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Form 8300: Reporting Domestic Currency Transactions

The IRS Small Business/Self-Employed (SB/SE) Division maintains an anti-money laundering (AML) territory manager in each of its 16 Areas, together with 33 AML compliance groups and approximately 350 full-time examiners. IRS Criminal Investigation’s Suspicious Activity Report (SAR) review teams in each of their 35 field offices focus on detecting money laundering activities as well as […] Read More…

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New Filing Compliance Procedures for Non-Resident U.S. Taxpayers

The IRS recently announced a Streamlined Filing Procedure (SFP), that became effective September 1, 2012, intended to entice current non-residents and dual citizens who have not filed U.S. income tax and information returns to file their delinquent returns back into filing and reporting compliance. Since 2009, many non-residents began participating in various IRS offshore voluntary […] Read More…

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IRS Provides Updated Guidance re FBAR Voluntary Disclosure Program

For years, the IRS has been pursuing – with mixed success – the disclosure of information regarding undeclared interests of U.S. taxpayers (or those who ought to be U.S. taxpayers) in foreign financial accounts. On June 26, 2012 the IRS released IR-2012-64/65 and updated Frequently Asked Questions (FAQs) providing updated guidance regarding the currently pending […] Read More…

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The IRS Whistleblower Program: Making Money the Old Fashioned Way!

The IRS Whistleblower Office processes financial awards to people who provide information about the tax indiscretions of others. If the IRS uses information provided by the whistleblower, based on recently finalized Treasury Regulations the whistleblower can receive up to 30 percent of the additional tax, penalty and other amounts collected or refund denied! Statutory Limitations. […] Read More…

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Practice Tips From the Tax Trenches

Although often struggling with deadlines and sometimes recalcitrant clients, a tax practice should be an enjoyable, rewarding experience. Tax practitioners provide their clients with an objective, knowledgeable review of financial information that is ultimately presented to the government in the form of a tax or information return. If the client has provided timely, complete responses […] Read More…

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FBAR Offshore Voluntary Disclosure Initiative (OVDI)

Taxpayers who have failed to report earnings on foreign bank accounts have until August 31, 2011 to do so without imposition of criminal penalties and with reduced civil penalties.  The reduced penalties apply to taxpayers who comply with the Internal Revenue Service’s Offshore Voluntary Disclosure Initiative (2011 OVDI), but only if the taxpayers do so […] Read More…

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Non-Filers Beware: Who’s That Knocking at Your Door ?

The IRS continues to enhance its ongoing enforcement efforts and expedited reporting between the IRS and the state taxing agencies will have a significant future impact on taxpayers who, for whatever reason, have failed to timely file their tax returns. The government can better identify taxpayers who have underreported or not reported income or have otherwise […] Read More…

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Examining the FBAR / Offshore Account Information Document Request (IDR)

Questions regarding the depth of an offshore account examination for those who, for whatever reason, did not participate in the 2009 OVDP or the 2011/2012 OVDI are now beginning to be answered in various IRS examinations around the country. A voluntary disclosure would not likely be considered timely following receipt of a notice of an […] Read More…

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IRS Voluntary Disclosure Practice

Since 1952, practitioners are unaware of any situation where the IRS has referred a timely, truthful and complete voluntary disclosure to the Department of Justice for criminal prosecution. A truthful, timely and complete voluntary disclosure is a factor considered in the IRS decision re a possible criminal prosecution referral to the U.S. Department of Justice. […] Read More…

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Overview of FBAR Reporting Requirements

U.S. citizens and residents are taxed on their worldwide income, subject to certain very specific exemptions, whether they live inside or outside of the United States. Foreign income must be reported on a U.S. tax return whether or not the person receives a Form W-2, Wage and Tax Statement, a Form 1099 (information return) or […] Read More…

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Qualified Amended Returns Can Eliminate Accuracy Related Tax Penalty

Improved tax compliance requires taxpayers (and those who ought to be taxpayers) to voluntarily come into compliance. When errors are discovered in a filed return, tax practitioners often pave the road to compliance through assurances that the tax-equivalent of water-boarding is not a typical government response to receipt of an amended return. Some assurances are […] Read More…

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FOIA Requests: A Look Into the IRS Examination File

Practitioners should consider submission of a Freedom of Information Act (FOIA)[i] request to the IRS following the unagreed resolution of every tax examination. Although not always a wealth of information, the government response to a FOIA request will provide insight into why the examining agent made certain adjustments and asserted penalties. It will also help […] Read More…

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