In United States v. Horowitz, an OVDI/OVDP “opt out” case, the Taxpayer appeals a summary judgment decision involving FBAR willfulness penalties. Facts Taxpayers are married U.S. citizens who lived and worked in Saudi Arabia for over fourteen years between 1984 and 2001. The wages were initially deposited into an account in Saudi Arabia which did … Read more
Can the IRS assess penalties against a deceased taxpayer for previously failing to file an FBAR? And who can the government collect the penalties from after the estate has been settled? In United States v. Park, No. 1:16-cv-10787 (N.D. Ill. 2019), the government brings suit against the deceased taxpayer’s children who are beneficiaries of taxpayer’s … Read more
In U.S. v. Kochav, case number 9:19-cv-80648, the Government seeks to reduce a $1.1 million willful FBAR civil penalty assessment to judgment. It’s helpful for clients to understand what types of fact patterns will elevate a failure to file FBARs to a willful one. Contents1 FBAR filing & willful penalty statute2 Case facts3 Conclusion4 What … Read more
From DOJ press release, excerpts below: Zurich Life Insurance Company Ltd (Zurich Life), headquartered in Zurich, Switzerland, and Zurich International Life Limited (Zurich International Life), headquartered in the Isle of Man (collectively Zurich) reached a resolution with the United States Department of Justice…As part of the agreement, Zurich will pay a penalty of $5,115,000 to … Read more
Can FBAR penalties be assessed on a per account basis? In the recent United States v. Boyd, the court answered that question when it found that non-willful FBAR penalties can be assessed on a per account basis. Contents1 FBAR Non-Willful Penalty Statute2 U.S. v. Boyd – Taxpayer’s Position3 U.S. v. Boyd – Government’s Position4 Court’s … Read more
Each year the IRS rolls out campaigns to identify the the top compliance issues for the year. For each of these campaigns, the IRS will deploy resources, training, and tools, metrics and feedback to enforce compliance in these areas. Here are three compliance campaigns released this week from the IRS. Contents1 Offshore Private Banking Campaign2 … Read more
From Law 360. The IRS announced at a DC Federal Bar event that Dubai (UAE) and Singapore might be locations for investigation posts. “They are ripe for U.S. presence. They’re a hub for international activity, and we can make a big impact there saving U.S. taxpayer dollars,” said R. Damon Rowe, director of international operations … Read more
Contents1 U.S. Tax Treatment of U.K. Retirement & Pension Plans1.1 Types of U.K. Pensions1.2 Step 1: Defined benefit vs. defined contribution foreign pensions1.3 Step 2: Employees’ trust vs. grantor trust1.4 Step 3: Broad-based & non-discriminatory1.5 U.S.-U.K. Tax Treaty U.S. Tax Treatment of U.K. Retirement & Pension Plans Few things are more confusing for U.K. foreign … Read more
Contents1 IRS Wins Default Judgment in $18M FBAR Penalty Case2 Summary of the FBAR suit3 What is an FBAR penalty suit?4 Maximum FBAR penalty amount5 FBAR penalty statute of limitations on assessment6 FBAR penalty statute of limitations on collection7 Challenging FBAR penalties — pre-assessment vs. post assessment Appeals8 What should non-compliant taxpayers do? IRS Wins … Read more
Contents1 How to Read Tax Treaties – Example IRA distribution for U.S. expat in the U.K.2 Step 1: Determine residency3 Step 2: Classify the income4 Step 3: Determine if the saving clause applies5 Step 4: Determine if there is an exception to the savings clause6 Step 5: Claim either a treaty-based return position or foreign … Read more