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 its 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.