District Court Rules FBAR Penalties are Assessed by Form

Failing to file an FBAR can result in civil penalties. The civil penalty for non-willful violations is $10,000. Common consensus was that the penalty would apply for each failure (i.e., for each unfiled or delinquent FBAR). In recent years, however, the government has sought to impose a separate $10,000 for each account. Fortunately, this nonsense …

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Reporting Foreign Pension Plans on U.S. Tax Returns

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One of the most perplexing topics for taxpayers with foreign accounts is understanding how to report them on their U.S. tax returns. Taxation of foreign pensions — in general Employees who contribute to a foreign (i.e., non-U.S) pension plan may be taxed on the both the contributions and accrued gain in their plans. Foreign pension …

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Streamlined Domestic Offshore Procedures

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The IRS’ “streamlined domestic offshore procedures” are available to individuals who have non-willfully failed to report foreign financial assets and pay all tax due in respect to those assets. Streamlined domestic offshore procedures — eligibility Taxpayers must: fail to meet the non-residency requirement for the streamlined foreign offshore procedures; have previously filed a U.S. tax …

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Closer Connection Exception to the Substantial Presence Test

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An individual is a U.S. tax resident if they meet either the below tests. 1. Lawful permanent resident test: An individual who holds a green card is considered a resident for tax purposes for the period of time that he was a lawful permanent resident 2. Substantial presence test: An individual that spends at least 31 …

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