tag:blogger.com,1999:blog-1519969502186924526.post2851411570127922002..comments2023-10-24T08:00:53.865-05:00Comments on Federal Tax Crimes: Some Thoughts on the IRS Voluntary Disclosure Program for Offshore Accounts (3/31/09)Jack Townsendhttp://www.blogger.com/profile/14469823736335455874noreply@blogger.comBlogger6125tag:blogger.com,1999:blog-1519969502186924526.post-79481835366896041002011-04-13T15:59:49.882-05:002011-04-13T15:59:49.882-05:00Jack,
Could you please share your thoughts on FBAR...Jack,<br />Could you please share your thoughts on FBAR mitigation guidance on your blog?Thanks.anoreply@blogger.comtag:blogger.com,1999:blog-1519969502186924526.post-10990592197369689092009-12-23T09:32:54.190-06:002009-12-23T09:32:54.190-06:00Joe,
Also, just to deal with the civil statute o...Joe, <br /><br />Also, just to deal with the civil statute of limitations issue. Keep in mind that the criminal risk is resolved by the quiet voluntary disclosure. Now looking at the civil statute of limitations, under this fact pattern accepting it at face (taxpayer truly believed the income was not taxable), the Government will be unable to prove fraud by clear and convincing evidence. Hence, the unlimited statute of limitations will not apply. Because of the amount, the 6-year statute probably applies (Section 6501(e)). That would make the years now open (assuming timely filing by original due date or even extended due date) only 2004 forward. Most tax practitioners would say, therefore, that the most returns you file would be 6 years back (2004 forward), and some would say that you may even file only 5 or 4 years back. There is inherent uncertainty in choosing less than 6 years, but many good practitioners do that based on the judgment call and feel for the particular case.<br /><br />JackJack Townsendhttps://www.blogger.com/profile/14469823736335455874noreply@blogger.comtag:blogger.com,1999:blog-1519969502186924526.post-90752942055754062652009-12-23T09:01:24.711-06:002009-12-23T09:01:24.711-06:00Joe,
I think this is the classic case for a quiet...Joe,<br /><br />I think this is the classic case for a quiet voluntary disclosure to avoid criminal prosecution. Moreover, the amended returns will likely avoid civil penalties as qualified amended returns unless the IRS were to determine fraud (which may or may not be present in your case).<br /><br />Good luck.<br /><br />Jack TownsendJack Townsendhttps://www.blogger.com/profile/14469823736335455874noreply@blogger.comtag:blogger.com,1999:blog-1519969502186924526.post-71931726749434131522009-12-22T15:11:37.839-06:002009-12-22T15:11:37.839-06:00I have a client who received income from a tax fre...I have a client who received income from a tax free grant given to a county gov. The county gov. then paid my client. He never received a 1099 from the state and thought the money way a "tax free grant"" to him. He filed tax returns for 03,04,05 and 06 and did not report this income. In 2008 there was a newspaper article to stating this money was not a tax free grant. He subsequently contacted his cpa who determined the money was taxable and filed amended returns reporting the income. Income was about $200,000 per year.<br /><br />IRS has never contacted him but he is now concerned about the posibility IRS CI could now come after him. <br /><br />Any thoughts on this after the quiet disclosure?Joehttps://www.blogger.com/profile/04436481905025144905noreply@blogger.comtag:blogger.com,1999:blog-1519969502186924526.post-64377735054444484762009-04-13T16:47:00.000-05:002009-04-13T16:47:00.000-05:00See the blog today title Josephberg #2.Josephberg ...See the blog today title Josephberg #2.<BR/><BR/>Josephberg is an extreme case (many bad facts beyond just failing to file the returns), still it does hold that the taxpayer is not relieved from filing a return simply because he or she is under criminal investigation or otherwise fears that the disclosures on a return may incriminate him or her. The Court says that he or she may file a Sullivan return claiming the Fifth as to the items / information that may incriminate.Jack Townsendhttps://www.blogger.com/profile/14469823736335455874noreply@blogger.comtag:blogger.com,1999:blog-1519969502186924526.post-65339639817358109852009-04-11T11:48:00.000-05:002009-04-11T11:48:00.000-05:00Although this does not have anything to do with vo...Although this does not have anything to do with voluntary disclosure for offshore accounts, it is at least tangetially related to voluntary disclosure.<BR/><BR/>Client comes to attorney with an IRS notice indicating IRS's records show mortgage interest paid by client of $10K (reported to IRS by bank on Form 1098) but IRS has no record of client's tax return being filed for that year. IRS wants return or explanation as to why return not filed. Client has prior unrelated non-tax conviction. His income from illegal sources. Catch-22:<BR/><BR/>1. If he files a 5th Amendment Return, he alerts the IRS of possible illegal activity who in turn may alert Probation. Although it is entirely possible IRS has no inforamtion regarding his conviction because it is unrelated and non-tax.<BR/><BR/>2. If he does not file a return, he commits tax evasion.<BR/><BR/>Is there any good background reading on how the IRS treats 5th Amendment returns procedurally? Does it go in a separate pile? Is there a special group that looks at them and sends them to CI? Etc., etc.<BR/><BR/>JohnAnonymousnoreply@blogger.com