Cryptocurrency Tax FAQ Cryptocurrency Tax FAQ Cryptocurrency Tax FAQ: Cryptocurrency tax enforcement has become a key compliance priority for the IRS. While the tax rules continue to evolve, the past few years have proven that the Internal Revenue Service seeks to aggressively seek enforcement. In 2019, the IRS issued a revenue ruling (RR 2019-24) on the treatment of crypto. Despite the revenue ruling, many questions remain unanswered about how crypto income and reporting is treated…
Deferred Prosecution Agreement (DPA) Deferred Prosecution Agreement (DPA) Deferred Prosecution Agreements (DPA): Sometimes when the US government uncovers a potential fraud, they still require additional information and help from inside the organization or group subject to the investigation in order to get a better grasp on what’s going on — and to build their case. In around 2009, the United states began entering into deferred prosecution agreements with different countries other matters involving Swiss bank…
US Citizens Living Abroad US Citizens Living Abroad US Citizens Living Abroad: When a U.S. Person resides overseas in a foreign country, they are still subject to US tax on their worldwide income. This is different than when a person actually expatriates from the United States. If a person actually expatriates, then they are no longer subject to US Tax and Reporting (unless they are still considered a covered expatriate). But, when a person…
CA 9th Circuit Appeals Caps Non-Willful FBAR Penalty to $10K CA 9th  Circuit Appeals Limits Non-Willful FBAR Penalty to $10K California 9th Circuit Limits Non-Willful FBAR Penalty to $10K: In welcome news for US Taxpayers with unreported foreign accounts and FBAR Penalties who find themselves in Federal Court in California facing off against the US Government, the California Court of Appeals for the 9th Circuit issued a “Pro-Taxpayer” ruling on the issue of FBAR Penalties. In…
Court of Federal Claims Confirms Lower Willful FBAR Standard: FBAR Reckless Disregard & Willful Penalty Ruling  (US v Kimble) FBAR Ruling on Willfulness and Reckless Disregard: While many Courts such as Kaufman, Girlaldi, and Boyd have ruled in favor of US Person Taxpayers in non-willful FBAR Penalty cases (These Courts all limited FBAR Violation Penalties to a per form and not per violation standard), it just got a whole lot easier for the US Government…
New Jersey FBAR Penalty New Jersey FBAR Penalty New Jersey Court Limits FBAR Penalty to One Violation Per Year: In USA vs. Giraldi, the US District Court for New Jersey follows a recent trend by other District Court across the nation — and limits FBAR penalties to a “one Non-Willful FBAR Penalty Per Form” instead of issuing penalties on a “per violation standard.” In other words, even if a Taxpayer had 15 unreported foreign…
Is Previous Offshore Account Noncompliance a Tax Emergency? Is Previous Offshore Account Noncompliance an Emergency? Is Previous Offshore Account Noncompliance a Tax Emergency: While being out of compliance for not previously reporting Foreign Bank and Financial Accounts can be a scary and unsettling feeling — it is not the end of the world. Chances are you are not going to prison, and are not going to be fined hundreds of thousands — if not millions…
  Willful Streamlined Procedure Leads to Criminal Indictment False Streamlined Offshore Filing Leads to Criminal Tax Charges False Streamlined Offshore Filing Leads to Criminal Tax Charges (United States of America v. Azizur Rahman): To assist Taxpayers with getting into compliance for not properly disclosing foreign accounts in prior tax years — on the FBAR and other international information reporting forms — the IRS has developed various offshore amnesty programs. One of the more popular programs…
  Willful Streamlined Procedure Leads to Criminal Indictment False Streamlined Offshore Filing Leads to Criminal Tax Charges False Streamlined Offshore Filing Leads to Criminal Tax Charges (United States of America v. Azizur Rahman): To assist Taxpayers with getting into compliance for not properly disclosing foreign accounts in prior tax years — on the FBAR and other international information reporting forms — the IRS has developed various offshore amnesty programs. One of the more popular programs…
?   Willfulness and IRS Offshore Disclosure OVDP Willfulness: The term OVDP refers to Offshore Voluntary Disclosure Program. It was used for taxpayers who were non-compliant with domestic and foreign asset and income filings with the IRS . The program closed in 2018, but the IRS also expanded another program for offshore compliance, which is referred to as traditional Voluntary Disclosure or VDP. Willfulness vs. Non-willfulness refers to the mental state of taxpayer when the non-compliance…