by Fresh Start Tax | Jan 18, 2013 | Offshore Program
Offshore Bank Accounts – Advice on how report to the IRS – Tax Attorneys, Former IRS 1-866-700-1040
We are comprised of board-certified tax attorneys, CPAs and former IRS agents, managers and tax instructors. While employed at the IRS we taught tax law.
You can call us today for free tax consultation and we can discuss with you all the issues regarding offshore bank accounts and advice on how and when to report to the Internal Revenue Service.
We are A+ rated by the BBB and then private practice since 1982.
The IRS is on the hunt and prowl for those taxpayers placing their funds in offshore bank accounts. The IRS has formed various tasks force to go ahead and to pursue the collection of those hiding and/or evading their money from the United States government.
Every taxpayer has a different situation and there are no two situations the same. Because of the recent change in tax laws in the IRS pursuit of the filing of Fbar it is beneficial for taxpayers to find IRS before the IRS finds them.
OVDP has been very successful
The Offshore voluntary disclosure programs have so far resulted in the collection of more than $5 billion in back taxes, interest and penalties from 33,000 voluntary disclosures made under the first two programs.
In addition, another 1,700 disclosures have been made under the new program announced in January.
The voluntary disclosure programs are part of a wider effort by the IRS to stop offshore tax evasion and ensure tax compliance.
This includes beefed up enforcement, criminal prosecution and implementation of third-party reporting through the Foreign Account Tax Compliance Act.
The IRS also closed a loophole that’s been used by some taxpayers with offshore accounts. Under existing law, if a taxpayer challenges in a foreign court the disclosure of tax information by that government, the taxpayer is required to notify the U.S. Justice Department of the appeal. This close loophole can can spell doom for many taxpayers.
The IRS said that if the taxpayer fails to comply with this law and does not notify the U.S. Justice Department of the foreign appeal, the taxpayer will no longer be eligible for the Offshore Voluntary Disclosure Program.
The IRS also put taxpayers on notice that their eligibility for OVDP could be terminated once the U.S. government has taken action in connection with their specific financial institution.
Slowly and surely the United States government is being successful in getting treaties with almost every country for their account holders to turn over information to the US government.
The IRS is aware that some U.S. taxpayers living abroad have failed to timely file U.S. federal income tax returns or Reports of Foreign Bank and Financial Accounts (FBARs). Some of these taxpayers have recently become aware of their filing requirements and want to comply with the law. Most people have absolutely nothing to worry about.
To help these taxpayers, the IRS offered the new procedures that will allow taxpayers who are low compliance risks to get current with their tax requirements without facing penalties or additional enforcement action.
These people generally will have simple tax returns and owe $1,500 or less in tax for any of the covered years. The majority of taxpayers fit in the simple tax return category.
Canadian Registered Retirement
The IRS also announced that the new procedures will allow resolution of certain issues related to certain foreign retirement plans (such as Canadian Registered Retirement Savings Plans).
In some circumstances, tax treaties allow for income deferral under U.S. tax law, but only if an election is made on a timely basis. The streamlined procedures will be made available to resolve low compliance risk situations even though this election was not made on a timely basis.
The new procedures.
Taxpayers using the new procedures will be required to file delinquent tax returns along with appropriate related information returns for the past three years, and to file delinquent FBARs for the past six years. It is best to check with a tax professional before filing these back tax returns.
Submissions from taxpayers that present higher compliance risk will be subject to a more thorough review and potentially subject to an audit, which could cover more than three tax years.
IRS wants people back in the system
This program which helps bring people back into the tax system will be open for an indefinite period until otherwise announced. IRS will note this program and to the well runs dry.
The program is similar to the 2011 program in many ways, but with a few key differences. There is no set deadline for people to apply.
The terms of the program could change at any time going forward.
The offshore penalty has been raised
Under the current OVDP, the offshore penalty has been raised to 27.5 percent from 25 percent in the 2011 program.
The reduced penalty categories of 5 percent and 12.5 percent are still available.
Call us for free tax consultation today and speak directly to offshore bank account experts. Our calls are under attorney-client privilege if requested.
You can Skype us as well password freshstarttax.
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 | Oct 2, 2012 | Expatriate Tax, FBAR, Offshore Program, Offshore Tax Problems, Tax Lawyer
Make sure you file all FBAR reports because the IRS and the Department of Justice is putting in systems and getting cooperation for foreign banks and financial institutions to turn over the names of all account holders all over the world.
FBAR is coming your way because of the huge success that the Department of Justice and the IRS has had on the FBAR Program over the past 3 years.
IRS and the Department of Justice collected just north of $5 billion dollars as a result of the first couple of FBAR programs. Over 33,000 persons came forward and many many more are about to ante up to avoid jail time.
IRS and the DOJ hold the threat of prison time over the heads of non-filers and non reporters and the best advice we can give you is to” find the IRS before they find you.”
With the break through of UBS and Liechtenstein, the IRS and the DOJ is working there way country by country.
Why to use Fresh Start Tax LLC.
We are comprised of Board Certified Tax Attorneys, Tax Lawyers, CPA’s and Former IRS agents. We have over 205 years pf professional tax experience and over 60 years of working directly for the IRS in the local, district and regional offices.
We taught Tax Law and know all the tax procedures, thinking and settlement objectives of the IRS. We have a world wide tax practice.
News from Liechtenstein that will effect other countries including Italy and the surrounding areas.
You should known that Liechtenstein was never thought to give away to US pressure. It was such a small country. A little Alpine ski resort of 36,000 persons, it was a tax free haven for years for persons wanting to hide their money free of government reprisal. It was one of the greatest of all tax havens. For many tax professionals involved it was the country of choice because it was called the Teflon Tax country.
The US came in hard and the with the pressure Liechtenstein gave way.
Liechtenstein finally informed on their Bank Clients on the U.S. Tax Evasion Request
Liechtenstein has told all their 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.
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.
Who is required to file FBAR.
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.
International Interests:
Individuals or Businesses with International Interests, if you need help or assistance in the following areas call us today: 1-866-700-1040
1. Reporting required for foreign corporations, partnerships, and trusts,
2. Tax Treatment of Passive Foreign Investment Companies,
3. Foreign Bank Account Reporting and consultations,
4. Donations to foreign charities by United States private foundations,
5. Determination for residency for income tax purposes for Foreign Nationals,
6. A Application of Tax Treaties and Totalization Agreements to minimize United States Tax,
7. State residency and Domicile issues,
8. Analysis of foreign tax credit(s) versus foreign earned income exclusions for US expatriates.
The triggering mechanism – The United States Bank Secrecy Act
The US Congress passed the Bank Secrecy Act in 1970 as the first laws to fight money laundering in the United States. The BSA requires businesses to keep records and file reports that are determined to have a high degree of usefulness in criminal, tax, and regulatory matters.
The documents filed by businesses under the BSA requirements are heavily used by law enforcement agencies, both domestic and international to identify, detect and deter money laundering whether it is in furtherance of a criminal enterprise, terrorism, tax evasion or other unlawful activity.
The Internal Revenue Service is a partner in the U.S. National Money Laundering Strategy. The IRS seeks to achieve a balance between enforcement of the money laundering laws and education. This page provides links to information about specific BSA requirements to assist with education and compliance with the law.
by Fresh Start Tax | Sep 28, 2012 | Expatriate Tax, FBAR, Offshore Program, Tax Lawyer, Tax Returns
First it was UBS. No one knew where it would go from there.
But now Lichtenstein went down and caved in to US pressure and the US has turned its attention to other countries including Hong Kong.
The US government is putting on political pressure on foreign governments to hand over names and bank account holders to ensure that those individuals have filed FBAR’s and paid there legal tax.
If you have not done so and need professional tax representation call us today.
We are comprised of Tax Attorneys, Tax Lawyers, CPA’s and Former IRS agents.
One of the reasons you want to use our firm is because of our expertise with the IRS. We have over 206 years of professional tax expereince and over 60 years of working directly for the IRS in the local, district and regional offices of the IRS.
We taught Tax Law at the IRS and know all the policies. and settlement policies.
We can file your FBAR, file your amended returns and settle your case. Stop the worry today.
It is very important that individuals or businesses that may have issues or problems to speak to tax professionals and discuss these issues before the IRS gets involved. and they will get involved.
Make sure you are absolutely clear on this, the IRS is coming.
The success so far by the US government and the IRS.
After the first two Programs run by the US government the IRS collected just north of $5 Billion in back taxes and penalties.With those types of numbers it does not take a genius that the Feds have found a source of revenue. Since both parties always pledges not to raise taxes this is an easy fix. Just enforce the tax laws to individuals who are wealthy and have fudge on there tax returns. There leverage, prison time.
The IRS is ramping up enforcement and the Feds are backing them up.
Next year the Administration is funding the IRS another $500,000 million to pursue tax cheats and work on non- compliance.
Make no mistake about it, the IRS is coming.
What happened in Liechtenstein.
Few saw this coming. With Liechtenstein being a small Alpine village of 36,000 people many thought it would never fall to IRS pressure, but it did.
Liechtenstein finally informed on their Bank Clients on the U.S. Tax Evasion Request to report on certain foreign accounts.
Liechtenstein has told there American clients of the principality’s oldest bank that U.S. authorities have requested their account data as they widen a tax probe for potential tax evasion and potential tax fraud. Investors are scrambling.
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. We have no idea how many accounts are included on this request however the word on the streets, “thousands”.
What is FATCA?
The Foreign Account Tax Compliance Act (FATCA) improves tax compliance involving foreign financial assets and offshore accounts. Under FATCA, certain U.S. taxpayers with specified foreign financial assets must report those assets to the IRS on Form 8938.
Call us today to find out more.
FATCA will require foreign financial institutions to report directly to the IRS information about financial accounts held by U.S. taxpayers.
The IRS offers an offshore voluntary disclosure program to help people get current with their taxes. The current program is open for an indefinite period until otherwise announced.
1-866-700-1040 Free tax consult Skype available
File FBAR – Hong Kong – Report & Settle Without Fear – US Tax Attorney Lawyers, Former IRS – Expatriate Help
by Fresh Start Tax | Sep 26, 2012 | FBAR, Offshore Program, Offshore Tax Problems, Tax Help, Tax Lawyer
If you are a US citizen living in Switzerland or the surrounding area and need FBAR help, call us today.
We have a number of Switzerland FBAR clients and understand the tax issues and related tax problems that can occur.
We are comprised of Board Certified Tax Attorneys, Tax Lawyers, CPA’s and Former IRS Agents who have over 60 years with the IRS.
Tax News – February 2, 2012
“Switzerland’s oldest bank was indicted back on February 02, 2012 for conspiring with U.S. taxpayers and others to hide more than $1.2 billion in secret offshore foreign banks and financial accounts and the income they generated from the IRS.
It was the first time in history that an overseas bank was indicted by the United States for facilitating tax fraud by U.S. taxpayers.”
IRS will be paying closer attention to US taxpayers living abroad having overseas bank accounts and financial interests. Large amounts of funds have been placed beyond the reach of the FEDS and they plan to do something about that.
Since IRS received over $5.5 Billion over the last five years as a result of FBAR the IRS plans to ramp up enforcement because of the large pool of revenue sitting in the pockets of foreign banks and financial institutions. The IRS has committed over $500,000 million dollars in the next fiscal year to the areas of tax compliance, no filers and tax enforcement.
If you have nothing to hide or squirm about you can certainly file and report FBAR on your own. However, if you have anything that can make you nervous you should contact us for a free tax consult. 1-866-700-1040.
How you should report your account to the IRS.
Filers of FBAR should report their foreign accounts using the following method:
A. (1) completing boxes 7a and 7b on Form 1040 Schedule B, box 3 on the Form 1041 “Other Information” section, box 10 on Form 1065 Schedule B, or boxes 6a and 6b on Form 1120 Schedule N and (2) completing Form TD F 90-22.1 (PDF).
FBAR due dates:
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 the Internal Revenue Service of an extension to file Federal income tax returns does not extend the due date for filing an FBAR.
Taxpayers who file FBAR 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.
The issue of multiple owners of Foreign Accounts
We have had the same issues come up with a our Switzerland clients that bears a comment. With respect to the issue of Multiple Owners of Foreign Accounts:
In the case of co-owners, each taxpayer who makes a voluntary disclosure will be liable for the penalty on his percentage of the highest aggregate balance in the account. His/her voluntary disclosure is effective as to his tax liability only. It does not cover the other co-owners.
The IRS may examine any co-owner who does not make a voluntary disclosure. Co-owners examined by the IRS will be subject to all appropriate penalties or tax crimes.
FBAR Help, US Taxpayers living in Switzerland, Tax Attorneys, Lawyers, Former IRS, FBAR International Experts.
