FBAR / OVDI: LANCE WALLACH: IRS

FBAR/OVDI LANCE WALLACH: The IRS has kicked out an undisclosed number of ta...: Lance Wallach We have written at least 75 posts about the Offshore Voluntary Disclosure Program (called OVDI or OVDP) and the need t...



 I am experienced and dedicated to helping people like you solve your IRS Offshore Voluntary Disclosure problems (OVDP).  Undisclosed Foreign Assets can be very stressful, and it is at times like these that you need personal service and someone who will offer genuine concern. 
The bottom line is that I care about your undisclosed foreign assets

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  1. International Tax Division: FBAR, OVDI, Foreign Offshore Assets
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    Our specialties in the international arena include accounting and tax planning, assisting companies with maximizing tax benefits related to export transactions, designing global tax structures to minimize U.S. and foreign taxes and developing repatriation strategies centered on the use of foreign tax credits.


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    Fbar Ovdi Want To Go To Jail? Offshore tax
    Lance Wallach

    The Federal government is aggressively pursuing taxpayers with undisclosed foreign accounts and unreported foreign income using information furnished by the foreign banks and other sources. If you have not yet applied for the Offshore Voluntary Disclosure Program, Recent convictions involving UBS Clients:

    Jan. 30, 2012 - Stephen M. Kerr, Michael Quiel and Christopher M. Rusch were charged in Phoenix, Ariz., with conspiracy to defraud the IRS for concealing millions of dollars in assets in numerous secret Swiss bank accounts held at UBS and elsewhere.
    Jan. 20, 2012 - Kenneth Heller, of New York, N.Y., was sentenced to 45 days in prison and two years of supervised release. Heller pleaded guilty to income tax evasion in June 2011 and admitted to hiding more than $26.4 million in a bank account at UBS AG. He has agreed to pay a civil penalty of over $9.8 million.
    To Read More Click Link Below:
    http://www.hg.org/article.asp?preview=1&id=28759
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    Foreign Earnings & Profits (E&P) Analysis
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    Extraterritorial Income (ETI) Exclus

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  2. bstantial penalties, including the civil fraud penalty, numerous foreign information return penalties, and the potential risk of criminal prosecution. Although the 2012 OVDI penalty regime may seem overly harsh for many, the decision to participate should include an economic analysis of the taxpayer's projected future earnings from funds held offshore.

    Participating taxpayers may well benefit by repatriating foreign funds with limited earning potential into a depressed U.S. economy and many business opportunities. If discovered before any voluntary disclosure submission, the results can be devastating. Waiting is not a viable option.

    Another option is applying to join the program and then opting out. You then have the advantage of taking your case to appeals. In that way you may end up paying a lot less in taxes. If you do this make certain that the CPA that helps you also had appeals experience. If that CPA was with the IRS in the international division and also was with the IRS in the appeals division that would be the man to use. I happen to know such a CPA and he has been very successful for his clients.

    The information provided herein is not intended as legal, accounting, financial or any type of advice for any specific individual or other entity. You should contact an appropriate professional for any such advice.

    ABOUT THE AUTHOR: Lance Wallach
    Lance Wallach, CLU, ChFC, CIMC, speaks and writes extensively about financial planning, retirement plans, and tax reduction strategies. He is an American Institute of CPA’s course developer and instructor and has authored numerous best selling books about abusive tax shelters, IRS crackdowns and attacks and other tax matters. He speaks at more than 20 national conventions annually and writes for more than 50 national publications.

    Copyright Lance Wallach, CLU, CHFC
    More information about Lance Wallach, CLU, CHFC

    Disclaimer: While every effort has been made to ensure the accuracy of this publication, it is not intended to provide legal advice as individual situations will differ and should be discussed with an expert and/or lawyer. For specific technical or legal advice on the information provided and related topics, please contact the author.

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  3. ther option is applying to join the program and then opting out. You then have the advantage of taking your case to appeals. In that way you may end up paying a lot less in taxes. If you do this make certain that the CPA that helps you also had appeals experience. If that CPA was with the IRS in the international division and also was with the IRS in the appeals division that would be the man to use. I happen to know such a CPA and he has been very successful for his clients.

    The information provided herein is not intended as legal, accounting, financial or any type of advice for any specific individual or other entity. You should contact an appropriate professional for any such advice.

    ABOUT THE AUTHOR: Lance Wallach
    Lance Wallach, CLU, ChFC, CIMC, speaks and writes extensively about financial planning, retirement plans, and tax reduction strategies. He is an American Institute of CPA’s course developer and instructor and has authored numerous best selling books about abusive tax shelters, IRS crackdowns and attacks and other tax matters. He speaks at more than 20 national conventions annually and writes for more than 50 national publications.

    Copyright Lance Wallach, CLU, CHFC
    More information about Lance Wallach, CLU, CHFC

    Disclaimer: While every effort has been made to ensure the accuracy of this publication, it is not intended to provide legal advice as individual situations will differ and should be discussed with an expert and/or lawyer. For specific technical or legal advice on the information provided and related topics, please contact the author.

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  4. IRS Logos the objective of this program? The objective remains the same as the 2009 OVDP, the 2011 OVDI, and the original 2012 OVDP: to bring taxpayers that have used undisclosed foreign accounts and assets, including those held through undisclosed foreign entities, to avoid or evade tax into compliance with United States tax and related laws.
    3. How does this program differ from the IRS’s longstanding voluntary disclosure practice or the 2009 OVDP and 2011 OVDI?
    The Voluntary Disclosure Practice is a longstanding practice of IRS Criminal Investigation whereby CI takes 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 chance 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 for any issue relating to tax noncompliance or failure to file Report of Foreign Bank and Financial Accounts (commonly known as an FBAR reported on FinCEN Form 114, previously Form TD F 90-22.1).
    This current offshore voluntary disclosure program is a counterpart to Criminal Investigation’s Voluntary Disclosure Practice. Like its predecessors, the 2009 OVDP, which ran from March 23, 2009 through October 15, 2009, and the 2011 OVDI, which ran from February 8, 2011 through September 9, 2011, it addresses the civil side of a taxpayer’s voluntary disclosure of foreign accounts and assets by defining the number of tax years covered and setting the civil penalties that will apply. Unlike the 2009 OVDP and the 2011 OVDI, there is no set deadline for taxpayers to apply. However, the terms of this program may change at any time. For example, the IRS may increase penalties or limit eligibility in the program for all or some taxpayers or defined classes of taxpayers or decide to end the program entirely at any time.
    4. Why should I make a voluntary disclosure? Taxpayers holding undisclosed foreign accounts and assets, including those held through undisclosed foreign entities, should make a voluntary disclosure because it enables them to become compliant, avoid substantial civil penalties, and generally eliminate the risk of criminal prosecution for all issues relating to tax noncompliance and failing to file FBARs. In contrast, taxpayers simply filing amended returns or filing through the Streamlined Filing Compliance Procedures do not eliminate the risk of criminal prosecution. 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. Taxpayers 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. The IRS remains actively engaged in identifying those with undisclosed foreign financial accounts and assets. Moreover, increasingly this information is available to the IRS under tax treaties, through submissions by whistleblowers, and from other sources and will become more available under the FATCA and Foreign Financial Asset Reporting (IRC § 6038D).

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  5. The Bank Secrecy Act (BSA), P.L. 91-508, requires certain U.S. persons who have a financial interest in or signature authority over a foreign financial account to report the account annually to the Department of Treasury by electronically filing Financial Crimes Enforcement Network (FinCEN) Form 114, Report of Foreign Bank and Financial Accounts(commonly called FBAR), through FinCEN's BSA E-Filing System. Financial accounts that must be reported include bank accounts, brokerage accounts, mutual funds, trusts, or other types of foreign financial accounts with balances that exceed certain thresholds.

    Individuals who are required to file FBARs need expert advice to ensure proper compliance not only with the FBAR filing requirements, but possibly with other reporting requirements such as the Foreign Account Tax Compliance Act (FATCA), P.L. 111-147. FATCA requires filing Form 8938, Statement of Specified Foreign Financial Assets, with the federal income tax return, a separate requirement from the FBAR filing.

    FBAR is not a tax return (and it isn't filed with the IRS, unlike Form 8938)—it is an information report. It was designed, along with other reporting requirements such as FATCA, to deter tax evasion.

    As discussed below, to assist U.S. taxpayers, the IRS has implemented streamlined filing compliance procedures to help those who have unreported foreign financial accounts to come into compliance.

    WHO MUST FILE AN FBAR?

    A U.S. person is required to file an FBAR if:

    The person had a financial interest in or signature authority over (or any other authority over) at least one financial account located outside of the United States; and
    The aggregate value of all foreign financial accounts exceeded $10,000 at any time during a calendar.

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  6. The Bank Secrecy Act (BSA), P.L. 91-508, requires certain U.S. persons who have a financial interest in or signature authority over a foreign financial account to report the account annually to the Department of Treasury by electronically filing Financial Crimes Enforcement Network (FinCEN) Form 114, Report of Foreign Bank and Financial Accounts(commonly called FBAR), through FinCEN's BSA E-Filing System. Financial accounts that must be reported include bank accounts, brokerage accounts, mutual funds, trusts, or other types of foreign financial accounts with balances that exceed certain thresholds.

    Individuals who are required to file FBARs need expert advice to ensure proper compliance not only with the FBAR filing requirements, but possibly with other reporting requirements such as the Foreign Account Tax Compliance Act (FATCA), P.L. 111-147. FATCA requires filing Form 8938, Statement of Specified Foreign Financial Assets, with the federal income tax return, a separate requirement from the FBAR filing.

    FBAR is not a tax return (and it isn't filed with the IRS, unlike Form 8938)—it is an information report. It was designed, along with other reporting requirements such as FATCA, to deter tax evasion.

    As discussed below, to assist U.S. taxpayers, the IRS has implemented streamlined filing compliance procedures to help those who have unreported foreign financial accounts to come into compliance.

    WHO MUST FILE AN FBAR?

    A U.S. person is required to file an FBAR if:

    The person had a financial interest in or signature authority over (or any other authority over) at least one financial account located outside of the United States; and
    The aggregate value of all foreign financial accounts exceeded $10,000 at any time during a calendar.

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  7. Some offshore account reporting is changing, although potential civil and criminal penalties are still frighteningly high. American citizens and residents with non-U.S. bank or financial accounts—or any non-U.S. assets for that matter—have been grappling with myriad changes the last handful of years. It can sometimes feel like the IRS does not want to you have anything anywher

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  8. Lance Wallach Expert Witness
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