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Archive for Ronald Marini

Practitioner Fears Over LB&I Document Requests Not Substantiated In Practice?

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What Has Been Your Experience?

According to Bloomberg/BNA (subscription required) there hasn’t been a surge in the number of summonses from the Internal Revenue Service as its Large Business & International Division has shifted attention to new processes for information document requests, an IRS official said, alleviating some concern from practitioners about the effects of the processes.

“Since it’s been rolled out, there has not been a noticeable uptick in summons at all,” said David Bergman, an attorney in the IRS Office of Chief Counsel (Procedure & Administration), at an event April 15 hosted by the DC Bar Association Tax Audits & Read more

Everything You Wanted To Know About FATCA IDES, But Did Not Ask!

Updated! IDES Web Pages

The following web pages or documents have been updated on the FATCA International Data Exchange Service (IDES) site:

IDES Alert Codes
• IDES Resources
• Global IT Forum

Updated! IDES User Guide (04-2015)

The IDES User Guide has been updated for April 2015 and includes enhancements Read more

Tax Court Finds That IRS Did Not Prove Fraud, Therefore Statute of Limitations Was Closed!

Examining Tax Law

On April 6, 2015, following a trial in Tampa, Florida, the Tax Court ruled that back taxes and penalties imposed upon Mr. Jacoby were unfounded because they had not acted fraudulently in the filing of tax return.

The Court’s ruling overturned the IRS’s assessment of approximately $2 million in back taxes and penalties for positions taken by the taxpayers on their 1999 and 2000 tax returns relating to tax shelters promoted by KPMG and others.

Judge Juan F. Vasquez rules that Steven F. Jacoby, who worked as a licensed securities broker and account executive before starting his own financial strategies company, hadn’t intended to evade tax through concealing, misleading or otherwise preventing the Read more


“If You Have Not Received Your ICMM Notification Within 24 Hours After Uploading Your File to IDES”

A new FAQ has been posted to the FATCA Website regarding FATCA Notifications after posting files to IDES.

If you have not received your ICMM Notification within 24 hours after uploading your file to IDES then there are a series of steps you can take that are contained in this FAQ.

This FAQ can be found in both the IDES FAQs and the ICMM FAQs.

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IRS Reminds Those With Foreign Assets of U.S. Tax Obligations

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WASHINGTON — The Internal Revenue Service reminded U.S. citizens and resident aliens, including those with dual citizenship who have lived or worked abroad during all or part of 2014, that they may have a U.S. tax liability and a filing requirement in 2015.

Most People Abroad Need to File

A filing requirement generally applies even if a taxpayer qualifies for tax benefits, such as the foreign earned income exclusion or the foreign tax credit , that substantially reduce or eliminate their U.S. tax liability. These tax benefits are not automatic and are only available if an eligible taxpayer files a U.S. income tax return.

The filing deadline is Monday, June 15, 2015, for U.S. citizens and resident aliens whose Read more

Taxpayer Advocate Request Easing Foreign Reporting Requirements For US Taxpayers Abroad!

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The National Taxpayer Advocate suggested to the Internal Revenue Service to reduce the duplicate foreign asset reporting requirements created by the Foreign Account Tax Compliance Act. The Taxpayer Advocate Service (TAS) is your voice at the IRS. Our job is to ensure that every taxpayer is treated fairly, and that you know and understand your rights.

April 13, 2015 the National Taxpayer Advocate stated in Recommendations for Published Guidance under IRC §§ 60380 and 1471: Eliminate Duplicative Reporting of Assets on the FATCA Form 8938 if the Asset is Reported or Reflected on the FBAR (FinCEN Report 114) and Exclude Financial Accounts Maintained by a Financial Institution in the Country of  Which the U.S. Person is a Bona Fide Resident from FATCA Reporting: Read more

More Convictions, More Jail Time!

IRS Criminal Investigation Fiscal Year 2014 Annual Business Report

Richard Weber, Chief, IRS Criminal Investigation – There is no doubt that we have had to be creative to overcome some of the budget challenges this year.

But in so doing, we maintained a steady focus on what is important. Our highest priority is to enforce our country’s tax laws and support tax administration to ensure compliance with the law and combat fraud.

This annual report includes case summaries that represent the diversity and complexity of those investigations such as tax-related identity theft, money laundering, public corruption and terrorist financing. Our cases touched almost every part of the world. Read more

Is It Time To Expatriate?

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According to “The Financial Times” the list of recent US expatriates’ is diverse: one of the world’s greatest soul singers; a best-selling author, a professional basketball player, architects, artists, lawyers, retirees and financiers.

The register of individuals who have “chosen to expatriate”, as the US puts it, shows an increase in the number of Americans who are renouncing their US citizenship or turning in their green card.

When the number reached 3,415 last year it was a record, although the figures are still tiny, especially in comparison with those being granted US citizenship, nearly 780,000 in 2013. But it is also the case that the numbers have risen more than 10-fold since 2008. Read more

More Swiss Banks Are Striking Deals With The DoJ Including Providing Your Tax Information!

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According to Reuters – More Swiss banks that helped wealthy Americans evade taxes will soon strike agreements with the U.S. Department of Justice to avoid prosecution, an official overseeing the U.S. government program told Reuters.

“I would stay tuned,” Acting Assistant Attorney General Caroline Ciraolo of the Justice Department’s Tax Division said in an interview late on Tuesday, adding that a number of non-prosecution agreements will be signed in the “very near future.”

Last week, Swiss bank BSI SA became the first bank to reach a resolution under a voluntary disclosure program for tax-related offenses run by the Justice Department. BSI agreed to pay a $211 million penalty after admitting it had for decades assisted Read more

OVDP Penalty Increased To 50% For 13 Foreign Banks

Bank building

The new revisions to the US offshore voluntary disclosure initiative, which we posted on 6/18/14 “IRS Makes Changes to Offshore Programs; Revisions Ease Burden and Help More Taxpayers Come into Compliance“, now provides for and increased 50% FBAR Penalties for ‘Willful’ Non-Disclosers.

This group includes those individuals who have offshore bank accounts with a foreign financial institution which has been publicly identified as being under investigation, or is cooperating with a government investigation. IRS has published a list of those foreign financial institutions or facilitators.

The complete list is as follows: Read more

FATCA Guidance Clarifies Form 8966 Filing Requirements

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IRS has added new frequently asked questions (FAQs) concerning Foreign Account Tax Compliance Act (FATCA) reporting to its website. Specifically, the new FAQs clarify certain aspects of the requirement and deadline for filing Form 8966 (FATCA Report) for certain filers.

Nil Reporting. New FAQ 1 answers the question: are filers of Form 8966 required to file a nil report (i.e., one that declares that it has no substantial U.S. owners for the calendar year)?

In a previously posted FAQ, IRS had clarified that only “direct reporting” NFFEs are required to submit nil reports. A direct reporting NFFE is an NFFE that has elected to Read more

BSI Becomes The First Swiss Bank To Settle Under The U.S. Swiss Bank OVDP Program

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The Department of Justice announced on March 30, 2015, that BSI SA, one of the 10 largest private banks in Switzerland, is the first bank to reach a resolution under the Department of Justice’s Swiss Bank Program.

In a deal with U.S. prosecutors, Swiss private bank BSI SA agreed to pay a $211 million penalty and hand over leads on more than 3,000 accounts with U.S. ties, as well as the actual names of an undisclosed, but presumably much smaller group of U.S. account owners.

We are using the information that we have learned from BSI and other Swiss banks in the program to pursue additional investigations into both banks and individuals.” Read more