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Monthly Archives: August 2012

IRS Continues Extreme Pressure on Swiss Banks for More Information

August 6, 2012

The US government is piling further pressure on Credit Suisse for the release of more information on its clients.

Switzerland's Finance Minister Eveline Widmer-Schlumpf says the US is 'constantly making new demands that we cannot accept', thus delaying resolution of their dispute over the prosecution of 11 Swiss banks.

If you have a Credit Suisse or other Swiss Bank Account , contact the Tax Lawyers at Marini & Associates, P.A. for a FREE Tax Consultation at www.TaxAid.us or www.TaxLaw.ms or Toll Free at 888-8TaxAid (888 882-9243). 

For more information on this story go to Reuters

Read more at: Tax Times blog

Trouble for Offshore Bank Account Owners at Liechtensteinische Landesbank AG (LLB)

August 6, 2012

According to a spokesman for LLB quoted in the article, changes in Lichtenstein law allow the IRS to make group requests without providing the names of the specific individuals that the IRS is seeking. The spokesman also stated that in the Liechtenstein group request, U.S. authorities are also targeting lawyers, accountants, financial advisers, asset managers and those responsible for professional asset protection, who "conspired "with U.S. taxpayers to commit tax evasion, or other crimes. Apparently the IRS may be seeking information all the way back to 2001.

Liechtensteinische Landesbank AG (LLB) is Lichtenstein's second largest bank. Tax problems for offshore bank account holders in Lichtenstein date back to 2008 when information stolen from LGT Group was used by German authorities to prosecute tax fraud.

The fallout extended to U.S. depositors at LGT who were investigated by the IRS. Since then the IRS has promoted several voluntary disclosure initiatives to attempt to convince U.S. persons who failed to file FBARs to settle up with the IRS. To date those programs have resulted in over 30,000 individuals making voluntary disclosures of the offshore bank accounts to the IRS. These programs have been accused by some tax lawyers as being too much stick, and not enough carrot.

U.S. owners of these offshore accounts have difficult choices to make in a short period of time. Should they enter the IRS' Offshore Voluntary Disclosure Program (OVDP), before it's not too late? Should they appeal the turnover of information by LLB through the Lichtenstein court system? Should they wait and do nothing?

Each of these solutions has its own set of risks and rewards. Entering the OVDP will be expensive. Penalties of 27.5% of the offshore account balances can be expected. In addition, other non-financial assets may also be subject to the 27.5% penalty. In addition, back taxes must be paid, generally going back to 2004. On top of that expect additional penalties, and interest.

On the other hand not entering the OVDP can lead to FBAR penalties equaling 300% of the foreign bank account balances, as well as possible criminal tax evasion charges. The bottom line is that everyone's situation is different, and only consultation with a tax lawyer experienced in these offshore issues will begin to help in coming to the right personal decision.

If you have undisclosed Offshore Financial Accounts, contact the lawyers at Marini & Associates, P.A. for a FREE Tax Consultation at www.TaxAid.us or www.TaxLaw.ms or Toll Free at 888-8TaxAid (888 882-9243).

Read more at: Tax Times blog

No FBAR Penalty Exceptions for Voluntary Disclosure and Plea Bargins

August 6, 2012

What a difference one court case makes. Gone is the believe that it was almost impossible for the IRS to get the BIG FBAR penalty (of half the value of the offshore bank account for each and every unreported year). United States Court Of Appeals for The Fourth Circuit reversed a district court opinion in favor of the taxpayer.

The Government brought its action seeking to enforce civil penalties assessed against J. Bryan Williams for his failure to report his interest in two foreign bank accounts for tax year 2000, in violation of 31 U.S.C. § 5314. Following a bench trial, the district court entered judgment in favor of Williams.

The Government appealed. Because the Court of Appeals concluded that the district court clearly erred in finding that the Government failed to prove that Williams willfully violated § 5314, it reversed the non-guilty verdict.

The key evidence is the CPA’s tax organizer and the plea bargain statement.

Relevant to this appeal, Williams completed a “tax organizer” in January 2001, which had been provided to him by his accountant in connection with the preparation of his 2000 federal tax return. In response to the question in the tax organizer regarding whether Williams had “an interest in or a signature or other authority over a bank account, or other financial account in a foreign country,” Williams answered “No.” J.A. 111.

Thus, we are convinced that, at a minimum, Williams’s undisputed actions establish reckless conduct, which satisfies the proof requirement under § 5314. Safeco Ins., 551 U.S. at 57. Accordingly, we conclude that the district court clearly erred in finding that willfulness had not been established.

For the foregoing reasons, we reverse the judgment of the district court and remand this case for proceedings consistent with this opinion. REVERSED

If you have Unreported Bank Accounts, call the lawyers  at Marini & Associates, P.A. for a FREE Tax Consultation at www.TaxAid.us or www.TaxLaw.ms or Toll Free at 888-8TaxAid (888 882-9243).

For more on this go to: 4th DCA Reverses DC - Intent to Evade Taxes Does Not Makes sequent Violations of FBAR Rules Willful - Willful Blindness Does. United States v. J.Bryan Williams; No. 10-2230

Read more at: Tax Times blog

House Passes a Blueprint for Tax Reform – Top Rate 25%

August 3, 2012

The House of Representatives, on August 2, approved H.R. 6169, the Republican-backed “Pathway to Job Creation througha Simpler, Fairer Tax Code Act of 2012.”

The bill would provide expedited procedures to enable lawmakers in both the House and Senate to overcome technical hurdles that might cause a “comprehensive tax reform” bill to languish during the legislative process.
Comprehensive tax reform would be defined as a bill that:
(1) consolidates the current six individual income tax brackets into not more than two brackets of 10% and not more than 25%;
(2) reduces the corporate tax rate to not greater than 25%;
(3) repeals the alternative minimum tax;
(4) broadens the tax base to maintain revenue between 18% and 19% of the economy; and
(5) changes from a worldwide to a territorial system of taxation.

In the House, the bill would provide that if the Rules Committee fails to provide for consideration of an applicable tax reform bill within 15 days after the Ways and Means Committee reports the tax reform bill, a process for floor consideration of the bill, similar to an open rule, will automatically be put in place. In the Senate, the bill would provide that any applicable tax reform bill would not be subject to a cloture vote on a Motion to Proceed or on individual amendments. A cloture vote may still be required to end consideration of the bill. The expedited procedures also require that amendments be relevant to the underlying bill.
If you need Tax Planning Advise, contact the Tax Lawyers at Marini & Associates, P.A. for a FREE Tax Consultation at www.TaxAid.us or www.TaxLaw.ms or Toll Free at 888-8TaxAid (888 882-9243).

Read more at: Tax Times blog

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