Archive by Month: June 2014

New Jersey Tax Attorney Explains OVDP

Articles/News, Hot Topics, Offshore Account Update

Posted in on June 24, 2014

Since 2009, the Offshore Voluntary Disclosure Program (OVDP) has made it possible for more than 45,000 taxpayers to declare offshore foreign accounts that they had failed to disclose in the past.  The OVDP was designed to reduce penalties that would be associated with a failure to disclose a foreign account.  Unfortunately, the program was very limited and many people who wanted to take advantage of it were unable to do so. 

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Updates to the Offshore Voluntary Disclosure Program Effecting Clients in New Jersey & Nationwide

Offshore Account Update

Posted in on June 20, 2014

The Offshore Voluntary Disclosure Program (OVDP) has existed since 2009 to allow taxpayers to come forward and report offshore accounts they had previously failed to disclose to the Internal Revenue Service (IRS).  Both individuals living abroad and individuals within the United States must report offshore accounts annually and can face penalties and fines if they fail to do so.

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Federal Jury Assesses 150 Percent Penalty on Swiss Account


Posted in on June 18, 2014

In an effort to crack down on tax evasion, the Justice Department and Internal Revenue Service require U.S. persons with foreign bank accounts to complete Form TD F 90-22.1. This form is more commonly referred to as FBAR, short for Report of Foreign Bank and Financial Accounts.  A failure to file can result in penalties of 50 percent of the high account balance. 

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IRS Obtains a 150% Penalty From an 87-Year-Old Man in Florida for Willfully Not Filing FBARs


Posted in on June 6, 2014

On May 28, 2014, a Federal District Court Jury in Florida awarded FBAR penalties amounting to $2,241,809 to the U.S. government for a man’s failure to disclose an offshore account that had a high balance of $1,691,054 during the years that the account was not in compliance with information reporting requirements. This FBAR penalty is equivalent to 150% of the highest account value in the undeclared foreign bank account.

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