tag:blogger.com,1999:blog-1519969502186924526.post6357321316641141571..comments2023-10-24T08:00:53.865-05:00Comments on Federal Tax Crimes: New Taxpayer Advocate Report to Congress Addressing, Inter Alia, OVDI/P Concerns (1/10/14; supplemented 1/13/14)Jack Townsendhttp://www.blogger.com/profile/14469823736335455874noreply@blogger.comBlogger16125tag:blogger.com,1999:blog-1519969502186924526.post-57688875450182384992014-02-14T11:43:54.641-06:002014-02-14T11:43:54.641-06:00You might want to read this recent analysis of the...You might want to read this recent analysis of the OVDP taking information from the GAO report...<br /><br />http://federaltaxcrimes.blogspot.co.nz/2013/04/more-on-gao-report-on-irs-offshore.html#comment-1241843169Just_Me_Alsonoreply@blogger.comtag:blogger.com,1999:blog-1519969502186924526.post-69870752988293209412014-02-12T14:00:38.310-06:002014-02-12T14:00:38.310-06:00That makes sense. However, to be fair I want to me...That makes sense. However, to be fair I want to mention this: "Unpaid taxes" can be decomposed into three (not mutually exclusive and not exhaustive) categories: (A) tax deficiency solely due to unreported interest income, (B) tax deficiency due to unreported income, (C) income has been properly reported but no FBAR's have been filed. Those in the last category don't have to participate in the OVDP (according to the FAQ). A significant chunk of people in the first category can opt-out, and still face fairly large potential penalties from IRM 4.26.16, but usually with an expected penalty significantly lower than the one-size-fits-it-all 27.5%. Most people in the second category probably have serious threat of criminal prosecution, so the 27.5% seems like a nice civil settlement.Spaghestti Robotnoreply@blogger.comtag:blogger.com,1999:blog-1519969502186924526.post-30055387661823677102014-02-11T14:02:35.718-06:002014-02-11T14:02:35.718-06:00Unpaid taxes and FBAR nonreporting are two separat...Unpaid taxes and FBAR nonreporting are two separate issues. I feel the tax penalty is appropriate. My concern is with the FBAR fine. Why should people face a huge 27.5% fine FBAR reports that are ultimately filed (although years late) but voluntarily before the IRS knows about the accounts? It has been said by Bill Yates, former IRS Chief Counsel Attorney, in this interview: <br />http://blogs.angloinfo.com/us-tax/2013/07/01/fatca-interview-with-bill-yates-former-attorney-office-of-associate-chief-counsel-international-irs/<br />that "FBAR reporting is required pursuant Title 31, the Bank Secrecy Act. <br />Because of this, IRS could not initiate an audit of a taxpayer based <br />solely on an FBAR filing. The taxpayer being examined had to have an <br />underlying Title 26 issue. Only with a Title 26 issue could IRS use <br />account information found on an FBAR in furtherance of an audit or exam <br />of the taxpayer."<br />Therefore in most of the disclosure cases the lack of a filed FBAR resulted in zero harm to the IRS since they would not have tried to consult it anyway. The back taxes interst and penalties are taken care of separately so the FBAR issue seems just like an excuse to extract 27.5%Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-1519969502186924526.post-10747331696131660642014-02-11T13:56:42.658-06:002014-02-11T13:56:42.658-06:00But with a quiet disclosure you also have to gambl...But with a quiet disclosure you also have to gamble in the IRS casino! And in both cases you get to haggle in the IRS bazaar of appeals. Not sure which option has the edge when it comes to civil penalties, but my hunch is that the opt-out does (in moderate cases). <br /><br />Unless I'm misunderstanding something, the gamble for benign actors primarily involves dodging an assessment non-willfulness (in other words, qualify for reasonable cause). The ceiling for non-willfulness can be quite high. I'm not sure how much IRS agents tend to scale against the ceiling (80%?, 50%? 25%?), but a practitioner might know.Spaghestti Robotnoreply@blogger.comtag:blogger.com,1999:blog-1519969502186924526.post-72402717167390799302014-02-11T13:42:46.068-06:002014-02-11T13:42:46.068-06:00The mystery and unpredictablility of the opt-out p...The mystery and unpredictablility of the opt-out process is what is causing the benevolent actors to stay in the program and not opt out. In the areas of taxes, traffic tickets and so on there are published laws that state how much people owe. Likewise one ought to be able to calculate the appropriate FBAR penalty based on published information, not be scared out of opting out by the possiblity of being assessed 300% of high balance.Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-1519969502186924526.post-80548424793189512702014-02-08T02:56:51.815-06:002014-02-08T02:56:51.815-06:00@mdlaf...... if you want to ask some questions abo...@mdlaf...... if you want to ask some questions about your facts and circumstances<br />topspin13579@gmail.comGlobalCapitalismnoreply@blogger.comtag:blogger.com,1999:blog-1519969502186924526.post-78871079537641248172014-02-07T19:24:32.330-06:002014-02-07T19:24:32.330-06:00Excellent point about not reading too much into it...Excellent point about not reading too much into it / raising false hope. I'm happy to have it removed (or do it myself) for the sake of removing wheat from chaff if you see fit. <br /><br /><br />Let me know about where best to post a general advice question most appropriately, otherwise I'll just jump in where I think it best and see what happens. <br /><br /><br />Respectfully,mdlafnoreply@blogger.comtag:blogger.com,1999:blog-1519969502186924526.post-85811766492868694462014-02-07T19:09:53.326-06:002014-02-07T19:09:53.326-06:00mdlaf,
I have not commented on it before. I did...mdlaf,<br /><br /><br />I have not commented on it before. I did see the story (I, like you, read Tax Notes). But it was not enough to comment on. I am afraid that many readers of this blog will take that farther than Danilack intended his comments to go. So, I deferred until something more definite is released. Still, I appreciate your raising the question. <br /><br /><br />I do hope something comes from it.<br /><br /><br />Jack TownsendJack Townsendhttp://www.tjtaxlaw.com/noreply@blogger.comtag:blogger.com,1999:blog-1519969502186924526.post-30403159032120519362014-02-07T17:21:57.329-06:002014-02-07T17:21:57.329-06:00Jack - wonder if you had any comment on Tax Notes ...Jack - wonder if you had any comment on Tax Notes Today 2/3/14 - "IRS Considering Modifications to OVDP" by Jaime Arora:<br /><br />"The IRS is reexamining its offshore voluntary disclosure program (OVDP) and considering making modifications to it, according to Michael Danilack, deputy commissioner... Danilack, who spoke January 30 at the Pacific Rim Tax Institute conference in Palo Alto, Calif., noted that National Taxpayer Advocate Nina Olson was critical of some elements of the OVDP in her recent annual report...Danilack said that IRS Commissioner John Koskinen is interested in the program and will be considering whether it is "sitting exactly right."<br /><br /><br /><br />Apologies if you have already commented on this elsewhere, couldn't find it. And thanks for all that you've done and continue to do. <br /><br />On a side note: where would be the most appropriate place ask a question of your readers without bothering you? Is there a general "forum" area? <br /><br /><br />many thanksmdlafnoreply@blogger.comtag:blogger.com,1999:blog-1519969502186924526.post-70193115826262428992014-01-14T14:14:05.504-06:002014-01-14T14:14:05.504-06:00Haven't read the whole thing but as far as for...Haven't read the whole thing but as far as foreign accounts, it seems that the same things keep being said and keep falling on deaf ears.Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-1519969502186924526.post-668979684168624482014-01-14T14:04:06.278-06:002014-01-14T14:04:06.278-06:00Agree with Swisstechie that the law is the law. A...Agree with Swisstechie that the law is the law. And it cuts both ways. Those who have a right to appeal have a right to appeal. And the person who missed the deadline missed the deadline.<br /><br />As to Jack's statement that appealing disclosure is a bad decision in the end I wouldn't be so sure. I recall reading that some of the UBS accountholders who appealed were successful in not having their data transfered. Also, what counts is the state of mind (willful or not) at the time of the FBAR deadline. I would question whether appealing disclosure of past noncompliance would make things worse.<br /><br />On the other hand many of us made a noisy OVDI disclosure as soon as we learned of the requirements and did not delay, but I don't see us getting any credit for doing that instead of waiting to be sure that our accounts would be disclosed.Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-1519969502186924526.post-47043678458992503712014-01-14T12:04:05.679-06:002014-01-14T12:04:05.679-06:00Sorry Jack but the swiss banking industry needed t...Sorry Jack but the swiss banking industry needed those job cuts anyway..... they happened in London and New York already in 2012-13. $AUM are at a new all time high for 2013 . Why would you think that they are looking for sympathy in the world community for those job losses ? Looking at IB/PB projected bonuses for 2/2014 I am myself surprised to read (confidential) today on my memo pretty serious increases from 2012/13.UStaxnoreply@blogger.comtag:blogger.com,1999:blog-1519969502186924526.post-33442739876344686222014-01-13T03:43:36.457-06:002014-01-13T03:43:36.457-06:00Don't forget this one MSP 23
REPORTING REQUIR...Don't forget this one MSP 23<br /><br />REPORTING REQUIREMENTS: The Foreign Account Tax Compliance Act (FATCA) Has the Potential to be Burdensome, Overly Broad, and Detrimental to Taxpayer Rights<br /><br />http://1.usa.gov/1eoQzlbJust_Me_Alsonoreply@blogger.comtag:blogger.com,1999:blog-1519969502186924526.post-25096334815515094602014-01-12T00:37:52.449-06:002014-01-12T00:37:52.449-06:00The law is the law. You are doing is what America...The law is the law. You are doing is what America does best, and that is to blame, condemn and hate the world for Americal faults, problems and crimes. The problem is not "those contesting taxpayers delaying tactics". Rather, the problem is that the IRS needs to include more details to its request in order for it to be compliant with the law.<br /><br />Do "taxpayers", whom you commonly accuse people who do not live in America, do not use the US infrastructure, are subject to the laws of a non-US jurisdiction and pay taxes to a non-US jurisdiciton, aware that "US law" requires that they "notify the U.S. Attorney General"?SwissTechienoreply@blogger.comtag:blogger.com,1999:blog-1519969502186924526.post-48434349155707575162014-01-11T01:25:06.515-06:002014-01-11T01:25:06.515-06:00Jack's blog is encouraging Americans to honor ...Jack's blog is encouraging Americans to honor tax crimes:<br /><br />"They force everyone into assuming they're criminals,"<br />http://finance.fortune.cnn.com/2014/01/09/irs-offshore-accounts/?goback=.gmr_3694878#!SwissTechienoreply@blogger.comtag:blogger.com,1999:blog-1519969502186924526.post-39988594866128392922014-01-10T14:13:18.244-06:002014-01-10T14:13:18.244-06:00"Many Americans get screwed over financially ..."Many Americans get screwed over financially by entering the programs."<br /><br />http://finance.fortune.cnn.com/2014/01/09/irs-offshore-accounts/SwissTechienoreply@blogger.com