by Fresh Start Tax | Sep 3, 2012 | FBAR, Tax Lawyer
We are comprised of FBAR tax experts. On staff, Board Certified Tax Attorneys, Tax Lawyers, CPA’s and Former IRS agents, managers and instructors.
We have a total of 205 years of professional tax experience and 60 years of working directly for the IRS in the local, district and regional offices of the IRS.
We are FBAR and Overseas tax matters experts.
We taught Tax Law.
For a free tax consultation call 1-866-700-1040 and speak directly to the tax professional that could be working your case today. Stop the worry!
FBAR is the new found fear among taxpayers and individual with foreign bank accounts. However much of that fear can be minimized with seeking solid professional tax help with FBAR and IRS tax experts in civil and criminal tax matters.
UBS account holders certainly have the added stomach knots as a result of UBS turning over the account holder information and records to the US government agencies.
The questions we are asked many times by UBS holders is this,
“Are UBS account holders still eligible for the Voluntary Disclosure Practice?”
The answer is YES!
There is a standard Voluntary Disclosure Practice that applies to everyone including USB Account holders.
This is the general IRS Voluntary Disclosure Practice.
It is currently the practice of the IRS that a voluntary disclosure will be considered along with all other factors in the investigation in determining whether criminal prosecution will be recommended.
This voluntary disclosure practice creates no substantive or procedural rights for taxpayers, but rather is a matter of internal IRS practice, provided solely for guidance to IRS personnel.
As a general rule, if you contact IRS first your problems are significantly minimize.
Taxpayers cannot rely on the fact that other similarly situated taxpayers may not have been recommended for criminal prosecution.
A voluntary disclosure will not automatically guarantee immunity from prosecution however a voluntary disclosure may result in prosecution not being recommended.
This practice usually does not apply to taxpayers with illegal source income such as terrorism or drug activity.
A voluntary disclosure occurs when the communication is truthful, timely, complete, thorough and when;
1. the taxpayer shows a willingness to cooperate (and does in fact cooperate) with the IRS in determining his or her correct tax liability; and
2. the taxpayer makes good faith arrangements with the IRS to pay in full, the tax, interest, and any penalties determined by the IRS to be applicable.
The Penalty Framework
How does the penalty framework work? Can you give us an example?
A12. Assume the taxpayer has the following amounts in a foreign account over a period of six years. Although the amount on deposit may have been in the account for many years, it is assumed for purposes of the example that it is not unreported income in 2003.
|
Year
|
Amount on Deposit
|
Interest Income
|
Account Balance
|
|
2003
|
$1,000,000
|
$50,000
|
$1,050,000
|
|
2004
|
|
$50,000
|
$1,100,000
|
|
2005
|
|
$50,000
|
$1,150,000
|
|
2006
|
|
$50,000
|
$1,200,000
|
|
2007
|
|
$50,000
|
$1,250,000
|
|
2008
|
|
$50,000
|
$1,300,000
|
(NOTE: This example does not provide for compounded interest, and assumes the taxpayer is in the 35-percent tax bracket, files a return but does not include the foreign account or the interest income on the return, and the maximum applicable penalties are imposed.)
Call us today and speak directly to Tax Attorneys, Tax Lawyers, Former IRS Agents. We handle all civil and criminal tax representation.
Call 1-866-700-1040. SKYPE available.
by Fresh Start Tax | Sep 1, 2012 | FBAR, Tax Lawyer
Find the IRS before they find you.
After 38 years of professional IRS tax experience that is my best advice to you.
If you need FBAR & Voluntary Disclosure help call Fresh Start Tax LLC and speak directly to Tax Lawyers, Tax Attorneys, Former IRS – FBAR Tax Representation
Call today for a no cost professional tax consultation. 1-866-700-1040.
With much in the news about FBAR and Voluntary Disclosure, there are some very common questions asked.
Within the advent of UBS and FBAR the IRS has been hopped up about bringing into tax compliance offshore monies that have not been reported to the feds. Yes, IRS will make these cases federal investigations because of the huge scale of revenue that is brought in through FBAR alone. IRS received over the past three years over $5 billion.
IRS has found the pot of gold and the pursuit is expected to be ramped up even more in the upcoming years.
Voluntary Disclosures
Why you should make a voluntary disclosure.
Taxpayers or individuals with undisclosed foreign accounts or entities should make a voluntary disclosure ( VD ) because it allows them to become tax compliant, avoid substantial civil penalties and generally eliminate the risk of criminal prosecution.In cases of extreme willfulness this may not be the case.
Talk to us if you fall in this categorize. Believe this criminal prosecution element, the FEAR of IRS should be enough to make sure you do the correct thing. IRS posts the criminal violators on their website. Go to IRS.gov
Getting professional tax help will assure you the very best possible results, the avoiding of criminal prosecution and the reduction of penalties and interest.
Making a voluntary disclosure also provides the opportunity to calculate with a reasonable degree of certainty the total cost of resolving all offshore tax issues.
You may not like what you hear however you must be tax compliant.
Taxpayers ( individuals ) who do not submit a voluntary disclosure run the risk of detection by the IRS and the imposition of substantial penalties, including the fraud penalty and foreign information return penalties, and an increased risk of criminal prosecution.
What is the IRS’s Voluntary Disclosure Practice? ( VDP )
The Voluntary Disclosure Practice is a longstanding practice of IRS Criminal Investigation ( CI ) of taking timely, accurate, and complete voluntary disclosures into account in deciding whether to recommend to the Department of Justice that a taxpayer be criminally prosecuted. There are specific code sections that deal with these matters.
When a taxpayer truthfully, timely, and completely complies with all provisions of the voluntary disclosure practice, the IRS will usually not recommend criminal prosecution to the Department of Justice.
Remember, find IRS before they find you.
What form should my voluntary disclosure take?
You may either contact the nearest Special Agent in Charge, ( each office has there won special agent for this matter ) IRS Criminal Investigation, stating that you wish to make a voluntary disclosure, or provide a letter outlining information needed to assist the IRS in determining your acceptance into the voluntary disclosure program. a word of caution here, do this with retention of a tax attorney, tax lawyer or former IRS agent who knows the system. Do not be foolish.
Call us today to find out more details. 1-866-700-1040.
FBAR & Voluntary Disclosure, Tax Lawyers, Tax Attorneys, Former IRS, FBAR Tax Representation
by Fresh Start Tax | Sep 1, 2012 | FBAR, Tax Lawyer, Tax Returns
FBAR Help – Exceptions to FBAR Filing – Lawyers, Attorneys – FBAR Consultants
As taxpayers learn about FBAR and filing requirements Fresh Start Tax LLC wants everyone to be aware of what exceptions there are to FBAR reporting.
Being Former IRS Agents, Attorneys and CPA’s we are well aware that the public is being educated on FBAR reporting. 33,000 reporters came forward over the past three years and IRS expects a hundred thousand should have easily came running forward.
Most taxpayers are learning for the very first time that any United States person that had a financial interest in or signature authority over at least one financial account located outside of the United States; and that the aggregate value of all foreign financial accounts exceeded $10,000 at any time during the calendar year are to report on a FBAR report.
This is a very low threshold but the IRS wants there hands in everything. They watch out for multiple accounts with reporters setting up several accounts with just under $10K to avoid detection.
There are exceptions to FBAR reporting.
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:
1. For financial accounts jointly owned by spouses;
2. United States persons included in a consolidated FBAR;
3. Correspondent/nostro accounts;
4. Foreign financial accounts owned by a governmental entity;
5. Foreign financial accounts owned by an international financial institution;
6. IRA owners and beneficiaries;
7. Participants in and beneficiaries of tax-qualified retirement plans;
a. Certain individuals with signature authority over but no financial interest in a foreign financial account;
8. Trust beneficiaries,
9. Foreign financial accounts maintained on a United States military banking facility.
Look to the FBAR instructions to determine eligibility for an exception and to review exception requirements.
If you are looking for IRS Tax Help for FBAR or exceptions to FBAR, call us today for a no cost consult and hear the truth. 1-866-700-1040.
FBAR Help , Exceptions to FBAR Filing, Lawyers, Attorneys, FBAR Consultants, Former IRS
by Fresh Start Tax | Sep 1, 2012 | FBAR, Tax Lawyer
You may call us today to find out more information, free tax consultation with Tax Attorneys and Lawyers.
1-866-700-1040.
Many persons are just learning about FBAR so it is not surprising taxpayers are asking so many questions regarding the Foreign Bank and Financial Account Reporting.
FBAR took the world by storm when USB turned over to US authorities the names of there account holders. Fearing criminal prosecution many took the opportunity to come forward and report to avoid prison time.
Within the past 3 years 33,000 FBAR reporters came forward to file there FBAR reports and the IRS picked up over $5 Billion in total revenue. One CI Agent we spoke with said that the “5 Billion Big ones was just the tip of the iceberg.”
You will see a ramped up IRS in the future. With tons of money just waiting to be collected and thousands fearing criminal prosecution, FBAR is the new banner phase among the IRS.
Here are some answers to Frequently asked questions.
Amending your FBAR
How do you amend a previously filed FBAR ?
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. make sure to staple it to a copy of the original FBAR, and
d. attaching a statement explaining the additions or corrections.
Form to File FBAR
What is the form to file for an FBAR?
An FBAR is a Report of Foreign Bank and Financial Accounts. The form number is TD- F 90-22.1. it is available on our website as a PDF.
Filing of an FBAR
Who must file an FBAR with the IRS?
Any United States person who has a financial interest in or signature authority or other authority over any financial account in a foreign country, if the aggregate value of these accounts exceeds $10,000 at any time during the calendar year.
Foreign country.
What is a foreign country?
A “foreign country” includes all geographical areas outside the United States, the commonwealth of Puerto Rico, the commonwealth of the Northern Mariana Islands, and the territories and possessions of the United States (including Guam, American Samoa, and the United States Virgin Islands).
A United States Person
What is a United States person?
“United States person” includes a citizen or resident of the United States, a domestic partnership, a domestic corporation, and a domestic estate or trust.
Call us today and hear the truth.
by Fresh Start Tax | Aug 31, 2012 | FBAR, Representation, Tax Lawyer
Use Former IRS Agents and Appeals Officers to abate your FBAR penalties and interest.
Call us today for a no cost consult. 1-866-700-1040
What happens if an account holder is required to file an FBAR and fails to do so?
Failure to file an FBAR when required to do so may potentially result in civil penalties, criminal penalties or both. There is no two cases the same.
If you learn you were required to file FBARs for earlier years, you should file the delinquent FBAR reports and attach a statement explaining why the reports are filed late.It is best to hire or consult a FBAR expert.
No penalty will be asserted if the IRS determines that the late filings were due to reasonable cause.
There are numerous reasons that IRS will allow taxpayers to abate both penalties and interest. More can be found on our website. Go to the homepage.
Reasonable Cause for Late FBAR
Whether a failure to file or failure to pay is due to a reasonable cause is based on a consideration of the facts and circumstances of each unique case.
Reasonable cause relief is granted by the IRS when a taxpayer demonstrates that they used exercised ordinary business care and prudence in meeting your tax obligations but nevertheless failed to meet them.
In the abatement of penalties and interest, determining whether you exercised ordinary business care and prudence, the IRS will consider all available information,
1. The reasons given for not meeting your tax obligations,
2. Your compliance history with the IRS,
3. The length of time between your failure to meet your tax obligations and your subsequent compliance, IRS will want to see you took immediate steps to correct the action,
4. Documented circumstances beyond your control.
FBAR reasonable cause may be established if you show that you were not aware of specific obligations to file returns or pay taxes, depending on the facts and circumstances. Among the facts and circumstances that IRS will considered are:
a. Your education level, the higher the level the lesser the chance,
b. Whether or not you have previously been subject to the tax,
c. Whether you have been penalized by the IRS before,
d. Whether there were recent changes in the tax forms or law that you could not reasonably be expected to know about,
e. The level of complexity of a tax or compliance issue,
f. Reliance upon the advice of a professional tax adviser who was informed of the existence of the foreign financial account and the tax laws that apply,
g. Evidence that the foreign account was established for a legitimate purpose,
h. Evidence that there was no effort to intentionally conceal the reporting of income or assets.
As a general rule, Ignorance of the Law, if reasonable, along with a good faith effort to comply with the law if you could not reasonable be expected to know of the FBAR requirement.
As Former IRS agents there are many other compelling facts and factors for late FBAR Filing relief.
Call us today to find out the truth. 1-866-700-1040.
by Fresh Start Tax | Aug 31, 2012 | Income Tax Preparation, Tax Lawyer
There is many excellent income tax preparation tax firms in South Florida especially in Dade, Palm, and Broward County.
Fresh Start Tax LLC is one of those tax firms because of our care, excellence, and affordability.
We are “A” plus rated and without compliant.
Why choose Fresh Start Tax L.L.C.
1. We are comprised of Former IRS Agents with over 60 years of direct IRS experience in the local South Florida offices.
2. Our former IRS Agents were also teaching Instructors and Managers with the IRS.
3. We have prepared thousands of tax returns since 1982 all without audit if possible.
4. All tax returns are prepared and reviewed by two tax professionals for accuracy and making sure we got the most out of every possible tax deductions so you pay the lowest amount allowed by law.
5. We are affordable and assessable.
6. Also have on staff Board Certified Tax Attorneys and CPA’s.
7. We audit proof all tax returns to make sure your tax return gets processed without error and without audit.
Newsletter Tip
As part of our newsletter to our clients here are some tax tips for Students and Parents with College Expenses.
Back-to-School Tips for Students and Parents Paying College Expenses
The IRS offers some tips about education tax benefits that can help offset some college costs for students and parents and we need them all.
These benefits apply to you, your spouse or a dependent for whom you claim an exemption on your tax return.
American Opportunity Credit.
This tax credit, originally created under the American Recovery and Reinvestment Act, is still available for 2012.
This tax credit can be up to $2,500 per eligible student and is available for the first four years of post secondary education at an eligible institution. Forty percent of this credit is refundable, which means that you may be able to receive up to $1,000, even if you don’t owe any taxes.
Qualified expenses include:
1.tuition,
2. fees,
3.course related books,
4.supplies and equipment.
Lifetime Learning Tax Credit.
In 2012, you may be able to claim a Lifetime Learning Credit of up to $2,000 for qualified education expenses paid for a student enrolled in eligible educational institution
There is no limit on the number of years you can claim the Lifetime Learning Credit for an eligible student.
You can claim only one type of education credit per student in the same tax year. However, if you pay college expenses for more than one student in the same year, you can choose to take credits on a per-student, per-year basis. For example, you can claim the American Opportunity Credit for one student and the Lifetime Learning Credit for the other student.
For more information call us today for a no cost professional tax consultation. 954-492-0088
Income Tax Preparation, Former IRS Agents , Fresh Start Tax LLC, South Florida , Broward, Dade, Palm Beach County
