Reporting Foreign Accounts within U.S. Pension & Retirement Plans FBAR Retirement: Reporting Plan Accounts & Assets:The FBAR Retirement Reporting of Foreign Accounts within pension plans can be complicated. Generally, the IRS does not require taxpayers to include the foreign accounts within a U.S. pension or retirement account to report foreign accounts. Despite the recent aggressive enforcement of foreign accounts compliance and unreported foreign income – there are limits. And, one of the limitation is the…
Smurfing Financial Deposits Smurfing Financial Deposits: The smurfing financial deposits crime is complicated. If you were like me, and your childhood included running downstairs on Saturday mornings to catch new episodes of the Smurfs — smurfing is different The Smurfs were fun (and blue).  Smurfing bank account deposits is criminal…and may leave you in jail, with the blues.  Since smurfing will oftentimes include foreign or offshore bank deposits, individuals have to be even more careful. With…
OVDP vs Streamlined: Comparing Offshore Amnesty Programs OVDP vs Streamlined: The comparison of OVDP vs Streamlined is complex. While the IRS continues to aggressively enforce foreign accounts compliance, they closed OVDP. Subsequent to closing OVDP, the IRS expanded the traditional IRS voluntary disclosure program (VDP). Under the updated procedures, the FBAR penalties and other fines for not properly reporting offshore accounts, assets, investments and income have significantly changed. The decision between OVDP vs. Streamlined…
J-5 and the Joint Chiefs of Global Tax Enforcement J-5 and the Joint Chiefs of Global Tax Enforcement: The J-5 and the Joint Chiefs of Global Tax Enforcement protocol is in full-effect, and continues to gain steam. In order further enforce foreign accounts compliance, and reduce offshore tax evasion, the J5 movement continues to gain momentum. For reference, J-5 refers to a group of 5 countries and tax agencies laser-focused on reduce offshore crime and…
Gift from Foreign Person & Is it Reported to the IRS? Gift From Foreign Person: The gift from foreign person rules are complex. A gift from a foreign person is reportable to the IRS, if it meets the threshold requirements for filing. The form is IRS Form 3520, and there are three (3) catalysts, including: a gift from a foreign individual, foreign entity, or foreign trust distribution. The threshold requirement for reporting the…
Attorneys Using Outside CPAs Put Streamlined Filings at Risk Attorneys Using Outside CPAs Put Streamlined Filings at Risk: Did your Attorney refer you to an outside CPA? Is your submission now delayed, and your streamlined or VDP (Voluntary Disclosure) sitting in limbo? With rumblings of the IRS ending the streamlined program, and foreign accounts compliance remaining as a key enforcement priority — any unnecessary delay can put your submission at serious risk — and…
U.S. Citizen Abroad and Never Filed a Tax Return U.S. Citizen Abroad and Never Filed a Tax Return: Are you a U.S. Citizen Abroad and Never Filed a Tax Return? If you are a U.S Citizen (or former citizen or permanent resident who did not properly expatriate), the IRS has developed several safe and effective compliance options available to you. Whether you are an Accidental American or an Expat, unless you properly expatriated,…
FBAR Penalty Cases & Recent Court Rulings (2019-2020) FBAR Penalty Cases & Recent Court Rulings: Several FBAR Penalty Cases were decided in 2019. In 2020, there are bound to be several more FBAR cases, case rulings & penalty decisions nationwide. The IRS has taken an aggressive stance against U.S. persons who are not in foreign accounts compliance. Once FBAR penalties are assessed, the IRS has 2 years to enforce. In recent years, the…
Form 14654 (Certification by U.S. Person Residing in the U.S.) Form 14654: The IRS Form 14654 is the Certification by U.S. Person Residing in the U.S. The Form is part of the IRS Streamlined Domestic Offshore Procedures. Don’t be misled by inexperienced counsel. The Form has many traps and pitfalls, and requires the U.S. person to submit a non-willful statement under penalty of perjury. With the Internal Revenue Service making foreign accounts compliance…
Foreign India Banks: U.S. Tax & Reporting Compliance Foreign India Banks: U.S. Tax & Reporting Compliance: Each year, we are approached by hundreds of of individuals with unreported income, assets, accounts, and investments from India. In recent years, the IRS has taken an aggressive approach to foreign accounts compliance. Indian Banks such as ICICI, SBI, HDFC, Axis, and more routinely issue FATCA letters to customers and report to the IRS. These letters require…