Making Sense of the FBAR Penalty Mitigation Guidelines: Four Easy Steps For Knocking The FBAR Calculation Out of the Park
This blog is intended for the taxpayer who plans on making a “quiet disclosure” of his unreported foreign financial assets and finds it necessary to estimate his FBAR liability in case of a doomsday scenario. By “doomsday scenario,” I’m referring to a situation where the IRS selects one or more years for examination, culminating in […]
The Second Coming of The Wolf of Wall Street?
Did the Wolf of Wall Street come in like a lion and go out like a lamb or is it back with a pack, and seeking revenge? You’d think that after bringing the global economy to its knees just a few years ago, that Wall Street would have cleaned up its act. But not according to […]
HSBC India Client Convicted of Hiding Offshore Accounts From IRS
Ashvin Desai, an offshore account taxpayer, was previously convicted for concealing more than $ 8 million in foreign bank accounts. Last week, he was sentenced by U.S. District Judge Edward J. Davila to six months in prison and six months and one day of home confinement. Desai was a medical device manufacturer who failed to […]
Bitcoin Accounts Not Required to be Reported on FBAR for 2013
Taxpayers with bitcoin accounts can breathe a small sigh of relief. According to the IRS, Bitcoin, also known as virtual currency, isn’t subject to FBAR reporting … at least for now. During a recent IRS webinar titled, “Reporting of Foreign Financial Accounts on the Electronic FBAR,” Rod Lundquist, Senior Program Analyst in IRS’s Small Business/Self Employed (SB/SE) division, stated […]
Tips For Surviving the Dreaded Eggshell Audit: Part II: A Hypothetical To Drive It All Home
This is a continuation of the blog entitled, “Tips for Surviving the Dreaded Eggshell Audit.” It focuses on spotting and solving some of the issues raised in an eggshell audit. This hypothetical comes from the creative genius of Jack Townsend and his book, “Tax Crimes.” You are the tax preparer for the Cashcows, owners of […]
The Lighter Side of Tax
♦ What’s the difference between death and taxes? Congress doesn’t meet every year to make death worse. ♦ And the difference between tax avoidance and tax evasion? Jail. ♦ A good tax return is like a good mystery novel. You follow the clues, make deductions, and arrive at a profitable conclusion. – Eva Rosenberg ♦ […]
Getting to Know the Streamlined Foreign Offshore Procedures
U.S. taxpayers seeking to use the streamlined foreign offshore procedures must satisfy the following requirements: The applicable non-residency requirement (for joint return filers, both spouses must satisfy the non-residency requirement); and Have failed to file an FBAR with respect to a foreign financial account; and The failure to file an FBAR must have resulted from […]
“FATCA” Law Is Striking Fear Into Foreign Banks
Law That May Reduce Tax Evasion Goes Into Effect On July 1 The Foreign Account Tax Compliance Act (FATCA) became law in the United States in 2010, but the clock is still ticking on its implementation. The clock will stop ticking on July 1, 2014. The U.S. Congress and the Obama Administration pressed for FATCA […]
What Can A Tax Attorney Do For Me?
Of the professionals that you can turn to for help with IRS problems, tax attorneys can most effectively help you sort through legal issues. Hiring such an expert is the most efficient way of getting on the right track. Here are seven reasons that make them valuable and indispensable: Reason # 1: Client-attorney Confidentiality All […]
Liens and Levies Make the IRS a Collection Agency on Steroids
Sometimes the problem with “food for thought” is that it can almost choke you with its stark simplicity. Take our tax system, for example. The federal government prints our money, regulates the places where we keep it and has vast powers to take it away from us if we don’t give them their cut. The […]