» Tax / IRS Penalties
Married Spouses’ Willful FBAR Penalties Are Double, Treasury Department Says
July 10th, 2020
Most married couples manage their money together. They may hold accounts jointly, or each keep their names on their own assets. But according to a recent complaint filed by the United States Secretary of Treasury, even keeping accounts in one spouse…
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IRS Says Widow Committed Willful FBAR Violations Just by Signing Tax Returns
June 24th, 2020
In many relationships, one spouse may handle all the financial affairs of the household. But what happens when that spouse dies? Can a widow (or widower) be assessed a willful FBAR penalty just for signing tax returns prepared by her spouse and a CPA…
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How Courts Calculate Willful FBAR Penalties
June 10th, 2020
If things have gone wrong and you find yourself and your overseas bank accounts the subject of an IRS audit, you may feel like you are preparing for the worst. But what is the worst? How do the IRS and tax courts calculate willful FBAR penalties when…
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Is a Retirement Account Early Withdrawal Tax Penalty Unconstitutional Discrimination?
May 26th, 2020
What’s the difference between a tax-advantaged retirement account and a regular savings account? About 10% if you take a withdrawal too early. But could that early withdrawal tax penalty be unconstitutional age or disability discrimination? The U.S…
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IRS Processing Delays Create Trouble for Foreign Trust Beneficiaries
April 7th, 2020
In this digital age, having documents “cross in the mail” is almost obsolete. However, IRS processing delays in reviewing foreign trust beneficiaries’ reasonable cause applications for forgiveness of reporting penalties can mean taxpayers recei…
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Categories: Tax / IRS Penalties
IRS Excuses Foreign Trust Reporting for Some Beneficiaries
March 31st, 2020
Retirement brings significant changes to the way U.S. taxpayers receive income, and report that income to the IRS. Up until now, if some part of that retirement income came from a foreign trust, beneficiaries ran the risk of IRS penalties unless they…
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Categories: Tax / IRS Penalties
Can a U.S. Embassy Seize Your Passport For Seriously Delinquent Tax Debt?
January 6th, 2020
American citizens living abroad rely on their local U.S. embassy to be their connection to their home country. That includes processing passport renewal applications. But if the IRS has certified you to the State Department for having seriously delin…
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Categories: Tax / IRS Penalties
Failing Company Lead to Criminal Tax Charges for Business Owner
October 24th, 2019
When a business opportunity turns sour it can leave entrepreneurs struggling to pay their employees and satisfy their creditors, including the IRS. A recent Court of Appeals decision shows how decisions made in a failing company led to criminal tax c…
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Categories: Tax / IRS Penalties
Tax Law’s Two Definitions of Willfulness, and Why They are Different
October 10th, 2019
The definitions of words in the U.S. tax code can be the difference between criminal convictions and financial consequences. Most taxpayers would assume that one word in that code would have one meaning. But when it comes to the definitions of willfu…
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Categories: Tax / IRS Penalties
IRS Eclipses Record FBAR Penalties in New Tax Fraud Lawsuit
September 10th, 2019
A recent federal court tax fraud lawsuit against a woman and her deceased husband’s estate has set a new record for FBAR penalties exceeding over $119.6 million. Find out what the IRS says she and her husband did to deserve such a steep penalty. Hu…
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