by Fresh Start Tax | Jun 25, 2013 | Expatriate Tax, FBAR
If you cannot pay your IRS tax as a result of Offshore, FBAR, International Tax Filings call us today and speak to affordable tax attorneys, tax lawyers, certified public accountant, or former IRS agents.
We have over 206 years of professional tax experience and over 60 years of working directly for the Internal Revenue Service.
We have been in private practice since 1982 and we are A+ rated by the Better Business Bureau.
On staff are former IRS agents who have worked the IRS offer in compromise program better known as the tax settlement or workout program.
IRS you cannot pay IRS
Those taxpayers or persons who cannot pay their IRS tax debt will be required to fall under the Internal Revenue Service collection division protocol.
Under the IRS protocol you will need to send to the IRS a copy of your completed and signed Offshore Voluntary Disclosures letter and attachment.
If you cannot pay the total amount of tax, interest, and penalties as described above, submit your proposed payment arrangement and a completed Collection Information Statement ( Form 433-A, Collection Information Statement for Wage Earners and Self-employed Individuals, or Form 433-B, Collection Information Statement for Businesses, as appropriate).
You can find these forms on our website.
Simply go to the homepage, click on the top toolbar under IRS forms and you will find the various financial statements.
As a former IRS agent I will tell you it is in your best interest to have a tax professional review these before you turn them into the Internal Revenue Service.
The IRS Review of your Financial Statement
As a Former IRS agent I have reviewed thousands of financial statements submitted by taxpayers to the Internal Revenue Service for review.
It is critically important that you understand how the IRS reviews your financial statement.
The Internal Revenue Service will expect you to possibly liquidate some of your assets to pay your IRS debt.
Before you do that, you should you consider calling us for free initial tax consultation so we can explain to you various methods in dealing with the IRS situation.
As a general rule, IRS will need to close your case off the IRS enforcement or collection computer.
They will do so after a complete review and analysis of these current financial statements. IRS at some point will ask you to completely document the financial statement with all income, expenses, along with 3 to 6 months worth of bank statements.
Make sure you fill out an honest and accurate financial statement.
After that review IRS will place you in one of three categories.
IRS will either place you into a current tax hardship which means you cannot pay the tax at this time, IRS will insist on a monthly installment or payment plan or IRS can recommend the filing of an offer in compromise or a tax debt settlement.
Remember your current financial statement will dictate how the IRS is going to deal with you that’s why it is critically important to have a tax professional represent you if you have any delicate issues are matters.
If you have a straightforward simple financial statement there is no reason why you cannot handle the representation yourself.
Contact us today for a free initial tax consultation you can speak directly to a true tax professional.
Cannot Pay IRS Tax – Offshore, FBAR, International Tax Workouts – Affordable Tax Experts
IRS will then be looking at your disposable income IRS will be comparing your disposable income with necessary living expenses. The job of the IRS is to collect as much money as they can. I arrest is not want to become a loan agency. I advise all taxpayers that fall in the spin to killer situation to contact us and have their IRS financial statement ready for us to review.
by Fresh Start Tax | Dec 23, 2012 | Expatriate Tax
Expatriation Problems – Tax & IRS Problems – Attorneys, Former IRS
We are comprised of IRS Tax Lawyers, Board Certified Tax Attorneys, CPA’s, Former IRS Agents with over 60 years of combined IRS experience.
Call us for a no cost consultation if you have any Tax or IRS problems.
Expatriation Tax
The expatriation tax provisions under Internal Revenue Code (IRC) sections 877 and 877A apply to US citizens who have renounced their citizenship and long-term residents (as defined in IRC 877(e)) who have ended their US resident status for federal tax purposes. Different rules apply according to the date upon which you expatriated.
Definition – What is a Expatriate
In its broadest sense, an expatriate is any person living in a different country from where he is a citizen. In common usage, the term is often used in the context of professionals sent abroad by their companies, as opposed to locally hired staff.
There is no set definition and usage does vary depending on context and individual preferences and prejudices.” per Wikipedia”
Have not filed an Income Tax Return(s)
Among the various new requirements contained in IRC 877 and 877A, individuals that renounced their US citizenship or terminated their long-term resident status for tax purposes after June 3, 2004 are required to certify to the IRS that they have satisfied all federal tax requirements for the 5 years prior to expatriation.
If all federal tax requirements have not been satisfied for the 5 years prior to expatriation, even if the individual does not meet the monetary thresholds in IRC 877 or 877A, the individual will be subject to the IRC 877 and 877A expatriation tax provisions.
Individuals that have expatriated should file all tax returns that are due, regardless of whether or not full payment can be made with the return.
Call us today to hear more about your individual situation. 1-866-700-1040.
Depending on an individual’s tax circumstances, a taxpayer filing late may qualify for a payment plan.
All payment plans will require continued compliance with all filing and payment responsibilities after the plan is approved.
Expatriation on or after June 16, 2008
If you expatriated after June 16, 2008, the new IRC 877A expatriation rules apply to you if any of the following statements apply.
1. Your average annual net income tax for the 5 years ending before the date of expatriation or termination of residency is more than a specified amount that is adjusted for inflation ($145,000 for 2009 and 2010, $147,000 for 2011, and $151,000 for 2012).
2. The taxpayers net worth is $2 million or more on the date of your expatriation or termination of residency,
3. You fail to certify on Form 8854 that you have complied with all U.S. federal tax obligations for the 5 years preceding the date of your expatriation or termination of residency.
Relinquishing citizenship
IRC 877A(g)(4) provides that a citizen will be treated as relinquishing his or her U.S. citizenship on the earliest of four possible dates:
1. the date the individual renounces his or her U.S. nationality before a diplomatic or consular officer of the U.S., provided the renunciation is subsequently approved by the issuance to the individual of a certificate of loss of nationality by the U.S. Department of State,
2. the date the individual furnishes to the U.S. Department of State a signed statement of voluntary relinquishment of U.S. nationality confirming the performance of an act of expatriation specified in paragraph (1), (2), (3), or (4) of section 349(a) of the Immigration and Nationality Act (8 U.S.C. 1481(a)(1)-(4)), provided the voluntary relinquishmentt is subsequently approved by the issuance to the individual of a certificate of loss of nationality by the U.S. Department of State,
3. the date the U.S. Department of State issues to the individual a certificate of loss of nationality or,
4. the date a U.S. court cancels a naturalized citizen’s certificate of naturalization.
Expatriation Problems – Tax & IRS Problems – Attorneys, Former IRS
Call us today for a no cost professional tax consultation. 1-866-700-1040
by Fresh Start Tax | Nov 11, 2012 | Back Taxes, Expatriate Tax, FBAR, IRS Representation, IRS Tax Debt, IRS Tax Problem, Tax Lawyer, Tax Returns, Tax Settlements
Australia- FBAR, EXPAT – Attorney, Lawyers, Former IRS – Filing, Penalties, Settlement – Affordable Tax Experts
Do not be bullied by the IRS. Find out the truth about FBAR disclosures to the IRS.
You have options. We can file and settle your case.
Call us today, we are comprised of Board Certified Tax Attorneys, Tax Lawyers, CPA’s and Former IRS Agents, Managers and Instructors. 1-866-700-1040.
We have over 206 years of total tax experience and over 60 years of direct IRS experience in resolving IRS tax issues and tax problems. We are a full service tax firm with all work being done in house by true tax experts.
We are true Tax Experts of FBAR and Expatriate Tax Issues.
There is a great deal on the web and in press releases that has scared many FBAR filers and Expats into taking position on the filing of FBAR that makes one believe that everything must go through Criminal Investigation.
The reality is that few taxpayers are tax criminals. What is so sad it that the IRS has scared everyone to death regarding FBAR.
The truth be told you have the option of making a Silent Disclosure.
Some taxpayers have already made quiet disclosures by filing amended returns.
Before a decision is made on each case, a tax attorney or tax lawyer will use a set of facts particular to that case. There are no two cases the same, each has a unique set of circumstances.
With that said Quiet Disclosure are not for everyone that is why a careful review must be made on each case.
Taxpayers with unreported foreign bank accounts present themselves and their professional advisers with a bunch of very important important decisions they need to make.
These tax and filing decisions must be made based on a very careful review of all material, information, an understanding of the potential tax penalties and interest involved, and the exposure to any other financial crimes, criminal implications or tax penalties.
Regardless of how tempting under no circumstances should Attorneys or Lawyers and taxpayers ignore reporting tax and FBAR tax requirements simply because the IRS has not yet raised the issue in the client’s specific case.
Our rule of thumb, find IRS before they find you.
How the process works.
The IRS does review amended returns and could select any amended return for examination.
If a tax return is selected for examination, the 20 percent offshore penalty would not be available.
Criminal Behavior
When criminal behavior is evident and the disclosure does not meet the requirements of a voluntary disclosure under IRM 9.5.11.9, the IRS may recommend criminal prosecution to the Department of Justice.
Taxpayers who have already made quiet disclosures but have not yet been selected for examination may take advantage of the penalty framework applicable to voluntary disclosure requests regarding unreported offshore accounts and entities, provided they otherwise meet the criteria for voluntary disclosure set forth in IRM 9.5.11.9.
Call us for more detail. 1-866-700-1040. Privileged conversation with a tax attorney or tax lawyers.
What possible forms are needed to be Filed with the IRS ?
Besides federal income tax returns, what forms or other returns must be filed?
The following forms must be filed:
a. Copies of original and amended federal income tax returns for tax periods covered by the voluntary disclosure,
b. Complete and accurate amended federal income tax returns (or original returns, if not previously filed) of the taxpayer for all tax years covered by the voluntary disclosure;
c. An explanation of previously unreported or under reported income or incorrectly claimed deductions or credits related to undisclosed foreign accounts or undisclosed foreign entities, including the reason(s) for the error or omission,
d. If the taxpayer is a decedent’s estate, or is an individual who participated in the failure to report the foreign account or foreign entity in a required gift or estate tax return, either as executor or advisor, complete and accurate amended estate or gift tax returns (original returns, if not previously filed) necessary to correct the under reporting of assets held in or transferred through undisclosed foreign accounts or foreign entities;
Complete and accurate amended information returns required to be filed by the taxpayer, including, but not limited to,
a. Tax Forms 3520,
b. 3520-A,
c. 5471,
d. 5472,
e. 926 and
f. 8865 (or originals, if not previously filed) for all tax years covered by the voluntary disclosure, for which the taxpayer requests relief; and
Complete and accurate Form TD F 90.22-1, Report of Foreign Bank and Financial Accounts, for foreign accounts maintained during calendar years covered by the voluntary disclosure.
Call us today for more details and find you the truth. you do not have to be worried. 1-866-700-1040
by Fresh Start Tax | Nov 9, 2012 | Expatriate Tax, FBAR, Offshore Program, Offshore Tax Problems, Tax Lawyer, Tax Settlements
Offshore Bank Accounts – File & Settle – IRS Federal Tax Representation – Attorneys, Lawyers, Former IRS – Experts,
Stop the worry today, call one of the Attorneys or Lawyers and get a free confidential consultation.
We are a professional tax firm specializing in IRS tax matters including Offshore Bank Accounts, Filing, Amending, Penalty Abatement, Representation and FBAR and Expatriate Tax Representation.
We have over 60 years of directly working for the Internal Revenue Service as Agents, Managers and Instructors. We have over 205 years of tax firm tax experience.
As Former IRS agents we taught Tax Law and know all of settlement and closing policies of the Internal Revenue Service.
We can completely settle and negotiate your case no matter what the IRS tax issue.
Things you should know
1. You Must Report Worldwide Income.
You must report your worldwide income on your U.S. income tax return. You must check “yes” (on Schedule B) if you have an interest in a foreign bank or financial account.
Worldwide income includes interest, foreign earnings, wages, dividends and other income. even if the foreign income is taxed somewhere else.
You can be entitled to a foreign tax credit(s) if you are living and working abroad, you may be entitled to an exclusion from U.S. tax for some or all of the income you earn abroad.
2. Tax Return Reporting
All U.S. persons with foreign bank accounts must also file annually a Treasury Department Form, TD F 90-22.1 Report of Foreign Bank and Financial Accounts–commonly called an FBAR.
3. New Form. Now with your tax return, you may also need to file an IRS Form 8938 to report your foreign accounts and assets. See IRS Form 8938 Or FBAR? and More On IRS Form 8938 vs. FBAR.
4. FBAR Penalties. The penalty for failing to file an FBAR is $10,000 for each non-willful violation. If willful, the penalty is the greater of $100,000 or 50 percent of the amount in the account for each violation. For each year you did not file is are separate violation penalties.
5. Prison. IRS Tax Evasion can carry a prison term of up to five years and a fine of up to $250,000.
a.Filing a false return can mean up to three years in prison and a fine of up to $250,000.
b.Failing to file a tax return can mean a one year prison term and a fine of up to $100,000.
c.Failing to file FBARs can be criminal too with financial penalties up to $500,000 and prison for up to 10 years.
6. Voluntary Disclosure. If you admit that you did not file to the IRS you decide to come forward you can make a voluntary disclosure.IRS will have you pay the back taxes and penalties and you can move forward worry free.
7. Quiet Disclosures. Another option is to make a quiet disclosure which means you simply file or amend your tax returns without any contact with the IRS. Without question you should contact a tax attorney or tax lawyer to walk you through this process.
Common asked question
How can I verify that my FBAR Report was actually filed and received?
Ninety days (90) after the date of filing, the tax filer can request verification that the FBAR was received. An FBAR filing verification request may be made by calling 866-270-0733 and selecting option 1.
Up to five documents may be verified over the phone. There is no fee for this verification.
Alternatively, an FBAR filing verification request may be made in writing and must include the filer’s name, taxpayer identification number and the filing period.
There is a $5 fee for verifying five or fewer FBARs and a $1 fee for each additional FBAR. A copy of the filed FBAR can be obtained at a cost of $0.15 per page. Check or money order should be made payable to the United States Treasury.
The request and payment should be mailed to:
IRS Enterprise Computing Center/Detroit
ATTN: Verification
P.O. Box 32063
Call us today and stop the worry 1-866-700-1040
Offshore Bank Accounts – File & Settle – IRS Federal Tax Representation – Attorneys, Lawyers, Former IRS – FBAR Experts
by Fresh Start Tax | Nov 8, 2012 | Expatriate Tax, FBAR, IRS Tax Problem, New Jersey Tax, Offshore Program, Offshore Tax Problems, Tax Lawyer, Tax Problem Help, Tax Relief
FBAR – Tax Attorneys, Lawyers, Former IRS – FBAR Specialists – New York, New Jersey – Civil & Criminal Representation 1-866-700-1040.
Fresh Start Tax LLC is a professional tax firm comprised of Board Certified Tax Attorneys, Tax Lawyer, CPA’s and Former IRS Agents and Managers.
Stop the worry today. We can get you in the system worry free.
We have over 206 years of professional tax experience and over 60 years with the Internal Revenue Service in the local, district and regional offices of the IRS.
We taught Tax Law at IRS as former Instructors. As a result we know all the policies and settlement procedures for all IRS cases.
You may contact us for a no consult 30 minute professional consultation, 1-866-700-1040.
FBAR
Without question you can expect the IRS and the DOJ to be coming down hard on Offshore and Overseas money that belongs in the coffers of the US government.
As IRS Commissioner Doug Shulman stated in his closing remarks as her is stepping down much of the focus in the past has been on FBAR and Expats due to the volumes of revenue it has generated from the enforcement of tax laws.
Here are the remarks from Shulman
“We view offshore tax evasion as an issue of fundamental fairness. Wealthy people who unlawfully hide their money offshore aren’t paying the taxes they owe, while schoolteachers, firefighters and other ordinary citizens who play by the rules are forced to pick up the slack and foot the bill.
Over the past five years, we have significantly increased our resources and focus on offshore tax evasion, and the results have been substantial. We upped the ante in a meaningful way with our work on Swiss financial institutions – where for the first time in history, a bank secrecy jurisdiction turned over thousands of names and account numbers.
As we increased our enforcement efforts and gained significant momentum, we gave taxpayers a chance to come in voluntarily and avoid going to jail. In a typical year, we used to get 100 or so taxpayers who used our voluntary disclosure program. When we first set up our new program in 2009, we thought that figure would rise to maybe 1,000.
So we are very pleased that we’ve had approximately 38,000 voluntary disclosures from individuals who came in under the special programs.
To date, these individuals have paid back taxes and stiff penalties amounting to more than $5.5 billion, and the number continues to grow. We are mining the information we have received and have launched our next wave of investigations on banks, bankers, intermediaries and taxpayers.
Collecting additional revenue for past misdeeds – as important as that may be – is not the only, or even primary, consideration here. It’s perhaps more important that we’re bringing U.S. taxpayers back into the system…back into compliance… so they properly report and pay their taxes for years to come. We have fundamentally changed the risk calculus of taxpayers who are thinking about hiding their money overseas, and we are well on our way to deterring the next generation of taxpayers from using hidden bank accounts to cheat on their taxes.
The inside skinny at the IRS FBAR, Expats
Under Obamacare the IRS is expecting to hire 15,000 new IRS agents. IRS is already launching new software and technologies to move in to the future regarding Offshore monies. Because of the huge success of this program a word to the wise, seek IRS before them seek you.
Each taxpayer has different options. We carefully review each case we receive and carefully plan the best remedy to fully and completely resolve your problem so do not fear cripple you.
We have successfully resolved thousands of taxpayers cases. Call us today to hear the truth and get results.1-866-700-1040.
by Fresh Start Tax | Nov 1, 2012 | Expatriate Tax, FBAR, Tax Lawyer, Tax Returns
FBAR Attorneys, Lawyers – Filing, Penalties, Settlement – International Tax Attorney, Lawyer – FBAR, EXPAT Experts
If you are looking for true FBAR and Expatriate Experts contact our office today for a NO COST consult. 1-866-700-1040.
All calls are confidential.
We have over 206 years of total tax experience and over 60 years of working directly for the Internal Revenue Service in the local, district and regional offices.
We taught Tax Law at the IRS and are familiar with all the tax policies, tax procedures, settlement and closing policies.
The Federal Government has been very aggressive in working Offshore Taxpayers. With the downfall of UBS the Feds set there sites and bank and financial institutions world wide. Both the DOJ and the IRS are involved with these projects. It will only be a matter of time until all countries are submitting to US requests for account holders. No one ever thought Lichtenstein a tiny Alpine village would ever succumb to US pressure but it did and the countries will all start fall like domino’s.
If you are finding yourself in a awkward position regarding you taxes it is best to get a professional legal opinion on where you stand.
It is always best for you to find the IRS before they find you.
That is where we come in. We have a wealth of experience so you can move forward worry free. 1-866-700-1040.
The Foreign Account Tax Compliance Act.
FATCA enacted in 2010 as part of the Hiring Incentives to Restore Employment Act, is an important development in U.S. efforts to combat tax evasion by U.S. persons holding investments in offshore accounts.
Under FATCA, certain U.S. taxpayers holding financial assets outside the United States must report those assets to the IRS.
FATCA will require all foreign financial institutions to report directly to the IRS certain information about financial accounts held by U.S. taxpayers, or by foreign entities in which U.S. taxpayers hold a substantial ownership interest. There are prescribed dollar criteria.
Reporting by U.S. Taxpayers Holding Foreign Financial Assets
FATCA requires certain U.S. taxpayers holding foreign financial assets with an aggregate value exceeding $50,000 to report certain information about those assets on a new form (Form 8938) that must be attached to the taxpayer’s annual tax return.
Tax and financial reporting applies for assets held in taxable years beginning after March 18, 2010. For most taxpayers this will be the 2011 tax return they file during the 2012 tax filing season. Failure for taxpayers to report foreign financial assets on Form 8938 will result in a penalty of $10,000 and a penalty up to $50,000 for continued failure after IRS notification.
Underpayments of tax attributable to non-disclosed foreign financial assets will be subject to an additional substantial understatement penalty of 40 percent.
Reporting by Foreign Financial Institutions
FATCA will also require foreign financial institutions (“FFIs”) to report directly to the IRS certain information about financial accounts held by U.S. taxpayers, or by foreign entities in which U.S. taxpayers hold a substantial ownership interest.
For taxpayers to properly comply with these new reporting requirements, an FFI will have to enter into a special agreement with the IRS by June 30, 2013. Under this agreement a “participating” FFI will be obligated to:
1. undertake certain identification and due diligence procedures with respect to its account holders;
2. report annually to the IRS on its account holders who are U.S. persons or foreign entities with substantial U.S. ownership; and
3. withhold and pay over to the IRS 30-percent of any payments of U.S. source income, as well as gross proceeds from the sale of securities that generate U.S. source income, made to:
a.non-participating FFIs,
b.individual account holders failing to provide sufficient information to determine whether or not they are a U.S. person, or
c.foreign entity account holders failing to provide sufficient information about the identity of its substantial U.S. owners.
Notice 2011-53 provides the phased-in timeline of key FATCA implementation dates for FFIs.
It is important to note that many details of the new reporting and withholding requirements pertaining to FFIs must be developed through Treasury regulations. Proposed regulations were issued on Feb. 8, 2012.
Contact us today for find out more. 1-866-700-1040.
