Sometimes, doing your taxes can feel like a full-time past time. Figuring out how to save money and huge fees can take hours of work and research. But not every money-saving effort you can take for your taxes is necessarily legal. Some efforts people take to avoid money ride the line between legal and criminal. …
How to Know When You Need to File an FBAR If you own a foreign bank account, we highly recommend filing an FBAR. This complex form is also known as FinCEN form 114. The ins and outs of filing an FBAR are a bit complex, and some people view the form as an invasion of …
It’s already understood that the failure to disclose foreign accounts can result in significant penalties. Yet while offshore enforcement concerning foreign accounts was significantly stepped up in 2009, many individuals failed to participate in the IRS Offshore Voluntary Disclosure Program (OVDP). In prior posts, we discussed the tools the IRS has at its disposal make …
As we’ve indicated many times on this blog, there are significant disclosure requirements concerning offshore accounts and income. The Foreign Account Tax Compliance Act (FATCA) requires offshore financial institutions to either report accountholder information, or face significant penalties. What is important for Michigan residents with offshore accounts is to make certain they report this information as well. …
Under 26 U.S. Code § 965, shareholders throughout the U.S. must pay a transition tax on foreign earnings from specific foreign corporations. The IRS deems this tax as a repatriation of the income. Lawmakers entitled 26 U.S. Code § 965 as: “Treatment of deferred foreign income upon transition to participation exemption system of taxation.” Unfortunately, the content …
Confusion Regarding Transition Tax on Foreign Earnings Read More »
Tax attorneys understand how serious the penalties are concerning nondisclosure of offshore assets. For purported violations, the IRS may seize 50 percent of the account’s value, file possible criminal charges, and assess other penalties. The IRS is giving notice that taxpayers working outside of the country must file their federal income tax returns by June 15. This …
On behalf of Silver Tax Group posted in Offshore Accounts on Wednesday, May 2, 2018. There have been voluntary disclosure programs in place to entice taxpayers to come clean about unreported foreign assets since 2009. These programs allow for promises of decreased penalties. They may also allow for avoidance of prosecution in return for participation. But due to decreased …
Changes in Offshore Tax Enforcement May Be Coming Soon Read More »
On behalf of Silver Tax Group posted in Offshore Accounts on Wednesday, April 25, 2018. The U.S. Supreme Court will not be haring the latest challenge concerning the Foreign Account Tax Compliance Act (FATCA). A number of U.S. citizens living abroad brought the lawsuit. It also had support from Senator Rand Paul who felt that FATCA was unconstitutional. Plaintiffs …
On behalf of Silver Tax Group posted in Offshore Accounts on Thursday, March 22, 2018. The IRS plans on bringing to a close the Offshore Voluntary Disclosure Program (OVDP) put in place in 2014. The plan is to close this program by September 28. However, this announcement made by the IRS at least allows for Michigan taxpayers time to still take …
OVDP Program Regarding Offshore Reporting to Close Read More »
On behalf of Silver Tax Group posted in Offshore Accounts on Tuesday, March 13, 2018. Americans holding onto foreign accounts need to record their holdings on the Report of Foreign Bank and Financial Accounts form (FBAR). Those filing an FBAR have until the middle of April to report such information. Some may get an extension until October 15. But …
On behalf of Silver Tax Group posted in Offshore Accounts on Tuesday, February 27, 2018. The Tax Cuts and Jobs Act will impact all taxpayers including those residing offshore. The act’s provisions include adjustments to corporate rates and exclusion rates. With changes to the tax code, authorities promise simplification. But that does not mean offshore residents will see tax …
On behalf of Silver Tax Group posted in Offshore Accounts on Monday, February 5, 2018. The IRS may be expanding amnesty programs for taxpayers facing penalties due to reporting issues regarding their offshore accounts. This possibly is because the IRS views such programs as a success. The aim is to recover even more money owed. The aggressive efforts by …
Voluntary Disclosure Programs and Offshore Assets Read More »
On behalf of Silver Tax Group posted in Offshore Accounts on Monday, January 22, 2018. Courts continue hearing cases concerning filings of the Report of Foreign Bank and Financial Account (FBAR). There are significant penalties that accompany the failure to file an FBAR. This can include significant fines and even prison time. The IRS does not have unlimited powers, …
On behalf of Silver Tax Group posted in Offshore Accounts on Thursday, January 18, 2018. According to Swiss international financial advisors, the Foreign Account Tax Compliance Act (FATCA) continues to impact dealings when it comes to international accounts and investments. This is true even though we hear talk of phasing FATCA out. FATCA went into effect in 2010. It …
On behalf of Silver Tax Group posted in Offshore Accounts on Tuesday, January 9, 2018. The tax bill is now law. While there will be debates about the merits of the new legislation, Michigan residents will have to abide by its language until another tax bill replaces it. The specifics of the bill will be of particular importance to …
The Foreign Account Tax Compliance Act (FATCA) governs reporting of foreign financial institutions concerning assets held by American citizens. Such institutions face substantial penalties for failing to report these assets. “Combat tax evasion” U.S. tax officials deal with this underreporting through FATCA. In 2010, President Obama stated the primary purpose of FATCA was to “combat …
On behalf of Silver Tax Group posted in Offshore Accounts on Wednesday, November 29, 2017. Federal officials closely scrutinize reporting of cryptocurrency gains on tax returns. This is in large part due to difficulties determining whether cryptocurrency is property or currency. Classifying bitcoins and cryptocurrency as property or currency has tax implications. In a foreign country, a U.S. citizen may not …
On behalf of Silver Tax Group posted in Offshore Accounts on Monday, November 13, 2017. Whenever the phrase “offshore accounts” pops up in newspaper headlines, it often refers to a scandal linked to a public figure. Yet, by itself, holding an offshore account is perfectly fine. In fact, you don’t need to be rich or famous to store money …
On behalf of Silver Tax Group posted in Offshore Accounts on Wednesday, October 25, 2017. Every presidential administration promises some sort of significant tax reform. While the promise is almost always that the impact will be beneficial to the ordinary taxpayer, issues and unintended consequences usually arise. Michigan residents will nevertheless wish to pay attention to new changes in …
What’s Included in the New Tax Reform Proposals? Read More »
On behalf of Silver Tax Group posted in Offshore Accounts on Friday, October 20, 2017. If you as a Michigan resident have foreign assets in excess of $10,000, please make certain you are in compliance with federal tax laws. The rules are complex, and noncompliance comes with penalties including seizure of assets and criminal charges. Under the Foreign Account Tax …
On behalf of Silver Tax Group posted in Offshore Accounts on Monday, September 18, 2017. Passed in 2010, the Foreign Accounts Tax Compliance Act (FATCA) continues to be controversial. FATCA requires specific foreign financial institutions to report on assets belonging to American citizens. Reporting under FATCA is complicated. And the consequences for noncompliance with FATCA are severe. FATCA requirements …
On behalf of Silver Tax Group posted in Offshore Accounts on Thursday, September 7, 2017. Congress passed the Foreign Account Tax Compliance Act (FATCA) with the idea of collecting more tax revenues from U.S. citizens living outside of the country. By implementing a series of complex reporting requirements on foreign financial institutions, authorities were hoping to identify accounts and …
When you as a Michigan resident have combined balances of foreign accounts exceed $10,000, you will need to file a disclosure statement with tax authorities. Failure to do so could result in tax evasion charges, and this can bring with it criminal penalties. However, in 2009 the IRS began offering opportunities to disclose this unreported …
The Risky Streamlined Filing Procedure for Foreign Accounts Read More »
On behalf of Silver Tax Group posted in Offshore Accounts on Tuesday, August 1, 2017. It is not a time for Michigan residents to rest easy about tax compliance and foreign accounts. Rather than pulling back on enforcement pertaining to offshore accounts, it appears that the IRS in increasing such enforcement during our summer months. On July 19, a …
On behalf of Silver Tax Group posted in Offshore Accounts on Tuesday, July 11, 2017. We’ve spoken many times on this blog about the complex reporting requirements that accompany ownership of foreign accounts. Beyond the complexity, it is extremely difficult for individual taxpayers to keep track of all of the rules pertaining to these accounts. Disclosure of foreign account …
Willfulness and the Disclosure of Foreign Account Info Read More »
On behalf of Silver Tax Group posted in Offshore Accounts on Tuesday, May 30, 2017. While the taxes you pay concerning foreign investments may not always be large, the failure to comply with rules pertaining to reporting of this income can result in severe consequences. The rules for reporting such income are also highly complex. Understand the requirements Most …
Passive Income and The Strict Reporting Requirements Read More »
On behalf of Silver Tax Group posted in Offshore Accounts on Wednesday, May 10, 2017. We have often spoken about the difficulties taxpayers face concerning compliance with offshore income reporting requirements. This includes significant enforcement of regulations contained under the Foreign Account Tax Compliance Act (FATCA). The reporting requirements under FATCA are stringent. Not report certain foreign income Sometimes, …
Exclusion of Certain Foreign Income from Your Tax Forms Read More »
On behalf of Silver Tax Group posted in Offshore Accounts on Wednesday, April 19, 2017. With every new presidential administration, there are likely to be changes in federal tax policy. Some of these changes can radically impact the way that Michigan taxpayers will file their taxes and report on earnings. One such possible measure involves repeal of the Foreign …
On behalf of Silver Tax Group posted in Offshore Accounts on Thursday, March 30, 2017. The Internal Revenue Service will likely continue to crackdown on alleged failures to report offshore income and foreign assets. Any taxpayer with over $10,000 invested in foreign bank accounts could be a target for the IRS. Tax penalties for noncompliance are significant. Not only can …
On behalf of Silver Tax Group posted in Offshore Accounts on Thursday, February 23, 2017. A recent federal court decision demonstrates the determination of the IRS in tracking down offshore revenue. The federal court authorized the agency to use a John Doe summons in order to locate information about American citizens holding offshore accounts in Panama. Specifically, the IRS desired to use …
Offshore Accounts and the Use of John Doe Summons Read More »
On behalf of Silver Tax Group posted in Offshore Accounts on Thursday, January 12, 2017. Many U.S. citizens, including Michigan residents, put their offshore savings into deferred compensation plans. Taxpayers may do this in an attempt to defer otherwise taxable income to avoid paying at current tax rates. In fact, many individuals with offshore accounts have been doing this since the …
Deferred Compensation Plans and Offshore Accounts Read More »
On behalf of Silver Tax Group posted in Offshore Accounts. While the filing deadline for a report of a foreign bank account (FBAR) has traditionally been June 30, the Financial Crimes Enforcement Network (FinCEN) announced an extension of this filing date to Oct. 15. There is no requirement for a specific request for the extension by the taxpayer. Apparently, this …
On behalf of Silver Tax Group posted in Offshore Accounts on Wednesday, November 16, 2016. The U.S. Treasury has long tried to prevent inversions and cross-border avoidance maneuvers. A tax inversion occurs when an American corporation relocates to a nation with lower tax rates while continuing extensive operations in our country. Certain rules concern corporations merging with smaller foreign …
On behalf of Silver Tax Group posted in Offshore Accounts. Recent actions document IRS efforts to target offshore revenues. It appears that offshore voluntary compliance efforts now exceed more than $9.9 billion in collected taxes, penalties, and interest since 2009. An IRS announcement states that their efforts have brought close to 100,000 taxpayers into compliance regarding offshore requirements. This includes 55,800 …
Significant Targeting of Offshore Revenue by the IRS Read More »
We can expect more crackdowns by federal regulators concerning taxing of U.S. companies doing business overseas. The U.S. Treasury recently proposed a series of regulations. The intent of such rules is to make it more difficult for companies to reduce the amount of taxes owed by the practice of shifting profits to foreign companies. The White House Office …
More Rules to Tax Offshore Business in the Planning Stage Read More »
You can plan on the Internal Revenue Service continuing in its efforts to locate offshore account information. As an example, Switzerland recently announced its plan for disclosure of account information from HSBC Holdings to the IRS. HSBC is a private Swiss bank. The Swiss announcement was to alert HSBC account holders of the plans to release this information. …
IRS Continues Efforts to Locate Offshore Account Information Read More »
Those with assets in foreign bank accounts of over $10,000 are required to file the proper documentation with the IRS, including a Report of Foreign Bank and Financial Accounts(FBAR). Failure to do so leads to numerous penalties. Even the most business-savvy individuals can instantly find themselves facing unexpected issues related to compliance with the Foreign Account Tax Compliance …
Failed to Disclose Foreign Assets? There Are Good Options to Fix That. Read More »
Tens of thousands of Americans with offshore bank accounts could now potentially be facing prosecution under the Foreign Account Tax Compliance Act (FATCA). More than 30,000 taxpayers have, since 2012, disclosed foreign accounts under a streamlined IRS program which offered a grace period against additional penalties in exchange for future compliance with offshore account reporting …
FATCA Disclosure Could still Mean Prosecution for Some Taxpayers Read More »
This week was the deadline for filing FBAR disclosures on foreign accounts. Fittingly, a Texas federal judge also ordered an entrepreneur, of the arts-and-crafts chain Michael’s, to pay significant taxes and penalties for schemes that utilized offshore tax havens. A breakdown reported by the Wall Street Journal shows the severe impact of penalties. The back tax bill was …
Entrepreneur ordered to pay $1.1 billion in taxes/penalties Read More »
Do you have foreign accounts as part of investment strategy? Have parents in another country given you signature authority over their bank accounts? Did you inherit a trust that contains assets located at a foreign bank? If your offshore assets totaled $10,000 or more at any point during 2015, you should file an FBAR – Report of …
Questions to Answer Before a First Foreign Account Filing Read More »
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