Yearly Archives: 2020

On October 6, 2020, FinCEN announced that victims of the California Wildfires, the Iowa Derecho, Hurricane Laura, the Oregon Wildfires, and Hurricane Sally have until December 31, 2020, to file Reports of Foreign Bank and Financial Accounts (FBAR) for the 2019 calendar year.

The FBAR for calendar year 2019 otherwise would be due on or before October 15, 2020.

FinCEN is offering this expanded relief to any area designated by the Federal Emergency Management Agency (FEMA) as qualifying for individual assistance as a result of the California Wildfires,1 the Iowa Derecho,2 Hurricane Laura,3 the Oregon Wildfires,4 and Hurricane Sally5 (the “affected areas”). Should FEMA designate FBAR filers in other localities affected by these natural disasters as eligible for individual assistance at a later date, they will receive the same filing relief automatically.

In addition, FinCEN will work with any FBAR filer who lives outside the disaster areas and whose records that are required to meet the deadline are located in the affected areas. FBAR filers who live outside the affected areas seeking assistance in meeting their filing obligations (including workers assisting the relief activities who are affiliated with a recognized government or philanthropic organization), should contact the FinCEN Regulatory Support Section at 800-767-2825 or electronically at [email protected].

FBAR relief is part of a coordinated federal response to the damage caused by natural disasters and is based on local damage assessments by FEMA. For information on disaster recovery, visit https://www.disasterassistance.gov/.

Have an FBAR Problem?

Read more at: Tax Times blog

In a one sentence notice, the Financial Crimes Enforcement Network (FinCEN) announced yesterday that it is extending the deadline for filing FinCEN Form 114, Reports of Foreign Bank and Financial Accounts (the “FBAR”), for all filers who had reportable foreign accounts in the year 2019 from today, October 15, until December 31, 2020.

The announcement provides no explanation for the reasons for the extension. Yesterday’s announcement expands FinCEN’s announcement issued on October 6, 2020, which extended the FBAR deadline until December 31, 2020 only for persons located in areas designated by FEMA as qualifying for disaster relief as a result of the California Wildfires, the Iowa Derecho, Hurricane Laura, the Oregon Wildfires, and Hurricane Sally. Yesterday’s announcement applies to all FBAR filers.

All U.S. persons who possess an ownership interest, or signatory or other authority, over one or more foreign accounts with an aggregate balance exceeding $10,000 in a given year are required by law to file an FBAR. Failure to timely file an FBAR can result in civil penalties and, in willful cases, criminal prosecution. The present FBAR filing deadline for accounts held in 2019 is October 15, 2020.

Have an FBAR Problem?

Read more at: Tax Times blog

For Offshore Voluntary Disclosures, including Streamlined Offshore Voluntary Disclosures, if the IRS has initiated a civil examination of taxpayer's returns for any taxable year, regardless of whether the examination relates to undisclosed foreign financial assets, the taxpayer will not be eligible to use the Voluntary Disclosure Procedures. 

On September 18, 2020 the IRS actually sent Letter 6311 to taxpayers, who filed Form 5471 in 2017, notifying them that in addition to filing their form 5471, they may need to take the following actions:

1. Include additional amounts in income,
2. Pay additional tax if applicable, and
3. Comply with additional information reporting obligations.

 Specifically, what the IRS is looking for is:

• IRC §965 Transition Tax,
• IRC §951A GILTI Tax,
• IRC §250 50% Deduction for Corporate Taxpayer's, 
• IRC §960 80% Deamed Paid Foreign Tax Credit and

• IRC §962  Election to be taxed as a Corporation.

The  Letter 6311 Then Goes On To State
"When Filing An Amended Return, Wright "Letter 6311"
At The Top Of The First Page Of The Return" - WHY?

While this is similar to other favorable IRS disclosure programs, requiring you to write the name of the program of the top of the return, there is no waiver penalties for late payment of tax and interest which already apply to this amended tax return, filed 2 years after its original due date, which now includes additional tax liability for the Transition Tax and GILTI Tax.

Have a 2017 TCJA International Tax Problem?

Want to Know if the OVDP Program is Right for You? 

Contact the Tax Lawyers at 

Marini & Associates, P.A.   

for a FREE Tax Consultation contact us at:

www.TaxAid.com or www.OVDPLaw.com or

Toll Free at 888-8TaxAid (888) 882-9243

Read more at: Tax Times blog

On October 29, 2019 we posted The IRS is Now Criminally Prosecuting Employers For Failure To Pay Withheld Payroll Taxes! where we discussed that the IRS is stepping up criminally prosecuting business owners for failing to turn over withheld payroll taxes.

Then on June 4, 2020  we posted Another Employer Gets Criminally Prosecuting For Failure To Pay Withheld Payroll Taxes! and on June 29, 2020 we posted More Employers Gets Criminally Prosecuting For Failure To Pay Withheld Payroll Taxes! and now according to DoJ,  the owner of a Greensboro, North Carolina, business owner was sentenced to 42 months in prison on October 6, 2020 for failing to pay employment taxes. 

Again on October 7, 2020 we again posted The IRS Criminally Prosecutes Another Employer For Failure To Pay Withheld Payroll Taxes! where we discussed that Rebecca Adams, 57, and her daughter Elizabeth Wood, 40, operated a temporary staffing businesses in Greensboro under the names A & R Staffing Solutions Inc., Wood Executive Services Inc., and Adams Staffing Enterprises Inc. and that the owner of a Greensboro, North Carolina, business owner was sentenced to 42 months in prison on October 6, 2020 for failing to pay employment taxes and now according to the DoJ, a Potomac, Maryland, owner of companies providing food services in government buildings was sentenced to 21 months imprisonment for not paying more than $10 million in employment and sales tax. 

According to documents and information provided to the court, Steve Choi was the founder, president, and operator of nine companies that provided food services within government buildings located in the D.C. area, including the Department of Justice, the Department of Agriculture, the Department of Energy, the Department of Commerce, NASA, and the Library of Congress, among other locations. 

As president and operator of the companies, Choi was responsible for collecting and paying employment taxes to the IRS. 

Notwithstanding these obligations, and civil collection efforts from the IRS, from 2012 through 2015, Choi collected tax withholdings from his employees’ wages, but did not pay over $4.4 million in employment taxes. 

During the same period, Choi also did not pay more than $6.2 million in sales taxes to the D.C. Office of Tax and Revenue. 

Rather than pay the sales and employment taxes, from 2011 through 2015, Choi directed his companies to pay millions of dollars in other expenditures, including over $1 million in personal salary, personal donations, and cash advances. 

On Feb. 7, 2020, Choi pleaded guilty to employment tax fraud. 

“As an employer, Choi had a legal obligation to pay over the money withheld for taxes on behalf of his employees,” said IRS-Criminal Investigation (CI) Special Agent in Charge Kelly R. Jackson. 

“CI Will Continue To Investigate Those Who Choose To
Utilize Their Companies’ Payroll Tax Withholdings
For Their Personal Benefit.” 

In addition to the term of imprisonment, U.S. District Judge Ketanji Brown Jackson ordered Choi to serve three (3) years of supervised release and to pay approximately $6,390,182 in restitution to the Office of Tax and Revenue and $4,737,809 in restitution to the United States. 

Thinking of Borrowing From Your Company's

Payroll Tax Withholdings?

You Better Thank Again, if You Like Your Freedom!

Have Payroll Tax Problems?

 

 

 Contact the Tax Lawyers at 

Marini & Associates, P.A.  

for a FREE Tax HELP Contact Us at:

www.TaxAid.com or www.OVDPLaw.com 

or Toll Free at 888-8TaxAid

Read more at: Tax Times blog