Not Filing FBAR Lands Manafort in Prison

Paul J. Manafort Jr., President Donald Trump’s former campaign chairman, who was found guilty of five counts of tax fraud, two counts of bank fraud and one count of failing to file foreign bank account reports (FBAR) last August. U.S. District Judge T.S. Ellis sentenced Manafort to 47 months in prison, well below the sentence that prosecutors had sought. Allegations of failure to file foreign bank account reports (FBAR) rest on proving a money trail. … Read More

ICE removes UK national convicted of violating FATCA

A United Kingdom national, the first to be convicted of violating the Foreign Account Tax Compliance Act (FATCA) in the U.S., was removed to his home country Feb. 15 by U.S. Immigration and Customs Enforcement’s (ICE) Enforcement and Removal Operations (ERO) deportation officers. Adrian Paul Baron, 64, was removed to London, via a commercial flight from New York’s John F. Kennedy International Airport. On March 20, 2018, Baron, the chief business officer and former chief … Read More

Canadian Banks Share Records with IRS

If you are a U.S. taxpayer with assets in Canada, this is a development that you should be following closely.  This applies especially if you have not been reporting your offshore accounts to the IRS. The Canadian government has shared more than 1.6 million Canadian banking records with the U.S. Internal Revenue Service since the start of a controversial information-sharing agreement in 2014, CBC News has learned. In 2016 and again in 2017, the Canada … Read More

965 Transition Tax – IRS Issues Final Regs

  Code Sec. 965 generally requires U.S. shareholders to pay a “transition tax” on the untaxed foreign earnings of certain specified foreign corporations as if those earnings had been repatriated to the U.S. Specifically, in a specified foreign corporation’s last tax year which began before Jan. 1, 2018, the foreign corporation’s subpart F income is increased by any previously un-taxed, non-effectively connected post-1986 earnings and profits (E&P) of the corporation measured as of one of … Read More

Government Shut-Down and IRS Contingency Plan

The government shutdown has entered its third week and the traditional start of filing season is nearing. According to reports, IRS is working on a filing season contingency plan and expects to finalize its plan shortly. While IRS released a contingency plan in late November 2018 outlining activities that would and would not take place during a lapse in appropriations, this plan does not cover the 2019 fiscal year filing season. The partial government shutdown … Read More

New FATCA Regulations Proposed

On December 13, 2018, the Internal Revenue Service issued a proposal intended to reduce the regulatory burden with respect to FATCA, the Foreign Account Tax Compliance Act.  The proposal would eliminate withholding requirements on gross proceeds paid to certain foreign entities from the sales or other dispositions of property that could produce interest or dividends from sources within the U.S. It also includes a delay on pass-through payment withholding requirements; relief from treaty statement documentation; … Read More

Four People Charged in Panama Papers Investigation

Four people were charged in an indictment unsealed on December 4th, 2018 in the Southern District of New York with wire fraud, tax fraud, money laundering and other offenses in connection with their alleged roles in a decades-long criminal scheme perpetrated by Mossack Fonseca & Co. (“Mossack Fonseca”), a Panamanian-based global law firm, and related entities. Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division, U.S. Attorney Geoffrey S. Berman for the … Read More

Limit on FBAR Willful Violation Penalty is an Annual One

A district court has held that the monetary limit on the penalty for willfully failing to file a Report of Foreign Bank and Foreign Accounts (FBAR) is an annual one. The court found that, in reaching this conclusion, it was not required to consider the ongoing split of court opinions in previous cases about whether the limit on the penalty is defined by statute or reg. Under 31 USC 5314(a) and 31 C.F.R. 1010.350, every … Read More