Update on the IRS open-ended amnesty program
We are having success in getting penalties eliminated or reduced.
I want to make you aware of the best guidance that one can get regarding the new IRS open-ended Amnesty program. These questions from the IRS deal with the Amnesty program. They will be very helpful.
Questions 17 in the IRS question which does say if you have no taxable income and you’ve paid all your taxes on your taxable income, there’s not going to be the substantial FBAR penalty violation that comes with a willful FBAR violation. That being the case, with no taxes due, you don’t need to be in the amnesty program. What we had found is people have gone in the amnesty program, and then because of either loss, carry-forwards, or foreign tax credits on foreign income or whatever may arise in these individuals’ situations, that at times even though there’s been foreign bank deposit investment income not reported, we have been able to show that there has been no taxable income. So that’s one area where there is some deviation if it’s handled in a sophisticated way.
We’ve had success in that area too, at looking carefully at whether there has been a willful violation in the past of the failure to file the FBAR. We take a very, very careful look at everyone who joins the amnesty program, not just to provide a really excellent product which is the key to the amnesty program but also it’s important to know that we take a look to make sure that we’re not paying more than any taxpayer should be paying under the amnesty program.
There are procedures, there’s very good guidance on how the procedures need to be followed and what procedures need to be followed, and procedures on how to expand for an institution to make sure that all of its branches are covered without doing the extra work.
If you need help with the new IRS open-ended Amnesty or any of the new IRS laws we can help.