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 22, 2012 | IRS Tax Debt, Offer in Compromise, Offshore Tax Problems, Tax Settlements
Offer in Compromise – Tax Debt Settlement – Former IRS Agent
Timing is everything when filing a Offer in Compromise or a IRS Tax Debt Settlement.
I should know.
I am a Former IRS agent and teaching instructor with the IRS who taught the Offer in Compromise program while employed by the IRS. I have reviewed hundreds and hundreds of offers. To get a IRS tax debt settlement approved by the IRS you must file a perfect offer settlement because it is a legal document.
IRS accepts over 27% of all offers filed and almost 80% of those are rumored to be filed by tax professionals.
You want to file your offer when you are at the lowest ebb of your financial life. IRS evaluates two primary objects, your current income and your assets.
IRS will ask you to complete a 433OIC and have the statement fully documented. With that in hand, the IRS has very specific formulas that evaluate your financial statement in regard to income and assets.
If you would like us to provide you with a no cost analysis contact us today.
Understanding the Offer in Compromise, tax debt settlement process.
While your offer in compromise is being evaluated by the IRS:
a. Your non-refundable payments and fees will be applied to the tax liability. You may designate payments to a specific tax year and tax debt,
b. A Notice of Federal Tax Lien may be filed,
c. Other collection activities are suspended,
d. The legal tax assessment and collection period is extended,
e. You must make all required payments associated with your offer in compromise,
f. You are not required to make payments on an existing installment agreement, and
g.Your offer is automatically accepted if the IRS does not make a determination within two years of the IRS receipt date.
Fresh Start Tax LLC – New Jersey
209 Cooper Ave,
Upper Montclair, NJ 07043
1-866-700-1040
Call us today and speak to a true tax professional. 1-866-700-1040.
by Fresh Start Tax | Oct 3, 2012 | Expatriate Tax, FBAR, Offshore Tax Problems, Representation, Tax Lawyer
FBAR Filing Help – Late, Unfiled, Delinquent – Representation & Negotiation – Fresh Start Tax LLC – Attorneys, Former IRS
Michael D. Sullivan is Former Award Winning IRS Agent and Teaching Instructor with the Internal Revenue Service. Mr. Sullivan worked in the local, district and regional offices of the IRS.
Mr. Sullivan has been in private practice since 1982 and is a tax expert in the field of Federal and State Tax Resolution.
FBAR filing is certainly been a hot topic of late. The Department of Justice ( DOJ ) and the IRS has made this priority number one due to the huge amounts of tax revenue it has brought in to the US economy. FBAR filing and paying has been a huge boost to the coffers of the US Treasury. $5.5 Billion has already been collected when 33,000 individuals came forward.
Both government agencies ( IRS and DOJ ) have made this a priority and with the fear of going to jail a record number of individuals are coming forward to file back, late and or delinquent FBAR Reports and Amended Tax Returns.
IRS keep a list of prosecutions on there website. You will find out the fine amounts and the sentencing involved.
The individual has basically two options.
Option number one is to make what is called a ” quiet disclosure.” A Quiet disclosure is simply filing and FBAR report and amending your tax returns. The second option is to contact CI and file through CI.( Criminal Investigation )
There are pro’s and con’s to both. It is critical to contact a Tax Attorney or Tax Lawyer to help make these decision. Those decisions are based on your individual history and fact pattern on your unique case. Many factors are taking into consideration before an opinion can be rendered.
How do you report FBAR and amending your tax returns.
Filers report their foreign accounts by (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).
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.
PLEASE NOTE – Filers cannot request an extension of the FBAR due date. Due date is the due Date!
Filing and amended FBAR
If you need to amend, FBAR filers can amend a previously filed FBAR by:
a. Checking the Amended box in the upper right-hand corner of the first page of the form,
b. Making the needed additions or corrections,
c. Stapling or attaching it to a copy of the original FBAR and
d. Attaching a statement explaining the additions or corrections.
If you fail to file a FBAR Report.
Failure to file an FBAR when required may potentially result in civil penalties, criminal penalties or both. Much depends on your case history and amount of tax owed and intent or lack thereof.
If you learn you were required to file FBARs for earlier years, file the delinquent, late or past due FBAR reports and attach a statement explaining why the reports are filed late.
Be careful with this statement. It is best to have a tax attorney or tax lawyer write this letter.
No penalty will be asserted if the IRS investigator determines that the late filings were due to reasonable cause. This is the reason a quite disclosure is sometimes recommended.
Can a cumulative FBAR penalties exceed the amount in a taxpayer’s foreign accounts?
This is a killer but the answer is yes!
Under the current penalty provisions found in 31 U.S.C. 5314(a)(5), it is possible to assert civil penalties for FBAR violations in amounts that exceed the balance in the foreign financial account.
For simple FBAR Reporting and amending of tax returns there is no reason why individuals cannot do this on there own. Forms are available online.
If you are not sure about your situation and have other issues, it is highly recommended to a call us today for a no cost tax consult. 1-866-700-1040.
FBAR Filing Help, Amending Tax Returns, Representation & Negotiation, Attorneys, Former IRS, Ex-Pat Representation
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 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.
