tag:blogger.com,1999:blog-1519969502186924526.post1239702909242283625..comments2023-10-24T08:00:53.865-05:00Comments on Federal Tax Crimes: IRS OVDI: Holding the IRS to Proper Payment Application (4/19/12)Jack Townsendhttp://www.blogger.com/profile/14469823736335455874noreply@blogger.comBlogger181125tag:blogger.com,1999:blog-1519969502186924526.post-8722389893752489882013-11-18T07:25:43.661-06:002013-11-18T07:25:43.661-06:00It’s really a nice and useful piece of info. I’m g...It’s really a nice and useful piece of info. I’m glad that you just shared this helpful information with us. Please stay us informed like this. Thank you for sharing. <br />https://www.accounting-guru.netJohn micklenoreply@blogger.comtag:blogger.com,1999:blog-1519969502186924526.post-21803960952722716282013-04-01T15:20:03.771-05:002013-04-01T15:20:03.771-05:00Hi anon5percent. That is good to hear. Back when, ...Hi anon5percent. That is good to hear. Back when, they proceeded to the point of threatening federal tax liens. That could destroy your credit if you are a business person. No one seemed to have an answer even though you were fully cooperating in voluntary disclosure. Its good to hear there is a remedy for this added stress. Hope your opt out goes well and ends soon.Anon123noreply@blogger.comtag:blogger.com,1999:blog-1519969502186924526.post-39002894003628550422013-04-01T15:15:04.897-05:002013-04-01T15:15:04.897-05:00Thank you ij. Me too. It really is sad to read som...Thank you ij. Me too. It really is sad to read some of the posts. I guess we did good getting out in just two years or so and you with no fbar penalty and me with just 20%. To all those suffering in the program: stay strong!Anon123noreply@blogger.comtag:blogger.com,1999:blog-1519969502186924526.post-85128236032721786722013-04-01T07:27:00.116-05:002013-04-01T07:27:00.116-05:00@disqus_erVUiiWv3u:disqus ,
Glad to see you a...@disqus_erVUiiWv3u:disqus ,<br /><br /><br /><br /> Glad to see you again -- I know it is hard to leave this blog after being through OVDI -- I just want to say a big hello to you -- and wish you good health! I don't post as much as I used to --but I still often come back to visit to see my old buddies!ijhttp://ij.org/noreply@blogger.comtag:blogger.com,1999:blog-1519969502186924526.post-40201826954409626132013-03-31T16:08:27.528-05:002013-03-31T16:08:27.528-05:00Hi Anon123, Things have changed a lot since the 20...Hi Anon123, Things have changed a lot since the 2009 program. I have had collections started on me twice during my time in the 2011 program. The first time the OVDI Hotline was able to stop them, but only for 9 weeks. When they started again, I had been assigned an agent and the agent was able to stop the collections for 14 weeks. It was not a major exercise. It just took a call to the agent. The collections will likely start again before my case is closed, but I have learned it is nothing to freak out about and this is now a known problem that can be managed. anon5percentnoreply@blogger.comtag:blogger.com,1999:blog-1519969502186924526.post-22279909203235924612013-03-30T14:10:19.912-05:002013-03-30T14:10:19.912-05:00I actually did what you are talking about for two ...I actually did what you are talking about for two of the five years involved in my 2009 disclosure. We already had an agent assigned but he could not stop the notices. He agreed to make adjustments in the final closing agreement figures for the two years we paid directly to the service centers. We had this confirmed in a memo prior to sending the payments in and in the end the adjustments were made.Anon123noreply@blogger.comtag:blogger.com,1999:blog-1519969502186924526.post-92203737412535580572013-03-28T21:59:30.678-05:002013-03-28T21:59:30.678-05:00If the IRS takes 1-2 years to assign OVDI case to ...If the IRS takes 1-2 years to assign OVDI case to an agent, and in the mean time the tax payers gets bombarded with collection notices from individual service centers, I am thinking why not send separate amended returns and checks to each individual service center? Attach a copy of all that (and copies of all checks for all years) with the OVDI second package. When the agent gets assigned, he/she will see that and realize the taxes are paid to individual service centers rather than at the OVDI center. What is wrong with this approach?<br /><br />or<br /><br />Will the agent say "sorry! too bad! I need you to pay all taxes again in a single check now. to OVDI center, and good luck dealing with individual service centers to get your money back"NS2013noreply@blogger.comtag:blogger.com,1999:blog-1519969502186924526.post-41082097285191541312013-01-07T18:30:35.618-06:002013-01-07T18:30:35.618-06:00I suggest that you discuss that issue with your la...I suggest that you discuss that issue with your lawyer who will know all of the facts.<br /><br />Now, addressing a hypothetical in which the facts stated are all of the relevant facts, the mere return of the money to the U.S. should not be a disqualifier, even if the bank were to file an SAR.<br /><br />Again, I suspect that there are other facts that should be considered and urge that you consult with your lawyer.<br /><br />Also, one issue is why did you not have the bank wire transfer the funds? And how exactly did the check get to the U.S. And, did you comply with all laws in getting the check into the U.S. But on the bare facts you state, there should not be a problem. Ask your lawyer for assurance that you can rely upon.<br /><br />Jack TownsendJack Townsendhttp://www.tjtaxlaw.com/noreply@blogger.comtag:blogger.com,1999:blog-1519969502186924526.post-12576078465614228892013-01-07T12:01:15.651-06:002013-01-07T12:01:15.651-06:00Mr Townsend,
I was cleared for OVDI, done with st...Mr Townsend,<br /><br />I was cleared for OVDI, done with step 1<br /><br />After I was cleared I closed my bank account and the bank sent me a check.<br /><br />I would like to deposit the check so I can pay my back taxes, interest, and 20% accuracy<br /><br />I have 30 more days to do step 2(letter and attachment)<br /><br />If I deposit the check now the IRS could be notified by my local bank, in this case can they disqualify me claiming they knew about the account before I mailed them my letter and attachments for step 2??<br /><br />thank youdisqus_G1kqhFDbv7noreply@blogger.comtag:blogger.com,1999:blog-1519969502186924526.post-38260997763640160712013-01-02T08:56:36.950-06:002013-01-02T08:56:36.950-06:00Early in the process, the OVDP participant sends i...Early in the process, the OVDP participant sends in the amended income tax returns with payment of tax, 20% penalty and interest. Assuming the taxpayer calculated it correctly, no more interest accrues on the income tax, income tax penalty or interest (because fully paid). The big payment is usually the "in lieu of" penalty that is not assessed at the end of the OVDP process. That penalty does not draw interest until it is assessed. So, the longer the process drags out, the better -- at least from an interest perspective.<br /><br />Jack TownsendJack Townsendhttp://www.tjtaxlaw.com/noreply@blogger.comtag:blogger.com,1999:blog-1519969502186924526.post-10674418385355152762013-01-01T23:46:59.745-06:002013-01-01T23:46:59.745-06:00if a person enters the program today it will take ...if a person enters the program today it will take 2-3 years for irs to process his file, will they add interest(for back taxes) for these 2-3 years that he has to wait for IRS to process his file? <br /><br />When does the interest stop accumulating? On the day he sends his docs for step 3 and include his payment?Mike949noreply@blogger.comtag:blogger.com,1999:blog-1519969502186924526.post-66531126115423952642012-07-24T05:52:53.165-05:002012-07-24T05:52:53.165-05:00There was confusion about filing 2010 form 1040, w...There was confusion about filing 2010 form 1040, whether it was to be part of the OVDI package, or to be sent to the service center, as I had extended my return. I ended up filing the return with the service center, and sending a copy of it with the package. So, hopefully, covered this time.ABnoreply@blogger.comtag:blogger.com,1999:blog-1519969502186924526.post-27930138711232158332012-07-23T16:59:52.110-05:002012-07-23T16:59:52.110-05:00The latest OVDI blooper is that OVDI participants ...The latest OVDI blooper is that OVDI participants who have<br />not had an agent assigned yet are receiving notices from IRS Service Centers<br />that they did not file a Form 1040 tax return for 2010. OVDI participants had to submit 2010 as part<br />of their OVDI package.<br /><br /><br /> <br /><br /><br />This creates extra billing hours for lawyers who have to deal<br />with this ridiculous notice and lots of work for those handling their own<br />cases.<br /><br /><br /> <br /><br /><br />For those who are doing their own work, it seems a good<br />approach is to fill out the form sent with the notice and send it back with a<br />copy of the 2010 tax return. One should<br />also include a letter explaining that they are in OVDI. To avoid collection problems, if taxes were<br />owed and payments have been posted to 2007, the taxpayer should mention this. If the taxpayer originally directed how the<br />payments were to be credited, a copy of this should also be included. <br /><br /><br /> <br /><br /><br />Finally, it is recommended to also write OVDI about<br />the mistake and send a copy of the notice to them, plus a copy of the response<br />sent to the IRS Service Center. <br /><br /><br /> <br /><br /><br />My accountant tells me that he has seen a bunch of<br />these. Has anyone else had this<br />problem? How did you handle it?anon5percentnoreply@blogger.comtag:blogger.com,1999:blog-1519969502186924526.post-63193205840531393922012-07-19T05:08:38.692-05:002012-07-19T05:08:38.692-05:00I would suggest writing a letter to the agent in r...I would suggest writing a letter to the agent in response with your contact number. That way you have a paper trail in the unlikely instance the IRS were to insist on a 14 day response time.anonnoreply@blogger.comtag:blogger.com,1999:blog-1519969502186924526.post-57537877489558848642012-07-18T17:38:59.197-05:002012-07-18T17:38:59.197-05:00Hi Jack
Thanks for your response. Unfortunately t...Hi Jack<br /><br />Thanks for your response. Unfortunately the agent is out of office.<br />How firm is the 14-day response time requirement to respond to the 906? In my case, the examiner has been out of office thru the 14 days by which to sign it and I am in a dilemma whether to wait past the due date and get it corrected or just sign.<br /><br />Thanks, UM.UMnoreply@blogger.comtag:blogger.com,1999:blog-1519969502186924526.post-16357142281418572422012-07-16T15:59:33.166-05:002012-07-16T15:59:33.166-05:00(1) I don't know that there is a normal, but I...(1) I don't know that there is a normal, but I would discuss it with the agent to see why he or she left it off;<br />(2) I am not sure what you are asking here.<br />(3) I would suspect that you could further amend the state to make it consistent with the federal result.<br /><br />The lesson here for others is not to amend the state until the federal is finalized.<br /><br />Best,<br /><br />JackJackTownsendnoreply@blogger.comtag:blogger.com,1999:blog-1519969502186924526.post-69823165418074079872012-07-16T14:41:09.329-05:002012-07-16T14:41:09.329-05:00Hi Jack
I got a 4549-A form and for one particula...Hi Jack<br /><br />I got a 4549-A form and for one particular year, the numbers are different from the 1040X. It appears that a deduction (unrelated to offshore) was ignored and tax recomputed. I already amended state based on my 1040X. (1) Is it normal for IRS to just recompute and send the adjustment form without asking for further details or asking to re-amend (2) Would non-offshore income need an amend outside OVDI (3) Can I just accept this, pay up and amend the state again.<br /><br />Thanks, UM.UMnoreply@blogger.comtag:blogger.com,1999:blog-1519969502186924526.post-75314071962493114802012-05-14T13:41:33.328-05:002012-05-14T13:41:33.328-05:00Just a comment on the original topic. If the IRS ...Just a comment on the original topic. If the IRS misapplies a payment that was clearly labeled for a certain year and then sends all kinds of incorrect notices, it's an honest mistake. If someone fails to file a form he didn't know about, he risks a penalty of 50% of the highest account value for each of the past 6 years. Excuse the rant.Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-1519969502186924526.post-8111016696448879002012-05-14T02:32:51.975-05:002012-05-14T02:32:51.975-05:00I continue to file manually for one reason. I ref...I continue to file manually for one reason. I refuse to be the data input clerk for them. If they want the information, I want them to have the cost of input, as my recalcitrant little protest against "the FBAR system." :)Just Menoreply@blogger.comtag:blogger.com,1999:blog-1519969502186924526.post-61697647640442937112012-05-13T21:39:02.695-05:002012-05-13T21:39:02.695-05:00Following up on "Anonymous May 3, 2012 4:10 P...Following up on "Anonymous May 3, 2012 4:10 PM"<br />Even if the bank did not generate an NR-4 for the interim years, will the interest need to be computed and reported? Worse, what if total interest earned in 3 years is reported as earned for the year (2011) on an NR-4?<br /><br />Thanks.Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-1519969502186924526.post-11523946727692085722012-05-12T09:25:01.274-05:002012-05-12T09:25:01.274-05:00i filled my 2011 fbar using e-filling. it is rathe...i filled my 2011 fbar using e-filling. it is rather easy to deal with except the password security requirement is ridiculous, i reset my password at least 5 times. <br /><br />i don;t know how fast it gets into the system, i got an acknowledgement email 1-2 days later and called the hotline 2-3 weeks later and they said they see it in the systemAnonymousnoreply@blogger.comtag:blogger.com,1999:blog-1519969502186924526.post-11915215450395246942012-05-11T17:13:14.352-05:002012-05-11T17:13:14.352-05:00Hi Jack -
I could not find a suitable blog post t...Hi Jack -<br /><br />I could not find a suitable blog post to put this question under. It seems that the BSA now permits e-filing of FBARs which provides an instant acknowledgement of the FBAR filing. Is it a reliable method to file FBARs? Have your clients filed FBARs using e-filing? Thanks in advance for any advise.Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-1519969502186924526.post-87303530273693737262012-05-10T16:19:19.777-05:002012-05-10T16:19:19.777-05:00The understanding is correct as to where to mail.
...The understanding is correct as to where to mail.<br /><br />Jack TownsendJack Townsendhttps://www.blogger.com/profile/14469823736335455874noreply@blogger.comtag:blogger.com,1999:blog-1519969502186924526.post-33593619555737316952012-05-10T16:00:25.919-05:002012-05-10T16:00:25.919-05:00Thank you very much Mr. Townsend for your quick an...Thank you very much Mr. Townsend for your quick answer. What I understood from your reply is that I can send the amended returns for 2005, 2006 and 2007 to the appropriate service center and all delinquent FBARs from 2005 to 2010 to the Detroit service center. Please confirm if my understanding is correct. Just wanted to mention that in my case there is no chance for criminal prosecution and my total taxes and penalties for foreign interest income due for 2005, 2006 and 2007 will be less than $500. Thanks again Mr. Townsend.Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-1519969502186924526.post-61254825803898775802012-05-09T22:35:19.167-05:002012-05-09T22:35:19.167-05:00There is another exception to the 3 year statute r...There is another exception to the 3 year statute related to omitted foreign account income. See Special Statute of Limitations Rules Regarding $5,000 Omissions from Foreign Accounts (4/9/12), here -- http://federaltaxcrimes.blogspot.com/2012/04/special-statute-of-limitations-rules.html<br /><br />I did not follow the rest of your comment.<br /><br />Jack TownsendJack Townsendhttps://www.blogger.com/profile/14469823736335455874noreply@blogger.com