tag:blogger.com,1999:blog-1519969502186924526.post7281764870856397454..comments2023-10-24T08:00:53.865-05:00Comments on Federal Tax Crimes: Court Holds Online Poker Accounts are FBAR Reportable (6/9/14)Jack Townsendhttp://www.blogger.com/profile/14469823736335455874noreply@blogger.comBlogger8125tag:blogger.com,1999:blog-1519969502186924526.post-46668414740079907202014-07-28T12:17:48.236-05:002014-07-28T12:17:48.236-05:00Follow up, when is a deposit with a Foreign Real e...Follow up, when is a deposit with a Foreign Real esate broker or foreign real estate developer, for the purpose of purchasing foreign real estate (much in the future), a financial account per 5312(a)(2)(U)? I guess it depends, how similar one of these institutions closely mirrors a bank with respect to those trust & escrow accounts.Milan Madhani, CPAhttp://www.vimlantax.comnoreply@blogger.comtag:blogger.com,1999:blog-1519969502186924526.post-70289151945838012892014-06-11T14:48:17.491-05:002014-06-11T14:48:17.491-05:00I can think of a ton of similar examples of a busi...I can think of a ton of similar examples of a business holding money which is a refundable deposit, not just retainers in a trust account. Escrow accounts when buying property, security deposit when renting an apartment, a down payment on a car or hotel which is refundable if you change your mind, even buying an item on layaway at a store. These do not function as banks or equivalent financial institutions nor are they treated as such, for example they are not regulated by FDIC and other banking agencies, not insured etc.<br /><br /><br />Nor can these accounts be of much use as a substitute for a bank account. I cannot go to a car dealer, pretend I'm interested in a car, put down a cash deposit of $1,000, come by the next day to ask for $50 from my deposit back, then return a few days later and say I want to increase my deposit by $2,000. <br /><br /><br /><br />I don't gamble, but I suspect the case would be similar at a casino. Someone who puts down money and never gambles would likely soon see his account closed. And casino accounts are set up for good reason: gambling debts are legally unenforceable under Us law, so you have to pay in advance.Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-1519969502186924526.post-9485366291111609522014-06-11T08:23:00.581-05:002014-06-11T08:23:00.581-05:00oh yes we have raised these issues many times befo...oh yes we have raised these issues many times before with other cases. It is a turkish bazar (discretion) and $10K for NW per account ,per account holder and per violation is within the statue.GlobalCapitalismnoreply@blogger.comtag:blogger.com,1999:blog-1519969502186924526.post-38405931313710313672014-06-11T05:41:48.300-05:002014-06-11T05:41:48.300-05:00Two other issues that folks here should find of in...Two other issues that folks here should find of interest and that do not seem to have been raised (unless I missed it -- always a possibility!). First, if it was unclear whether an arrangement constitutes a "foreign financial account," such that it was reasonable for the defendant to have thought (incorrectly, per the court) no reporting necessary, is reasonable cause present so as to prevent imposition of the penalty? Second, where (as here) there was more than one account, is the maximum penalty (for non willful violations) $10,000 per FBAR or $10,000 per account? I believe Carolyn Ciraolo has argued it's the former.Michael J. Millernoreply@blogger.comtag:blogger.com,1999:blog-1519969502186924526.post-63486620639584640782014-06-10T19:16:17.191-05:002014-06-10T19:16:17.191-05:00I was reading the OVDP FAQ, Holy cow!!
I think FAQ...I was reading the OVDP FAQ, Holy cow!!<br />I think FAQ# 56 should be "If you have ever drawn Muhammad in last 5 years. Your penalties will be multiplies by 72 and IRS will hand over your information to Iran". i can't believe IRS can make such absurd rules. <br /><br />Is there any legal way to challenge this? Can people request our supreme leader to look into this?commandernoreply@blogger.comtag:blogger.com,1999:blog-1519969502186924526.post-335002810465136062014-06-09T15:20:18.430-05:002014-06-09T15:20:18.430-05:00It is unfortunate the Court didn't invite amic...It is unfortunate the Court didn't invite amicus briefs, rather than suggesting someone take up the pro bono representation of an online-offshore gambler (a pursuit I believe is illegal if you are a resident of the United States). I'm not blaming the court at all, but I personally would have been far more inclined to participate without having to undertake representing the defendant.<br /><br />The ultimate question seems to be what constitutes a foreign bank or financial institution? In my opinion, a business accepting "advanced payments" or "credits", that can only be disbursed to the business itself or returned to the customer and without any interest is not a bank or financial institution. In that case, the money simply is being provided for security.<br /><br />I agree there are a host of related issues, many of which I have run into. The statutory definition is difficult, and one needs to assess it from both ends, as well as the unlikely to be successful "too vague" angle.ChiTownTaxAttorneynoreply@blogger.comtag:blogger.com,1999:blog-1519969502186924526.post-50422890089912454972014-06-09T09:05:16.520-05:002014-06-09T09:05:16.520-05:00Download X Men Days Of Future past : http://www.xm...Download X Men Days Of Future past : http://www.xmenfirstclass2.com/Download X Men Days Of Futurenoreply@blogger.comtag:blogger.com,1999:blog-1519969502186924526.post-70105689895135710602014-06-09T08:45:20.282-05:002014-06-09T08:45:20.282-05:00According to 31 CFR 1010.350, an insurance policy ...According to 31 CFR 1010.350, an insurance policy with a cash settlement value is a financial account (one would hope that means that insurance policies without cash settlement values aren't financial accounts). A shame he didn't have proper representation, especially since the Court's conclusion that they are effectively banks seems a bit hasty (or at least, merited a consideration as to whether or not they were regulated as banks or under laws applicable to banks). Also interesting to see the Court's inclusion of the second leg of the "reasonable cause" exemption: "and the amount of the transaction or the balance in the account at the time of the transaction was properly reported." What does that even mean? What is a "transaction" for these purposes and, beyond that, to be "properly reported" doesn't it have to be reported on the FBAR form (an interpretation which would more or less obviate the exemption, since it is only necessary if the account wasn't "properly reported.)gottaloveUStax1noreply@blogger.com