Show All » Business » Forensic Updates
Thursday, August 20, 2009Discussion on Forensic Accounting
Discussion on this growing profession.
Posted By: Joseph Petrucelli @ 5:11:31 PMTop
Show All » Business » Tax Update
Thursday, August 20, 2009Tax Questions
If you have any tax questions please ask by posting a message.
Posted By: Joseph Petrucelli @ 5:08:31 PMTop
Show All » Professor » Accounting 241 8:20PM
Thursday, August 20, 2009Student Information Page Acct 241 8:20 PM Class
Please post any question on the homework assignments or items we discussed in class.
Posted By: Joseph Petrucelli @ 4:55:51 PMTop
Show All » Professor » Accounting 241 6:55PM
Thursday, August 20, 2009Student Information Page Accounting 241 6:55 PM
Please post any question on the homework assignments or items we discussed in class.
Posted By: Joseph Petrucelli @ 4:54:07 PMTop
Show All » Business » Tax Update
Wednesday, August 19, 2009IRS Offers Break on FBAR Penalties for Offshore Bank Account Holders
The Internal Revenue Service (IRS) has issued guidelines for resolving the civil tax penalties related to offshore bank accounts for individuals who make voluntary disclosures.
Generally it will require:
• Payment of all taxes and interest for the previous six years.
• Assessment of an accuracy penalty under Internal Revenue Code Section 6622 or a delinquency penalty for all years
• An FBAR penalty of 20% of the highest account balance during the six year period.
In the case of inherited accounts, or other accounts that the taxpayer did not cause to be opened, the penalty may be reduced to 5% if other qualifications are met.
Under the settlement initiative, taxpayers will not be assessed tax fraud penalties under IRC Section 6651(f) or IRC Section 6663. These tax fraud penalties are 75% of the unpaid tax. In addition the taxpayer would not be liable for the full amount of the FBAR penalties which can equal to 50% of the account balance per year!
This offer for voluntary disclosures expired however you can always due a voluntary .
Full cooperation with the IRS in any civil or criminal investigation in order to take advantage of these terms is required by the taxpayer. The taxpayer wil be required to answer specific questions regarding how they came to open their offshore bank accounts and will be required to name names. I expect that the IRS will use this information to open tax audits of taxpayers who do not come forward.
One area that remains a concern is whether or not the IRS will offer the favorable settlement terms to taxpayers who, unbeknownst to the taxpayer, have already been selected for audit. Normally if the IRS is already aware that a taxpayer has a foreign bank account any subsequent disclosure will not be considered a voluntary disclosure, and could still leave the taxpayer open to both civil and criminal tax penalties.
We have worked with a few clients to initiate and submit a voluntary disclosures to the IRS. If you have an offshore bank account, or any other tax problem, call me. I can help you.
Posted By: Joseph Petrucelli @ 12:02:41 PMTop
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