by Fresh Start Tax | May 16, 2013 | IRS Tax Audit
Miami, Ft.Lauderdale – Experienced IRS Tax Audit Firm – IRS Experts, Problems/Matters, Former IRS 954-492-0088
Visit our office for a no cost professional IRS Tax Audit Consultation.
If you have received a notice or letter from the Internal Revenue Service indicating that they may proceeding with an IRS tax audit call us today and speak to seasoned and experienced tax professionals who have handled hundreds of IRS tax audits right here in South Florida.
We have been in private practice right here in South Florida since 1982. We not only have worked in the local South Florida IRS offices but we have been engaged in client representation for close to 40 years. We completely understand the landscape of the local South Florida IRS offices and agents.
We are comprised of tax attorneys, IRS tax lawyers certified public accountants, enrolled agents, and former IRS agents, managers and supervisors.
While employed at the Internal Revenue Service we taught tax law.
We have over 60 years of direct work experience in the local South Florida IRS offices are familiar with all the procedures, all the protocols, and all the settlement strategies to get you the very very best results possible during an IRS tax audit.
Should you wind up owing any money as a result of your IRS tax audit we will be able to take the case to appeals and reach a tax settlement with the Internal Revenue Service.
Do not let a IRS notice or letter from indicating your tax audit worry, scare or bring anxiety to your life.
Being former IRS agents we understand the stress that this causes people so it only makes sense to hand this off to skilled tax professionals who’ve been practicing their craft since 1982.
We are A+ rated by the Better Business Bureau and are the affordable and trustworthy tax firm in South Florida. come by and visit our office does today for a free initial tax consultation. We want to make this process is easy and seamless for you as we possibly can.
What happens if I lost or have few Tax Record for my Audit
Many taxpayers come to us and have few tax records for their IRS audit and many have actually lost their tax records or they have been destroyed for various reasons. If that is the case, do not have any fear or worry because we can help you reconstruct those tax records so you can still take advantage of the deductions and expenses that you were so entitled to.
What is the scope of a IRS tax audit?
An IRS audit is a review,examination of an organization’s or individual’s accounts and financial information to ensure information is being reported correctly, according to the tax laws, to verify the amount of tax reported is accurate. In many cases IRS tax audits can finish up with no changes being made to your tax return.
If you want more information please read IRS Publication 556, Examination of Returns, Appeal Rights and Claims for Refund explains the audit process in more detail.
IRS Tax Audit Selection
Selecting a return for audit does not always suggest that an error has been made.
Tax Returns are selected using a variety of methods, including:
1. Random selection and computer screening – sometimes returns are selected based solely on a statistical formula.
2.Document matching – when payor records, such as Forms W-2 or Form 1099, don’t match the information reported. Over 1.4 million tax returns are audited every year as a result of mismatched reporting
3. Related examinations – returns may be selected for audit when they involve issues or transactions with other taxpayers, such as business partners or investors, whose returns were selected for audit.
What are the IRS Tax Audit Methods
An audit may be conducted by mail or through an in-person interview and review of the taxpayer’s records.
The interview may be at an IRS office (office audit) or at the taxpayer’s home, place of business, or accountant’s office (field audit).
The IRS will tell you what records are needed. Audits can result in no changes or changes. Any proposed changes to your return will be explained.
Many times if you are represented by a tax professional the IRS tax audit will happen in the office of the tax professional. It is never advised that an IRS audit take place in a taxpayer’s home or place of business.
The IRS Tax Audit Notification
Should your account be selected for audit, you will be notified in two ways:
1. By mail, or
2. By telephone, Generally the IRS auditor responsible for your case will make the telephone call.
In the case of a telephone contact, the IRS will still send a letter confirming the audit. E-mail notification is not used by the IRS. If you ever receive an email notification from the Internal Revenue Service you should immediately contact the IRS letting them know of this contact because they are usually sent by criminals or scam artists.
Your Rights During an IRS Tax Audit
Publication 1, Your Rights as a Taxpayer, explains your rights as a taxpayer as well as the examination, appeal, collection, and refund processes.
These taxpayers rights include:
1. A right to professional and courteous treatment by IRS employees.
2.A right to privacy and confidentiality about tax matters.
3. A right to know why the IRS is asking for information, how the IRS will use it and what will happen if the requested information is not provided.
4. A right to representation, by oneself or an authorized representative.
5.A right to appeal disagreements, both within the IRS and before the courts.
What is the normal IRS Tax Audit Length
The length of each audit varies depending on the type of audit, the complexity of items being reviewed, the availability of information being requested, the availability of both parties for scheduling of meetings and your agreement or disagreement with the findings. As a general rule office audits are usually one or two day audits.
In the case of field audits they can last anywhere from two days to one year depending on the scope or complexity of the IRS tax audit. You want to make sure that you give all the information to the Internal Revenue Service that they need. In many cases the IRS can tell when the taxpayer is skirting the issues because the taxpayers lack of cooperation. By all means make sure you are cooperative with the IRS agent because they ultimately have your case in their hands and they can smell when something isn’t right.
Tax Records you may need to bring to a IRS Tax audit
You will be provided with a written request for specific documents needed. The Internal Revenue Service will always send out a detailed list of all the documents they need to close their tax audit. You should always understand that that audit list could be expanded as the audit continues.
The law requires you to retain records used to prepare your return. Those records generally should be kept for three years from the date the tax return was filed.
The IRS does accept some electronic records. If records are kept electronically, the IRS may request those in lieu of or in addition to other types of records.
Contact your auditor to determine what can be accepted to ensure a software program is compatible with the IRS’s.
IRS Tax Audit Determinations
An audit can be concluded in three ways:
1. No change: an audit in which you have substantiated all of the items being reviewed and results in no changes.
2.Agreed: an audit where the IRS proposed changes and the taxpayer understands and agrees with the changes.
3.Disagreed: an audit where the IRS has proposed changes and the taxpayer understands, but disagrees with the changes.
What Happens When You Agree With the Tax Audit Findings?
If you agree with the audit findings, you will be asked to sign the examination report or a similar form depending upon the type of audit conducted.
If money is owed, there are several payment options available. Publication 594, The IRS Collection process, explains the collection process in detail.
If you are going to go money to the Internal Revenue Service three options will exist to deal or settle your case with the Internal Revenue Service.
Based on your current financial statement the IRS will either place you into a currently not collectible status, ask you to make monthly installment payments or advise you that you are a tax settlement candidate.
What Happens When You DISAGREE with the Audit Findings?
A conference with a manager may be requested for further review of the issue or issues. In addition, Fast Track Mediation or an Appeal request may be filed.
Many of the different departments within IRS are responsible for making decisions concerning the application of tax law to various taxpayer issues. In some cases, agreement on these decisions, or determinations, cannot be reached. In other words, the taxpayer does not agree with the determination.
This is where Appeals comes in.
Appeals is independent of any other IRS office and serves as an informal administrative forum for any taxpayer who disagrees with an IRS determination. Appeals provides a venue where disagreements concerning the application of tax law can be resolved on a fair and impartial basis for both the taxpayer and the government.
The mission of Appeals is to settle tax disagreements without having to go to the Courts and a formal trial.
Miami, Ft.Lauderdale – Experienced IRS Tax Audit Firm – IRS Experts, Problems/Matters, Former IRS
by Fresh Start Tax | May 16, 2013 | IRS Tax Audit
Received Notice/Letter IRS Tax Audit – Experienced Audit Representation, Former IRS, Ft.Lauderdale, Miami 954-492-0088
If you have received a notice or letter from the Internal Revenue Service indicating that they may proceeding with an IRS tax audit call us today and speak to seasoned and experienced tax professionals who have handled hundreds of IRS tax audits right here in South Florida.
We are comprised of tax attorneys, certified public accountants, enrolled agents, and former IRS agents and managers.
We have over 60 years of direct work experience in the local South Florida IRS offices are familiar with all the procedures, all the protocols, and all the settlement strategies to get you the very very best results possible during an IRS tax audit.
Should you wind up owing any money as a result of your IRS tax audit we will be able to take the case to appeals and reach a tax settlement with the Internal Revenue Service.
Do not let a IRS notice or letter from indicating your tax audit worry, scare or bring anxiety to your life.
Being former IRS agents we understand the stress that this causes people so it only makes sense to hand this off to skilled tax professionals who’ve been practicing their craft since 1982.
We are A+ rated by the Better Business Bureau and are the affordable and trustworthy tax firm in South Florida.
Received an IRS Notice/ Letter for a IRS Tax Audit, Here are some Facts
What is the scope of a IRS tax audit?
An IRS audit is a review/examination of an organization’s or individual’s accounts and financial information to ensure information is being reported correctly, according to the tax laws, to verify the amount of tax reported is accurate.
IRS Publication 556, Examination of Returns, Appeal Rights and Claims for Refund explains the audit process in more detail.
IRS Tax Audit Selection
Selecting a return for audit does not always suggest that an error has been made.
Tax Returns are selected using a variety of methods, including:
- Random selection and computer screening – sometimes returns are selected based solely on a statistical formula.
- Document matching – when payor records, such as Forms W-2 or Form 1099, don’t match the information reported.
- Related examinations – returns may be selected for audit when they involve issues or transactions with other taxpayers, such as business partners or investors, whose returns were selected for audit.
IRS Tax Audit Methods
An audit may be conducted by mail or through an in-person interview and review of the taxpayer’s records.
The interview may be at an IRS office (office audit) or at the taxpayer’s home, place of business, or accountant’s office (field audit). The IRS will tell you what records are needed. Audits can result in no changes or changes. Any proposed changes to your return will be explained. Many times if you are represented by a tax professional the IRS tax audit will happen in the office of the tax professional.
The IRS Tax Audit Notification
Should your account be selected for audit, you will be notified in two ways:
In the case of a telephone contact, the IRS will still send a letter confirming the audit. E-mail notification is not used by the IRS. If you ever receive an email notification from the Internal Revenue Service you should immediately contact the IRS letting them know of this contact because they are usually sent by criminals or scam artists.
Your Rights During an IRS Tax Audit
Publication 1, Your Rights as a Taxpayer, explains your rights as a taxpayer as well as the examination, appeal, collection, and refund processes.
These taxpayers rights include:
- A right to professional and courteous treatment by IRS employees.
- A right to privacy and confidentiality about tax matters.
- A right to know why the IRS is asking for information, how the IRS will use it and what will happen if the requested information is not provided.
- A right to representation, by oneself or an authorized representative.
- A right to appeal disagreements, both within the IRS and before the courts.
IRS Tax Audit Length
The length of each audit varies depending on the type of audit, the complexity of items being reviewed, the availability of information being requested, the availability of both parties for scheduling of meetings and your agreement or disagreement with the findings. As a general rule office audits are usually one or two day audits. In the case of field audits they can last anywhere from two days to one year depending on the scope or complexity of the IRS tax audit.
Tax Records you may need to bring
You will be provided with a written request for specific documents needed. The Internal Revenue Service will always send out a detailed list of all the documents they need to close their tax audit. You should always understand that that audit list could be expanded as the audit continues.
The law requires you to retain records used to prepare your return. Those records generally should be kept for three years from the date the tax return was filed.
The IRS does accept some electronic records. If records are kept electronically, the IRS may request those in lieu of or in addition to other types of records.
Contact your auditor to determine what can be accepted to ensure a software program is compatible with the IRS’s.
IRS Tax Audit Determinations
An audit can be concluded in three ways:
- No change: an audit in which you have substantiated all of the items being reviewed and results in no changes.
- Agreed: an audit where the IRS proposed changes and the taxpayer understands and agrees with the changes.
- Disagreed: an audit where the IRS has proposed changes and the taxpayer understands, but disagrees with the changes.
What Happens When You AGREE With The Audit Findings?
If you agree with the audit findings, you will be asked to sign the examination report or a similar form depending upon the type of audit conducted.
If money is owed, there are several payment options available. Publication 594, The IRS Collection process, explains the collection process in detail.
If you are going to go money to the Internal Revenue Service three options will exist to deal or settle your case with the Internal Revenue Service.
Based on your current financial statement the IRS will either place you into a currently not collectible status, ask you to make monthly installment payments or advise you that you are a tax settlement candidate.
What Happens When You DISAGREE with the Audit Findings?
A conference with a manager may be requested for further review of the issue or issues. In addition, Fast Track Mediation or an Appeal request may be filed.
Received Notice/Letter IRS Tax Audit – Experienced Audit Representation, Former IRS, Ft.Lauderdale, Miami
by Fresh Start Tax | May 10, 2013 | Owe Payroll Taxes
Owe Back Payroll Taxes – Payroll Tax Relief, Attorneys, Former IRS 1-866-700-1040
If you owe back payroll taxes and need immediate payroll tax relief contact us today for free initial tax consultation.
We are comprised of tax attorneys, IRS tax lawyers, certified public accountants, enrolled agents and more importantly former IRS agents and managers who know the system on how to get immediate relief for those who owe back payroll taxes.
While at the Internal Revenue Service we taught tax law and we are tax experts and owing back payroll taxes. We know and understand how the IRS will give you immediate payroll tax relief.
If you owe back payroll taxes to the Internal Revenue Service there are generally three options that are available to you.
1. You may be able qualify for a business tax hardship,
2.may be eligible for an installment or monthly payment arrangement or,
3. you may be eligible for an IRS tax settlement program.
Everything will be depend on two things, the amount of time you need to pay back and your current financial statement that you must be able to fully document and provide proof to IRS
After the Internal Revenue Service verifies your financial statement they will move forward and close your case off the IRS enforcement computer.Being a former IRS agent teaching instructor is definitely in your best interest to hire a tax professional because owing back payroll taxes to the Internal Revenue Service as a much more serious matter because these are taxes that are held in trust for the employees. Back payroll taxes have IRS on high alert.
You definitely want to make sure you are not accruing payroll taxes because the IRS can make a criminal tax case that this exists.
Need a Back Payroll Tax Installment Agreement
Small businesses who currently have employees can qualify for an In-Business Trust Fund Express Installment Agreement.
These installment agreements generally do not require a financial statement or financial verification as part of the application process.
The criteria to qualify for an IBTF-Express IA are:
a. You owe $25,000 or less at the time the agreement is established,
b. If you owe more than $25,000, you may pay down the liability before entering into the agreement in order to qualify,
c. The debt must be full paid within 24-months or prior to the Collection Statute Expiration Date whichever is earlier,
d. You must enroll in a Direct Debit installment agreement (DDIA) if the amount you owe is between $10,000 and $25,000,
e. You must be compliant with all filing and payment requirements,
Do you owe Individual taxes to the IRS – Get a IRS Streamlined Installment Agreements
The Fresh Start provisions also mean that more taxpayers will have the ability to use streamlined installment agreements to catch up on back taxes.
Under the Fresh Start initiative, the maximum dollar criteria for streamlined installment agreements has been raised from $25,000 to $50,000 and the maximum term has been raised from 60 months to 72 months.
These installment agreements generally do not require a financial statement, but a limited amount of financial information may be required in the application process.
The Streamlined Installment Agreement criteria is divided into two categories:
Balance due of $25,000 or less, and balance due $25,001 to $50,000.
$25,000 of less in back taxes
The criteria to qualify for streamlined installment agreements with a balance due of $25,00 or less are:
a. You owe $25,000 or less, at the time the agreement is established.
b. If you owe more than $25,000, you may pay down the liability before entering into the agreement in order to qualify.
c. The debt must be full paid within 72-months or prior to the Collection Statute Expiration Date, whichever is earlier.
d. You must be compliant with all filing and payment requirements.
e. Individuals who owe any type of tax (Form 1040, Trust Fund Recovery Penalty, etc.).
f. Defunct businesses, including any type of entity and any type tax (Form 940, 941, 943, etc.).
g. Operating businesses are limited to income tax liabilities only (Form 1120)
IRS Tax Balance due of over $25,000 to $50,000
The criteria to qualify for streamlined/payment installment agreements with a balance due of $25,001 to $50,000 are:
a. You owe $25,001 to $50,000, at the time the agreement is established. If you owe more than $50,000, you may pay down the liability before entering into the agreement in order to qualify.
b. The debt must be full paid within 72-months or prior to the Collection Statute Expiration Date, whichever is earlier.
c. You must be compliant with all filing and payment requirements.
d. Individuals who owe any type of tax (Form 1040, Trust Fund Recovery Penalty, etc.).
e. Businesses are limited to defunct sole proprietors who owe any type of tax (Form 940, 941, 943, etc.).
f. You must enroll in a Direct Debit Installment Agreement.
g. A limited amount of financial information may be required during the application process.
h. Taxpayers seeking installment agreements exceeding $50,000 will still need to supply the IRS with a Collection Information Statement (Form 433-A (PDF) or Form 433-F (PDF)).
Owe Back Payroll Taxes – Payroll Tax Relief, Attorneys, Former IRS
by Fresh Start Tax | May 10, 2013 | Owe Payroll Taxes
Payroll Tax – Owe the IRS – IRS Payment Agreements,Settlements,Former IRS 1-866-700-1040
If you owe the IRS back payroll taxes and wish to get an IRS payment or installment agreement contact us today to find out the very best tax solution for your business or company.
If you qualify for an IRS tax settlement called offer in compromise we will go over all the administrative proceedings that will allow you to get a tax debt settlement.
There are different payment options available to you and they are all determined by one thing the amount of tax you owe the IRS. All of the IRS tax options are predicated on your ability to pay Internal Revenue Service back and how long you need to pay the back payroll taxes to the IRS.
We are comprised of tax attorneys, certified public accountants, enrolled agents, and former IRS agents, managers, and tax instructors.
We have over 206 years in the IRS industry and have over 60 years of working directly for the Internal Revenue Service and the local, district, and regional tax offices of the IRS.
We are A+ rated by the Better Business Bureau have been in practice since 1982.
Need a IRS Payment Agreement – In Business Trust Fund Express Installment Agreements
Small businesses who currently have employees can qualify for an In-Business Trust Fund Express Installment Agreement.
These installment agreements generally do not require a financial statement or financial verification as part of the application process.
The criteria to qualify for an IBTF-Express IA are:
a. You owe $25,000 or less at the time the agreement is established,
b. If you owe more than $25,000, you may pay down the liability before entering into the agreement in order to qualify,
c. The debt must be full paid within 24-months or prior to the Collection Statute Expiration Date whichever is earlier.
d. You must enroll in a Direct Debit installment agreement (DDIA) if the amount you owe is between $10,000 and $25,000.
e. You must be compliant with all filing and payment requirements.
Do you owe Individual taxes to the IRS – Streamlined Installment Agreements
The Fresh Start provisions also mean that more taxpayers will have the ability to use streamlined installment agreements to catch up on back taxes.
Under the Fresh Start initiative, the maximum dollar criteria for streamlined installment agreements has been raised from $25,000 to $50,000 and the maximum term has been raised from 60 months to 72 months.
These installment agreements generally do not require a financial statement, but a limited amount of financial information may be required in the application process.
The Streamlined Installment Agreement criteria is divided into two categories:
a. balance due of $25,000 or less, and balance due $25,001 to $50,000.
$25,000 of less in back taxes
- The criteria to qualify for streamlined installment agreements with a balance due of $25,00 or less are:
- You owe $25,000 or less, at the time the agreement is established.
- If you owe more than $25,000, you may pay down the liability before entering into the agreement in order to qualify.
- The debt must be full paid within 72-months or prior to the Collection Statute Expiration Date, whichever is earlier.
- You must be compliant with all filing and payment requirements.
- Individuals who owe any type of tax (Form 1040, Trust Fund Recovery Penalty, etc.).
- Defunct businesses, including any type of entity and any type tax (Form 940, 941, 943, etc.).
- Operating businesses are limited to income tax liabilities only (Form 1120).
IRS Tax Balance due of over $25,000 to $50,000
The criteria to qualify for streamlined/payment installment agreements with a balance due of $25,001 to $50,000 are:
- You owe $25,001 to $50,000, at the time the agreement is established. If you owe more than $50,000, you may pay down the liability before entering into the agreement in order to qualify.
- The debt must be full paid within 72-months or prior to the Collection Statute Expiration Date, whichever is earlier.
- You must be compliant with all filing and payment requirements.
- Individuals who owe any type of tax (Form 1040, Trust Fund Recovery Penalty, etc.).
- Businesses are limited to defunct sole proprietors who owe any type of tax (Form 940, 941, 943, etc.).
- You must enroll in a Direct Debit Installment Agreement.
- A limited amount of financial information may be required during the application process.
- Taxpayers seeking installment agreements exceeding $50,000 will still need to supply the IRS with a Collection Information Statement (Form 433-A (PDF) or Form 433-F (PDF)).
The IRS Settlements
The IRS tax debt settlement program is a much more complicated process.
Any taxpayer wishing to find out whether they are qualified candidate should fill out the pre-qualifier tool on our website or you can contact us directly.
If you would like to speak to us today call us for free initial tax consultation on payroll tax, owing the IRS, payment agreements or tax settlements you can speak directly to tax attorneys, certified public accountants, for former IRS agents, managers, or IRS instructors.
Payroll Tax – Owe the IRS – IRS Payment Agreements, Settlements, Former IRS
by Fresh Start Tax | May 6, 2013 | Tax Help
FBAR – We can answer all your Questions – Lawyers, Attorneys, Former IRS – FBAR Experts 1-866-700-1040
We are comprised of tax attorneys, tax lawyers, certified public accountants and former IRS agents and managers. We have over 206 years professional tax experience and experts in Fbar matters.
We are A+ rated by the Better Business Bureau and have been in private practice since 1982.
The Last 3 years of FBAR
During the last three filing seasons the Internal Revenue Service collected a whopping $5 billion as a result of Fbar filing and the amending the federal income tax returns. As a result the government is putting increasing enforcement dollars in this area of operation to collect the jackpot of gold at the end of this Fbar rainbow.
The Internal Revenue Service expects a 6 to 1 ratio in ROI from this program. This program for the Internal Revenue Service is a win-win.
If you are a person who has concerns about Fbar or the filing of your tax returns contact us today for free initial tax consultation speak directly to a tax attorney, tax lawyer or certified public accountant who could help ease your mind so you can end any fear you may have.
Below are the common questions that are asked of Internal Revenue Service. They are provided for you by fresh start tax and if you have any questions regarding your particular situation contact us today and let us help resolve any issues or matters you may have.
What is an FBAR?
An FBAR is a Report of Foreign Bank and Financial Accounts. The form number is TD F 90-22.1 (PDF) You can find this form on her website.
Q. Who must file an FBAR?
A. 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.
Q. What is a foreign country?
A. 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).
Q. What is a United States person?
A. “United States person” includes a citizen or resident of the United States, a domestic partnership, a domestic corporation, and a domestic estate or trust.
Q. Is a single-member LLC, which is a disregarded entity for U.S. tax purposes, a United States person for FBAR purposes?
A. Yes. The tax rules concerning disregarded entities do not apply with respect to the FBAR reporting requirement. FBARs are required under Title 31, not under any provisions of the Internal Revenue Code.
Q. What constitutes signature or other authority over an account?
A. A person has signature authority over an account if such person can control the disposition of money or other property in it by delivery of a document containing his or her signature (or his or her signature and that of one or more other persons) to the bank or other person with whom the account is maintained.
Other authority exists in a person who can exercise power that is comparable to signature authority over an account by direct communication to the bank or other person with whom the account is maintained, either orally or by some other means.
Q. Is a U.S. resident with power of attorney on his elderly parents’ accounts in Canada required to file an FBAR, even if the resident never exercised the power of attorney?
A. Yes.If the power of attorney gives the U.S. resident signature authority, or other authority comparable to signature authority, over the financial accounts.
Whether or not such authority is ever exercised is irrelevant to the FBAR filing requirement. See IRS Notice 2010-23 for information regarding an extended due date to report signature authority over a foreign financial account.
Q. How do filers report their accounts to the IRS?
A. 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)
.
Q. When is the FBAR due?
A. 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.
Can you request and at FBAR extension?
A. Filers 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.
Q. Where are FBAR forms available?
A. FBAR forms are available:
Online via IRS.gov in PDF.
Online via Department of the Treasury’s Financial Crimes Enforcement Network Web site in PDF.
By calling the IRS at 800-829-3676 or you can find them on our website.
Q. Where do I file the FBAR?
A. Send completed forms to:
U.S. Department of the Treasury
P.O. Box 32621
Detroit, MI 48232-0621
If an express delivery service is used, send completed forms to:
IRS Enterprise Computing Center
ATTN: CTR Operations Mail room, 4th Floor
985 Michigan Avenue
Detroit, MI 48226
The contact phone number for the delivery messenger service is 313-234-1062. The number cannot be used to confirm that your FBAR was received.
Is FBAR filed with my federal tax return?
The FBAR is not to be filed with the filer’s Federal tax return.
Q. How do I verify that my FBAR was filed?
A. Ninety days after the date of filing, the 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
Detroit, MI 48232
Q. How does an FBAR filer amend a previously filed FBAR?
A. FBAR filers can amend a previously filed FBAR by:
Checking the Amended box in the upper right-hand corner of the first page of the form;
Making the needed additions or corrections;,Stapling it to a copy of the original FBAR; and Attaching a statement explaining the additions or corrections.
Q. What happens if an account holder is required to file an FBAR and fails to do so?
A. Failure to file an FBAR when required to do so may potentially result in civil penalties, criminal penalties or both. If you learn you were required to file FBARs for earlier years, you should file the delinquent FBAR reports and attach a statement explaireports are filed late.
No penalty will be asserted if the IRS determines that the late filings were due to reasonable cause.
Call us to find more about reasonable causes that may exist. Keep copies of what you send for your records.
Q. Can cumulative FBAR penalties exceed the amount in a taxpayer’s foreign accounts?
A. Yes, under the 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.
Q. How long should account holders retain records of the foreign accounts?
A. Records of accounts required to be reported on an FBAR must be retained for a period of five years. Failure to maintain required records may result in civil penalties, criminal penalties or both.
Q. For filing FBARs for prior years, should the current FBAR form be used or should the previous version of the form be used?
A. The current FBAR form (revised in October 2008) may be used to report a financial interest in, or signature or other authority over, financial accounts that were maintained in years prior to 2008. However, since the changes to the current FBAR form reflect a change in the reporting requirements, the instructions for the prior version of the FBAR form (revised in July 2000) may be relied upon for the purpose of determining the filing requirements for properly reporting financial accounts maintained in calendar years prior to 2008.
Q. Does more than one form need to be filed for a husband and wife owning a joint account?
A. No, provided that the names and Social Security numbers of the joint owners are fully disclosed on the filed FBAR. A spouse having a joint financial interest in an account with the filing spouse should be included as a joint account owner in Part III of the FBAR.
The filer should write “(spouse)” on line 26 after the last name of the joint spousal owner. If the only reportable accounts of the filer’s spouse are those reported as joint owners, the filer’s spouse need not file a separate report.
If the accounts are owned jointly by both spouses, the filer’s spouse should also sign the report. It should be noted that if the filer’s spouse has a financial interest in other accounts that are not jointly owned with the filer or has signature or other authority over other accounts, the filer’s spouse should file a separate report for all accounts including those owned jointly with the other spouse.
Q. Are UBS account holders still eligible for the Voluntary Disclosure Practice? The income earned on my client’s foreign account has not been reported on his Form 1040, nor have FBARs been filed.
A. The Voluntary Disclosure Practice is a longstanding practice of IRS Criminal Investigation 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.
It enables noncompliant taxpayers to resolve their tax liabilities and minimize their chances of criminal prosecution. When a taxpayer truthfully, timely and completely complies with all provisions of the Voluntary Disclosure Practice, the IRS will not recommend criminal prosecution to the Department of Justice.
Although the use of special voluntary disclosures by taxpayers with unreported income from offshore accounts expired on Oct. 15, 2009, non compliant taxpayers can still use the VDP to resolve their tax liabilities. A voluntary disclosure is made by following the procedures described in I.R.M. 9.5.11.9.
If you have any questions you have not answered above please contact us today and you can speak directly to an IRS tax lawyer or IRS. All, consultations are free of charge.
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