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 | Aug 28, 2012 | FBAR, IRS Penalties, Tax Lawyer
FBAR Penalties – Tax Attorneys, Lawyers, Former IRS – FBAR Expert – Removing FBAR Penalties
Call us for help resolving your FBAR tax problems and issues.
Former IRS Agents know how to resolve cases. Free tax consult. 1-866-700-1040
For those who were suppose to report and pay taxes as a result of FBAR filings, the penalties phase that IRS imposing is frightening and very costly.
It is possible if reasonable cause exists to abate penalties and interest.
You should contact our office and speak directly to a tax attorney, tax lawyer or former IRS agent to discuss the details of your case for the removal of FBAR penalties.
FBAR Penalties Explained
IRS has a very specific FBAR Penalty Structure
A civil money penalty may be imposed by the IRS for an FBAR violation even if a criminal penalty is imposed for the same violation. Yes, this is double the trouble. This can be found under 31 U.S.C. § 5321(d).
Negligence Penalties for FBAR
There are two negligence penalties which apply generally to all BSA provisions
1. A negligence penalty up to $500 may be assessed against a business for any negligent violation of the BSA, including FBAR violations.
2. An additional penalty up to $50,000 may be assessed for a pattern of negligent violations.
As a general rule these two negligence penalties only apply to trades or businesses, not to individuals.
The FBAR penalties under section 5321(a)(5) and the FBAR warning letter, Letter 3800, should be adequate to address most FBAR violations that are identified. The FBAR warning letter may be issued in the cases where the revenue agent determines none of the 5321(a)(5) FBAR penalties are warranted.Each case is based on its own unique set of facts and can significantly vary due to IRS swings in policy changes.
If the revenue agent ( RA) believes, however, that assertion of a section 5321(a)(6) negligence penalty is warranted in a particular case, the revenue agent should contact a Bank Secrecy Act Program Analyst for guidance.As a general rule, these apply to high dollar cases where the negligence appears more warranted.
Negligence that applies to FBAR.
Actual knowledge of the reporting requirement is not required to find negligence.
If a financial institution or non-financial trade or business exercising ordinary business care and prudence for its particular type of business should have known about the FBAR filing and record keeping requirements, failure to file or maintain records is negligent. Remember, reasonable cause for penalty abatement’s can be tested.
If the failure to file the FBAR or to keep records is due to reasonable cause, and not due to the negligence of the person who had the obligation to file or keep records, the negligence penalty should not be asserted. This is where you need a seasoned tax professional to help you with a situation just like this.
Negligent failure to file does not exist when, despite the exercise of ordinary business care and prudence, the business was unable to file the FBAR or keep the required records.
IRS will use general negligence principles in determining whether or not to apply the negligence penalty.
Although this IRS tax regulation does not apply to FBARs, the information it contains may still be helpful in determining whether the FBAR violation was due to reasonable cause and not due to negligence.
Remember the facts and circumstances differ on each case and no two cases are the same.
Call us if you have questions or need tax representation.1-866-700-1040
by Fresh Start Tax | Jul 24, 2012 | Abatements, FBAR, IRS Penalties, Tax Lawyer, Tax Settlements
FBAR Penalties – Remove, Settle – FBAR Tax – Former IRS, Attorneys – FBAR Tax Experts – FBAR Consultants
We are a IRS tax specialty firm. We tax experts in IRS matters including FBAR.
Let our experience work for you. We taught IRS tax Law.
We have a combined 205 years of professional tax experience and over 60 years of direct IRS tax experience in the local, district and regional offices of the Internal Revenue Service.
We have been practicing Tax Law since 1982 and we are “A” rated by the BBB.
On staff are Former IRS Appeals Agents and Tax Attorneys who are tax experts in matters of Penalty abatement and removal.
We have been settling cases with the IRS since 1982. We know all the tax policies and tax procedures because we taught Tax Law at the IRS.
Call us for a no cost consult and hear your options, 1-866-700-1040.
FBAR Penalties, procedures and applications.
The IRS has been delegated authority to assess FBAR civil penalties. There are civil penalties for negligence, pattern of negligence, non-willful, and willful violations. Each case is different and the results vary from cases to case.
IRS penalties are be asserted only to promote compliance with the FBAR reporting and record keeping requirements.
In exercising IRS discretion, tax examiners consider whether the issuance of a warning letter and the securing of delinquent FBARs, rather than the assertion of a penalty, will achieve the desired result of improving compliance in the future. We hope!
FBAR civil penalties have varying upper limits, but no floor.
The IRS audit examiner discretion is necessary because the total amount of penalties that can be applied under the statute can greatly exceed an amount that would be appropriate in view of the violation. You must hope the tax examiner is fair and uses good judgement.
IRS tax examiners are expected to exercise discretion, taking into account the facts and circumstances of each case, in determining whether penalties should be asserted and the total amount of penalties to be asserted.
Because FBAR penalties do not have a set amount, IRS has developed penalty mitigation guidelines to assist examiners in the exercise of their discretion in applying these penalties.
The FBAR mitigation guidelines are only intended as an aid for the examiner in determining an appropriate penalty amount.
The IRS tax examiner must still consider whether a warning letter or a penalty amount that is less than what would be called for under the mitigation guidelines would be more appropriate given the facts and circumstances of a particular case.
FBAR penalties are determined per account, not per unfiled FBAR, for each person required to file.
IRS penalties apply for each year of each violation.
As noted above, however, examiners are expected to exercise discretion, taking into account the facts and circumstances of each case, in determining whether penalties should be asserted and the total amount of penalties to be asserted.
FBAR Penalties, Remove, Settle, FBAR Tax, Former IRS, Attorneys, FBAR Tax Experts ,FBAR Consultants
by Fresh Start Tax | Jul 16, 2012 | Back Taxes, Expatriate Tax, IRS Penalties, IRS Tax Problem, Tax Lawyer, Tax Returns
We are International Tax Experts for Expatriates Tax Services, Consultations and IRS Tax Relief.
We can take all the worry and fear out of your IRS tax situation. We are former IRS Agents and Managers and have over 60 years of direct IRS work experience. We have a total of 206 years of total tax experience.
Call us for a free tax consult,1-866-700-1040.
We can file all current tax returns, file all back tax years and settle any back taxes you may owe.
Filing Dates for Tax Returns.
March 15th Form 1120 and 1120S.
Due date for US Corporations and Sub-Chapter S corporation unless extended with Form 7004
March 15th Due Date.
Form 3520A for foreign trusts
April 15th Due Date.
For any payment of any taxes due for previous calendar year (though if you are living abroad on 4/15 your tax return gets an automatic extension until 6/15)
April 15th Form 1040 ES.
First payment for current years first installment of quarterly income and self employment taxes to avoid penalties.
June 15th Form 1040 ES.
Second payment on current years second installment of quarterly income and self employment taxes to avoid penalties.
June 15th Due Date
Expatriate tax return (for expatriate living abroad on 4/15) or time to file for an extension on Tax Form 4868.
June 30th Form.
TDF 90-22.1 US Treasury Form Report of Foreign Bank Accounts Due Date.
July 30th Due date.
Self administered Pension Plan and 401K Tax Return From 5500 or 5500EZ
September 15th Form 1040 ES.
Third pay current years third installment of quarterly income and self employment taxes to avoid penalties.
September 15th Extended Due Date.
For U.S. Corporation Returns 1120 and 1120S
October 15th Final Expat Form 1040 Due date .
You may not get another tax extension.
January 15th Form 1040 ES Fourth installment of quarterly income and self employment taxes to avoid penalties.
Please Note the following If any of days list above fall on a weekend or national holiday, the due date is automatically moved to the first week day following the weekend or holiday.
The IRS recently announced that the due date for 2010 individual federal income tax returns will be Monday, April 18, 2011. Each year dates differ, please check with us for yearly changes.
Expatriate Tax Help – All Countries – England, Australia, Japan, UAE – Filing, Back Taxes, Penalties – Expat Experts
by Fresh Start Tax | Apr 17, 2012 | IRS Penalties, IRS Tax Advice, Tax Lawyer
Get rid of IRS Penalties and Interest 1-866-700-1040
Have IRS Insiders and Former IRS Agents work for you. If you have reasonable cause, we will get your money back, its that simple.
There are several ways to remove IRS Penalties and Interest. As Former IRS Agents and Managers we know all the techniques and best case practices to get rid of IRS Penalties and Interest.
Call us today at 1-866-700-1040 with your specific case and we will let you know the best way to abate, get rid of or remove IRS penalties and interest.
When it comes to filing your tax return, however, the law provides that the IRS can assess a penalty if you fail to file, fail to pay or both.
Failure to File, Failure to Pay:
Here are important points about the two different penalties you may face if you file or pay late.
1. If you do not file by the deadline or due date of the tax return, you will face a failure to file penalty.
If you do not pay by the due date, you could face a failure to pay penalty.
2. The failure-to-file penalty is generally more than the failure to pay penalty. So if you cannot pay all the taxes you owe, you should still file your tax return on time and pay as much as you can, then explore other payment options. Always file your tax return timely. This is the highest penalty the IRS assesses.
3. The penalty for filing late is usually 5 percent of the unpaid taxes for each month or part of a month that a return is late. This penalty will cannot exceed 25 percent of your unpaid taxes. It therefore tops out at 25%. Interest is assessed on penalties as well.
4. Exception – If you file your return more than 60 days after the due date or extended due date, the minimum penalty is the smaller of $135 or 100 percent of the unpaid tax.
5. If you do not pay your taxes by the due date, you will generally have to pay a failure to pay penalty of ½ of 1 percent of your unpaid taxes for each month or part of a month after the due date that the taxes are not paid.
This penalty can be as much as 25 percent of your unpaid taxes. This penalty also tops out as well.
6. If you request an extension of time to file by the tax deadline and you paid at least 90 percent of your actual tax liability by the original due date, you will not face a failure to pay penalty if the remaining balance is paid by the extended due date.
7. If both the failure to file penalty and the failure to pay penalty apply in any month, the 5 percent failure-to-file penalty is reduced by the failure-to-pay penalty.
However, if you file your return more than 60 days after the due date or extended due date, the minimum penalty is the smaller of $135 or 100 percent of the unpaid tax.
8. You will not have to pay a failure-to-file or failure-to-pay penalty if you can show that you failed to file or pay on time because of reasonable cause and not because of willful neglect.
See our website for a comprehensive list of reasonable causes for penalty abatement.
Call us today, 1-866-700-1040. On staff, Board Certified Tax Attorneys, CPA’s and Former IRS Agents.
by admin | Mar 27, 2012 | IRS Penalties, IRS Tax Advice, IRS Tax Problem, Tax Help
IRS Penalty Tax Relief by Former IRS Agents and Managers – Call us today for details an immediate IRS tax representation.
Get the tax help and get rid of your tax problem today.
Tax Relief to Farmers Affected by MF Global Bankruptcy
The Internal Revenue Service announced today that it will provide penalty relief to farmers who incur estimated tax penalties because they did not timely receive Forms 1099 from MF Global or its court appointed trustee, and were unable to file their 2011 calendar year tax return by March 1, 2012.
The IRS also today provided the affected farmers with instructions on how to apply for this penalty relief. you can call our offices for details and representation requirements.
The Farming Industry
Usually farmers can avoid an estimated tax penalty if they file their returns and pay the full amount of tax shown on their return by March 1, 2012.
An individual is a farmer for these purposes if two-thirds of the individual’s total gross income for the taxable year or the preceding taxable year is from farming. This rule and the relief being provided also apply for fishermen.
MF Global filed for bankruptcy on Oct. 31, 2011, after revealing that hundreds of millions of dollars in customer money was missing.
While the court appointed trustees are working to untangle MF Global’s financial records, the IRS understands that the magnitude of the records and the associated untangling delayed the issuance of Forms 1099 in a timely manner.
Many former customers of MF Global did not receive their Forms 1099 by March 1, 2012 and the penalties are racking up.
While the IRS has been advised that former customers have recently received their 1099s, the delay in mailing the Forms 1099 may have affected the ability of many farmers to file their 2011 calendar year return by March 1, 2012.
If a taxpayer has an underpayment of estimated tax, all or part of the penalty for the underpayment may be waived if the IRS determines that the underpayment was due to a casualty, disaster or other unusual circumstance and it would be inequitable to impose the penalty.
To request a waiver of the estimated tax penalty, complete Form 2210-F, Underpayment of Estimated Tax by Farmers and Fisherman.
As stated in the instructions to Form 2210-F, a short statement should be attached to the form stating that you received a late 1099 from MF Global. At the top of your Form 2210-F, write “MF Global”. Taxpayers should be aware that the Form 2210-F and accompanying Form 1040 cannot be submitted electronically. In the case of farmers who have filed their tax returns and an estimated tax penalty is assessed, please contact the IRS, identify this relief and the penalty will be abated.
While this situation could possibly racking up thousands of dollars in penalties, let us get you tax relief today.
Call Fresh Start Tax, 1-866-700-1040. Speak directly to a tax expert.
We offer a full range of IRS tax representation services.
