FBAR Lawyers – Tax Specialist Attorney | IRS FBAR Lawyers
- 1 FBAR Lawyers
- 2 IRS Tax Lawyers FBAR (Board Certified Tax Law Specialist)
- 3 Safely Report Foreign Accounts – Golding & Golding
- 4 What does FBAR Mean?
- 5 What is an FBAR Lawyer?
- 6 Foreign Account Representation – Board Certified in Tax
- 7 Tax Lawyer FBAR Basics
- 8 Analyzing Your FBAR Situation
- 9 If You Are FBAR Non-Compliant…
- 10 Do You Need an FBAR Attorney if You are FBAR Compliant?
- 11 FBAR Attorneys & When You Need One
- 12 What are the Penalties for Late Filing the FBAR?
- 13 Civil FBAR Penalties
- 14 Criminal FBAR Penalties
- 15 FBAR & Board Certified Tax Law Specialist Credential
- 16 How Will the IRS Know You Didn’t File the FBAR?
- 17 How Does the IRS Investigate You about FBAR?
- 18 If You Already Committed an FBAR Crime, You Need to “Lawyer-Up”
- 19 Golding & Golding Lawyers for FBAR- Board Certified Tax Specialist
- 20 FBAR Attorney Fees – How Much are They?
- 21 IRS Offshore Penalty List
FBAR Lawyers – Tax Specialist Attorney | IRS FBAR Lawyers
FBAR Lawyers: Golding & Golding FBAR Lawyers are the go-to law firm for FBAR (Foreign Bank and Financial Account) matters worldwide. We represent clients across the nation and worldwide, including: Los Angeles, San Francisco, San Jose, Houston, Chicago, Miami, Washington D.C., Michigan and more.
We specialize in Foreign Bank, Asset and Investment matters, with a focus on IRS foreign and FBAR account amnesty. Our FBAR Tax Attorneys have safely brought clients worldwide into compliance for undisclosed assets, income, accounts, and investments — while minimizing, reducing and avoiding FBAR penalty assessments.
IRS Tax Lawyers FBAR (Board Certified Tax Law Specialist)
Our FBAR Lawyers specialize exclusively in FBAR and Offshore Disclosure. We have clients worldwide in over 70-countries. Golding & Golding has successfully completed more than 1000 streamlined disclosure submissions.
Our Team Lead is a Board Certified Tax Law Specialist (Less than 1% of Attorneys nationwide) and Enrolled Agent, with a Master’s of Tax Law (LL.M.)
Safely Report Foreign Accounts – Golding & Golding
Mr. Golding leads his team in each and every case we accept for submission.
- Learn more about the Board Certified Tax Law Specialist credential
- Learn the benefits of hiring a Dually Licensed Attorney/Tax Professional
- Learn more about Golding & Golding’s Case Accomplishments
- Learn more about Golding & Golding Testimonials from prior clients
What does FBAR Mean?
FBAR is an acronym for Foreign Bank Account Reporting, but it is an inaccurate acronym as far as current reporting standards go — and gets many people confused, here’s why:
FBAR is an acronym for a FinCEN reporting form used to report foreign accounts.
Specifically, it is Form 114. FinCEN Form 114 is used to report Foreign Bank and Financial Accounts. When you see the term “FBAR,” this is what they are referring to.
But, FinCEN Form 114 is used to report more than just bank accounts. It is also used to report other financial accounts, such as foreign:
- Mutual Funds and ETFs
- Investment Funds
- Life Insurance
- Pension and Retirement
When you see FBAR, you should think of it as “Foreign Bank and Financial Account Reporting.”
What is an FBAR Lawyer?
FBAR Lawyers do not typically handle routine FBAR Filing. Rather, they handle late and unfiled FBAR matters, in order to try and avoid the issuance of FBAR penalties. Timely FBAR Filing & Reporting typically would not require a Lawyer — but sometimes it may benefit you.
An FBAR lawyer is a Lawyer who specializes in Foreign Bank and Financial Account “FBAR” matters. Since FBAR, FATCA and related offshore matters require specialized knowledge, the experienced FBAR Lawyers in this area of international tax law will have the following qualifications:
- Board Certified Tax Law Specialist
- Master’s of Tax Law (LL.M.)
- Dual status as an Enrolled Agent or CPA
- Experience in Complex Litigation and High-Stake Audits
- 15-20 Year of private practice experience as an Attorney
Foreign Account Representation – Board Certified in Tax
Golding & Golding are the FBAR Lawyers that other Attorneys, Enrolled Agents, CPAs, and financial professionals worldwide turn to when they need assistance in FBAR matters. We are called upon to apply FBAR Amnesty strategies designed reduce & minimize Foreign Bank Account Reporting Fines and Penalties.
Our FBAR Tax Lawyers specialize exclusively in representing clients worldwide with foreign account, asset, investment and income disclosure strategies. Each case is led by a Board Certified Tax Law Specialist.
Tax Lawyer FBAR Basics
FBAR Lawyers who specialize in FBAR matters focus on minimizing, abating and avoiding foreign account and offshore asset penalties from the IRS.
This type of reporting includes:
- Foreign bank accounts
- Foreign financial assets
- Foreign investments, and
- Foreign income
A person may also use other acronyms that overlap with FBAR, such as FATCA Lawyer, OVDP Lawyer, Voluntary Disclosure Lawyer, etc.
Analyzing Your FBAR Situation
You should take these three (3) preliminary steps first, to make sure you had to file the FBAR:
Step1: Do You Have to File the FBAR? (Aka What is FBAR Filing Threshold Requirements)
The threshold requirements are relatively simple.
On any day of the year, if you aggregated (totaled) the maximum balances of all of your foreign accounts, does that total amount exceed 10,000? If it does, then you have to file the form.
The most important thing to remember is you do not need to have more than $10,000 in each account; rather, it is an annual aggregate total of the maximum balances of all the accounts.
Step 2: What is the FBAR Filing Deadline?
The FBAR Deadline is April, the same time your taxes are due. Currently, the FBAR is on automatic extension until October.
Step 3: What Happens if the IRS Finds Out You Didn’t File the FBAR?
If you did not file the FBAR, the IRS may issue fines and penalties against you,
If You Are FBAR Non-Compliant…
You should hire an attorney. Click here to learn more about hiring an FBAR Lawyer.
Do You Need an FBAR Attorney if You are FBAR Compliant?
You may still need an FBAR Attorney. For example, while you may be FBAR compliant, you may not non-compliant:
- PFIC (Foreign Investments)
- Form 3520 (Foreign Gift or Inheritance)
- Form 5471 (Foreign Corporation)
- Form 8865 (Foreign Partnership)
- Form 3420-A (Foreign Trust)
FBAR Attorneys & When You Need One
The following summary details when and why you need an FBAR Attorney.
You Filed the FBAR Timely…
But, maybe you forgot a few accounts or assets and are not sure, or did not also include them on the FATCA Form 8938, 3520, 8621, etc. — you may want to speak with an FBAR Attorney to discuss willful vs. non-willful, etc. but if there is no unreported income, you should be fine.
Did You Miss the FBAR Filing Deadline?
The deadline for filing the FBAR is the date your taxes are due (usually April 15th), but is currently on automatic extension to October.
If you missed the FBAR Deadline, you may be subject to fines and penalties and will want to speak with an experienced FBAR Attorney.
What are the Penalties for Late Filing the FBAR?
Not all FBAR Penalties are the same. Sometimes, the IRS penalties for unfiled or late FBARs are bad, and sometimes, well…they’re not so bad. You may even receive a Warning Letter in Lieu of Penalty. It jut depends on the different facts and circumstances of your situation
FBAR Penalties can be Civil or Criminal. They can then be broken down further, but the threshold question, is whether the IRS will get you for Civil (money) or Criminal (money, and worse).
Civil FBAR Penalties
Civil FBAR Penalties are limited to monetary penalties. A civil FBAR Penalty is a penalty that is focused on monetary fines or warning letters (waivers) — without any risk of criminal investigation or prosecution.
|U.S. Code citation||Civil Monetary Penalty Description||Current Maximum|
|31 U.S.C. 5321(a)(5)(B)(i)||Foreign Financial Agency Transaction – Non-Willful Violation of Transaction||$12,921|
|31 U.S.C. 5321(a)(5)(C)||Foreign Financial Agency Transaction – Willful Violation of Transaction||Greater of $129,210, or 50% of the amount per 31 U.S.C.5321(a)(5)(D)|
|31 U.S.C. 5321(a)(6)(A)||Negligent Violation by Financial Institution or Non-Financial Trade or Business||$1,118|
|31 U.S.C. 5321(a)(6)(B)||Pattern of Negligent Activity by Financial Institution or Non-Financial Trade or Business||$86,976|
Penalties for Civil FBAR can be Broken down into two (2) categories:
- Willful FBAR Penalties
- Non-Willful FBAR Penalties
Non-Willful FBAR Penalties
These FBAR Penalties are typically the least severe penalties. An FBAR non-willful penalty is a “lower-level” penalty for not filing the FBAR. The non-willful penalties can be high, BUT, typically they are not as high as willful penalties.
Willful FBAR Penalties and (Reduced) Willfulness
The Willful FBAR Penalty is typically more severe. An FBAR Willful Penalty is penalty for acting willful, willfully blind, or with reckless disregard in not filing the FBAR. We have provided detailed explanations and analyses in our free International Tax Law library about these different terms, and what they mean.
A few important considerations:
- Most courts have held that the maximum annual FBAR willful penalty is not limited to $100,000.
- If the court believes you acted with Reckless Disregard, they can still penalize you full Willful FBAR Penalties.
- If the court believes you acted with Willful Blindness, they can still penalize you full Willful FBAR Penalties.
- Even in a non-willful setting, the court can issue $10,000 per account, per year penalty
Criminal FBAR Penalties
Criminal FBAR Penalties may include monetary penalties and incarceration. This is when the IRS refers the matter to the Department of Justice (DOJ) or other 3 letter government faction for criminal investigation and possible prosecution. These are not very common, but unfortunately they are on the rise.
|U.S. Code citation||Criminal Violation & Description||Criminal Penalty|
|31 C.F.R. §103.59(b)||Willful – Failure to File FBAR or retain records of account||Up to $250,000 or 5 years or both|
|31 C.F.R. §103.59(c)||Willful – Failure to File FBAR or retain records of account while violating certain other laws||Up to $500,000 or 10 years or both|
|31 C.F.R. §103.59(c)||Knowingly and Willfully Filing False FBAR||$10,000 or 5 years or both|
|Civil and Criminal Penalties may be imposed together. 31 U.S.C. § 5321(d).||See Statutes||See Statutes|
FBAR & Board Certified Tax Law Specialist Credential
State Bars across the country (as well as the ABA) strictly prohibit false advertising, but some tax attorneys try to circumvent the rules and mislead the public.
Unless an Attorney is a “Board Certified” Tax Attorney Specialist, chances are they are just using marketing gimmicks to mislead you into believe they have experience they do not have.
Even a Board Certified Tax Lawyer rarely if ever would claim they were an “Expert” in the vast area of Tax Law.
Unfortunately (especially in the areas of International Tax Law and IRS Offshore Disclosure), many less experienced attorneys are falsely touting themselves to the public as “specialists” and “experts” — putting unsuspecting individuals at serious risk for IRS penalties.
Less than 1% of Tax Attorneys Nationwide Are Certified Specialists
Sean M. Golding is one of less than 400 Attorneys (out of more than 200,000 practicing California Attorneys) to earn the Certified Tax Law Specialist credential. The credential is awarded to less than 1% of Attorneys.
The exam is widely regarded as one of (if not) the hardest tax exam given in the United States for practicing Attorneys.
How Will the IRS Know You Didn’t File the FBAR?
The IRS has many tools at its disposal, including: FATCA, FBAR, and J5.
Here are few common ways people get caught by the IRS:
If you are a U.S. Person, you are required to report your worldwide income to the IRS on your tax return (if you meet the threshold for filing a tax returns) And, now with more than 110 countries and 300,000 Foreign Financial Institutions (even in non-FATCA countries) reporting U.S. Account Holders to the IRS — it is important that you stay in compliance.
One of easiest ways for the IRS to discover your foreign bank account is to have the information hand-fed to them from various Foreign Financial Institutions. In accordance with FATCA (Foreign Account Tax Compliance Act), more than 110 different foreign countries and more than 300,000 foreign financial institutions are actively reporting us account holder information to the IRS.
In other words, the IRS not have to do anything, since the majority of large and small institutions from most FATCA compliant countries around the world are already reporting to the IRS.
If you’re a fan of our blog, then you know we are not huge fans of whistleblowers – unless of course it is to protect the interests and safety of the underrepresented. Usually, it Is just a “tattle-tale” — someone who’s looking to get out of trouble for something they did, by getting you in trouble.
And, since under the new/updated Whistleblower rules, FBAR balances can now be considered as part of the reward someone can claim for ratting you out — you have to be careful when not reporting foreign accounts (and the company you keep)
This is always a danger. The IRS can Audit you for any number different reasons. In recent years, with the introduction of FATCA, and renewed interest in FBAR penalties (which are lopsided and extreme in nature), if you’re under audit you have to be careful.
This is especially true if you are in an eggshell audit or reverse eggshell audit. If you provide the agent with inaccurate and/or intentional misrepresentations or omissions — it may take a turn for the worse.
Therefore, if you’re under audit — and especially if you receive an audit notice and you have unreported for undisclosed foreign bank accounts – you need to be careful before making any representations or statements to the IRS.
IRS Voluntary Disclosure/Amnesty by a 3rd Party
Here’s a common example: David decides he wants to get into tax compliance by entering the voluntary disclosure program. David has co-ownership of certain accounts with other individuals he partnered with for his business.
David’s partners are not so keen on getting into compliance and are trying to fly below the radar ,hoping that the foreign country they picked would not report the foreign accounts.
David on the other hand, is very concerned about getting in criminal trouble – since all partners were aware of the reporting requirement. David leaps into compliance and submits a preclearance letter.
Unfortunately as part of the compliance process, David has to identify the names of the joint account holders, which can lead to problems for the partners.
J-5 & Coinbase Subpoena
Bitcoin and cryptocurrency in general has been all the rave, although it seems to be subsiding more in recent months.
The United States is a member of J5 which is an international task force designed to combat and reduce offshore evasion, with an emphasis placed on cryptocurrency.
In addition, the IRS issued a summon/subpoena to Coinbase. And, even though Coinbase tried to fight it, in the end they relented and turned over upwards of 14,000 account holders names to the IRS.
While the internal Revenue Service and financial crimes enforcement unit (FinCEN) have not formalized specific reporting requirements the cryptocurrency, it is safe say that if you have your cryptocurrency in an account or other type of Financial institution (as opposed to personal wallet), the IRS may enforce foreign bank account reporting rules against you.
How Does the IRS Investigate You about FBAR?
The IRS also had many investigative techniques. Some of these include:
Contacting Your Bank Manager
It is safe to say the IRS would have no legitimate reason for speaking with the manager at the bank that you currently use, unless the IRS is trying to build a case against you.
Otherwise, why would the Internal Revenue Service take the time to go visit your bank manager? Oftentimes, when the IRS agent visits your bank manager, it is to begin comprehensive research on issues such as transfers, moving money offshore, and other matters related to your bank account.
They may want to know how often you come to the bank, and how often you request cash as opposed to other transfers. They may also want to know if there any other non-primary individuals on the account, accessing your information and if there are other accounts that the IRS may not know about yet.
Showing up at Your Home, Unannounced
When a person is not cooperating with the IRS, or consistently avoids appearing before the IRS, the IRS can get frustrated. One way the IRS relieves its frustration is by visiting by a person’s residence to try to put pressure on them.
This can be done for two main reasons: The first reason is to put some pressure on the individual to let them know that the IRS is aware of where person lives and that the situation is not going away so quickly. Second, is so the IRS can monitor how the person reacts after the IRS appears at their home. For example, as a result of the IRS visiting their home unannounced, in a person begins making significant transitions or transfers of money from one location or account to another – it may help the IRS pursue a criminal investigation.
Showing up at your Employment or Place of Business
This is a little more intense, and is usually not protocol unless a person owns their own business. We have had many clients tell us, in the pre-criminal investigation phase that the IRS showed up at their place of business to ask themselves – and other employees – various questions.
Of course, other individuals at the place of employment not required to speak to the IRS if they are not under subpoena or summons. Nevertheless, oftentimes people are so scared that when the IRS approaches, that they feel like they have to answer the question — and do. The employees mistakenly believe that by simply answering the questions it will make it go away – usually, the reverse happens and it just gives the IRS more ammunition to go after you.
Sudden Stopping of Communication From the IRS
If you are ever in an audit and the audit ends, but you are unable to obtain a closing letter or any other documentation from the IRS it may be cause for concern. That is because when a civil audit is stopped either abruptly (or with a little more tact), before it seems like the audit is complete, it is because the IRS agent believes there is a criminal issues
In a civil situation, the IRS is absolutely prohibited from asking further questions. That is because in a criminal setting, a person has a right against self-incrimination. A civil audit is not a criminal investigation, and therefore the agent does not have the right to ask criminal type questions.
Interviewing your CPA
If the IRS believes the CPA has information regarding a potential criminal tax matter, the IRS will send them a summons and bring their own “court reporter” with them to a question-and-answer session.
While the CPA has the right to counsel, it is important to understand that if the IRS is taking these types of actions against people on your behalf, then chances are the IRS is at least trying to put together all the evidence he can to determine whether there may be a criminal issue at play.
If You Already Committed an FBAR Crime, You Need to “Lawyer-Up”
If you already committed an FBAR crime, it is important to try to nip any investigation in the bud, before it is too late.
Common examples of FBAR crimes, include:
Lying to your CPA
As you may have seen recently in the Manafort case, lying to your CPA is pretty easy. The CPA sends you a questionnaire or binder and asks you whether you have any foreign income or foreign accounts… and you answer, no. This is despite the fact that you may have one or several foreign accounts, assets, income or investments overseas (presuming you speak English and understood the questionnaire).
Your tax preparer is there to help you (or at least they should be). We have worked with several high profile clients (and non-high-profile clients) who have had hidden several million dollars worth of unreported foreign income, accounts, assets or investments that were asked directly by their CPA (the person they are paying to accurately prepare their taxes) – and to which they blatantly lied, and answered no on questions regarding foreign accounts, etc.
Structuring is an odd crime, because feasibly – in certain situations – there could be a perfectly legal rational reason for doing it. By structuring, you are artificially keeping your deposits, withdrawals and transfers low (below of bank reporting requirements), so that the IRS does not get wind of your money.
Since the purpose of structuring is to avoid reporting or disclosure by the IRS, and you are purposefully and intentionally deflating the size and value of your accounts (and transfer)s in order to avoid detection, this is considered a crime – and one the IRS has been going after more seriously ever since the introduction and enforcement of FATCA.
Moving Money into Someone Else’s Account(s)
We are not talking about a gift of your money to another person. Rather, let’s say you have $3 million overseas and recently learned about FBAR and FATCA reporting. You despise financial transparency, and the last thing you want to do is report your hard-earned money to the IRS.
Therefore, you transfer your money into the foreign account of a foreign person, who does not have any US reporting requirement. Since the money is now in a foreign person’s account, and they have no reporting requirement – the money is safe, correct?
Not necessarily – especially with the introduction and enforcement of FATCA. If the foreign financial institution is already aware that you are a US person then the bank may have report that you depleted the account to the IRS. Moreover, the foreign financial institution might also provide the transfer information to the IRS.
Laundering the Money
Let’s say for example you have a business overseas and your vendor owes you significant amounts of money. Based on the type of corporate structure you have, you would have to report the money immediately as income to the IRS.
What do you do instead? You have the vendor purchase items for you, which are then transferred to by way of a third-party as a gift. For example, the vendor may purchase a million-dollar home, transfer it into the name of his daughter, and then transfer it to your son –who then gifts it to you.
Golding & Golding Lawyers for FBAR- Board Certified Tax Specialist
It’s all about a perspective, when you hire an Attorney for FBAR.
Hiring a Board Certified Tax Law Specialist Team that Specializes in Streamlined
Streamlined Disclosures are never easy, BUT they should ALWAYS be Flat-Fee. There are many tax and legal facets to the disclosure, and many pitfalls to be aware of.
As far as fees go, our fees range in the middle (in comparison to other highly experienced firms with advanced degrees), and we are known for exceptional client-servicing, with clients in over 70-countries.
At Golding & Golding, Voluntary Disclosure (Post-OVDP) and Streamlined is ALL WE DO.
Our team has handled more than 1000 offshore disclosures.
The team is led by Mr. Sean M. Golding, JD, LL.M., EA a Board Certified Tax Law Specialist with a Master’s in Tax Law . All work is done in-house, on-site by an Enrolled Agent and supporting team members.
We stand by our work, and provide audit defense on the back-end.
We designed the model.
There are a few, lesser experienced copycat firms, but we are the original — and still the best.
Hiring a Large Firm
Some firms are large, and have departments dedicated to Offshore Tax. We get referred to these firms to act as consultants on highly-complex cases – and some of the firms handle their own cases in-house as well.
These firms can be very effective.
They tend to cost more, but the quality of work is usually good.
Small, Less-Experienced and More General Practice Tax Firms
A sole practitioner or small more “generalized firm” that handles more than just Offshore Voluntary Disclosure, is not “Board Certified,” does not have a “Master’s in Tax Law (LL.M.), and is not an Enrolled Agent or CPA is going to charge less — because they have less experience.
Working with these firms on a Streamlined Disclosure is like riding shotgun with a driver who looks like a deer in headlights.
- The work tends to be sub-par.
- The Attorneys cannot answer tax questions.
- You are at the mercy of whichever CPA they send you to.
- The CPAs they refer you to are sub-par.
Oftentimes, we are called on to fix these cases.
FBAR Attorney Fees – How Much are They?
As with anything in life, you get what you pay for.
Non-Willful FBAR Cases — Flat-Fee, Full-Service
*All Non-Willful FBAR cases should be Flat-Fee, Full-Service for both Tax and Legal.
**If you were willful in not submitting the FBAR, the submission and analysis is much different and you need to discuss the specifics with you counsel such as whether you are already under investigation, have you been contacted by the Special Agents, etc.
IRS Offshore Penalty List
The following is a list of potential IRS penalties for unreported and undisclosed foreign accounts and assets:
Failure to File
If you do not file by the deadline, you might face a failure-to-file penalty. If you do not pay by the due date, you could face a failure-to-pay penalty. The failure-to-file penalty is generally more than the failure-to-pay penalty.
The penalty for filing late is usually 5 percent of the unpaid taxes for each month or part of a month that a return is late. This penalty will not exceed 25 percent of your unpaid taxes. If you file your return more than 60 days after the due date or extended due date, the minimum penalty is the smaller of $135 or 100 percent of the unpaid tax.
Failure to Pay
f you do not pay your taxes by the due date, you will generally have to pay a failure-to-pay penalty of ½ of 1 percent of your unpaid taxes for each month or part of a month after the due date that the taxes are not paid. This penalty can be as much as 25 percent of your unpaid taxes. If both the failure-to-file penalty and the failure-to-pay penalty apply in any month, the 5 percent failure-to-file penalty is reduced by the failure-to-pay penalty.
However, if you file your return more than 60 days after the due date or extended due date, the minimum penalty is the smaller of $135 or 100 percent of the unpaid tax. You will not have to pay a failure-to-file or failure-to-pay penalty if you can show that you failed to file or pay on time because of reasonable cause and not because of willful neglect.
Civil Tax Fraud
If any part of any underpayment of tax required to be shown on a return is due to fraud, there shall be added to the tax an amount equal to 75 percent of the portion of the underpayment which is attributable to fraud.
A Penalty for failing to file FBARs
The civil penalty for willfully failing to file an FBAR can be as high as the greater of $100,000 or 50 percent of the total balance of the foreign financial account per violation. See 31 U.S.C. § 5321(a)(5). Non-willful violations that the IRS determines were not due to reasonable cause are subject to a $10,000 penalty per violation.
A Penalty for failing to file Form 8938
The penalty for failing to file each one of these information returns is $10,000, with an additional $10,000 added for each month the failure continues beginning 90 days after the taxpayer is notified of the delinquency, up to a maximum of $50,000 per return.
A Penalty for failing to file Form 3520
The penalty for failing to file each one of these information returns, or for filing an incomplete return, is the greater of $10,000 or 35 percent of the gross reportable amount, except for returns reporting gifts, where the penalty is five percent of the gift per month, up to a maximum penalty of 25 percent of the gift.
A Penalty for failing to file Form 3520-A
The penalty for failing to file each one of these information returns or for filing an incomplete return, is the greater of $10,000 or 5 percent of the gross value of trust assets determined to be owned by the United States person.
A Penalty for failing to file Form 5471
The penalty for failing to file each one of these information returns is $10,000, with an additional $10,000 added for each month the failure continues beginning 90 days after the taxpayer is notified of the delinquency, up to a maximum of $50,000 per return.
A Penalty for failing to file Form 5472
The penalty for failing to file each one of these information returns, or to keep certain records regarding reportable transactions, is $10,000, with an additional $10,000 added for each month the failure continues beginning 90 days after the taxpayer is notified of the delinquency.
A Penalty for failing to file Form 926
The penalty for failing to file each one of these information returns is ten percent of the value of the property transferred, up to a maximum of $100,000 per return, with no limit if the failure to report the transfer was intentional.
A Penalty for failing to file Form 8865
Penalties include $10,000 for failure to file each return, with an additional $10,000 added for each month the failure continues beginning 90 days after the taxpayer is notified of the delinquency, up to a maximum of $50,000 per return, and ten percent of the value of any transferred property that is not reported, subject to a $100,000 limit.
Fraud penalties imposed under IRC §§ 6651(f) or 6663
Where an underpayment of tax, or a failure to file a tax return, is due to fraud, the taxpayer is liable for penalties that, although calculated differently, essentially amount to 75 percent of the unpaid tax.
A Penalty for failing to file a tax return imposed under IRC § 6651(a)(1)
Generally, taxpayers are required to file income tax returns. If a taxpayer fails to do so, a penalty of 5 percent of the balance due, plus an additional 5 percent for each month or fraction thereof during which the failure continues may be imposed. The penalty shall not exceed 25 percent.
A Penalty for failing to pay the amount of tax shown on the return under IRC § 6651(a)(2)
If a taxpayer fails to pay the amount of tax shown on the return, he or she may be liable for a penalty of .5 percent of the amount of tax shown on the return, plus an additional .5 percent for each additional month or fraction thereof that the amount remains unpaid, not exceeding 25 percent.
An Accuracy-Related Penalty on underpayments imposed under IRC § 6662
Depending upon which component of the accuracy-related penalty is applicable, a taxpayer may be liable for a 20 percent or 40 percent penalty
Possible Criminal Charges related to tax matters include tax evasion (IRC § 7201)
Filing a false return (IRC § 7206(1)) and failure to file an income tax return (IRC § 7203). Willfully failing to file an FBAR and willfully filing a false FBAR are both violations that are subject to criminal penalties under 31 U.S.C. § 5322. Additional possible criminal charges include conspiracy to defraud the government with respect to claims (18 U.S.C. § 286) and conspiracy to commit offense or to defraud the United States (18 U.S.C. § 371).
A person convicted of tax evasion
Filing a false return subjects a person to a prison term of up to three years and a fine of up to $250,000. A person who fails to file a tax return is subject to a prison term of up to one year and a fine of up to $100,000. Failing to file an FBAR subjects a person to a prison term of up to ten years and criminal penalties of up to $500,000. A person convicted of conspiracy to defraud the government with respect to claims is subject to a prison term of up to not more than 10 years or a fine of up to $250,000. A person convicted of conspiracy to commit offense or to defraud the United States is subject to a prison term of not more than five years and a fine of up to $250,000.
Contact Us Today; Let us Help You.
Sean holds a Master's in Tax Law from one of the top Tax LL.M. programs in the country at the University of Denver, and has also earned the prestigious Enrolled Agent credential. Mr. Golding is also a Board Certified Tax Law Specialist Attorney (A designation earned by Less than 1% of Attorneys nationwide.)