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IRS Wins Default Judgment in $18M FBAR Penalty Case

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

How to Read Tax Treaties

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

MMA Fighter in Court Battle re: FBAR Penalty Suit

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

Reporting Foreign Trusts

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

IRS Updates Procedures for Voluntary Disclosures

Contents1 IRS Updates Voluntary Disclosure Practice2 What is IRS Voluntary Disclosure?3 Steps for Making a Voluntary Disclosure Under the Revised Guidelines3.1 1. Make a pre-clearance request3.2 2. Submit required voluntary disclosure documents3.3 3. Go through an examination4 Disclosure Periods and Examination Process5 Penalty Calculation6 Who Needs to Use the Voluntary Disclosure Practice? IRS Updates Voluntary … Read more

IRS Includes FATCA in 5 New Compliance Campaigns

Contents1 IRS Adds FATCA as a Compliance Campaign2 FATCA Filing Accuracy3 Individual Foreign Tax Credit (Form 1116)4 Individual Foreign Tax Credit Phase II5 Foreign Earned Income Exclusion Campaign6 1120-F Delinquent Returns Campaign7 Swiss Bank Program Campaign8 Nonresident Alien Schedule A and Other Deductions9 NRA Tax Credits10 F3520/3520-A Non-Compliance and Campus Assessed Penalties11 Forms 1042/1042-S Compliance12 … Read more

IRS Evaluates Crytocurrency Taxable Events

IRS Evaluates Crytocurrency Taxable Events At a recent conference, the IRS opened up about its cryptocurrency compliance efforts. To combat tax evasion from those engaged in cryto trading, the IRS has created cyber units, called CCUs. The hub is in Los Angeles, and agents are posted in Las Vegas, Denver, Seattle, Phoenix, and Dallas. IRS … Read more

Estates and FBAR Penalties

Contents1 Court Finds Representative of Estate Liable for Deceased’s FBAR Penalties2 Facts3 Court’s findings4 Voluntary disclosure options for estates Court Finds Representative of Estate Liable for Deceased’s FBAR Penalties The Court in United States v. Schoenfeld (M.D. Fla. 3:16-cv-1248-J-34PDB) finds that a deceased taxpayer’s FBAR civil penalty liabilities are collectible from his estate’s beneficiary. Facts Steven Schoenfeld, … Read more