by Fresh Start Tax | Sep 25, 2012 | Abatements, FBAR
FBAR – How to get Rid of FBAR Penalties – Fresh Start Tax L.L.C – FBAR Penalties & Representation
There is fear when FBAR is mentioned. Disclosure, criminal, money and penalties are words attached with FBAR.
Many taxpayers are stuck as to whether to file or not.
My rule of thumb as a former IRS Agent, I recommend you find the IRS before they find you.
FBAR is here to stay and FBAR is becoming the beast of the IRS.
So much so that FBAR generated over $5.5 billion in Revenue to the Feds over the past couple years.
Not only is the Fed collecting the taxes but the IRS penalties will choke a horse. Part of the fear with taxpayers coming forward is the fear of not only paying the tax but also paying the penalties as well and having the money to do so.
It is not easy to get FBAR Penalties removed or abated because the IRS has set a tone and a theme of “just deny the claim.” The IRS will tell the IRS Auditing Revenue Agents to just disallow all penalty abatement claims unless the taxpayers fight for the abatement. A taxpayer must fight to have FBAR penalties abated.
What is the FBAR Filing Criteria
In order to determine whether or not the FBAR is required, all of the following must apply:
1. The filer is a U.S. person;
2. The U.S. person has a financial account(s);
3. The financial account is in a foreign country;
The U.S. person has a financial interest in the account or signature or other authority over the foreign financial account; and,
a. The aggregate amount(s) in the account(s) valued in dollars exceed $10,000 at any time during the calendar year.
The IRS code as it relates to FBAR Penalties – Its the Examiner Discretion
- The IRS tax examiner may determine that the facts and circumstances of a particular case do not justify asserting a penalty. There is tremendous discretion the examiner has on these case.
- If there was an FBAR violation but the examiner determines that a penalty is not appropriate, the examiner should issue the FBAR warning letter, Letter 3800.
- When a tax penalty is appropriate or justified , the IRS has established penalty mitigation guidelines to aid the examiner in applying penalties in a uniform manner.
- The IRS tax examiner may determine that a penalty under these guidelines is not appropriate or that a lesser penalty amount than the guidelines would otherwise provide is appropriate or that the penalty should be increased (up to the statutory maximum). The examiner must make such a determination with the written approval of the examiner’s manager and document the decision in the work papers.
- Factors to consider when applying examiner discretion may include, but are not limited to, the following:
- Whether tax compliance objectives would be achieved by issuance of a warning letter;
- Whether the person who committed the violation had been previously issued a warning letter or has been assessed the FBAR penalty;
- The nature of the violation and the amounts involved; and,
- The cooperation of the taxpayer during the examination.
- Given the magnitude of the maximum penalties permitted for each violation, the assertion of multiple penalties and the assertion of separate penalties for multiple violations with respect to a single FBAR form, should be considered only in the most egregious cases.
Did you know that the the FBAR penalty is calculated not on your account earnings, but rather, on your account value?
As an example, if you have an account that is worth $1,000,000, the IRS, for one year, can assess a $500,000 FBAR penalty.
For two years, the FBAR penalty could be equal to the amount of the account. You see, the IRS is not limited to just two years, the IRS could potentially assess the FBAR for 6 or more years.
This is the very reason taxpayers need professional representation for both the reporting , filing and for the abatement of penalties and interest.
So you can see the FBAR penalty can be particularly devastating. So you need great professional tax advice on how to best deal with your unique and personal tax situation.You should seek the counsel of a tax attorney.
If you call Fresh Start tax LLC 1-866-700-1040 and speak directly to our FBAR tax excerpts you can get the best counsel available. All initial consultations are free of charge.
You only pay us if we begin work.
Go to our home page, on the left side you will find Penalty Abatement’s, open that box and you will find a very comprehensive list of reasons IRS will accept as reason cause.
Call us today for a free tax consult. 1-866-700-1040
by Fresh Start Tax | Sep 9, 2012 | FBAR, IRS Penalties, IRS Tax Debt, Tax Lawyer
IRS has fallen in love with FBAR. And why not. 33,000 taxpayers came forward since the dominos fell with UBS and the IRS collected a whopping $5.5 billion in tax, penalties and interest.
IRS will just get tough on FBAR filing. IRS is usually very patient but as programs develop and the word gets out to the public their patience leaves.
But with the advent of UBS and all the press and noise surrounding FBAR it will be tougher and tougher to get penalties and interest abated.
In my own opinion, IRS has been very reasonable with FBAR penalties but the time is coming when taxpayers will have to pay the fiddler on late FBAR filings.
If you are looking to get your penalties and interest abated or removed here are some of the common grounds for abatement:
FBAR and reasonable cause. IRS will consider your:
a. Your compliance history with FBAR and your filing history over the past 7 years,
b. The length of time between your failure to meet your tax obligations and your subsequent compliance, ( did you file as soon as you found out about the issue )
c.Circumstances beyond your control such as health, medical, reasonable business standard,
d. FBAR reasonable cause may be established if you show that you were not aware of specific obligations,
e.Your education level, the higher the education the tough IRS will become,
f.Whether you have previously been subject to the tax for FBAR reporting,
g.Whether you have been penalized before on this same or a similar issue,
h.Whether or not there were recent changes in the tax forms or law that you could not reasonably be expected to know such as the passing of a new law,
i.The level of complexity of a tax or compliance issue,
j. Reliance upon the advice of a professional tax adviser who was informed of the existence of the foreign financial account and do you have written documentation of the event,
k.Evidence that the foreign account ( financial accounts ) was established for a legitimate purpose.
l.Evidence that there was no effort to intentionally conceal or hide the reporting of income or assets or other.
m. Special cause. Each case is based on its own set of facts.
No one single factor will determine reasonable cause and no one case is the same. Each case if based on its own set of facts. Being Former IRS agents we know all the inside information on penalty abatement’s.
Call us today to find out more and see how much we may be able to save you. 1-866-700-1040.
by Fresh Start Tax | Sep 7, 2012 | FBAR, Tax Lawyer
Find IRS before they find you. That is the best free advice I can give any person is should be filing the FBAR report form.
FBAR Program is the new revenue generator of the IRS. 33,000 persons came forward over the last 3 years and this is just the beginning.
Call us today for a no cost professional representation. We can provide affordable tax help, negotiate your tax debt, and settle your case. 1-866-700-1040.
We are comprised of Board Certified Tax Attorneys, CPA’s and Former IRS agents. We have over 206 years of professional tax experience. We have over 60 years of working directly for the IRS.
We are one of the most experienced professional tax firms in dealing with IRS FBAR problems.
We taught Tax Law at the IRS. We know the inside working of the IRS.
This FBAR Program collected over $5 billion in the first 3 years of implementation.
This FBAR Program is here to stay. IRS has just received over $250 million dollars in funding for tax compliance alone and many of those new tax dollars will be spent chasing tax evaders down both local and overseas.
What are FBAR Filing requirements that you need to know:
The filing requirements apply to any “United States person”, which is defined as those who fit into one of the following categories:
1. A Citizen of the United States,
2.Green Card Holders,
3.Foreign person residing in the US for extended periods of time which includes H-1B, L-1, TN and other Visa holders,
4.Domestic Partnerships,
5.Domestic Corporations,
6.Domestic Trusts,
7.Individuals that have signing authority over a non-US account.
FBAR filing requirements also apply to those with direct or indirect control over a foreign or domestic entity.
Foreign Financial Accounts
Foreign “financial accounts” include a wide variety of items, such as:
a.Bank accounts (savings, demand, checking, deposit or any other account maintained b.with a financial institution)
c.Securities or brokerage accounts
d.Mutual funds
e.Debit and Prepaid Credit Cards maintained with a financial institution
f.Certain types of Annuities or pension accounts
g.Retirement Plans
h.Interests in partnerships, trust or other pass-through entities having foreign accounts.
There are certain exceptions to the FBAR reporting requirement:
There are filing exceptions for the following United States persons or foreign financial accounts:
1. Certain foreign financial accounts jointly owned by spouses;
2. United States persons included in a consolidated FBAR;
3. Correspondent/nostro accounts;
4.Foreign financial accounts owned by a governmental entity;
5. Foreign financial accounts owned by an international financial institution;
6.IRA owners and beneficiaries;
7. Participants in and beneficiaries of tax-qualified retirement plans;
8.Certain individuals with signature authority over but no financial interest in a foreign financial account;
9.Trust beneficiaries; and
10.Foreign financial accounts maintained on a United States military banking facility.
Call us today to find out more. Consults are free, 1-866-700-1040.
by Fresh Start Tax | Sep 4, 2012 | Back Taxes, FBAR, Tax Lawyer, Tax Returns
FBAR Filing – Late, Past Due, Unfiled – File & Settle 1-866-700-1040
Do you have a late, past due or unfiled FBAR report you need to file?
Call us today and we can get you back in the system worry free. We can file your back, past due or late FBAR and settle your case with the IRS. 1-866-700-1040.
We are comprised of Tax Attorneys, CPA’s and Former IRS Agents. We know the IRS system inside and out. We have over 60 years of direct IRS work experience in the local, district and regional offices of the IRS. We also taught Tax Law at the IRS.
Late, Past Due, Unfiled FBAR Reports
If you have a late, past due, or unfiled FBAR reports the key is to contact the IRS before they contact you.
As a general rule IRS will not enforce criminal penalties if you contact them before they contact you. The key is letting IRS know you will be filing your tax returns. At this point it only becomes a civil matter.
As a general rule, we contact IRS by filing a power of attorney so you will never speak to the IRS. We handle all the negotiations and settle the case so you pay the lowest amount allowed by law including the abatement of penalties and interest if your case warrants.
Who needs to file FBAR
A person or individual who holds a foreign financial account may have a reporting obligation even though the account produces no taxable income.
How to file
Checking the appropriate block on FBAR- related federal tax return or information return questions (for example, on Schedule B of Form 1040, the “Other Information” section of Form 1041, Schedule B of Form 1065, and Schedule N of Form 1120) and filing the FBAR, satisfies the account holder’s reporting obligation.
FBAR is not filed with,
The FBAR is not filed with the filer’s federal income tax return. The granting, by the IRS, of an extension to file federal income tax returns does not extend the due date for filing an FBAR.
Due Date for FBAR
You may not request an extension for filing the FBAR. The FBAR is an annual report and must be received by the Department of the Treasury in Detroit, MI, at one of the two addresses below, on or before June 30th of the year following the calendar year being reported.
File by mailing the FBAR to:
United States Department of the Treasury
P.O. Box 32621
Detroit, MI 48232-0621
If an express delivery service is required for a timely filed FBAR, address the parcel to:
IRS Enterprise Computing Center
ATTN: CTR Operations Mail room, 4th Floor
985 Michigan Avenue
Detroit, MI 48226
Call us today for a no cost consultation and speak directly to a Tax Attorney or Former IRS agent 1-866-700-1040.
by Fresh Start Tax | Sep 3, 2012 | FBAR, Tax Lawyer
We are comprised of FBAR tax experts. On staff, Board Certified Tax Attorneys, Tax Lawyers, CPA’s and Former IRS agents, managers and instructors.
We have a total of 205 years of professional tax experience and 60 years of working directly for the IRS in the local, district and regional offices of the IRS.
We are FBAR and Overseas tax matters experts.
We taught Tax Law.
For a free tax consultation call 1-866-700-1040 and speak directly to the tax professional that could be working your case today. Stop the worry!
FBAR is the new found fear among taxpayers and individual with foreign bank accounts. However much of that fear can be minimized with seeking solid professional tax help with FBAR and IRS tax experts in civil and criminal tax matters.
UBS account holders certainly have the added stomach knots as a result of UBS turning over the account holder information and records to the US government agencies.
The questions we are asked many times by UBS holders is this,
“Are UBS account holders still eligible for the Voluntary Disclosure Practice?”
The answer is YES!
There is a standard Voluntary Disclosure Practice that applies to everyone including USB Account holders.
This is the general IRS Voluntary Disclosure Practice.
It is currently the practice of the IRS that a voluntary disclosure will be considered along with all other factors in the investigation in determining whether criminal prosecution will be recommended.
This voluntary disclosure practice creates no substantive or procedural rights for taxpayers, but rather is a matter of internal IRS practice, provided solely for guidance to IRS personnel.
As a general rule, if you contact IRS first your problems are significantly minimize.
Taxpayers cannot rely on the fact that other similarly situated taxpayers may not have been recommended for criminal prosecution.
A voluntary disclosure will not automatically guarantee immunity from prosecution however a voluntary disclosure may result in prosecution not being recommended.
This practice usually does not apply to taxpayers with illegal source income such as terrorism or drug activity.
A voluntary disclosure occurs when the communication is truthful, timely, complete, thorough and when;
1. the taxpayer shows a willingness to cooperate (and does in fact cooperate) with the IRS in determining his or her correct tax liability; and
2. the taxpayer makes good faith arrangements with the IRS to pay in full, the tax, interest, and any penalties determined by the IRS to be applicable.
The Penalty Framework
How does the penalty framework work? Can you give us an example?
A12. Assume the taxpayer has the following amounts in a foreign account over a period of six years. Although the amount on deposit may have been in the account for many years, it is assumed for purposes of the example that it is not unreported income in 2003.
|
Year
|
Amount on Deposit
|
Interest Income
|
Account Balance
|
|
2003
|
$1,000,000
|
$50,000
|
$1,050,000
|
|
2004
|
|
$50,000
|
$1,100,000
|
|
2005
|
|
$50,000
|
$1,150,000
|
|
2006
|
|
$50,000
|
$1,200,000
|
|
2007
|
|
$50,000
|
$1,250,000
|
|
2008
|
|
$50,000
|
$1,300,000
|
(NOTE: This example does not provide for compounded interest, and assumes the taxpayer is in the 35-percent tax bracket, files a return but does not include the foreign account or the interest income on the return, and the maximum applicable penalties are imposed.)
Call us today and speak directly to Tax Attorneys, Tax Lawyers, Former IRS Agents. We handle all civil and criminal tax representation.
Call 1-866-700-1040. SKYPE available.
by Fresh Start Tax | Sep 1, 2012 | FBAR, Tax Lawyer
Find the IRS before they find you.
After 38 years of professional IRS tax experience that is my best advice to you.
If you need FBAR & Voluntary Disclosure help call Fresh Start Tax LLC and speak directly to Tax Lawyers, Tax Attorneys, Former IRS – FBAR Tax Representation
Call today for a no cost professional tax consultation. 1-866-700-1040.
With much in the news about FBAR and Voluntary Disclosure, there are some very common questions asked.
Within the advent of UBS and FBAR the IRS has been hopped up about bringing into tax compliance offshore monies that have not been reported to the feds. Yes, IRS will make these cases federal investigations because of the huge scale of revenue that is brought in through FBAR alone. IRS received over the past three years over $5 billion.
IRS has found the pot of gold and the pursuit is expected to be ramped up even more in the upcoming years.
Voluntary Disclosures
Why you should make a voluntary disclosure.
Taxpayers or individuals with undisclosed foreign accounts or entities should make a voluntary disclosure ( VD ) because it allows them to become tax compliant, avoid substantial civil penalties and generally eliminate the risk of criminal prosecution.In cases of extreme willfulness this may not be the case.
Talk to us if you fall in this categorize. Believe this criminal prosecution element, the FEAR of IRS should be enough to make sure you do the correct thing. IRS posts the criminal violators on their website. Go to IRS.gov
Getting professional tax help will assure you the very best possible results, the avoiding of criminal prosecution and the reduction of penalties and interest.
Making a voluntary disclosure also provides the opportunity to calculate with a reasonable degree of certainty the total cost of resolving all offshore tax issues.
You may not like what you hear however you must be tax compliant.
Taxpayers ( individuals ) who do not submit a voluntary disclosure 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.
What is the IRS’s Voluntary Disclosure Practice? ( VDP )
The Voluntary Disclosure Practice is a longstanding practice of IRS Criminal Investigation ( CI ) of taking timely, accurate, and complete voluntary disclosures into account in deciding whether to recommend to the Department of Justice that a taxpayer be criminally prosecuted. There are specific code sections that deal with these matters.
When a taxpayer truthfully, timely, and completely complies with all provisions of the voluntary disclosure practice, the IRS will usually not recommend criminal prosecution to the Department of Justice.
Remember, find IRS before they find you.
What form should my voluntary disclosure take?
You may either contact the nearest Special Agent in Charge, ( each office has there won special agent for this matter ) IRS Criminal Investigation, stating that you wish to make a voluntary disclosure, or provide a letter outlining information needed to assist the IRS in determining your acceptance into the voluntary disclosure program. a word of caution here, do this with retention of a tax attorney, tax lawyer or former IRS agent who knows the system. Do not be foolish.
Call us today to find out more details. 1-866-700-1040.
FBAR & Voluntary Disclosure, Tax Lawyers, Tax Attorneys, Former IRS, FBAR Tax Representation
