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Can an Informal Trust Shi…

Can an Informal Trust Shield a Trustee from FBAR Penalties?

When family money is passed down through the generations, it isn’t always clear who owns the accounts, or who is required to disclose them to the IRS. A recent case from the Federal Court of Claims considers whether an undocumented, informal trust… Read More
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tax prep software

Will Tax Prep Software Prevent Willful FBAR Penalties?

Every year, millions of Americans file their taxes using TurboTax or another commercial tax prep software. The hope is that these programs will make sure their taxes are done correctly and avoid penalties or even an IRS audit. However, one recent cas… Read More
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innocent spouse relief

Who is Entitled to Innocent Spouse Relief?

Spouses who choose to file their tax returns jointly depend on one another to truthfully report their income and comply with the tax law. When a husband or wife falls short on that obligation, their spouse may find themselves facing IRS collections.… Read More
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emotional distress

Do Plaintiffs Have to Pay Income Tax on Emotional Distress Awards?

If you represent plaintiffs in civil lawsuits, you often must negotiate the tax withholdings on their settlement awards. It is important to recognize how different legal claims are taxed and to draft your settlement agreements appropriately. Otherwis… Read More
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Categories: Tax Exemptions, Tax News
How Does the IRS Prove Ci…

How Does the IRS Prove Civil Tax Fraud in Court?

No one wants to be the subject of an IRS civil tax fraud investigation. But a tax audit is only the beginning of the process. When a taxpayer challenges the IRS’s assessment, the government will have to prove civil tax fraud in court. Here’s what… Read More
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Categories: IRS Audits, Tax News
foreign trusts

Update: Sole Owner / Beneficiaries of Foreign Trusts Can Face Higher Penalties, Court Says

A trust can be a useful wealth management tool to reduce tax obligations, and ensure beneficiaries receive their intended assets. However, when that trust is held overseas, the IRS requires extra tax returns from both owners and beneficiaries to make… Read More
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FBAR IRS collection

Can the IRS Collect Non-Willful FBAR Penalties from a Deceased Taxpayer’s Estate?

There’s an old saying that nothing is inevitable but death and taxes. But in a fight between the two, which one wins? If a person dies before paying off an assessment, can the IRS collect non-willful FBAR penalties from the deceased taxpayer’s es… Read More
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Categories: FBAR, Tax News
Appeals Judges Disagree O…

Appeals Judges Disagree Over Maximum Willful FBAR Penalty

The question of just how expensive a willful penalty for failing to report foreign financial accounts has been making its way through the federal court systems. Now, the Second Circuit has issued a split opinion that shows just how divided judges are… Read More
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Do You Have to File FBARs…

Do You Have to File FBARs for Inherited Foreign Bank Accounts?

There can be a lot of confusion around who has a duty to report inherited assets. If you inherited foreign bank accounts from your parents, relatives, or loved ones, you need to know about the IRS reporting requirements, or you could end up paying hu… Read More
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Categories: Tax News
CPA

CPA Should Have Known About FBARs, Asked Questions, Court Says

Many taxpayers facing audits over their foreign financial accounts say they relied on their CPA or accountant and didn’t know they had a duty to file FBAR reports. But when the taxpayer was a CPA himself, his claims of ignorance weren’t enough to… Read More
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Categories: FBAR, Tax News

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