Archive | January, 2013

FBAR – Form TD F 90-22.1

January 30, 2013  |   Posted by :   |   FATCA/FBAR   |   0 Comments

*In FBAR FAQ #26 (posted on 6/24/09), the IRS confirmed that the revised version of Form TD F 90-22.1 (revised October 2008) should be used to report foreign accounts (including prior delinquent years): If I had an FBAR reporting obligation for years covered by the voluntary disclosure, what version of the Form TD F 90-22.1 […]

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FBAR – Financial Interest Signatory Authority

January 30, 2013  |   Posted by :   |   FATCA/FBAR   |   0 Comments

The FBAR is not a tax return.  The FBAR is a financial disclosure (i.e., a report of the Taxpayer’s foreign financial accounts).  The FBAR must be filed even if the reported accounts generate no interest or other taxable income.  All income earned on the foreign account must be reported on the tax return of the […]

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Covered Expatriate – Covered Gifts

January 28, 2013  |   Posted by :   |   Expatriation   |   0 Comments

Covered Expatriate: Annual U.S. Income Tax Compliance A “covered expatriate” subject to annual U.S. income tax compliance must file IRS Form 8854 for: 1. Each year subject to mark-to-market tax; 2. Each year with deferred compensation items to certify either: no distributions received, or to report distributions received; 3. Each year elects to defer payment […]

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FBAR – Statute of Limitations

January 24, 2013  |   Posted by :   |   FATCA/FBAR   |   0 Comments

*On 6/24/09, in FAQ #31, the IRS confirmed they will be able to assess taxes under a 6 year statute of limitations if the IRS can prove a substantial omission of gross income: How can the IRS propose adjustments to tax for a six-year period without either an agreement from the taxpayer or a statutory […]

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FBAR – Failure to Report

January 24, 2013  |   Posted by :   |   FATCA/FBAR   |   0 Comments

My colleague, Dana Cole, a prominent criminal tax attorney, has prepared the enclosed summary of the criminal tax issues for failure to report a foreign bank account. U.S. Taxpayers who fail to report foreign bank accounts may be liable for perjury (or criminal tax evasion). Under IRS Form 1040, at the bottom of Schedule B, […]

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Currency Transaction Report and Suspicious Activity Report

January 24, 2013  |   Posted by :   |   FATCA/FBAR   |   0 Comments

U.S. financial institutions file Currency Transaction Reports (CTR) and Suspicious Activity Reports (SAR) with the IRS Detroit Computing Center (uploaded into the IRS/DCC Currency Banking and Retrieval System database at the IRS/DCC). The combined CTR/SAR currency transaction reports provides a paper trail (or roadmap) for investigations of financial crimes and illegal activities including: tax evasion, […]

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FBAR Filing: U.S. Permanent Residents

January 23, 2013  |   Posted by :   |   FATCA/FBAR   |   0 Comments

*On 6/24/09, in FAQ #46, the IRS addressed the FBAR filings for U.S. permanent residents (either a “green card”, or a permanent resident [under the “substantial presence” test]): A taxpayer moved to the U.S. in 2007 and is now a permanent resident of the U.S. The taxpayer had a requirement to file an FBAR for […]

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FBAR – Foreign Land and Artwork

January 23, 2013  |   Posted by :   |   FATCA/FBAR   |   0 Comments

*On 6/24/09, the IRS updated their Voluntary Disclosure FAQ clarifying the FBAR reporting requirements for foreign land and artwork owned in the taxpayer’s own name. In FAQ #37, the IRS confirmed that the FBAR filing for foreign land and artwork owned in the taxpayer’s own name, is due once the asset becomes income-producing (i.e., yields […]

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FBAR – Foreign Accounts with Multiple Signatories

January 23, 2013  |   Posted by :   |   FATCA/FBAR   |   0 Comments

*On 6/24/09, the IRS updated their Voluntary Disclosure FAQ clarifying the FBAR reporting requirements for foreign accounts with multiple signatories: If parents have a jointly owned foreign account on which they have made their children signatories, the children have an FBAR filing requirement but no income. Should the children just file delinquent FBARs as described […]

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FBAR – Penalty Regime for Foreign Bank Account Filing

January 22, 2013  |   Posted by :   |   FATCA/FBAR   |   0 Comments

*Published in The California Tax Lawyer (Summer 2009 Edition) Penalty Regime for Foreign Bank Account Filing (FBAR) Each U.S. person who has a financial interest in, or signature or other authority over, one or more foreign financial accounts (valued over $10,000, at any time during a calendar year) is required to report the account on […]

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