
Unfiled, Delinquent FBAR – Liechtenstein: A Sign of What’s to Come
Stop the worry today! We have handled many successful FBAR clients, including those with an unfiled or delinquent FBAR.
Call us today and we can explain to you how to get back in the system. do not let Unfiled or Delinquent FBARs stress you out. We can settle your case without worry.
There has been a natural fear built in the FBAR program and we can help relieve you of the fear and worry. We can file all back FBAR reports, file your amended 1040’s and work out a successful tax settlement.
Most of the time we will recommend “quiet settlements.”
We have over 205 years of professional tax experience and over 60 years of direct experience at the IRS in the local, district and regional offices of the Internal Revenue Service.
We taught Tax Law at the IRS and know all the tax polices and tax procedure to settle your case. 1-866-700-1040.
Liechtenstein
With the explosion of the UBS the domino’s started to fall and one of the questions everyone was asking was, ” would Liechtenstein fall ?”.
It did and now, taxpayers are scrambling.
Liechtenstein finally informed on their Bank Clients on the U.S. Tax Evasion Request
Liechtenstein has told American clients of the principality’s oldest bank that U.S. authorities have requested their account data as they widen a tax evasion and potential tax fraud probe.
Accounts at‘ Liechtensteinische Landesbank AG (LLB)” that contained at least $500,000 at any time since the beginning of 2004 are covered by the information request, according to a May 30 letter sent to a client by the principality’s tax authority.
Liechtenstein facilitated the so-called group request from the U.S. by amending a tax law in March.
Liechtenstein’s second-biggest bank, also known as LLB, is one of 11 financial firms, including Credit Suisse Group AG (CSGN) and Julius Baer Group Ltd. (BAER), being investigated as part of a U.S. probe of offshore tax evasion.
The Stakes
The stakes for Swiss banks were raised after the Department of Justice indicted Wegelin & Co. on Feb. 2 for allegedly helping customers hide money from the Internal Revenue Service. The IRS is taking a very aggressive approach to collect monies on FBAR and are funding huge amounts of revenue to go after the deep foreign taxpayers pockets of monies.
The Motivation.
“The motivation for the law is the Landesbank issue, which has accelerated the process,” said Mario Frick, a partner at Liechtenstein law firm Seeger, Frick & Partner. “For a certain period of time, it will be possible to make group requests to clean up the past and the issue of legacy assets.”
Landesbank, which had 48.1 billion Swiss francs ($50 billion) of assets under management at the end of 2011, confirmed it has received a group request via the Liechtenstein authorities, Cyrill Sele, a spokesman for the bank in Vaduz, said in an e-mailed response to questions.
Third Parties
“The ruling to extend the period of applicability back to the tax year 2001 in the administrative assistance law with the U.S. is limited to 12 months from the date it comes into force,” said Sele. It “is closely linked to the ongoing U.S. offshore voluntary disclosure program.”
Those affected by the U.S. request for information have the right to appeal, according to the letter.
In the Liechtenstein group request, U.S. authorities are also targeting lawyers, accountants, financial advisers, asset managers and those responsible for professional “asset protection,” who “conspired with a U.S. taxpayer to commit U.S. crimes or provided assistance,” according to the letter.
The sign of what is to come
“It’s a sign that the U.S. is not just focused on Switzerland, but on all offshore jurisdictions with Singapore, Dubai and Hong Kong very much on the radar screen,” said Milan Patel, a partner at Zurich-based law firm Anaford AG. “This request appears to be much more expansive than the agreement with Switzerland and aims to get information on third parties.”
UBS Precedent
Swiss banks are seeking a settlement with the U.S. as Liechtenstein’s larger Alpine neighbor, the world’s biggest center for offshore wealth, tries to shed its image as a haven for undeclared assets. That may involve negotiating separate deferred prosecution agreements with U.S. authorities.
UBS AG, the biggest Swiss bank, avoided prosecution in 2009 by paying $780 million, admitting it fostered tax evasion and giving the IRS data on more than 250 accounts. It later turned over data on another 4,450 accounts. Before the UBS deferred- prosecution deal, U.S. prosecutors said the bank managed $20 billion in undeclared assets for American clients.
Landesbank declined to comment on whether the handover of account data under the group request would allow the bank to enter a deferred prosecution agreement.
Christof Buri, a spokesman for larger Liechtenstein rival LGT Group, which had 86.9 billion francs of assets under management at the end of last year, said the bank only has tax- compliant U.S. clients. The bank, owned by Liechtenstein’s princely family, declined to comment further.
Unwinding Secrecy
Liechtenstein started to unwind secrecy after data stolen from LGT was used by Germany to prosecute tax evaders in 2008. Former Deutsche Post AG (DPW) Chief Executive Officer Klaus Zumwinkel was convicted of tax evasion and received a two-year suspended prison sentence plus a penalty of 1 million euros ($1.25 million).
Under pressure from the U.S., Germany and France, Liechtenstein said in March 2009 that it would conform with tax standards set out by the Organization for Economic Cooperation and Development to avoid being blacklisted as a tax haven.
Markus Amman, a spokesman for the Liechtenstein government, and Katja Gey, who helped negotiate a tax deal for the principality with the U.K., didn’t answer calls to their mobile phones.
“It’s only a question of time, say three to five years, when this type of group request will become standard for future business,” said lawyer Frick. “Liechtenstein is a small country that has had a reputation for not cooperating in the field of tax and that’s something that has to change. We have to find new areas of business.
”Contribution made by Bloomberg/ Dylan Griffiths in Geneva. thank you.
The Bottom Line. Unfiled, Delinquent FBAR
Taxpayers with worries should contact our office today for a no cost consult. We can inform you of the possibility of making a quiet disclosure. 1-866-700-1040.
Speak to a Expert FBAR Tax Attorney, Tax Lawyer, CPA or Former IRS Agents.
Unfiled, Delinquent FBAR – Liechtenstein: A Sign of What’s to Come
by Fresh Start Tax | Sep 26, 2012 | Offer in Compromise, Tax Help
IRS accepts 27% of all offers in compromise filed.
Last year that accounted for 14,000 plus offers being accepted by the IRS. An Offer in Compromise a IRS tax settlement.
Being a Former IRS Agent and teaching Instructor I have seen taxpayers struggle needlessly for years in an effort to settle their tax bills with the IRS. The old system was broke and the truth of the matter, the old Offer in Compromise Program was completely broke and was in need of much improvement.
It was almost impossible to get an Offer in Compromise through the IRS because the system was to hard, to complicated, unachievable the general attitude of the IRS by the Agents to the program was to simply reject offers in compromise.
Finally IRS stepped up to the plate and completely revamped the program and now the question remains, will IRS follow through and accept offers under the new Fresh Start Program. The changes made are huge. I firmly believe if the IRS follows up with its press releases and administers the program like it is fashioned out, the taxpayers can breathe again and be free of the bondage which they have be held captive too.
The New Fresh Start Program, the affordable tax settlement process:
The Internal Revenue Service announced another expansion of its “Fresh Start” initiative by offering more flexible terms to its Offer in Compromise (OIC) program that will enable some of the most financially distressed taxpayers to clear up their tax problems and in many cases more quickly and affordable than in the past and this is welcome news.
The new Fresh Start Program focuses on the financial analysis used to determine which taxpayers qualify for an OIC. This announcement also enables some taxpayers to resolve their tax problems in as little as one to two years compared to four or five years in the past.
Changes to the program include:
- Revising the calculation for the taxpayer’s future income.
- Allowing taxpayers to repay their student loans.
- Allowing taxpayers to pay state and local delinquent taxes.
- Expanding the Allowable Living Expense allowance category and amount.
What is a Offer in Compromise? – Doubt as to Collectibility
In general, an OIC is an agreement between a taxpayer and the IRS that settles the taxpayer’s tax liabilities for less than the full amount owed. An OIC is generally not accepted if the IRS believes the liability can be paid in full as a lump sum or a through payment agreement. There are two other offer programs not mentioned in this blog. Call us for more details, 1-866-700-1040.
The IRS looks at the taxpayer’s income and assets to make a determination of the taxpayer’s reasonable collection potential. OICs are subject to acceptance on legal requirements. To get the Offer to acceptance process is both lengthy and a bit complicated.
The IRS recognizes that many taxpayers are still struggling to pay their bills so the agency has been working to put in place common-sense changes to the OIC program to more closely reflect real-world situations. IRS finally got the picture.
When the IRS calculates a taxpayer’s reasonable collection potential, it will now look at only one year of future income for offers paid in five or fewer months, down from four years, and two years of future income for offers paid in six to 24 months, down from five years. All offers must be fully paid within 24 months of the date the offer is accepted.
Other changes to the OIC program include narrowed parameters and clarification of when a dissipated asset will be included in the calculation of reasonable collection potential. In addition, equity in income producing assets generally will not be included in the calculation of reasonable collection potential for on-going businesses.
Changes to the Allowable Living Expenses Section
The Allowable Living Expense standards are used in cases requiring financial analysis to determine a taxpayer’s ability to pay. The standard allowances provide consistency and fairness in collection determinations by incorporating average expenditures for basic necessities for citizens in similar geographic areas. These standards are used when evaluating installment agreement and offer in compromise requests.
Changes to The National Standard Section
The National Standard miscellaneous allowance has been expanded to include additional items. Taxpayers can use the miscellaneous allowance for expenses such as credit card payments and bank fees and charges.
Changes to The Miscellaneous Section
Guidance has also been clarified to allow payments for loans guaranteed by the federal government for the taxpayer’s post-high school education. In addition, payments for delinquent state and local taxes may be allowed based on percentage basis of tax owed to the state and IRS.
Offers in Compromise, New Tax Settlement Program ,Fresh Start Tax, Affordable Tax Solutions
by Fresh Start Tax | Sep 26, 2012 | FBAR, Offshore Program, Offshore Tax Problems, Tax Help, Tax Lawyer
If you are a US citizen living in Switzerland or the surrounding area and need FBAR help, call us today.
We have a number of Switzerland FBAR clients and understand the tax issues and related tax problems that can occur.
We are comprised of Board Certified Tax Attorneys, Tax Lawyers, CPA’s and Former IRS Agents who have over 60 years with the IRS.
Tax News – February 2, 2012
“Switzerland’s oldest bank was indicted back on February 02, 2012 for conspiring with U.S. taxpayers and others to hide more than $1.2 billion in secret offshore foreign banks and financial accounts and the income they generated from the IRS.
It was the first time in history that an overseas bank was indicted by the United States for facilitating tax fraud by U.S. taxpayers.”
IRS will be paying closer attention to US taxpayers living abroad having overseas bank accounts and financial interests. Large amounts of funds have been placed beyond the reach of the FEDS and they plan to do something about that.
Since IRS received over $5.5 Billion over the last five years as a result of FBAR the IRS plans to ramp up enforcement because of the large pool of revenue sitting in the pockets of foreign banks and financial institutions. The IRS has committed over $500,000 million dollars in the next fiscal year to the areas of tax compliance, no filers and tax enforcement.
If you have nothing to hide or squirm about you can certainly file and report FBAR on your own. However, if you have anything that can make you nervous you should contact us for a free tax consult. 1-866-700-1040.
How you should report your account to the IRS.
Filers of FBAR should report their foreign accounts using the following method:
A. (1) completing boxes 7a and 7b on Form 1040 Schedule B, box 3 on the Form 1041 “Other Information” section, box 10 on Form 1065 Schedule B, or boxes 6a and 6b on Form 1120 Schedule N and (2) completing Form TD F 90-22.1 (PDF).
FBAR due dates:
The FBAR is due by June 30 of the year following the year that the account holder meets the $10,000 threshold.
The granting by the Internal Revenue Service of an extension to file Federal income tax returns does not extend the due date for filing an FBAR.
Taxpayers who file FBAR cannot request an extension of the FBAR due date.
If a filer does not have all the available information to file the return by June 30, they should file as complete a return as they can and amend the document when the additional or new information becomes available.
The issue of multiple owners of Foreign Accounts
We have had the same issues come up with a our Switzerland clients that bears a comment. With respect to the issue of Multiple Owners of Foreign Accounts:
In the case of co-owners, each taxpayer who makes a voluntary disclosure will be liable for the penalty on his percentage of the highest aggregate balance in the account. His/her voluntary disclosure is effective as to his tax liability only. It does not cover the other co-owners.
The IRS may examine any co-owner who does not make a voluntary disclosure. Co-owners examined by the IRS will be subject to all appropriate penalties or tax crimes.
FBAR Help, US Taxpayers living in Switzerland, Tax Attorneys, Lawyers, Former IRS, FBAR International Experts.
by Fresh Start Tax | Sep 25, 2012 | FBAR, IRS Tax Problem, Representation, Tax Lawyer
We are a World Wide Tax Firm specializing in FBAR, Offshore and Overseas IRS tax issues, tax resolution and IRS negotiation.
We have a number of current clients in China and are familiar with the tax issues and concerns of those U.S. citizens living in China and the surrounding areas.
The long hand of the US Government including the IRS is reaching into the pockets of those taxpayers world wide including those living in China required to pay taxes on foreign earnings.
Over the past 3 years the IRS has collected over $5 billion dollars from 33,000 taxpayers who have come forward to report earnings from overseas accounts.
The IRS knows this is just the tip of the iceberg and with the hiring many new Revenue Agents, the IRS will be on the hunt for more tax dollars, and yes be sure, IRS can always hold over the heads of taxpayers the fear of a criminal tribunal and prison sentences.
Most taxpayers will have little to fear, but for those who have civil and or criminal problems we are here to help file and report.
We can help answer any questions you may have regarding any civil or potential criminal tax matters of issues.
Who is required to File and Report – FBAR
If you have a financial interest in or signature authority over a foreign financial account, including a bank account, brokerage account, mutual fund, trust, or other type of foreign financial account, the Bank Secrecy Act may require you to report the account yearly to the Internal Revenue Service by filing Form TD F 90-22.1, Report of Foreign Bank and Financial Accounts (FBAR). Call us for any questions. 1-866-700-1040.
The FBAR is required because foreign banks as well as financial institutions may not be subject to the same reporting requirements as domestic financial institutions. you must check with each country and institution.
The FBAR is a tool to help the Internal Revenue Service and the United States government identify persons who may be using foreign financial accounts or financial institutions to evade United States Law.
Tax Investigators such as IRS Revenue Agents and Criminal Investigators use FBARs to help identify or trace funds used for illicit purposes such as concealment, terrorism, drug dealings etc to identify unreported income maintained or generated abroad.
Why should taxpayers make a voluntary disclosure.
Taxpayers with undisclosed foreign accounts in financial institutions or entities should make a voluntary disclosure because it is the law and that enables them to become compliant, avoid substantial civil penalties and generally eliminate the risk of criminal prosecution which is tremendous leverage..
Making a” voluntary disclosure” to the US Government also provides the opportunity to calculate, with a reasonable degree of certainty, the total cost of resolving all offshore tax issues including penalties and interest.
Taxpayers who do not submit a voluntary disclosure ( VD ) run the risk of detection by the IRS and the imposition of substantial penalties, including the fraud penalty and foreign information return penalties, and an increased risk of criminal prosecution.
The IRS remains actively engaged in rooting out the identities of those with undisclosed foreign accounts. Moreover, increasingly this information is available to the IRS under tax treaties, through submissions by whistle blowers, and will become more available as the Foreign Account Tax Compliance Act (FATCA) and Foreign Financial Asset Reporting very become effective.
Each taxpayers situation is unique different. There are no two cases the same. You should seek professional representation in dealing with these issues. Call us today and speak to us under attorney-client privileged. We are affordable, friendly and trustworthy
CHINA, FBAR Filing, Reporting , U.S. Tax Attorneys, Former IRS, FBAR Experts , Civil & Criminal, Affordable, FBAR Tax Experts
