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. Offshore Private Banking Campaign U.S. … 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
Contents1 FBAR Penalty Suit: U.S. v. Gracie et al2 Obligation of U.S. persons to report foreign financial accounts3 Applicable statute and regulation4 Alleged FBAR violations in U.S. v. Gracie et al5 Defendants’ motion for partial summary judgment6 Government’s response7 Conclusion8 What should non-compliant taxpayers do? FBAR Penalty Suit: U.S. v. Gracie et al A mixed … Read more
1. Find an attorney that primarily or exclusively works on offshore compliance matters. Offshore compliance is complicated, and requires an attorney to have a deep understanding of the laws relating to offshore compliance, and to keep up with the changes. The last thing you want for your voluntary disclosure matter is an attorney who also … Read more
Contents1 Offshore Tax Compliance — How Fast are you Speeding?2 Willfulness, non-willfulness, and reasonable cause2.1 Bob, the willful speeder2.2 Sarah, the non-willful speeder2.3 David, the reasonable cause speeder3 FATCA, red light cameras, and speed traps4 So you’re non-compliant — now what? Offshore Tax Compliance — How Fast are you Speeding? In my offshore tax compliance … Read more
Contents1 Reporting Beneficial Interest in a Foreign Trust & Form 35202 Defining the entity — what is a “foreign trust”?3 Is it a foreign trust or a U.S. trust?4 Is it a grantor trust or non-grantor trust?5 International information reporting6 Reporting of foreign gifts and inheritances Reporting Beneficial Interest in a Foreign Trust & Form … Read more
Contents1 IRS Sues Taxpayer to Collect on $5M FBAR Penalty2 What is a willful failure to file an FBAR?3 FBAR willfulness factors in U.S. v. Arvind Ahuja4 FBAR willfulness penalty assessment5 What should non-compliant taxpayers do? IRS Sues Taxpayer to Collect on $5M FBAR Penalty Earlier this month, in United States v. Arvind Ahuja (E.D. … Read more