Archive for category: Offshore Voluntary Disclosure Program (OVDP)

The IRS has authority to assert FBAR civil penalties.  Before delving into the FBAR abyss, this is a good time to debunk some FBAR myths.  First, there is no such thing as an FBAR penalty within the Offshore Voluntary Disclosure Initiative (“OVDI”).  The FBAR penalty exists only outside of the OVDI framework.  However, there is a penalty within OVDI that is often considered to be the equivalent of the FBAR penalty.  That penalty is commonly referred to as the offshore penalty.  Generally, it is 27.5% of the highest aggregate balance of all foreign accounts during the disclosure period but lower rates are available.

Where a taxpayer does not come forward into OVDI and has now been targeted by IRS for failing to file FBAR’s, the IRS may now assert FBAR penalties that could be either non-willful or willful.  Both types have varying upper limits, but no floor.  The first type is the non-willful FBAR penalty.  The maximum non-willful FBAR penalty is $ 10,000.  The second type is the willful FBAR penalty.  The maximum willful FBAR penalty is the greater of (a) $ 100,000 or (b) 50% of the total balance of the foreign account.  In addition the IRS can pursue criminal charges with the willful FBAR penalty.

For the non-willful penalty, all the IRS has to show is that an FBAR was not filed.  Whether the taxpayer knew or did not know about the filing of this form is irrelevant.  The non-willful FBAR penalty is $10,000.00 per account, per year and so a taxpayer with multiple accounts over multiple years can end up with a huge penalty.

But if the IRS attempts to assert a willful FBAR penalty, the IRS has the burden of proving willfulness.  Willfulness has been defined by courts as “an intentional violation of a known legal duty.”

While the standard for proving willfulness in the context of a criminal tax case is relatively clear, just the opposite is true in the context of asserting a civil FBAR penalty.  For FBAR violations the standard is that a person had knowledge that he has a reporting requirement.  And if a person has that requisite knowledge, the only intent needed to constitute a willful violation of the requirement is a conscious choice not to file the FBAR.  The latter is referred to in legal circles as the theory of “willful blindness”.

4th Circuit Court Established Low Standard For Proving Willfulness

In one fell swoop, the 4th Circuit Court Of Appeals, which is one of eleven in the United States and ranks right below the United States Supreme Court, lowered the burden of proof needed by IRS to show that the failure to file an FBAR was intentional.

The 4th Circuit ruled that a taxpayer’s signature on his tax return was “prima facie evidence that he knew the contents of the return” and that the instructions in Schedule B, which refers to whether the taxpayer has any foreign accounts put U.S. taxpayers on “inquiry notice” of the FBAR filing requirement. It does not matter that the taxpayer never read his tax return or looked at the FBAR form.  The Court went on to say that this was enough to demonstrate a “conscious effort to avoiding learning about reporting requirements… meant to conceal or mislead sources of income or other financial information… that constitutes willful blindness to the FBAR requirements”. U.S. v. J. Bryan Williams, No. 10-2230, July 20, 2012 (unpublished).

In other words, the instructions in Schedule B for Form 1040, which refers to the FBAR, puts every taxpayer on “inquiry notice” of the filing requirement and so a taxpayer by simply signing his tax return or authorizing the filing of his tax return is presumed to be cognizant of the FBAR requirement.

The practical effect of this opinion is nothing short of mind blowing.  First, instead of having to prove a specific intent to “violate a known legal duty” which other tax cases have upheld as the standard for willfulness, the opinion suggests that a taxpayer’s presumed understanding of the FBAR requirement may be enough to make him liable for penalties for willful violations.  In other words, whether a person actually knew about the FBAR reporting requirements is meaningless.

Second, it gives a major boost to the IRS’s current intensive pursuit of overseas tax evasion by making it easier for the IRS to prove willfulness in the context of a willful FBAR penalty.  Very simply, the IRS now has enormous leverage to collect the hefty penalties that accompany the willful FBAR penalty.  Indeed, the civil penalty for willfully failing to file an FBAR may reach $100,000, or 50% of the value of the offshore account, whichever is greater.  This result is likely to be the start of a wave of FBAR audits for the IRS because of the sheer sums the IRS stands to collect by ramping up civil FBAR enforcement.

Offshore Voluntary Disclosure Initiative (“OVDI”)

This program was first created in 2009 as the Offshore Voluntary Disclosure Program (“OVDP”) but in 2011 was renamed to OVDI.  Generally, the miscellaneous offshore penalty under the OVDI program (the “OVDI penalty”) equals 27.5% of the highest aggregate balance in the foreign assets or entities during the years covered by the OVDI program, but may be reduced in limited cases to 12.5% or 5%.  Certain taxpayers may qualify for even greater savings through a reduction of the offshore penalty.

Taxpayers participating in the ongoing 2012 OVDI generally agree to file amended returns and file FBARs for eight tax years, and in addition to paying pay the OVDI penalty (which is assessed in lieu of all other potentially applicable penalties associated with a foreign financial account or entity) taxpayers would pay the appropriate taxes and interest together with an accuracy related penalty equivalent to 20% of any income tax deficiency

Taxpayers whose highest aggregate foreign account balance is less than $75,000 for each of the years in the OVDI disclosure period may qualify for a reduced 12.5% OVDI penalty.

Taxpayers who fall into one of three specific categories may qualify for a reduced 5% OVDI penalty.  The first category includes taxpayers who inherited the undisclosed foreign accounts or assets.  Second, taxpayers who are foreign residents and who were unaware that they were U.S. citizens may qualify for a reduced 5% OVDI penalty.  Finally, U.S. taxpayers who are foreign residents may also qualify for the reduced 5% OVDI penalty in certain circumstances.

What Should You Do?

Don’t wait for the IRS to find you.  If you have never reported your foreign investments on your U.S. Tax Returns or even if you have already quietly disclosed, you should seriously consider participating in the IRS’s 2012 Offshore Voluntary Disclosure Initiative (“OVDI”). Once the IRS contacts you, you cannot get into this program and would be subject to the maximum penalties (civil and criminal) under the tax law. Taxpayers who hire an experienced tax attorney in Offshore Account Voluntary Disclosures should result in avoiding any pitfalls and gaining the maximum benefits conferred by this program.

Protect yourself from excessive fines and possible jail time. Let the tax attorneys of the Law Offices Of Jeffrey B. Kahn, P.C. located in Los Angeles, San Francisco, San Diego and elsewhere in California qualify you for OVDI.

Description: Let the tax attorneys of the Law Offices Of Jeffrey B. Kahn, P.C. resolve your IRS tax problems, get you in compliance with your FBAR filing obligations, and minimize the chance of any criminal investigation or imposition of civil penalties.

Despite the Department of the Treasury’s Financial Crimes Enforcement Network (FinCEN) publishing final regulations for reporting bank accounts, securities accounts and other financial accounts located in a foreign country many taxpayers remain confused regarding the filing requirements, including the fast-approaching and accelerated filing deadline.

Historically, the disclosure of foreign bank accounts was done by filing Form TD 90-22.1, Report of Foreign Bank and Financial Accounts (“FBAR”) with the U.S. Department Of Treasury. Any person who has a financial interest in, or signature authority over, a foreign financial account (the “foreign accounts”), including a bank account, brokerage account, mutual fund, trust, or other type of foreign financial account, is required under the Bank Secrecy Act to report the foreign account to the U.S. Department Of Treasury by filing the FBAR by June 30^th of the following calendar year. Unlike income tax filings an extension of time to file FBAR after the June 30^th due date is not available.

While the requirements and deadline for disclosing foreign bank accounts have not changed, the reporting form and manner of filing has. Now disclosure is made by e-filing FinCEN Form 114. 

The Purpose of The FBAR Form

The FBAR form is a tool used by the United States government to identify persons who may be utilizing foreign financial accounts to circumvent United States tax laws. Revenue Agents or investigators use the FBAR to help identify or trace funds used for illicit purposes, including counter-terrorism, or to identify unreported income maintained and/or generated abroad.

Who Must File

Any U.S. person, with few exceptions, with a financial interest in, or signature authority or other authority over, any foreign financial account(s) in a foreign country and the aggregated value of these account(s) exceeds $10,000 at any time during the calendar year must file and FBAR. Foreign financial account(s) include, but are not limited to, a checking/savings bank account, brokerage account, mutual fund, trust, or other type of foreign financial account. A U.S. person includes a U.S. citizen, a foreign national who is a U.S. tax resident and a U.S. entity, e.g., a corporation, a partnership, a limited liability company (“LLC”) or a trust that is created, organized or formed under the laws of the U.S., any State, the District of Columbia, the Territories, the Insular Possessions of the U.S. or the Indian Tribes.

What Needs to Be Reported

If a filing requirement exists, personal information, such as name, address and Social Security number, along with the following, must be reported:

• Maximum value of the account during the calendar year;

• Type of account (i.e., bank, securities, foreign mutual funds, foreign-issued life insurance/annuity contract with cash value, etc.);

• Name of financial institution in which account is held;

• Account number; and

• Mailing address of financial institution.

The IRS defines maximum account value as the largest amount of currency and/or monetary instruments that appear on any quarterly or more frequently issued account statement during the tax year.

Failure to File

While the FBAR is an information return that imposes no tax, significant civil and criminal penalties may be asserted for failure to file. The civil penalty for willful failure to file an FBAR equals the greater of $100,000 or 50% of the total balance of the foreign account per violation.  The government may also pursue criminal prosecution which can result in up to five years of jail time. Non-willful violations that are not due to reasonable cause incur a penalty of $10,000 per violation.

Offshore Voluntary Disclosure Initiative (“OVDI”)

This program was first created in 2009 as the Offshore Voluntary Disclosure Program (“OVDP”) but in 2011 was renamed to OVDI. Generally, the miscellaneous offshore penalty under the OVDI program (the “OVDI penalty”) equals 27.5% of the highest aggregate balance in the foreign assets or entities during the years covered by the OVDI program, but may be reduced in limited cases to 12.5% or 5%. Certain taxpayers may qualify for even greater savings through a reduction of the offshore penalty. 

Taxpayers participating in the ongoing 2012 OVDI generally agree to file amended returns and file FBARs for eight tax years, and in addition to paying pay the OVDI penalty (which is assessed in lieu of all other potentially applicable penalties associated with a foreign financial account or entity) taxpayers would pay the appropriate taxes and interest together with an accuracy related penalty equivalent to 20% of any income tax deficiency

Taxpayers whose highest aggregate foreign account balance is less than $75,000 for each of the years in the OVDI disclosure period may qualify for a reduced 12.5% OVDI penalty.

Taxpayers who fall into one of three specific categories may qualify for a reduced 5% OVDI penalty.  The first category includes taxpayers who inherited the undisclosed foreign accounts or assets.  Second, taxpayers who are foreign residents and who were unaware that they were U.S. citizens may qualify for a reduced 5% OVDI penalty.  Finally, U.S. taxpayers who are foreign residents may also qualify for the reduced 5% OVDI penalty in certain circumstances. 

What Should You Do?

Don’t let another deadline slip by. If you have never reported your foreign investments on your U.S. Tax Returns or even if you have already quietly disclosed, you should seriously consider participating in the IRS’s 2012 Offshore Voluntary Disclosure Initiative (“OVDI”). Once the IRS contacts you, you cannot get into this program and would be subject to the maximum penalties (civil and criminal) under the tax law. Taxpayers who hire an experienced tax attorney in Offshore Account Voluntary Disclosures should result in avoiding any pitfalls and gaining the maximum benefits conferred by this program.

Protect yourself from excessive fines and possible jail time. Let the tax attorneys of the Law Offices Of Jeffrey B. Kahn, P.C. located in Los Angeles, San Francisco, San Diego and elsewhere in California qualify you for OVDI.

Description: Let the tax attorneys of the Law Offices Of Jeffrey B. Kahn, P.C. resolve your IRS tax problems, get you in compliance with your FBAR filing obligations, and minimize the chance of any criminal investigation or imposition of civil penalties.

U.S. taxpayers with previously undisclosed interests in foreign financial accounts and assets continue to analyze and seek advice regarding the most appropriate methods of coming into compliance with their U.S. filing and reporting obligations. Many are pursuing participation in the current IRS Offshore Voluntary Disclosure Initiative known as OVDI (the current version began in 2012 and is modeled after similar programs in 2009 and 2011 which initially were called the Offshore Voluntary Disclosure Program or OVDP). But what all the confusion and misinformation out there – what should you do? In this blog I attempt to clear some misconceptions.

Myth #1: An individual will be better off “explaining” the undisclosed foreign bank accounts through amended tax returns, rather than opting into OVDI.

Even outside of OVDI, any disclosure to the IRS requires that the taxpayer file amended tax returns and be prepared to provide the foreign bank information and statements to support the new income being reported. Such returns are signed by the taxpayer that they are true and complete. Being outside of OVDI the government can develop a case supporting severe penalties and even criminal prosecution using the combination of original filed tax returns which omitted the foreign income and amended tax returns reporting the foreign income as admissions of intent to evade U.S. income tax.  

Myth #2: Once an individual enters into OVDI, you cannot dispute the amount of penalties imposed by the program.

Just because the penalty rate structure is set in OVDI does not mean the amount of penalty can never be disputed. Agents assigned to OVDI cases do make mistakes and do misinterpret foreign bank income and transaction activity including those accounts, assets and transactions that should not be part of any penalty calculation. These disputes or differences can still be contested and challenged through different means and channels while still remaining in OVDI.

Myth #3: An individual who enters into OVDI opens up all years for examination since becoming a U.S. person for tax purposes with undisclosed foreign bank accounts and unreported foreign income.

While the normal Statute Of Limitations to examine a tax return is three years, it can be extended to six years where there is a substantial omission of income and where the government can show fraud, the government has no limitation on how far back it can go. Furthermore, the government has a six-year Statute Of Limitations to pursue criminal prosecution. A person who is in OVDI avoids criminal exposure and any income tax return amendments are limited to the last eight years or if shorter, from the time the individual becomes a U.S. person for tax purposes.

Myth #4: An individual who enters in OVDI is forfeiting assets, including entire lifetime savings and more to the government so that any income, inheritances, or gifts these people may receive in the future will belong to the IRS. 

Outside of OVDI, the MINIMUM penalty is 50% of the value of your foreign assets. But for taxpayers participating in OVDI, the MAXIMUM penalty is 27.5%. That means for taxpayers who are in OVDI, they will still get to keep at least 72.5% of their foreign assets.   

Myth #5: Once the IRS learns of an individual entering into OVDI, the IRS will remove or prevent the individual from the program and the IRS will prosecute that person using the very information provided by the taxpayer as part of the OVDI process.    

To encourage taxpayers to come forward into OVDI, the government will respect the transactional or use immunity it offers to taxpayers participating in the program.  At this time the government would prefer cases to be dispensed in OVDI even though the government gives up criminal prosecution and takes a “hair-cut” on the penalties that can be imposed.  

Myth #6: The IRS Criminal Investigation Division (“CID”) in evaluating your OVDI application will characterize your offshore transactions to involve the crimes of money laundering, wire fraud, mail fraud or tax evasion to prevent you from qualifying for the program.

Unless you are involved in drug trafficking, weapons trafficking or some other illegal activity that another government agency would have you on a watch list, the government would rather see a taxpayer come forward in OVDI and as a result for those that do the government will not pursue criminal prosecution and will apply the reduced penalties outlined in the OVDI structure.  

Myth #7: Since there is no public follow-through by the IRS of its threats to individuals who have not entered the OVDI, it is a safe bet to avoid OVDI and instead pursue a Quiet Disclosure.

Whenever a taxpayer files an original or amended income tax return, the government will have at least three years from the due date of the return or date the return was filed (whichever is later) to examine that return. This is still the case even if the return that was filed showed an overpayment that was refunded to you. But with OVDI, you do not have this cloud of uncertainty hanging over you. At the conclusion of your OVDI case, the government will issue a closing agreement that when signed off by the taxpayer closes the case.

Myth #8: Those taxpayers outside of OVDI are assessed far less in taxes and penalties than individuals who have elected to make a disclosure through OVDI.

With the government encouraging taxpayers to come forward in OVDI, why would the government undermine the integrity of the program by offering a better deal to people who do not come forward and look to avoid detection by the IRS? If a taxpayer did not disclose his foreign bank accounts AND did not report foreign income, you will fare worse than entering into OVDI and end up loosing the entire value of your foreign accounts.

Myth #9: By entering into OVDI, you fully waive all constitutional rights.

Some people have stated that participants entering into the OVDP must waive Constitutional Protections against: self-incrimination (5th amendment), unreasonable search and seizure (4th amendment), and excessive fines (8th amendment).  What they fail to recognize is that the same constitutional protections apply to OVDI participants as to people who file original or amended income tax returns with the IRS.

Myth #10: The IRS favors a Qualified Quiet Disclosure over a Quiet Disclosure.

Some people have stated that a “Qualified Quiet Disclosure” is different from a “quiet disclosure” for which the latter the IRS has promised a detection and punishment campaign.  Truth is that unless you enter into OVDI, any other form of disclosure is a “Quiet Disclosure” that can subject you to the full wrath of the IRS and with the IRS then looking to impose the maximum in penalties you can likely end up loosing all of your foreign account funds and perhaps be subject to criminal prosecution.

If you have never reported your foreign investments on your U.S. Tax Returns or even if you have already quietly disclosed, you should seriously consider participating in the IRS’s 2012 Offshore Voluntary Disclosure Initiative (“OVDI”). Once the IRS contacts you, you cannot get into this program and would be subject to the maximum penalties (civil and criminal) under the tax law. Taxpayers who hire an experienced tax attorney in Offshore Account Voluntary Disclosures should result in avoiding any pitfalls and gaining the maximum benefits conferred by this program.

Protect yourself from excessive fines and possible jail time. Let the tax attorneys of the Law Offices Of Jeffrey B. Kahn, P.C. located in Los Angeles, San Francisco, San Diego and elsewhere in California qualify you for OVDI.

Description: Let the tax attorneys of the Law Offices Of Jeffrey B. Kahn, P.C. resolve your IRS tax problems, get you in compliance with your FBAR filing obligations, and minimize the chance of any criminal investigation or imposition of civil penalties.

A common question we hear a lot: My CPA who I have been going to for years has never told me that I had to report my foreign income. Now that I know I have to report my foreign income and disclose my foreign bank accounts, do I accept my CPA’s offer to represent me in OVDI or do I hire you?

CPA’s prepare tax returns and there are a lot of CPA’s and other tax professionals who a great in preparing tax returns.

A taxpayer will provide them with information and tax documents and a return will be generated for filing with the IRS. This process I refer to as “compliance”.

But a tax attorney will focus on “representation” – meaning that the cases taken on by the attorney are when the IRS is questioning a return or making other civil or even criminal inquiries of a taxpayer.

A tax attorney being familiar with the “representation” aspect, knows who to speak to at IRS and how to best present your case. A tax attorney can also devote full attention to your attention at any time since the tax attorney’s workload is not jammed like the CPA’s workload during tax season who is busy with tax return preparation and more focused over meeting filing deadlines and therefore cannot provide the needed attention to your case.

Speaking of civil and criminal inquiries, a taxpayer who engages a tax attorney also gets the benefit of attorney-client privilege. This benefit allows that taxpayer to freely discuss with his attorney any matters or issues without the threat of these communications being disclosed to the government or anyone else. You do not get this level of privilege when dealing with non-attorneys.

But I would have to say that the biggest factor is that with the tax attorney there is no conflict of interest. The best way to explain this is by example – if a great defense is that you relied on your tax preparer to tell you whether you had to report your foreign accounts and foreign income, do you think your tax preparer will put himself under the bus to save you from the IRS – chances are not. A tax attorney who had no involvement in the preparation of your returns can make these arguments thus truly serving your best interests.

If you have never reported your foreign investments on your U.S. Tax Returns, you should seriously consider participating in the IRS’s 2012 Offshore Voluntary Disclosure Initiative (OVDI). Once the IRS contacts you, you cannot get into this program and would be subject to the maximum penalties (civil and criminal) under the tax law. Taxpayers who hire an experienced tax attorney in Offshore Account Voluntary Disclosures should result in avoiding any pitfalls and gaining the maximum benefits conferred by this program.

Protect yourself from excessive fines and possible jail time. Let the tax attorneys of the Law Offices Of Jeffrey B. Kahn, P.C. located in Los Angeles, San Francisco and elsewhere in California qualify you for OVDI.

Description: Let the tax attorneys of the Law Offices Of Jeffrey B. Kahn, P.C. resolve your IRS tax problems, get you in compliance with your FBAR filing obligations, and minimize the chance of any criminal investigation or imposition of civil penalties.

IRS has established programs for taxpayers to voluntarily come forward and disclose unreported foreign income and foreign accounts under what the IRS calls the Offshore Voluntary Disclosure Initiative (OVDI).

On January 9, 2012 the IRS announced the terms of the 2012 OVDI which requires that taxpayers: (1) File 8 years of back tax returns reflecting unreported foreign source income; (2) Calculate interest each year on unpaid tax; (3) Apply a 20% accuracy-related penalty under Code Sec. 6662 or a 25% delinquency penalty under Code Sec. 6651; and (4) Apply up to a 27.5% penalty based upon the highest balance of the account in the past eight years.

In return for entering the offshore voluntary disclosure program, the IRS has agreed not to pursue charges of criminal tax evasion which would have resulted in jail time or a felony on your record; and other fraud and filing penalties including IRC Sec. 6663 fraud penalties (75% of the unpaid tax) and failure to file a TD F 90-22.1, Report of Foreign Bank and Financial Accounts Report, (FBAR) (the greater of $100,000 or 50% of the foreign account balance).

With taxpayers still facing a rather large penalty, taxpayers are torn on whether or not they should participate in OVDI or “Opt-Out”. The “opt-out” process was first introduced in the 2011 version of OVDI and still continues to this day.  As our office has received many inquiries on opting-out. Here are top OVDI opt-out questions that we are routinely asked.

1.         Will the IRS prosecute me criminally if I opt-out of the OVDI? The IRS should keep your case in Civil because you are still within the structure of voluntary disclosure (a program which the IRS encourages taxpayers to come forward in exchange for avoiding criminal prosecution) but you are no longer subject to the standard penalty rates of OVDI.  Under the standard 2012 OVDI penalty cap, you pay one penalty either (a) 12.5% of account value, Offshore “FBAR equivalent” penalty for accounts under $75,000, or (b) 27.5% for accounts over $75,000.So that standard 12.5% / 27.5% penalty cap is all that you are “opting-out” of.

2.         Will the IRS charge me more than the standard 12.5% or 27.5% offshore penalty if I opt out? That’s possible and therefore one of the risks to consider in opting-out.

3.         What is the status and outcome of those cases that have opted out?The opt-out program is fairly new as it was first introduced in 2011.  So far only a few have closed out and the IRS has not announced any guidelines as to how these cases are being dispensed.  The reason: The IRS is trying to centralize all opt-out decisions for consistency especially given the hazards of litigation that the IRS would face if one of these cases went to Court and the Court ruled in favor of the taxpayer.  Another reason for the delay is that the IRS overestimated how many intentional tax evaders would use the program, while simultaneously underestimating how many innocent or at worst negligent filers like ex pats, dual citizens, Visa holders and resident aliens, would be entering OVDI.

4.         What if I disagree. Can I appeal or dispute the agent’s determination?Yes. There are means to dispute an agent’s determination that will be different whether within OVDI or having opted out.  When disputing a determination that is within OVDI, we still remain on more certain ground as to the downside if we cannot effect any change.  However, outside OVDI the law lets the IRS “raise the bar” by assuming willfulness and thus charge multiple 50% penalties that can wipe out your entire net worth.

5.         For small cases, OVDI seems like overkill. Why don’t I just do a “soft” or “quiet” disclosure?The decision to enter into the program is entirely yours. And honestly, the biggest threat of not entering into the program is the risk of an FBAR audit – not criminal charges (although it is possible). But if caught in an FBAR audit, the results could be disastrous.A “soft” or “quiet” disclosure to us makes no sense. The IRS is using its vast data collecting tools and is receiving information directly from foreign financial institutions under the Foreign Account Tax Compliance Act (“FATCA”).  Already IRS has discovered about 10,000 individuals and businesses that have made soft disclosures. The IRS claims they will track down all of those who have made soft or quiet disclosure.We have heard many people tell us they find the law unfair. Yet despite this unfairness, it is the law and our advice is to hire experienced tax counsel to take your case into OVDI and secure the best possible outcome within the OVDI guidelines.  We have found some “wiggle-room” in the guidelines that for some of our clients we used certain techniques that the IRS accepted resulting in lower penalties than what our clients thought they would be facing.

6.         If I made a soft disclosure can I still use the OVDI?Yes and you should. Again, the IRS has detected 10,000 people it suspects of making a soft disclosure. And these are only the accounts over $1 million. There are a lot more under $1 million.

7.         I started, or my CPA started my OVDI. But I am getting uncomfortable. I want to get a lawyer who specializes in this. Can you take over my case?We think that getting an OVDI / FBAR tax attorney is critical for your opt-out and from our experience each person’s case must be looked at separately to determine if opting-out is the best option.  If you have no evidence of willfulness, the sheer numbers may make opting out attractive especially where the proposed OVDI penalty is in the hundreds of thousands of dollars.  But for those taxpayers whose proposed OVDI penalty is let’s say $80,000 or less, opting out probably can’t save you too much, especially if by opting out you end up with non-willful penalties which over a six-year period can equate to about the same amount as this $80,000 guideline amount referred herein.

From a broad perspective OVDI is predictable but opting out is much less so. As the above considerations reflect, think about your facts. Ask whether the potential risks and additional legal fees of opting out offset the potential rewards. Individual advice about the particular facts is important.

The tax attorneys at the Law Offices Of Jeffrey B. Kahn, P.C. are highly skilled in handling OVDI cases and can effectively represent you no matter what is the make-up or circumstances of your unreported foreign assets and unreported foreign income.  We will keep you informed step-by-step of the progress in your case and present your case in the best possible way to avoid any pitfalls and gain the maximum benefits conferred by this program.

Description: Let the tax attorneys of the Law Offices Of Jeffrey B. Kahn, P.C. resolve your IRS tax problems, get you in compliance with your foreign account filing obligations, and minimize the chance of any criminal investigation or imposition of civil penalties.