Category: International Tax
Form 5471 Late Filing Penalties and Protective Refund Claims
The Internal Revenue Service (“IRS”) Form 5471, Information Return of U.S. Persons With Respect to Certain Foreign Corporations, is one of the most complicated international information reporting forms that some U.S. taxpayers may have to file each year depending on the U.S. taxpayer’s direct or indirect ownership in a foreign…
Supreme Court’s Non-Willful FBAR Holding Allows Taxpayers to Sleep at Night
Supreme Court’s Non-Willful FBAR Holding Allows Taxpayers to Sleep at Night During 2021, two different Appeals courts in the United States heard cases with similar fact patterns on a sensitive tax issue but held completely opposite decisions. Specifically, the Fifth and Ninth Circuits both ruled on cases dealing with taxpayers…
Split Among Federal Circuit Courts on the Application of the “Non-Willful” FBAR Penalty
Any individual that has direct ownership, signatory authority or beneficial ownership over a foreign bank account that has a balance of $10,000 during any point of the year is required to file a Report of Foreign Bank and Financial Accounts (“FBAR”). The penalties for failing to file an FBAR can…
Million-Dollar Penalty Upheld for Failing to Disclose Foreign Financial Assets
In 2002, Letantia Bussell was criminally charged with concealing financial assets in offshore accounts. Bussell was required to disclose her financial interest in an overseas account which she had to report in 2007 by filing a Report of Foreign Bank and Foreign Accounts (“FBAR”). She failed to make the required…
Service Announces Pending Closure of Offshore Voluntary Disclosure Program
IR-2018-53 On March 13, 2018, the Service issued IR-2018-52, announcing its intention to close the Offshore Voluntary Disclosure Program (“OVDP”) effective September 28, 2018. The Service’s stated intention for the issuance of IR-2018-52 is to allow United States taxpayers with undisclosed foreign accounts to use the OVDP before the program…
The Tax Consequences of Expatriation
K&D shareholder Patrick J. McCormick authored “The Tax Consequences of Expatriation”, appearing in the November 2017 issue of the Journal of Taxation and the January 2018 Journal of International Taxation as their cover article. Mr. McCormick specializes in all areas of international taxation, regularly assisting clients with all aspects of…
International Reporting Failures Create Penalty and Statute of Limitations Problems
An ever-growing number of businesses and individuals are going global. Familiarity with the U.S. tax forms that are necessary to properly disclose foreign assets and interests is thus paramount. Four critical forms – Foreign Bank Accounting Re-port (FBAR), 8938, 8621, and 3520 – are summarized, including applicable penalties. READ MORE…
FBAR Penalty Assessment and Enforcement
K&D associate, Patrick J. McCormick, authored the below article, “FBAR Penalty Assessment and Enforcement“. This article, published here with permission, will appear in the July 2017 issue of the Journal of International Taxation (Thomson Reuters/Checkpoint). Mr. McCormick specializes in the areas of international tax and tax compliance. Introduction CLICK TO…
Key Estate Planning Concepts for International Clients
K&D associate, Patrick J. McCormick, authored the below article, “Key Estate Planning Concepts for International Clients”, which will appear in the forthcoming June 2017 issue of Estate Planning, a nationally recognized journal published by Thomson Reuters, and again in a Summer 2017 issue of the Journal of International Taxation, also published…
Tax Reporting Implications of Foreign Mutual Funds
Due to the increased prevalence of foreign mutual funds, tax practitioners should be familiar with the related reporting requirements. Patrick J. McCormick authored the below article in the September issue of Practical Tax Strategies, a national tax journal published by Thomson Reuters (and distributed electronically through RIA Checkpoint). The following article has…