by Fresh Start Tax | Apr 1, 2013 | FBAR
When is the FBAR Due Date – Tax Attorneys, Tax Lawyers – FBAR Experts 1-866-700-1040
Call us and speak directly to Tax Attorneys and Tax Lawyers that are FBAR experts.
When is the FBAR due?
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 IRS, of an extension to file Federal income tax returns does not extend the due date for filing an FBAR.
Filers 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.
Where are FBAR forms available?
FBAR forms are available:
1. Online via IRS.gov in PDF.
2. Online via Department of the Treasury’s Financial Crimes Enforcement Network Web site in PDF.
3. By calling the IRS at 800-829-3676.
Who is responsible to File for FBAR
United States persons are required to file an FBAR if:
a. The United States person had a financial interest in or signature authority over at least one financial account located outside of the United States; and
b. The aggregate value of all foreign financial accounts exceeded $10,000 at any time during the calendar year to be reported.
United States person means:
United States citizens; United States residents; entities, including but not limited to, corporations, partnerships, or limited liability companies created or organized in the United States or under the laws of the United States; and trusts or estates formed under the laws of the United States.
Exceptions to the Reporting Requirement
Exceptions to the FBAR reporting requirements can be found in the FBAR instructions. There are filing exceptions for the following United States persons or foreign financial accounts:
a. Certain foreign financial accounts jointly owned by spouses;
b. United States persons included in a consolidated FBAR;
c. Correspondent/nostro accounts;
d. Foreign financial accounts owned by a governmental entity;
e. Foreign financial accounts owned by an international financial institution;
f. IRA owners and beneficiaries;
g. Participants in and beneficiaries of tax-qualified retirement plans;
h. Certain individuals with signature authority over but no financial interest in a foreign financial account;
i. Trust beneficiaries; and
j. Foreign financial accounts maintained on a United States military banking facility.
Look to the form’s instructions to determine eligibility for an exception and to review exception requirements.
FBAR Reporting and Filing Information
A person who holds a foreign financial account may have a reporting obligation even though the account produces no taxable income.
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.
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.
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, on or before June 30th of the year following the calendar year being reported.
While FinCEN strongly encourages individuals to electronically file FBARs, the form can be mailed to one of the two addresses below, provided that the mailing is received by June 30, 2013:
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 Mailroom, 4th Floor
985 Michigan Avenue
Detroit, MI 48226
Delivery messenger service contact telephone number: (313) 234-1062.
Account holders who do not comply with the FBAR reporting requirements may be subject to civil penalties, criminal penalties, or both.
Call us today for more details on FBAR reporting.
by Fresh Start Tax | Mar 27, 2013 | FBAR
FBAR, Foreign Income Questions – Ask True Experts -Tax Attorneys, Lawyers, Former IRS 1-866-700-1040
We are FBAR and Foreign Tax Experts.
If you have any questions concerning your individual case call us today for a free initial tax consultation.
You will speak directly to tax attorneys, CPAs, were former IRS agents, managers and tax instructors.
Tips for Taxpayers with Foreign Income
Fresh Start Tax LLC a professional tax firm wants to reminds U.S. citizens and residents who lived or worked abroad in 2012 that they may need to file a federal income tax return.
If you are living or working outside the United States, you generally must file and pay your tax in the same way as people living in the U.S. This includes people with dual citizenship.
Here are tips taxpayers with foreign income should know:
1. Report Worldwide Income.
The federal law requires U.S. citizens and resident aliens to report any worldwide income. This includes income from foreign trusts, and foreign bank and securities accounts.
2. File Required Tax Forms.
In most cases, affected taxpayers need to file Schedule B, Interest and Ordinary Dividends, with their tax returns. Some taxpayers may need to file additional forms. For example, some may need to file Form 8938, Statement of Specified Foreign Financial Assets, while others may need to file Form TD F 90-22.1, Report of Foreign Bank and Financial Accounts, with the Treasury Department.
See Publication 4261, Do You Have a Foreign Financial Account?, for more information.
3. Consider the Automatic Extension.
U.S. citizens and resident aliens living abroad on April 15, 2013, may qualify for an automatic two-month extension to file their 2012 federal income tax returns. The extension of time to file until June 17, 2013, also applies to those serving in the military outside the U.S. Taxpayers must attach a statement to their returns explaining why they qualify for the extension.
4. Review the Foreign Earned Income Exclusion.
Many Americans who live and work abroad qualify for the foreign earned income exclusion. This means taxpayers who qualify will not pay taxes on up to $95,100 of their wages and other foreign earned income they received in 2012.
See Forms 2555, Foreign Earned Income, or 2555-EZ, Foreign Earned Income Exclusion, for more information.
5. Don’t Overlook Credits and Deductions. Taxpayers may be able to take either a credit or a deduction for income taxes paid to a foreign country.
This benefit reduces the taxes these taxpayers pay in situations where both the U.S. and another country tax the same income.
6. Use IRS Free File. Taxpayers who live abroad can prepare and e-file their federal tax return for free by using IRS Free File.
People who make $57,000 or less can use Free File’s brand-name software. People who earn more can use Free File Fill-able Forms, an electronic version of IRS paper forms. Free File is available exclusively through the IRS.gov website.
FBAR Overview
The Financial Crimes Enforcement Network (FinCEN) delegated to IRS its enforcement authority for penalties imposed under Title 31, Sections 5314 – 5321 for the failure to file Form TD F 90-22.1 Report Of Foreign Bank And Financial Accounts (FBAR).
Filing Procedure
Form TD F 90-22.1, Report of Foreign Bank and Financial Accounts, must be filed by US persons who have a financial interest in, signature authority, or other authority over one or more financial accounts in foreign countries with an aggregate value exceeding $10,000 at any time during the calendar year.
Failure to file this form may result in civil and/or criminal penalties.
These civil penalties may be appealed.
Where to File FBAR
FBAR reports are filed at the Enterprise Computing Center (ECC) in Detroit, Michigan. Filings can be researched on the Currency and Banking Retrieval System (CBRS) or on FBAR penalties may come to Appeals as stand-alone cases or together with a related income tax or international penalty.
FBAR penalties are an Appeals Coordinated Issue (Category of Case) and require a referral to International Operations prior to holding the first conference. International issue guidelines are available from the Appeals International Technical Specialist (ITS).
The FBAR penalty case will usually be received in Appeals pre-assessment. However, upon request, Appeals will also conduct post-assessment hearings as provided in Title 31 CFR 5.4 and 900 to consider FBAR penalty liability and collection.
Call us today and learn more about foreign income and any Fbar procedures you need to learn about.
All initial tax consultations are free.
FBAR, Foreign Income Questions – Ask True Experts – Tax Attorneys, Lawyers, Former IRS
by Fresh Start Tax | Mar 6, 2013 | FBAR
FBAR – Do you need to File a FBAR – Tax Attorneys, Tax Lawyers, FBAR Experts 1-866-700-1040
Have FBAR Experts Tax Attorneys and Tax Lawyers offer you a free tax consultation.
If you have any questions about FBAR reporting please feel free to call our office for a free initial tax consultation.
We are comprised of Tax Attorneys, Tax Lawyers, CPAs and former IRS agents and managers.
We have over 206 years of professional tax experience and we have over 60 years of working directly for the Internal Revenue Service.
At the IRS we worked in positions as agents, managers, and tax instructors. We also taught tax law.
We are experts in FBAR. 1-866-700-1040
All FBAR consultations are conducted by a tax attorney so he can not only answer your tax questions and how it relates to you but you are protected under attorney-client privilege
Who has to file for FBAR Reporting
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. The FBAR is a tool to help the United States government identify persons who may be using foreign financial accounts to circumvent United States law.
Investigators use FBARs to help identify or trace funds used for illicit purposes or to identify unreported income maintained or generated abroad.
Recent FBAR Guidance
On February 24, 2011, the Treasury Department published final regs amending the FBAR regulations.
These regulations became effective March 28, 2011, and apply to FBARs required to be filed with respect to foreign financial accounts maintained in calendar year 2010, and for FBARs required to be filed with respect to all subsequent calendar years.
Filing deadline for employees and officers to report
The filing deadline for employees and officers to report signature authority over these accounts was extended to June 30, 2012, for the following individuals:
a. An employee or officer of an entity under 31 CFR § 1010.350(f)(2)(i)-(v) who has signature or other authority over and no financial interest in a foreign financial account of a controlled person of the entity;or
b. An employee or officer of a controlled person of an entity under 31 CFR § 1010.350(f)(2)(i)-(v) who has signature or other authority over and no financial interest in a foreign financial account of the entity, the controlled person, or another controlled person of the entity.
Important note
For purposes of FinCEN Notice 2011-1, a controlled person is a United States or foreign entity more than 50 percent owned (directly or indirectly) by an entity under 31 CFR § 1010.350(f)(2)(i)-(v).
On June 17, 2011, FINCEN issued to provide filing deferral for certain officers or employees of investment advisers registered with the Securities and Exchange Commission who have signature authority over, but no financial interest in, foreign financial accounts of their employer.
The filing deadline for employees and officers to report signature authority over these accounts was similarly extended to June 30, 2012.
All other U.S. persons required to file an FBAR this year are required to meet the June 30, 2013 filing date.
On Jan 9, 2012, the IRS reopened the OVD following continued interest from taxpayers and tax practitioners after the closure of the 2011 and 2009 programs. This program will be open for an indefinite period until otherwise announced.
Who Must File an FBAR
United States persons are required to file an FBAR if:
- The United States person had a financial interest in or signature authority over at least one financial account located outside of the United States; and
- The aggregate value of all foreign financial accounts exceeded $10,000 at any time during the calendar year to be reported.
United States person means United States citizens; United States residents; entities, including but not limited to, corporations, partnerships, or limited liability companies created or organized in the United States or under the laws of the United States; and trusts or estates formed under the laws of the United States.
Exceptions to the Reporting Requirement
Exceptions to the FBAR reporting requirements can be found in the FBAR instructions. There are filing exceptions for the following United States persons or foreign financial accounts:
- Certain foreign financial accounts jointly owned by spouses;
- United States persons included in a consolidated FBAR;
- Correspondent/nostro accounts;
- Foreign financial accounts owned by a governmental entity;
- Foreign financial accounts owned by an international financial institution;
- IRA owners and beneficiaries;
- Participants in and beneficiaries of tax-qualified retirement plans;
- Certain individuals with signature authority over but no financial interest in a foreign financial account;
- Trust beneficiaries; and
- Foreign financial accounts maintained on a United States military banking facility.
Look to the form’s instructions to determine eligibility for an exception and to review exception requirements.
Reporting and Filing Information
A person who holds a foreign financial account may have a reporting obligation even though the account produces no taxable income.
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.
Please Note
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.
You may not request an extension for filing the FBAR.
Filing FBAR
The FBAR is an annual report and must be received by the Department of the Treasury in Detroit, MI, on or before June 30th of the year following the calendar year being reported. While FinCEN strongly encourages individuals to electronically file FBARs, the form can be mailed to one of the two addresses below, provided that the mailing is received by June 30, 2013:
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
Delivery messenger service contact telephone number: (313) 234-1062.
Account holders who do not comply with the FBAR reporting requirements may be subject to civil penalties, criminal penalties, or both.
Electronic Filing for FBAR Forms – MANDATORY Beginning July 1, 2013
by Fresh Start Tax | Jan 15, 2013 | FBAR
FBAR Filing Date Extended – FBAR Penalty Removals
We are comprised of tax attorneys, CPAs and 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 can help you with any FBAR problem or situation that you may currently have. Contact us today for free tax consultation and find out how we can help you. 1-866-700-1040. we will talk to you specifically about your individual situation and how we can help reduce or remove Fbar penalties.
FinCEN Further Extends FBAR Filing Deadline for Certain Financial Professionals
In the ever changing world of FBAR still another change. Recognizing the need for further study of related questions and concerns, FinCEN today issued Notice 2012-2 which further extends the Report of Foreign Bank and Financial Accounts (FBAR) filing deadline for a small subset of individuals with only signature authority over certain foreign financial accounts.
Filing Deadline
The filing deadline for those individuals previously identified in Notice 2011-1, Notice 2011-2, and Notice 2012-1 has been extended from June 30, 2013 to June 30, 2014.
All other U.S. persons required to file an FBAR this year are required to meet the June 30, 2013 filing date.
Unlike federal income tax returns, extensions of time to file FBARs are generally not available. It is a must that you file your Fbar on a timely basis.
Who must file FBAR TD F 90-22.1
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).
You can find this form on our website. Go to the homepage and look for IRS forms and you can download link and the form is readily available for you.
The FBAR is required because foreign financial institutions may not be subject to the same reporting requirements as domestic financial institutions.
FBAR is a tool for the US government
The FBAR is a tool to help the United States government identify persons who may be using foreign financial accounts to circumvent United States law.
Tax Investigators use FBARs to help identify or trace funds used for illicit purposes or to identify unreported income maintained or generated abroad. as a general rule most most persons are in compliance with F bar regulations.
As a general rule the IRS and the Department of Justice are mainly concerned with huge amounts of money escaping the reach of the United States taxing authorities. Over the first 3F bar tax years the federal government collected $5.5 billion in additional revenue when 33,000 taxpayers came forward and filed back FBAR tax returns.
Recent FBAR Guidance
On February 24, 2011, the Treasury Department published final regulations amending the FBAR regulations. These regulations became effective March 28, 2011, and apply to FBARs required to be filed with respect to foreign financial accounts maintained in calendar year 2010 and for FBARs required to be filed with respect to all subsequent calendar years.
On May 31, 2011, the Financial Crimes Enforcement Network (FinCEN) issued FinCEN Notice 2011-1 (PDF), revised June 6, 2011, to provide administrative relief for certain individuals with signature authority over but no financial interest in foreign financial accounts. On February 14, 2012, FinCEN extended this relief by Notice 2012-1.
The deadline to report signature authority over certain accounts has been extended to June 30, 2013 per FinCEN Notice 2012-1 (PDF), for the following individuals:
a. an employee or officer of an entity under 31 CFR § 1010.350(f)(2)(i)-(v) who has signature or other authority over and no financial interest in a foreign financial account of a controlled person of the entity; or
b. an employee or officer of a controlled person of an entity under 31 CFR § 1010.350(f)(2)(i)-(v) who has signature or other authority over and no financial interest in a foreign financial account of the entity, the controlled person, or another controlled person of the entity.
Call us today and learn more about F bar. You will speak directly with the tax attorney or CPA that can offer you the best possible F bar advice.
Please call us at 1-866-700-1040
FBAR Filing Date Extended – FBAR Penalty Removals
by Fresh Start Tax | Jan 3, 2013 | FBAR
Foreign Account Tax Compliance Act – Tax Experts – FBAR Representation
We are comprised of Tax Attorneys, Tax Lawyers, CPA’s and Former IRS agents, managers and instructors. We have over 206 years of professional tax experience and over 60 years of direct IRS tax experience.
We can help answer any questions you have regarding the Foreign Account Tax Compliance Act. We are tax experts in the field. 1-866-700-1040.
The Foreign Account Tax Compliance Act ( FATCA )
The Foreign Account Tax Compliance Act (FATCA) is an important development in the United States efforts to improve tax compliance involving foreign financial assets and offshore accounts both in filing and paying taxes.
Under FATCA, U.S. taxpayers with specified foreign financial assets that exceed certain thresholds must report those assets to the IRS.
This reporting needs to be made on Form 8938, which taxpayers attach to their federal income tax return, starting this tax filing season.
Remember, this is a attachment only.
FATCA will require banks and foreign financial institutions to report directly to the IRS information about financial accounts held by U.S. taxpayers, or held by foreign entities in which U.S. taxpayers hold a substantial ownership interest. A note to all, foreign banks are responding fearing US reprisal.
The Internal Revenue Service will continue to keep taxpayers updated on new information reporting.
The Tax Form 8938
Form 8938 will be filed by taxpayers with specific types and amounts of foreign financial assets or foreign bank or financial accounts.
It is very important for taxpayers and their representative or CPA’s to determine whether they are subject to this new requirement because the law imposes significant penalties for failing to comply. Check on our website on similar topics to learn more.
The Form 8938 filing requirement was enacted in 2010 to improve tax compliance by U.S. taxpayers with offshore financial accounts. Individuals who may have to file Form 8938 are U.S. citizens and residents, nonresidents who elect to file a joint income tax return and certain nonresidents who live in a U.S. territory.
Reporting requirements Form 8938
Form 8938 is required when the total value of specified foreign assets exceeds certain thresholds. For example, a married couple living in the United States and filing a joint tax return would not file Form 8938 unless their total specified foreign assets exceed:
A. $100,000 on the last day of the tax year or more than $150,000 at any time during the tax year. IRS will stick to this strict guideline.
The thresholds for taxpayers who reside abroad are higher.
A case study.
A married couple residing abroad and filing a joint return would not file Form 8938 unless the value of specified foreign assets exceeds $400,000 on the last day of the tax year or more than $600,000 at any time during the year.
Instructions for Form 8938 explain the thresholds for reporting, what constitutes a specified foreign financial asset, how to determine the total value of relevant assets, what assets are exempted, and what information must be provided.
No filing Requirement needed.
Form 8938 is not required of individuals who do not have an income tax return filing requirement.
The new Form 8938 filing requirement does not replace or otherwise affect a taxpayer’s obligation to file an FBAR (Report of Foreign Bank and Financial Accounts). For more go to the FBAR page on this website.
Failing to file the Required Form 8938
Failing to file Form 8938 when required could result in a $10,000 penalty, with an additional penalty up to $50,000 for continued failure to file after IRS notification. A 40 percent penalty on any understatement of tax attributable to non-disclosed assets can also be imposed.
There is a special statute of limitation rules apply to Form 8938, which are also explained in the instructions. Call us for more details
Call us today to find out everything you need to know about Foreign Account Tax Compliance Act . All calls are confidential and initial call are free. 1-866-700-1040.
Foreign Account Tax Compliance Act – Tax Experts – FBAR FILING
by Fresh Start Tax | Jan 1, 2013 | FBAR
FBAR FILING, To File or not to file – Hear the TRUTH about FBAR Filing
We are comprised of FBAR Tax Attorneys, Tax Lawyers, CPA’s and Former IRS agents, managers and instructors. We have over 206 years of professional tax experience and over 60 years with the IRS.
Call us and hear the truth about your situation. Be worry free. 1-866-700-1040.
We taught Tax Law at the IRS and know all the tax polices and tax procedure to settle your case. 1-866-700-1040.
The latest buzz about FBAR Filing.
There is now a natural fear about FBAR like never before.
There has been much debate for FBAR Filers whether to come out of the closet or stay and hunker down. For those who are not sure here are some things you may want to consider.
The questions are these:
1. Do I file FBAR ?
2. If I file, how should I file FBAR?
3. Should I make a quite disclosure?
4. Am I in any trouble?
Our general advice is this, ” Contact us or the IRS before the IRS contacts you “
IRS is firing warning shots about FBAR filings and the news of not good ss you have not filed.
Without question your should file your FBAR filings because the IRS absolutely means business. when IRS announced it amnesty period for FBAR about 33,000 taxpayers or individual came forward to file and avoid the possibility of prison time in Club Fed.
The IRS collected over $5.5 billion large and with that kind of haul the IRS is not about the stop. With the leverage of a prison sentence the IRS will proceed forward with vigor.
What to do next.
Depending on your situation will depend how you move forward with the IRS. Most cases are very simple and taxpayers need little of no help but for taxpayers or individuals with larges amount of unreported cash I would strongly suggest speaking to an experienced tax professional . that person will tell you given on your facts the next move.
Many times it is best to pay the tax then move on into the sunset but every case is different and decisions have to be made based on those circumstances.
Liechtenstein the falling of:
One of the great safe haven of monies buried by taxpayers from the US was in Liechtenstein and Liechtenstein has given way to US pressure and is turning over records relative to taxpayers holding and financial records
With the explosion of the UBS the domino’s started to fall and one of the questions everyone was asking was, ” would Liechtenstein ever 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.
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.
Liechtenstein facilitated the so-called group request from the U.S. by amending a tax law in March.
Thew country of 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 for for Financial Institution and Individuals
The stakes for Swiss banks and financial institutions 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 now in place.
“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.” (OVDP )
Those affected by the U.S. request for information have the right to appeal, according to the letter. Many are doing just 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.
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.” All foreign banks will eventually cave to US pressure.
Aspect more to come, keep checking our Blog Posts
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. LARGE ACCOUNTS NEED PROFESSIONAL REPRESENTATION.
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.
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.
