Are you Afraid to File FBAR and Amending your Tax Returns?
Do not be worried, file. Stop the worry. 1-866-700-1040
You need to file your FBAR Reports and file your amended tax returns before IRS comes knocking.
The bottom line is this, if you file before contacted by the IRS you will probably avoid prison time however, you still will have to pay the tax but the penalties can possibly be settled.
Not everyone is a tax cheat or a tax crook.
Not everyone is going to jail or will be sentenced. The IRS hangs over the head of all FBAR filers the possibility of sentencing. The CI unit of the IRS or the Criminal Division is not interested in individuals who did not know or the individual who was not willful or intentional of not filing FBARS and amended tax returns, IRS is interested in the large dollar individuals with the intent to deceive and evade paying taxes.
It is critical if you are to take anything out of this article is to absolutely make sure you file your FBAR report and file any and all amended tax returns that should and need to be addressed.
Without question, the IRS will eventual hunt you down. The Foreign banks and financial institutions have gave way to US pressure and are turning over names and bank accounts numbers and dollar amounts to the DOJ and the IRS.
There is now a matching program that is taking place. Once the IRS CADE 2 computers are fully loaded, individuals will be getting letters and notices from IRS and possibly from the criminal division about unfiled FBAR Reports and income that individuals have failed to report.
When UBS gave way Lichtenstein followed and soon everyone will be country will be included. Most investors have little to worry about. They can simple file FBAR and amend their tax return, pay the tax and walk away.
You may want to call our office to find out more detail regarding your individual situation.
Each case is unique and there are no two cases the same.
So , what ever you do, make sure your file all FBAR’s and amended tax returns before the IRS finds you, Michael D. Sullivan
The requirements:
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 any other type of foreign financial account, the Bank Secrecy Act ( BSA ) 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). You can find the form on our website.
If you are required to file a federal income tax return and fail to do so, or you fail to pay the amount of tax shown on your federal income tax return, you may be subject to a penalty under Internal Revenue Code (IRC) section 6651, unless you show that the failure is due to reasonable cause and not due to willful neglect.Call us to avoid penalty and interest. 1-866-700-1040. Speak directly to a tax attorney.
The Penalty
The penalty is 5 percent of the amount of tax required to be shown on the return. If the failure continues for more than one month, an additional 5 percent penalty may be imposed for each month or fraction thereof during which the failure continues.
The total failure to file penalty cannot exceed 25 percent.
Please Note – that there is no penalty if no tax is due.
If you fail to pay you tax
If you fail to pay the amount of tax shown on your federal income tax return, you may be subject to a penalty for failing to pay under IRC section 6651(a)(2), unless you show that the failure is due to reasonable cause and not due to willful neglect.
The penalty begins running on the due date of the return (determined without regard to any extension of time for filing the return) and is 1/2 percent of the amount of tax shown on the return. If the failure continues for more than one month, an additional 1/2 percent penalty may be imposed for each additional month or fraction thereof that the amount remains unpaid.
The total failure to pay penalty cannot exceed 25 percent.
Note that there is no penalty if no tax is due.
Under IRC section 6651(c)(1), the failure to file penalty is reduced by the amount of the failure to pay penalty for any month in which both apply.
Call us today and speak directly to a Tax Attorney or Tax Lawyer. 1-866-700-1040
