by Fresh Start Tax | Jul 4, 2012 | Back Taxes, Expatriate Tax, FBAR, IRS Tax Advice, Tax Lawyer, Tax Returns
At Last, a tax reprieve on foreign income reporting and filing your back tax returns, well maybe.
American that live abroad will get a reprieve from the IRS this year on reporting on foreign assets.
The IRS said it will allow some United States citizens, including dual citizens, who have not filed income tax returns or not disclosed their foreign bank accounts, to come forward without facing onerous penalties or the threat of prosecution.
This is what the IRS calls a tax amnesty of sorts.
The Internal Revenue Service said the reprieve, to begin Sept. 1, would also apply to U.S. expatriates with foreign retirement plans, including Canadian ones.
But read the fine print on this one! ( Only low risk compliance taxpayers are invited to this party )
The optional procedure just announced is available only to Americans who owe little or no back taxes, not to those who have squirreled away substantial amounts in secret offshore accounts that they have knowingly failed to disclose to the IRS.
This announcement is for small type of taxpayers.
If you are not sure what categorize you fall in you may want to call us for a no cost professional tax consultation. 1-866-700-1040.
The IRS statement said the new guidelines were for “low compliance risk” taxpayers, generally people who have simple returns and owe $1,500 or less in tax for any covered years. Yes, this is for the low end of taxpayers.
IRS is about to pound this area of non-compliance due to the very fact that the Offshore Program over the past years has brought in a kings ransom to the IRS, a whooping $4 Billion Large. IRS will not stop.
It also follows complaints by tax lawyers that many U.S. expatriates have been unaware of the new rules on tax returns and disclosure of foreign bank accounts.
IRS feels that many of these taxpayers were not willful tax evaders, but simply uninformed about filing returns and, if needed, disclosures known as Foreign Bank and Financial Account Reports, or FBARs.
Many taxpayers were just plain ignorant of the tax laws and the IRS does not intend to hurt this type of taxpayer.
The IRS said that under the new procedures, taxpayers would have to file delinquent tax returns for the past three years and delinquent FBARs for the past six years.
The IRS said “higher compliance risk” taxpayers would be subject to a more thorough review and, potentially, an audit or a referral to CI or Criminal Division Review.
The IRS also said taxpayers would be barred from the disclosure program if they challenged in foreign courts the disclosure of their accounts while failing to inform the U.S. Justice Department of such challenges.
You can expect the IRS to being a full court press from now on, they plan for bleed this Offshore Program for as much as it can.
As a result of the Obama-Care Program the IRS will be given $500 million for budgetary purposes.
You better attorney up if need be. If you are in full compliance no need to worry.
Call us for a free tax consult for tax advice.
We are staffed with Tax Attorneys, Tax Lawyers, CPA’s and Former IRS agents. 1-866-700-1040
by Fresh Start Tax | Jul 3, 2012 | Expatriate Tax, FBAR, Representation, Tax Lawyer, Tax News, Tax Returns
We are Ex- Pat and FBAR tax specialists. We are tax experts. As Former IRS agents we taught Tax Law at the IRS.
We have successful handled a great deal of both Ex- Pat and FBAR cases.
You can call today for a no cost professional confidential consultation.
We are comprised of Board Certified Tax Attorneys, Lawyers, CPA’s and Former IRS Agents.
We have over 205 years of professional tax experience and over 60 years of direct work experience with the IRS. We worked in the local, district and regional offices of the Internal Revenue Service.
Do you need to file a tax return for the IRS?
Under the new health care plan IRS is coming. The current tax appropriations under the new law is about to let the IRS loose.
Among the various new requirements of the IRS that are contained in IRC 877 and 877A, individuals that renounced their U.S. 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 your 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 taxpayer will be subject to the IRC 877 and 877A expatriation tax provisions.
Individual(s) that have expatriated should file all tax returns that are due, regardless of whether or not full payment can be made with the return.
Depending on an individual’s circumstances, a taxpayer filing late may qualify for a payment plan.
All payment plans to the IRS require continued compliance with all filing and payment responsibilities after the plan is approved and throughout the course of the plan.
IRS imposes a $10,000 penalty may be imposed for failure to file Form 8854 when required.
IRS is sending notices to expatriates that have not complied with the Form 8854 requirements, including the imposition of the $10,000 penalty where appropriate.
IRS is acquiring lists through tax treaties with and through various countries.
Failure to file or not including all the information required by the form or including incorrect information will result in large penalties.
FBAR 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 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).
The FBAR is required because foreign financial institutions may not be subject to the same reporting requirements as domestic financial institutions. You should call us if you have questions.
Federal Tax Investigators with the IRS use FBARs to help identify or trace funds used for illicit purposes or to identify unreported income maintained or generated abroad.
It is important to know that the IRS is receiving $500 million dollars in funding under the new health care plan, yes, the new health care plan.
A lot of that budget will be at the expense of Ex-Pats and FBAR
We are EXPAT, FBAR Tax Specialists. Comprised of Tax Attorneys, Lawyers and Former IRS. We are affordable, experienced and will tell you the truth about your case.
by Fresh Start Tax | Jun 29, 2012 | Back Taxes, Expatriate Tax, Income Tax Preparation, IRS Tax Debt, Offer in Compromise, Representation, Tax Lawyer, Tax Returns, Tax Settlements
ExPats IRS Tax Consultants – Income Tax Prep, File, Tax Settlements – Tax Attorneys, Former IRS 1-866-700-1040
We are a Professional Tax Firm specializing in World Wide Ex-Pat tax consultations, tax services, income tax preparation and IRS tax settlements.
We have been in practice since 1982 and are “A” rated by the BBB.
Skype available. Password freshstarttax.
We are staffed with Tax Attorneys, Tax Lawyers, CPA’s and Former IRS Agents
Expats and everyone living abroad including those with FBAR issues, BEWARE.
Under Obama Care the IRS will be given over $500 million large to enforce compliance and collections of IRS Tax Laws and much of the budget is to aggressively go after International money.
The IRS will be carefully watching Expats because of the non compliance from ExPats.
IRS has found that many Expats not in filing compliance. IRS plans to change this starting next year.
The IRS report is specially targeting international money and IRS is setting Agent Groups up specializing in ExPat stuff.
This is not to scare you but just stating fact. If you are in compliance you do not need to worry or read the rest.
If you are having tax issues or you are in non compliance with the IRS and need to chat, hit us up for a free tax consult. We specialize in Expat Tax.
We have worked countless numbers of these cases.
Since we have worked for the IRS we know all the tax strategies and procedures related to the tax filings and tax settlements to get you through worry free.
Penalties for not filing.
Significant penalty imposed for not filing expatriation form
Anyone who has expatriated or terminated his U.S. residency status must file Form 8854, Initial and Annual Expatriation Information Statement (PDF). Form 8854 must also be filed to comply with the annual information reporting requirements of Internal Revenue Code section 6039G, if the person is subject to tax under Section 877 of the Code.
A $10,000 penalty may be imposed for failure to file Form 8854 when required.
IRS is sending notices to expatriates that have not complied with the Form 8854 requirements, including the imposition of the $10,000 penalty where appropriate.
The Instructions for Form 8854 (PDF) provide details about the filing requirements, related definitions and line-by-line instructions for completing the form.
Failure to file or not including all the information required by the form or including incorrect information could lead to a large penalty and tax enforcement.
ExPats IRS Tax Consultants, Income Tax Prep, File, Tax Settlements, Offer in Compromise
We can help today. Call and speak directly to Tax Attorneys, Former IRS or CPA’s.
We are affordable, assessable and will tell your the truth. We can file all back tax returns with or without records through our tax reconstruction methods.
Expatriates IRS Tax Consultants – Income Tax Prep, File, Tax Settlements – Tax Attorneys, Former IRS
by Fresh Start Tax | Jun 27, 2012 | Abatements, Back Taxes, Expatriate Tax, FBAR, Income Tax Preparation, IRS Tax Problem, Representation, Tax Lawyer, Tax Returns, Tax Settlements
The IRS is already starting to bear down very hard on Ex-Pats and there late, past due and or delinquent tax returns.
The IRS has dedicated so much more revenue to oversees tax collections and tax audits. These groups of agents are called Revenue Agents. They are currently being trained to go after easy tax money and easy tax targets, and those are the Expats. they have been well trained and also experienced for fraud indications.
The IRS has finally wised up and realized that instead of going after the deadbeats who lives within the boundaries or confines of this great country, the new found jackpot is where the money and the leverage is sitting and that my friends is the IRS new target, Ex Pats and FBAR.
Many of the Ex-Pats who have not filed were unaware of the filing issue or the tax laws. I would say over 50% of the cases we work are due to the lack of knowledge and ignorance of the law. If that is the case, we can get penalties and interest, removed or abated for reasonable cause.
How we handle Ex Pat cases regarding late, past due, back or delinquent returns:
We send to IRS a Power of Attorney indicating that the IRS is not to talk or contact the taxpayer.
We then secure the necessary documentation from our client and secure internal records that the IRS has in house. IRS stores all income information for 7 years.
In the case of lost records we file reconstructed tax returns. We have filed so many reconstructed tax returns these never become a problem. A good deal of taxpayers who have lost there records are afraid to file because many years have gone by. Believe it or not IRS is happy to get the returns and get you back in tax compliance.
Keep one thing in mind, if the IRS sends you a letter about filing your late, back, past due or delinquent tax returns and you do not respond,the IRS has the right to file for you and this a called a substitute for return. ( SRF )
The bottom line, we can file all your tax returns with or without records and also settle your back IRS tax debt.
We are comprised of Tax Attorneys, CPA’s and Former IRS agents with over 60 years of professional tax experience.
Call us today for a no cost consult. 1-866-700-1040
Call us and see how easy this can be. You can do this worry free!
by Fresh Start Tax | Jun 25, 2012 | Expatriate Tax
Expatriate IRS Tax Help or Problems – Canadian & US Issues – Tax Attorneys, CPA’s and Former IRS
Fresh Start Tax L.L.C. is a professional tax firm that specializes in U.S. and Canadian Tax Issues.
We have over 205 years of professional tax experience and over 60 years of direct work experience at the IRS.
We have on staff Tax Attorneys, CPA’s and Former IRS agents. Free tax consultations. Call 1-866-700-1040
U.S. Canadian Issues:
If you are a U.S. citizen and you move and live there as a Canadian permanent resident many U.S. tax issues can arise. Below are FAQ’s asked.
Question: I am a U.S. citizen. If I move to Canada to live and work there as a Canadian permanent resident, do I pay both U.S. and Canadian Taxes?
Answer: As a U. S. citizen living in Canada you:
1. You are required to file annual U.S. income tax returns and may be required to file certain information returns if applicable (e.g. Form 8891, U.S. Information Return for Beneficiaries of Certain Canadian Registered Retirement Plans; Form 3520, Annual Return To Report Transactions With Foreign Trusts and Receipt of Certain Foreign Gifts; TD F 90-22.1, Report of Foreign Bank and Financial Accounts (FBAR).
2 . You must also report your worldwide income on your U.S. income tax return if you meet the minimum income filing requirements for your filing status and age.
3. You must contact the Canadian Government to determine whether you must file a Canadian tax return and pay Canadian taxes.
4. May be able to elect to exclude some or all of your foreign earned income, if certain requirements are met, or to claim a foreign tax credit if Canadian income taxes are paid.
We can handle all FBAR problems and work out favorable tax settlements.
by Fresh Start Tax | Jun 25, 2012 | Back Taxes, Expatriate Tax, Income Tax Preparation, Representation, Tax Lawyer, Tax Returns
Expatriates – Ex Pat’s file Back Tax Returns – Former IRS Agents – Tax Attorneys, CPA’s, Former IRS Agents – Worry Free
If you are an Ex-Pat or you are working overseas you should be aware of the U.S. tax filing requirements.
Fresh Start Tax L.L.C. is a tax specialty firm specializing in Expatriates living overseas. We handle all areas of filing and tax compliance from the filing of all current tax returns, back or late filing of income tax returns and the settlements of back taxes that may be owed. We are IRS Tax Experts in Offers in Compromise.
We offer a no cost professional tax consultation.
Americans that are working overseas are usually aware that $70,000 of foreign earned income can be exempted when certain foreign residency requirements are met.
What is not obvious – Caution
It may not be so obvious, however, that every year a federal tax return should be filed reporting that income.
The reasons for Non- filing are numerous and vast.
Usually, United States IRS tax forms are not available and many of those forms are available but incomprehensible or the tax year for the employer is different from a calendar year so it’s hard to figure out income.
Many taxpayers are simply aware that a tax filing requirement even existed.
Reasonable Cause Does Exist-Get rid of the Penalties completely.
Reasonable cause can exist for a variety of reasons. Many times it is not always clear to the taxpayer that it is necessary to file a federal tax income tax return since it was not even known that there was a tax obligation. Many times taxpayers did not receive income reports or they depended on other third parties who gave them the wrong information.
Whatever the reason, it usually happens at some point that the taxpayer becomes aware of the fact that a U.S. tax return should have been filed and now the taxpayer is in default on that tax obligation to file current tax returns. Many find out they should have been filing many years of back taxes. Not to worry.
You can look at our website for a comprehensive list of of reasonable cause.
We are comprised of Board Certified Tax Attorneys, CPA’s and Former IRS Agents.
Expatriates, Ex-Pat’s File Back Tax Returns call us today. 1-866-700-1040
