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 | 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 30, 2012 | Expatriate Tax, FBAR, Tax Lawyer
We have over 206 years of combined IRS tax experience and over 60 years of working directly for the Internal Revenue Service in the local, district and regional offices of the IRS.
Why chose us.
We can take the fear of FBAR and overseas issue away from individual because of our vast knowledge and experience at the IRS. We taught Tax Law at the IRS and understand their tax policies and settlement strategies.
The Offshore Voluntary Disclosure Program.
You have two options.
1. You can opt in to the voluntary disclosure or,
2.Consider the “quiet disclosure.
You should call us directly to find out which program is best for you. Each case and fact pattern is different and after we hear all the facts we can make a determination and give you a recommendation which of the options best suits your needs.
The Internal Revenue Service voluntary disclosure is a program in which all filing go directly through IRS.
So far the IRS has had total collections of more than $4.4 billion so far from the two previous international programs.
The third offshore program comes as the IRS continues working on a wide range of international tax issues and follows ongoing efforts with the Justice Department to pursue criminal prosecution of international tax evasion. This program will be open for an indefinite period until otherwise announced.
After the third offshore effort, the IRS has collected $3.4 billion so far from people who participated in the 2009 offshore program, reflecting closures of about 95 percent of the cases from the 2009 program. On top of that, the IRS has collected an additional $1 billion from up front payments required under the 2011 program. That number will grow as the IRS processes the 2011 cases.
In all, the IRS has seen 33,000 voluntary disclosures from the 2009 and 2011 offshore initiatives. Since the 2011 program closed last September, hundreds of taxpayers have come forward to make voluntary disclosures.
The Penalty Structure
The overall penalty structure for the new program is the same for 2011, except for taxpayers in the highest penalty category.
For the new program, the penalty framework requires individuals to pay a penalty of 27.5 percent of the highest aggregate balance in foreign bank accounts/entities or value of foreign assets during the eight full tax years prior to the disclosure.
That is up from 25 percent in the 2011 program. Some taxpayers will be eligible for 5 or 12.5 percent penalties; these remain the same in the new program as in 2011.
Participants must file all original and amended tax returns and include payment for back-taxes and interest for up to eight years as well as paying accuracy-related and/or delinquency penalties.
Participants face a 27.5 percent penalty, but taxpayers in limited situations can qualify for a 5 percent penalty. Smaller offshore accounts will face a 12.5 percent penalty.
Exception $75,000
People whose offshore accounts or assets did not surpass $75,000 in any calendar year covered by the new OVDP will qualify for this lower rate. As under the prior programs, taxpayers who feel that the penalty is disproportionate may opt instead to be examined.
The IRS recognizes that its success in offshore enforcement and in the disclosure programs has raised awareness related to tax filing obligations.
This includes awareness by dual citizens and others who may be delinquent in filing, but owe no U.S. tax.
The IRS is currently developing procedures by which these taxpayers may come into compliance with U.S. tax law. The IRS is also committed to educating all taxpayers so that they understand their U.S. tax responsibilities.
Call us today and to learn more and speak directly to a Tax Attorney, Tax Lawyer or Former IRS. We can stop the worry today.
by Fresh Start Tax | Sep 27, 2012 | Back Taxes, FBAR, Tax Lawyer
We are comprised of Tax Attorneys, Tax Lawyers, CPA’s and Former IRS agents. We have over 205 years of professional tax experience and over 60 years working directly for the IRS.
Why use us? We can take away your worry through our experience at the IRS
We taught Tax Law at the IRS and we are familiar with tax policies and tax settlements.
No cost consults, 1-866-700-1040. We are FBAR and Ex Pat Experts
All the countries are going down like domino’s including Japan.
First it was UBS and yes even Lichtenstein. Nobody thought Lichtenstein.
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”.
Many were set up by financial planners and attorneys who are now nervous about the request and investigation.
Liechtenstein facilitated the group request from the U.S. by amending a tax law in March.
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 United States probe of offshore tax evasion.
The stakes for Swiss banks 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.
IRS results up to this point.
So far the US has been very successful and collected north of $5 Billion large in the first three years of the FBAR Program. The IRS has just been funded another $500,000 million by the Obama administration to beef up the IRS enforcement arm and much of money will be dedicated to non-filers as well as FBAR compliance.
The Progress
Offshore banks must begin complying with the Foreign Account Tax Compliance Act and the Internal Revenue Service has been getting cooperation from other nations. Japan became one of the newest country to pledge its cooperation with the U.S.
The FATCA
FATCA requires foreign banks to disclose the identities of all account holders who are also U.S. taxpayers. In many countries, such disclosure violates that nation’s bank secrecy laws. Banks and financial institution have been caught in the middle. After all, they make loads of money on the clients. However, if the financial institutions do not comply with the IRS requests and the new FATCA law, they will be violating the law.
Most of the developed nations have indicated they will cooperate fearing US reprisal.
That means banks and financial institution in many countries will now have to identify and report Americans holding accounts. The current trend for bank compliance seems to be trending to eliminate the hassle by simply closing foreign accounts.
Japan is the latest country to indicate its willingness to cooperate. That means that U.S. taxpayers with unreported accounts in Japan could soon have IRS tax issues. Foreign accounts are legal, the penalties for not reporting those accounts are very expensive and could include prison time. Find the IRS before they find you.
Foreign bank and financial accounts such as CD’s, brokerage accounts, most retirement accounts must be reported annually to the IRS on Report of Foreign Bank and Financial Account, more commonly known as an FBAR. You can find the Form on our website.
Failure to file FBARs can be criminal and result in penalties of $100,000 or 50% of the highest account balance for each year the account remains undisclosed.
If you have an account in Japan that has not been properly reported call us today to find out your options. 1-866-700-1040. You may want to file a ” quiet disclosure”.
by Fresh Start Tax | Sep 4, 2012 | Back Taxes, FBAR, Tax Lawyer, Tax Returns
FBAR Filing – Late, Past Due, Unfiled – File & Settle 1-866-700-1040
Do you have a late, past due or unfiled FBAR report you need to file?
Call us today and we can get you back in the system worry free. We can file your back, past due or late FBAR and settle your case with the IRS. 1-866-700-1040.
We are comprised of Tax Attorneys, CPA’s and Former IRS Agents. We know the IRS system inside and out. We have over 60 years of direct IRS work experience in the local, district and regional offices of the IRS. We also taught Tax Law at the IRS.
Late, Past Due, Unfiled FBAR Reports
If you have a late, past due, or unfiled FBAR reports the key is to contact the IRS before they contact you.
As a general rule IRS will not enforce criminal penalties if you contact them before they contact you. The key is letting IRS know you will be filing your tax returns. At this point it only becomes a civil matter.
As a general rule, we contact IRS by filing a power of attorney so you will never speak to the IRS. We handle all the negotiations and settle the case so you pay the lowest amount allowed by law including the abatement of penalties and interest if your case warrants.
Who needs to file FBAR
A person or individual who holds a foreign financial account may have a reporting obligation even though the account produces no taxable income.
How to file
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.
FBAR is not filed with,
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.
Due Date for 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, at one of the two addresses below, on or before June 30th of the year following the calendar year being reported.
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
Call us today for a no cost consultation and speak directly to a Tax Attorney or Former IRS agent 1-866-700-1040.
