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Tax Compliance and IRS Implications

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					                             Tax Compliance and IRS Implications

The U.S Government bodies and the IRS are currently engaged in taking proactive measures for making
the taxpayers report their undisclosed foreign accounts and foreign entities to avoid any tax penalties
that might result from non-compliance with the tax policies. Legally, under the U.S. Department of
Treasury FBAR policies, an individual claiming himself/herself as a “United States Person” needs to
report to the annual FBAR case:


    ● The United State person has got a financial interest on one financial account that is situated
        outside U.S
    ● The aggregate value of all his existing foreign accounts surpasses $10,000 during the calendar
        year for reporting


The IRS Amnesty and Tax Compliance


The main objective of the IRS Amnesty is to get the taxpayers making use of undisclosed foreign
accounts and entities and evading tax rules comply with the same. The IRS has further restarted the
Overseas Voluntary Disclosure Program (OVDP) as it’s operating on various global tax issues and takes
on continuous initiatives with the Justice Department to pursue criminal prosecution of international tax
evasion.


Services Offered by Tax Planning Agencies


An expert tax planning agency helps in planning your taxes and FBAR reporting by providing a
comprehensive and meaningful insight on the tax codes that is applicable to the resident individuals of
U.S that includes Green Card Holders along with the US citizens. The services provided include:


    ●   Consultation and Impact Analysis
    ●   Analysis and Planning to reduce FBAR Penalty
    ●   AMT Strategies, Foreign Tax Credit
    ●   Review of 2009, and 2010 OVDI cases
    ●   Mutual Fund or PFIC computations
    ●   Preparation of forms required to participate in the OVDP program
    ●   Preparation of Tax Amendments and Delinquent FBAR
    ●   IRS Representation by Enrolled Agents or Affiliated CPAs and Attorneys


The addition of the phrase “amnesty” with the IRS does not excuse the penalties for any tax violation.
In case individuals have had their overseas accounts between 2003 and 2012 and still has not filed
the same legal then it is important that they consult their tax attorneys for the initial account filing. If
this is not done then the taxpayer has to face penalties in the form of a lump sum amount from the
unreported overseas account including the loss of other U.S assets and face imprisonment as well. This
attempt is helpful in making the non-compliant taxpayers compliant to resolve their tax liabilities and
minimize their scopes for criminal prosecution. When an individual taxpayer completely complies with
every regulation and provision of the voluntary disclosure program, the IRS will not recommend any
criminal scrutiny to the Department of Justice.


Read More About: Foreign Bank Account.

				
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Description: The U.S Government bodies and the IRS are currently engaged in taking proactive measures for making the taxpayers report their undisclosed foreign accounts and foreign entities to avoid any tax penalties that might result from non-compliance with the tax policies.