Showing posts with label international tax. Show all posts
Showing posts with label international tax. Show all posts
FBAR/OVDI LANCE WALLACH: FBAR & International Tax Alert Report
FBAR/OVDI LANCE WALLACH: FBAR & International Tax Alert Report: The willful failure to file the FBAR report or retain records of your foreign accounts can potentially lead to a ten-year prison sentenc...
Small Business Retirement Plans Fuel Litigation: Article from Dolan Media Newswires: "Originally published 1/22/2010 Small businesses facing audits and potentially huge tax penalties over certain types of retirement plans are..."
Important FBAR and International Tax Information For 2014
By Lance Wallach
For individual tax returns (Forms 1040) due to be filed in 2014 (due this year by April 15, 2014, unless extended), the IRS has issued Form 8938, "Statement of Specified Foreign Financial Assets," requiring the disclosure of certain foreign accounts and assets.
Whether an individual is required to file this form is complicated, but basically this applies to the following assets if owned in 2013:
Financial accounts in foreign financial institutions.
Any stock or securities issued by foreign corporations or entities, any interest in a foreign partnership, trust or estate, as well as any financial instrument or contract issued by a foreign person, and foreign pension plans and deferred compensation arrangements (but not foreign social security). You are not, however, required to report foreign assets (1) if the assets are held in a U.S. brokerage account; (2) if you are required to disclose the asset on certain other tax form such as Form 3520 or Form 5471; or (3) if such assets (other than stock) are used in your trade or business.
Whether you have to file Form 8938 depends on the total value of such foreign assets at year end as well as the highest value at any point in the year. For U.S. citizens and residents filing joint tax returns, you must file Form 8938 if the year-end value of the foreign assets is $100,000 or more or, if the value at any time during the year exceeded $150,000. On joint returns, all foreign-based assets owned by the spouses are considered in determining these thresholds. For married spouses filing separately and for unmarried persons, the thresholds are $50,000 (year end) and $75,000 (high value during the year).
There are different rules regarding certain persons who live abroad. There are also rules regarding valuation of certain assets. These are spelled out in greater detail in the Form 8938 instructions.
If required, Form 8938 is to be filed with your Federal Income Tax Return (Form 1040). Currently only individuals having filing requirements must fill out the Form 8938, but it is expected that this will be extended to corporations, partnerships and trusts in the future.
The IRS may impose penalties for failure to file Form 8938 if you lack reasonable cause or willfully neglected to file. In addition, if you underpay your tax as a result of a transaction involving an undisclosed foreign financial asset, the penalty for such failure may be 40 percent of the underpayment (instead of the normal 20 percent). In addition, the statute of limitations for assessing tax may be extended if you fail to file the form.
It is important to note that Form 8938 is in addition to the annual Foreign Bank Account Form or "FBAR," which has different filing requirements. The FBAR, generally is required if you have ownership or signature authority over one or more foreign bank accounts with a value of over $10,000 on any date in the prior year. The FBAR is not part of your income tax return, but is filed separately and must be received by the Department of Treasury in Detroit by June 30 (timely mailing does not apply to that form).
Lance Wallach, National Society of Accountants Speaker of the Year and member of the AICPA faculty of teaching professionals, is a frequent speaker on retirement plans, financial and estate planning, and abusive tax shelters. He writes about 412(i), 419, and captive insurance plans. He speaks at more than ten conventions annually, writes for over fifty publications, is quoted regularly in the press and has been featured on television and radio financial talk shows including NBC, National Public Radio's All Things Considered, and others. Lance has written numerous books including Protecting Clients from Fraud, Incompetence and Scams published by John Wiley and Sons, Bisk Education's CPA's Guide to Life Insurance and Federal Estate and Gift Taxation, as well as AICPA best-selling books, including Avoiding Circular 230 Malpractice Traps and Common Abusive Small Business Hot Spots. He does expert witness testimony and has never lost a case. Contact him at 516.938.5007, wallachinc@gmail.com or visit www.taxaudit419.com and www.taxlibrary.us
The information provided herein is not intended as legal, accounting, financial or any type of advice for any specific individual or other entity. You should contact an appropriate professional for any such advice.
For individual tax returns (Forms 1040) due to be filed in 2014 (due this year by April 15, 2014, unless extended), the IRS has issued Form 8938, "Statement of Specified Foreign Financial Assets," requiring the disclosure of certain foreign accounts and assets.
Whether an individual is required to file this form is complicated, but basically this applies to the following assets if owned in 2013:
Financial accounts in foreign financial institutions.
Any stock or securities issued by foreign corporations or entities, any interest in a foreign partnership, trust or estate, as well as any financial instrument or contract issued by a foreign person, and foreign pension plans and deferred compensation arrangements (but not foreign social security). You are not, however, required to report foreign assets (1) if the assets are held in a U.S. brokerage account; (2) if you are required to disclose the asset on certain other tax form such as Form 3520 or Form 5471; or (3) if such assets (other than stock) are used in your trade or business.
Whether you have to file Form 8938 depends on the total value of such foreign assets at year end as well as the highest value at any point in the year. For U.S. citizens and residents filing joint tax returns, you must file Form 8938 if the year-end value of the foreign assets is $100,000 or more or, if the value at any time during the year exceeded $150,000. On joint returns, all foreign-based assets owned by the spouses are considered in determining these thresholds. For married spouses filing separately and for unmarried persons, the thresholds are $50,000 (year end) and $75,000 (high value during the year).
There are different rules regarding certain persons who live abroad. There are also rules regarding valuation of certain assets. These are spelled out in greater detail in the Form 8938 instructions.
If required, Form 8938 is to be filed with your Federal Income Tax Return (Form 1040). Currently only individuals having filing requirements must fill out the Form 8938, but it is expected that this will be extended to corporations, partnerships and trusts in the future.
The IRS may impose penalties for failure to file Form 8938 if you lack reasonable cause or willfully neglected to file. In addition, if you underpay your tax as a result of a transaction involving an undisclosed foreign financial asset, the penalty for such failure may be 40 percent of the underpayment (instead of the normal 20 percent). In addition, the statute of limitations for assessing tax may be extended if you fail to file the form.
It is important to note that Form 8938 is in addition to the annual Foreign Bank Account Form or "FBAR," which has different filing requirements. The FBAR, generally is required if you have ownership or signature authority over one or more foreign bank accounts with a value of over $10,000 on any date in the prior year. The FBAR is not part of your income tax return, but is filed separately and must be received by the Department of Treasury in Detroit by June 30 (timely mailing does not apply to that form).
Lance Wallach, National Society of Accountants Speaker of the Year and member of the AICPA faculty of teaching professionals, is a frequent speaker on retirement plans, financial and estate planning, and abusive tax shelters. He writes about 412(i), 419, and captive insurance plans. He speaks at more than ten conventions annually, writes for over fifty publications, is quoted regularly in the press and has been featured on television and radio financial talk shows including NBC, National Public Radio's All Things Considered, and others. Lance has written numerous books including Protecting Clients from Fraud, Incompetence and Scams published by John Wiley and Sons, Bisk Education's CPA's Guide to Life Insurance and Federal Estate and Gift Taxation, as well as AICPA best-selling books, including Avoiding Circular 230 Malpractice Traps and Common Abusive Small Business Hot Spots. He does expert witness testimony and has never lost a case. Contact him at 516.938.5007, wallachinc@gmail.com or visit www.taxaudit419.com and www.taxlibrary.us
The information provided herein is not intended as legal, accounting, financial or any type of advice for any specific individual or other entity. You should contact an appropriate professional for any such advice.
Small Business Retirement Plans Fuel Litigation: Article from Dolan Media Newswires: "Originally published 1/22/2010 Small businesses facing audits and potentially huge tax penalties over certain types of retirement plans are..."
Lance Wallach
Small Business Retirement Plans Fuel Litigation: Article from Dolan Media Newswires: "Originally published 1/22/2010 Small businesses facing audits and potentially huge tax penalties over certain types of retirement plans are..."
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Small Business Retirement Plans Fuel Litigation: Article from Dolan Media Newswires: "Originally published 1/22/2010 Small businesses facing audits and potentially huge tax penalties over certain types of retirement plans are..."
Reporting by U.S. Persons Holding Foreign Financia
Reporting by U.S. Persons Holding Foreign Financia
Thursday, December 5, 2013
FBAR & International Tax Alert Report
The willful failure to file the FBAR report or retain records of your foreign accounts can potentially lead to a ten-year prison sentence and fines of up to $500,000. This criminal penalty applies to all US citizens pursuant to 31U.S.C Section S322B and 31 C.F.R. Section 103.S.9.C It may also apply to persons living in the United States who are not citizens.
If you fail to answer the question truthfully on schedule B of your Form 1040 which asks if you “have an interest in or a signature or other authority over a financial account in a foreign country”, then your false statement might be deemed a criminal offense by the IRS per the sections mentioned above if other surrounding facts and circumstances apply.
Our office is headed by a former international tax IRS agent with 37 years experience as a CPA and Associate Professor of accounting. Call our office immediately for a free five-minute consultation so you can avoid the dire circumstances described above and deal with the other associated problems.
516-938-5007
TaxAdvisorExpert.com
Lawallach@aol.com
Small Business Retirement Plans Fuel Litigation: Article from Dolan Media Newswires: "Originally published 1/22/2010 Small businesses facing audits and potentially huge tax penalties over certain types of retirement plans are..."
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Small Business Retirement Plans Fuel Litigation: Article from Dolan Media Newswires: "Originally published 1/22/2010 Small businesses facing audits and potentially huge tax penalties over certain types of retirement plans are..."
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Small Business Retirement Plans Fuel Litigation: Article from Dolan Media Newswires: "Originally published 1/22/2010 Small businesses facing audits and potentially huge tax penalties over certain types of retirement plans are..."
lancewallach - Google Search
Small Business Retirement Plans Fuel Litigation: Article from Dolan Media Newswires: "Originally published 1/22/2010 Small businesses facing audits and potentially huge tax penalties over certain types of retirement plans are..."
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Small Business Retirement Plans Fuel Litigation: Article from Dolan Media Newswires: "Originally published 1/22/2010 Small businesses facing audits and potentially huge tax penalties over certain types of retirement plans are..."
Small Business Retirement Plans Fuel Litigation: FBAR/OVDI LANCE WALLACH: FBAR & International Tax ...
Small Business Retirement Plans Fuel Litigation: FBAR/OVDI LANCE WALLACH: FBAR & International Tax ...: FBAR/OVDI LANCE WALLACH: FBAR & International Tax Alert Report : The willful failure to file the FBAR report or retain records of your f...
Small Business Retirement Plans Fuel Litigation: Article from Dolan Media Newswires: "Originally published 1/22/2010 Small businesses facing audits and potentially huge tax penalties over certain types of retirement plans are..."
FBAR/OVDI LANCE WALLACH: FBAR & International Tax Alert Report
FBAR/OVDI LANCE WALLACH: FBAR & International Tax Alert Report: The willful failure to file the FBAR report or retain records of your foreign accounts can potentially lead to a ten-year prison sentenc...
Small Business Retirement Plans Fuel Litigation: Article from Dolan Media Newswires: "Originally published 1/22/2010 Small businesses facing audits and potentially huge tax penalties over certain types of retirement plans are..."
How Hartford Life and Other Insurance Companies Tricked their Agents and Got People in Trouble with the IRS - HG.org
How Hartford Life and Other Insurance Companies Tricked their Agents and Got People in Trouble with the IRS - HG.org
Agents from Hartford and other insurance companies were shown ways to sell large life insurance policies. This “Welfare Benefit Trust 419 plan or 412i plan should be shown to their profitable small business owners as a cure for paying too much taxes.
A Welfare Benefit Trust 419 plan essentially works like this:
• The business provides a fringe benefit for their employees, such as health insurance and life insurance.
• The benefit is established in the name of a trust and funded with a cash value life insurance policy
• Here is the gravy: the entire amount deposited into the trust (insurance policy) is tax deductible to the company,and
• The owners of the company can withdraw the cash value from the policy in later years tax-free.
• The business provides a fringe benefit for their employees, such as health insurance and life insurance.
• The benefit is established in the name of a trust and funded with a cash value life insurance policy
• Here is the gravy: the entire amount deposited into the trust (insurance policy) is tax deductible to the company,and
• The owners of the company can withdraw the cash value from the policy in later years tax-free.
Read more by clicking the link above!
Small Business Retirement Plans Fuel Litigation: Article from Dolan Media Newswires: "Originally published 1/22/2010 Small businesses facing audits and potentially huge tax penalties over certain types of retirement plans are..."
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