CONFUSED? FinCEN Blows it….FBAR Due Date Now Extended Till October 31 2020

On October 14, the Financial Crimes Enforcement Network (FinCEN) caused a lot of confusion for taxpayers and their advisors concerning the filing due date for foreign (non-US) financial accounts. An incorrect posting was issued by FinCEN about the 2020 deadline to file Form 114, Report of Foreign Bank and Financial Accounts, commonly known as the … Continue reading CONFUSED? FinCEN Blows it….FBAR Due Date Now Extended Till October 31 2020 →

Seriously? IRS Assesses US$5.1 Million FBAR Penalty for “Signature Authority”

I have been keeping readers up to date with the current controversy surrounding imposition of an FBAR penalty for “willful” violations – is it limited to a $100,000 cap or can the penalty, if greater, be assessed at 50% of the value of the unreported account? More detailed background on this issue is available at my … Continue reading Seriously? IRS Assesses US$5.1 Million FBAR Penalty for “Signature Authority” →

MAJOR FBAR WIN for the Taxpayer! Penalty is Per FBAR Form, Not Per Account

Since the early 1970’s the Bank Secrecy Act (BSA) has been requiring US taxpayers to report certain foreign financial accounts and retain detailed records about them. Many individuals now know about the notorious “FBAR” (FinCEN Form 114, Report of Foreign Bank and Financial Accounts). It comes as a surprise to many, however, to learn that the … Continue reading MAJOR FBAR WIN for the Taxpayer! Penalty is Per FBAR Form, Not Per Account →

FBAR “Willfulness” – Fifty Shades of Gray

It’s been awhile since I have blogged about our friend, Mr. FBAR. For those of you who are not familiar with his nickname, you may know him by his more formal moniker “Report of Foreign Bank and Financial Accounts” (FinCEN Form 114). He springs from Title 31 of the Bank Secrecy Act (not the Internal … Continue reading FBAR “Willfulness” – Fifty Shades of Gray →

IRS Wants Help on Cryptocurrency Audits – Seeks Private Crypto Gurus

We know that the Internal Revenue Service (IRS) has been investigating tax evasion and other crimes tied to cryptocurrency. The agency has been hard at work for some time in scrutinizing crypto and for the past two years, it has been in the process of developing and executing investigation techniques to enforce cryptocurrency compliance. Along … Continue reading IRS Wants Help on Cryptocurrency Audits – Seeks Private Crypto Gurus →

Getting a Green Card – Is it Really Worth It?

I recently spoke on the US tax issues faced by the holder of the green card. To be or not to be such a holder? The podcasts (links below) may help you decide. The podcasts were made with John Richardson, a US and Canadian attorney. John, who is based in Canada, has seen his fair … Continue reading Getting a Green Card – Is it Really Worth It? →

The Flexible “Foundation” – It’s Becoming a Thing!

Recently I was the guest speaker on Jimmy Sexton’s podcast discussing all things related to an entity called a “foundation”. A foundation is a creature of a country’s statutory law, but foundations are not well understood in common law jurisdictions, such as the United States. In the podcast, we looked at the difference between civil … Continue reading The Flexible “Foundation” – It’s Becoming a Thing! →

Foreign Pension Plans / Retirement Trusts – Is IRS Seeing the Light?

The Internal Revenue Service (IRS) - starting to see some light with respect to "foreign" pension plans? The US tax issues surrounding foreign pensions and retirement schemes is extremely complex and has vexed tax professionals and US persons abroad for many years. (Read my earlier blog post here). Due to the diversity of such plans, … Continue reading Foreign Pension Plans / Retirement Trusts – Is IRS Seeing the Light? →

IRS’ Crypto Guidance – No, You Cannot Rely On It.

Cyptocurrency (such as Bitcoin) is a type of virtual currency. This is an emerging area and consequently transactions involving use of crypto come with an enormous amount of US tax uncertainty. The Internal Revenue Service (IRS) has taken a keen interest in virtual currency since its use provides a way for taxpayers to avoid tax … Continue reading IRS’ Crypto Guidance – No, You Cannot Rely On It. →

FinCEN: No FBAR Reporting for Virtual Currency in an Offshore Account

The Internal Revenue Service (IRS) and the Financial Crimes Enforcement Network (FinCEN) will jointly examine application of foreign account reporting requirements to virtual currency held in an offshore account under the Bank Secrecy Act (the notorious FBAR, Form 114). Two important points about FBAR duties for foreign accounts holding virtual currency were made in a … Continue reading FinCEN: No FBAR Reporting for Virtual Currency in an Offshore Account →