ignorance and the irs don't mix
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Freeman Tax Law reminds you Ignorance and the IRS don't mixTRANSCRIPT
Freeman Tax Law(855)935-5945
Ignorance and The IRS Don’t Mix
Ignorance To Tax Laws Not An Excuse
Whenever you play Monopoly you eagerly await the Get out of Jail free card so your stay can be brief and painless. The IRS doesn't play by the Boardwalk or Park Place rules. Ignorance to the
tax laws is not an excuse that the IRS will acknowledge. Actions speak louder than words and often the IRS will use you actions to show if your mistake was willful or not, thus determining
how serious your consequence will be.
Freeman Tax Law (855) 935-5945 [email protected] www.freemantaxlaw.com
Willful or Not?
If you didn’t know you had a legal duty to report income or a foreign bank account, how can you be prosecuted? It’s not that
simple.You can be proven to be willfully evading your tax responsibility
by your conscious choice to not comply with the tax code. Even if you did not mean to harm or cheat anyone, failing to learn of the
filing requirements for reporting offshore income and bank accounts combined with having such an account could be
enough for the IRS to find you willful.
Freeman Tax Law (855) 935-5945 [email protected] www.freemantaxlaw.com
No Excuses According to the IRS if you have a foreign account you should be
informed and read the government tax forms and instructions. If you do
not follow-up or get professional advice, that could also be enough to
claim you were willfully blind.
Same rule applied if you didn't know about FBARs. It is illegal to not file your FBARs, but even if you claim you didn't know your conduct is an
important piece of the willful puzzle. Suspicious conduct like filing some forms and not others, using another
passport, or omitting details from your tax preparer are signs that you
were willfully evading your tax obligations.Freeman Tax Law (855) 935-5945 [email protected] www.freemantaxlaw.com
Come Into ComplianceFor those that truly are non-willful the IRS
recently announced a change to the offshore disclosure programs to allow for more
individuals with offshore assets to come into compliance. Streamlined compliance
procedure is now available to both U.S. and non-U.S. residents that can certify their tax
noncompliance was non-willful. The new streamlined procedure offers a lesser penalty (5% on foreign assets that caused the non-compliance issue) than the 27.5-50% in the OVDP, but does not offer the same audit and
criminal liability protections since all omissions were non-willful .
Thoroughly discuss your conduct with a certified legal professional before taking part
in the Streamlined compliance program. Claiming that you were non-willful when you
were in fact willful is a crime. Freeman Tax Law (855) 935-5945 [email protected] www.freemantaxlaw.com
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Freeman Tax Law (855) 935-5945 [email protected] www.freemantaxlaw.com
Freeman Tax Law
About Freeman Tax Law
Freeman Tax Law is a boutique tax law firm with national exposure equipped to handle all domestic and international tax law matters. At Freeman Tax Law, the attorneys and professional staff have vast experience with foreign tax compliance, international tax planning, and resolving tax controversies involving offshore banking matters. Freeman Tax Law helps taxpayers and foreign entities become in compliance with laws such as Foreign Account Tax Compliance Act (FATCA) and Offshore Voluntary Disclosure Program (OVDP). In addition to handling complex tax controversies, the Freeman Tax Law team has extensive expertise in assisting clients with wealth management and estate planning.
Freeman Tax Law(855) [email protected]