Showing posts with label ovdi. Show all posts

The Bank Secrecy Act Requires a Form TD F 90-22.1, Report of Foreign Bank and Financial Accounts (FBAR)

October 24, 2012 By Lance Wallach, CLU, CHFC

This form is used as part of the IRS's enforcement initiative against abusive offshore transactions and attempts by

· Offshore bank accounts;
· Offshore mutual funds;
· Offshore hedge funds;
· Offshore variable universal life insurance policies;
· Offshore variable annuities a/k/a Swiss Annuities;
· Debit card and prepaid credit card offshore accounts.

The information provided herein is not intended as legal, accounting, financial or any type of advice for any specific individual or other entity. You should contact an appropriate professional for any such advice.

ABOUT THE AUTHOR: Lance Wallach
Lance Wallach, CLU, ChFC, CIMC, speaks and writes extensively about financial planning, retirement plans, and tax reduction strategies. He is an American Institute of CPA’s course developer and instructor and has authored numerous best selling books about abusive tax shelters, IRS crackdowns and attacks and other tax matters. He speaks at more than 20 national conventions annually and writes for more than 50 national publications.

Copyright Lance Wallach, CLU, CHFC
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FBAR fines, IRS coming after YOU

Lance Wallach

If you had money overseas you need to act now. The IRS is coming to get you. Many overseas banks are reporting to the IRS on people that had money in accounts. OVDI and opting out are ways to deal with some problems.

Many tax clients with unreported offshore accounts ask if they will receive the maximum penalties if they decide not to enter into the IRS’s tax amnesty program. That’s a great question considering the IRS uses the threat of severe penalties to gain compliance with the offshore reporting rules.
The current amnesty program, called the Offshore Voluntary Disclosure Program (sometimes called “OVDI” or “OVDP”), allows those with unreported foreign bank and brokerage accounts to pay a 27.5% penalty based on the highest balance of the unreported accounts during the last 8 years. That means if you have an account worth $800,000 today and $1 million in 2009, the IRS would extract a $275,000 penalty.
There are reduced penalties for small accounts and in certain other limited circumstances.
Why would anyone agree to such a huge civil penalty? The answer is simple. Failure to disclose an offshore account can be a felony if intentional and carries civil penalties of up to 50% of the highest balance for each year the account was unreported or $100,000 per year, whichever is higher. That means if you have owned a $500,000 account for the last 4 years the penalty could be $1 million - an amount twice the value of the account! If you don’t believe us, just look at FAQ 12 on the IRS own OVDI website.
Most people who approach the voluntary disclosure program feel like they are between a rock and a hard place. Lose all your money and potentially go to prison versus paying a huge 27.5% penalty. Remember, the penalty is based on the value of the account. Most U.S. taxpayers with offshore accounts have already paid tax on the money they earned. Unless the money is from drug dealing or other illegal activities, the money has already been taxed once.
There is hope, however. The penalties most often quoted are for willful violations. Yes, there are some business people that intentionally try to hide money from the IRS or a spouse. Most violators, however, simply didn’t know about the law. The typical amnesty applicant is a dual national, an American living overseas, a foreign born American or a person sending money “home” to family in India, Mexico or China.
The IRS’ website does not draw a distinction between these groups. That causes many people who have truly made an honest mistake to needlessly panic.
Recently there has been a growing thought that the courts could strike down the FBAR* penalties law as a violation of the Eighth Amendment to the U.S. Constitution. The Eight Amendment, adopted in 1791, says that “Excessive bail shall not be required, nor excessive fines imposed, nor cruel and unusual punishments inflicted.” While most people think of criminal and death penalty cases, there is a growing body of law surrounding the “excessive fines” language. [*An FBAR is a Report of Foreign Bank and Financial Account, the form that U.S. taxpayers must use to report foreign financial accounts yearly.]
In 1998, the U.S. Supreme Court ruled it was unconstitutional to fine a person $357,144 for failing to report cash in excess of $10,000 being removed from the country. Removing cash is not illegal just like opening a foreign account isn’t illegal. The law requires you to report both transactions, however.
In striking down the fine, the court found it was “grossly disproportionate” to the violation.
There is little guidance thus far from the courts, however the IRS has recognized the dangers in enforcing the 50% - per - year penalties on innocent violations. The Internal Revenue Manual used by IRS employee’s notes that the penalties established by Congress is the maximum amounts that can be imposed. Revenue agents are instructed to consider warning letters or lower penalties except in the most egregious cases. You need to be very careful and get good help. You get what you pay for. I am getting lots of calls from people in trouble because their accountants do not know what they are doing on these issues
If you have an unreported foreign account, contact a CPA experienced in foreign reporting requirements. The best would be someone who was in the international division of the IRS. He can probably tell you right away your situation and make suggestions. The decision to file under the OVDI amnesty program or seek a traditional disclosure is one that requires careful investigation. Once you make a traditional disclosure it is impossible to seek amnesty, however an amnesty applicant can always “opt out.”

Lance Wallach, National Society of Accountants Speaker of the Year and member of the American Institute of CPAs faculty of teaching professionals, is a frequent speaker on retirement plans, financial and estate planning, and abusive tax shelters. He speaks at more than ten conventions annually and writes for over fifty publications. Lance has written numerous books including Protecting Clients from Fraud, Incompetence and Scams published by John Wiley and Sons, Bisk Education's CPA's Guide to Life Insurance and Federal Estate and Gift Taxation, as well as AICPA best-selling books, including Avoiding Circular 230 Malpractice Traps and Common Abusive Small Business Hot Spots. He does expert witness testimony and has never lost a case. Mr. Wallach may be reached at 516/938.5007, wallachinc@gmail.com, or at www.taxaudit419.com or www.lancewallach.com.

The information provided herein is not intended as legal, accounting, financial or any type of advice for any specific individual or other entity. You should contact an appropriate professional for any such advice.

Offshore Banking

Foreign Bank Accounts

Offshore Banking is currently under great scrutiny by the US Justice department and the IRS. Offshore bank accounts and offshore income require special reporting to the US government. Owning an offshore account is not illegal, but US income taxpayers are required to declare and report any offshore bank accounts and income each year with their tax returns. The FBAR or Foreign Bank Account Report is used to report a financial interest in or authority over offshore accounts in a foreign country. The willful failure to disclose offshore accounts, or to report all of the information required on an FBAR, can result in severe civil and criminal penalties.

To Read More:http://taxadvisorexpert.com/Resources.html

Jail time for failure to file TD F 90-22.1 Report of Foreign Bank and Financial Accounts

Jail time for failure to file TD F 90-22.1 Report of Foreign Bank and Financial Accounts

A former UBS, AG ("UBS") client from Miami Beach, Florida was sentenced to four months in federal prison for willfully failing to file a Form TD F 90-22.1, Report of Foreign Bank and Financial Accounts ("FBAR"), for the UBS account the man held with as much as $4,000,0000 in it. This information was released by the U.S. Attorney for the Southern District of Florida on July 25 2012.

The former UBS client paid a civil penalty of $2,000,000 related to the $4,000,000 high account balance stemming from tax year 2006. Additionally, the former UBS client was sentenced to four months in federal prison, three years of supervised release, 250 hours of community service and a $20,000 criminal fine.

The UBS account related to two offshore corporations owned by the man, one in the Virgin Islands and one in the Republic of Panama. These corporations opened accounts at UBS. The man was not named as the direct owner but instead he was deemed only the "beneficial owner." The accounts with UBS were opened from tax years 2005 through 2007.

It is stated that the man was aware of the obligation on the FBAR to report as he had previously filed FBARs for other offshore corporations. An FBAR is required to be filed by both U.S. citizens and residents who have a financial interest in or signatory authority over a non-U.S. financial account with a value of more than $10,000 at any point during the tax year. The $10,000 amount is an aggregation of all non-U.S. financial accounts and not just an analysis on an account-by-account basis.

The information on the former UBS client was turned over after UBS agreed in February 2009 to pay $780,000,000 under a deferred prosecution agreement to settle the claim that UBS conspired to defraud the U.S. by impeding the Internal Revenue Service ("IRS"). UBS also agreed to turn over information to the U.S. Department of Justice on 300 account holders. Google Lance Wallach for more articles on point.

A US citizen or resident that held an account with UBS or any other institution that has not filed the necessary FBARs for the last eight tax years, should immediately reach out to get help to discuss any potential issues they may have and their alternatives. Filing for amnesty and then opting out are two options that our former IRS agents have successfully done for our clients. If not done properly it can be a disaster. We suggest you use a CPA with years of prior experience with the IRS international division.

Lance Wallach, National Society of Accountants Speaker of the Year and member of the AICPA faculty of teaching professionals, is a frequent speaker on FBAR, OVDI, IRS tax amnesty and opting-out abusive tax shelters, international tax, and estate planning. He writes about 412(i), 419, Section79, FBAR, OVDI, IRS tax amnesty and opting-out and captive insurance plans. He speaks at more than ten conventions annually, writes for over fifty publications, is quoted regularly in the press and has been featured on television and radio financial talk shows including NBC, National Public Radio’s All Things Considered, and others. Lance has written numerous books including Protecting Clients from Fraud, Incompetence and Scams published by John Wiley and Sons, Bisk Education’s CPA’s Guide to Life Insurance and Federal Estate and Gift Taxation, as well as the AICPA best-selling books, including Avoiding Circular 230 Malpractice Traps and Common Abusive Small Business Hot Spots. He does expert witness testimony and has never lost a case. Contact him at 516.938.5007, wallachinc@gmail.com or lanwalla@aol.com visit www.taxadvisorexperts.com or www.Lawyer4Audits.com.

Offshore Money, FBAR International Tax and the IRS

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By Lance Wallach, CLU, CHFC Abusive Tax Shelter, Listed Transaction, Reportable Transaction Expert Witness

FBAR, International Tax, IRS audits be careful. IRS Offshore Voluntary Disclosure Program Reopens Do YOU have money overseas? By Lance Wallach, CLU, CHFC - Recently the Internal Revenue Service reopened the offshore voluntary disclosure program to help people hiding offshore accounts get current with their taxes.

Additionally, the IRS revealed the collection of more than $4.4 billion so far from the two previous international programs.

The Offshore Voluntary Disclosure Program (OVDP) was reopened following continued strong interest from taxpayers and tax practitioners after the closure of the 2011 and 2009 programs. The third offshore program comes as the IRS continues working on a wide range of international tax issues and follows ongoing efforts with the Justice Department to pursue criminal prosecution of international tax evasion. This program will remain open indefinitely until otherwise announced.

Lance Wallach and his associates have received thousands of phone calls from concerned clients with questions about the prior programs. Some of Lance’s associates are still very busy helping people with the last program. Not a single person has been audited and most are pleased with the results and are now able to sleep easily without worrying about the IRS. According to Lance, it requires years of experience to obtain a good result from the program.

He suggests using a CPA-certified, ex-IRS agent with lots of international tax experience. While this is not a requirement to file under the program, Lance has heard many horror stories from people who have tried to file by themselves or who have used inexperienced accountants.

“Our focus on offshore tax evasion continues to produce strong, substantial results for the nation’s taxpayers,” said IRS Commissioner Doug Shulman. “We have billions of dollars in hand from our previous efforts, and we have more people wanting to come in and get right with the government. This new program makes good sense for taxpayers still hiding assets overseas and for the nation’s tax system.”

The new program is similar to the 2011 program in many ways, but it has a few key differences. Unlike last year, there is no set deadline for people to apply. However, the terms of the program could change at any time going forward. For example, the IRS may increase penalties in the program for all or some taxpayers or defined classes of taxpayers – or decide to end the program entirely at any point.

“As we've said all along, people need to come in and get right with us before we find you,” Shulman said. “We are following more leads and the risk for people who do not come in continues to increase.”

The third offshore effort accompanies another announcement that Shulman made today, that the IRS has collected $3.4 billion so far from people who participated in the 2009 offshore program. That figure reflects closures of about 95 percent of the cases from the 2009 program. On top of that, the IRS has collected an additional $1 billion from upfront payments required under the 2011 program. That number will grow as the IRS processes the 2011 cases.

In all, the IRS has seen 33,000 voluntary disclosures from the 2009 and 2011 offshore initiatives. Since the 2011 program closed last September, hundreds of taxpayers have come forward to make voluntary disclosures. Those who come in after the closing of the 2011 program will be able to be treated under the provisions of the new OVDP program.

The overall penalty structure for the new program is the same for 2011, except for taxpayers in the highest penalty category.

The new program’s penalty framework requires individuals to pay a penalty of 27.5 percent of the highest aggregate balance in foreign bank accounts/entities or the value of foreign assets during the eight full tax years prior to the disclosure. That is up from 25 percent in the 2011 program. Some taxpayers will be eligible for 5 or 12.5 percent penalties; these remain the same in the new program as in 2011.

Participants must file all original and amended tax returns and include payment for back-taxes and interest for up to eight years as well as paying accuracy-related and/or delinquency penalties.

Participants face a 27.5 percent penalty, but taxpayers in limited situations can qualify for a 5 percent penalty. Smaller offshore accounts will face a 12.5 percent penalty. People whose offshore accounts or assets did not surpass $75,000 in any calendar year covered by the new OVDP will qualify for this lower rate. As under the prior programs, taxpayers who feel that the penalty is disproportionate may opt instead to be examined.

The IRS recognizes that its success in offshore enforcement and in the disclosure programs has raised awareness related to tax filing obligations. This includes awareness by dual citizens and others who may be delinquent in filing, but owe no U.S. tax.

Lance Wallach, National Society of Accountants Speaker of the Year and member of the AICPA faculty of teaching professionals, is a frequent speaker on retirement plans, abusive tax shelters, financial, international tax, and estate planning. He writes about 412(i),, 419, Section79, FBAR and captive insurance plans. He speaks at more than ten conventions annually, writes for more than 50 publications, is quoted regularly in the press and has been featured on television and radio financial talk shows including NBC, National Public Radio’s “All Things Considered” and others. Lance has written numerous books including “Protecting Clients from Fraud, Incompetence and Scams,” published by John Wiley and Sons, Bisk Education’s “CPA’s Guide to Life Insurance and Federal Estate and Gift Taxation,” as well as the AICPA best-selling books, including “Avoiding Circular 230 Malpractice Traps and Common Abusive Small Business Hot Spots.” He does expert witness testimony and has never lost a case. Contact him at 516.938.5007, wallachinc@gmail.com or visit www.taxadvisorexpert.com.

While every effort has been made to ensure the accuracy of this publication, it is not intended to provide legal advice as individual situations will differ and should be discussed with an expert and/or lawyer. For specific technical or legal advice on the information provided and related topics, please contact the author.

FBAR International Tax OVDI

Lance Wallach

FBAR and international tax are hot issues that are costing people a lot of money. If you don’t do it right you will have IRS problems. Be careful who helps you. It may cost you a lot of money, or in the extreme time in Jail.
U.S. citizens with financial interest or signature authority over any foreign financial account (including bank, brokerage, securities, or other types of financial accounts) located outside of the United States, are required to report that information each year. Since most, if not all, U.S. citizens residing in a foreign country have a foreign bank account for their ordinary banking activities, they are subject to this same reporting requirement. If a person is required to file FBARs retroactively, they only have to file them for the last six years. The statute of limitations for assessing FBAR penalties is six years from the due date of the FBAR.

A failure to file the FBAR may subject the taxpayer to a willful or a non-willful civil penalty, in absence of reasonable cause. The civil penalty for willfully failing to file an FBAR can be up to $100,000 or 50% of the total account balance at the time of the violation. Non-willful violations are subject to a penalty of up to $10,000 per violation. However, if the failure to file was due to reasonable cause, as determined by the IRS, then there is no penalty. Please be very careful how you do this.

The IRS will consider factors such as taxpayer's reliance on a professional tax advisor, no indication of intent to conceal income or assets and other additional facts that weigh in favor of a determination that the violation was due to reasonable cause. The IRS will consider the facts and circumstances of the taxpayer's situation before imposing a penalty and may instead issue a warning letter. I have received hundreds of phone calls from people with big IRS problems. Many were caused by them getting bad advise.

The IRS reopened the Offshore Voluntary Disclosure Program (2012 OVDP) with News Release IR-2012-5 on January 9, 2012. The 2012 OVDP will remain open for an indefinite period of time, with no set deadline for taxpayers to apply. The overall penalty structure for the 2012 OVDP requires individuals to pay a penalty of 27.5% of the highest aggregate balance in foreign accounts/entities or value of foreign assets during the eight tax years prior to disclosure. Some participants, in limited circumstances, will be eligible for a lower penalty of 12.5% or 5%.

Taxpayers must consider their specific situation before making a decision about how best to become compliant with the U.S tax laws. With the announcement of the 2012 OVDP, they and their advisors need to determine whether they should follow the guidance provided in IRS Fact Sheet FS-2011-13, file returns for the past six years and hopefully be granted reasonable cause relief or, alternatively, participate in the 2012 OVDP, file and pay taxes for the past eight years to obtain amnesty from criminal prosecution. They should also consider filing and then opting out. If done correctly this may be the best solution. Consider using an ex ITS agent who was with the international division of the IRS. If he is a CPA that is even better. I have found you get want you pay for. Do not try to do this on your own. Do not use a CPA unless he has years of experience on these issues. You do not want him to learn on the job.

Lance Wallach, National Society of Accountants Speaker of the Year and member of the American Institute of CPAs faculty of teaching professionals, is a frequent speaker on retirement plans, financial and estate planning, and abusive tax shelters. He speaks at more than ten conventions annually and writes for over fifty publications. Lance has written numerous books including Protecting Clients from Fraud, Incompetence and Scams published by John Wiley and Sons, Bisk Education's CPA's Guide to Life Insurance and Federal Estate and Gift Taxation, as well as AICPA best-selling books, including Avoiding Circular 230 Malpractice Traps and Common Abusive Small Business Hot Spots. He does expert witness testimony and has never lost a case. Mr. Wallach may be reached at 516/938.5007, wallachinc@gmail.com, or at www.taxaudit419.com or www.lancewallach.com.

FBAR & IRS: Painful lessons from the 4th Circuit’s US v Williams reversal

July 26, 2012 | FBAR Penalties, International Taxation, Miscellaneous, News, OVDI Offshore Voluntary Disclosure Initiative, Voluntary Disclosure

The 4th Circuit takes a hard line on FBAR penalties

Nearly two years ago, I commentated on the lone FBAR court decision, US v. Williams (4th Cir. Jul 20 2012). In this case, the IRS lost. But because the facts were so unique, so limited, it really wasn’t much of a loss for the IRS. After all:
“…Williams’ tax professionals did not advise him to the requirement to file an FBAR. He said he didn’t know he had to and no one made it clear to him that he needed to. Unlike a strict liability offense where state of mind in irrelevant, in order to be liable for willful failure to file penalties, ones must possess a willful state of mind. Ignorance is at best, negligent.
Second, and here’s what I think it most important — is that for tax year 2000, the due date to report the TDF 90-22.1 form was on June 30, 2001. But the thing is that the IRS already knew about the account — since November 2000 when the account was originally frozen!
So when Williams was required to disclose the accounts existence to the IRS on June 30, 2001, Williams already knew the IRS knew about the Credit Agricole. There is no possible way Williams failure to file the FBAR could have possibly helped him and he must have known that. The court reasoned that the failure to check the box and failure to file a TDF 90-22.1 form by the June 30th deadline could have only been an innocent mistake. There actually was no strategic reason for Williams to file an FBAR — thus, the court inferred that the failure to file was not willful.”
So after the district court ruled against the IRS in 2010, I figured the Williams matter to be pretty much over. The case wasn’t all that strong for the government, and the taxpayer had absolutely nothing to gain by not filing the FBAR. After all, he already plead guilty to tax evasion on income earned from the very bank accounts that the IRS assessed the FBAR penalties. I figured the IRS would move on to more fertile ground, and not appeal. I was wrong. The IRS appealed. And more surprising, this time, they won.
And these are the lessons…
1. The IRS is insanely aggressive in assessing FBAR penalties. The IRS threw everything that had at this case and there was no mercy even though prudence would probably have called for it. So people thinking about a so-called ‘quiet’ or ‘soft’ disclosure think twice. And any tax professional advising a course of action — understand the IRS will probably come after you if they catch wind that you profited from advising something other than compliance.
2. Reliance on tax professional is no defense to FBAR penalties. Williams hired counsel during this time to assist him in coming clean. Clearly they missed having him file an FBAR. And if I were in their shoes, I would probably do no different. I am not criticizing his counsel. Of course, in retrospect, they should have. But how were they to know? They attempted a voluntary disclosure. Shouldn’t the IRS have said ‘jeez, we want to process this voluntary disclosure, but it seems we are missing some FBARs.”
So if you are outside the OVDI program, and get assessed FBAR penalties, do not expect the leniency available if you get into the OVDI program. They will push this all the way (However, If you are in the OVDI program reliance on a tax professional is a legitimate reason). Think about it: If the IRS can and will assess FBAR penalties in this case, what case will they not?
3. Willful is a low, low threshold. The 4th circuit has now ruled that “willful” is tantamount to “I could not possibly benefit from non-compliance, I relied on professional advice, and honestly my failure is what 80% of taxpayers so similarly situated did.”
This is a pertinent fact missing form the decision: According to the IRS records, in 2002, no more than 20% of taxpayer who were required to file FBARs actually filed FBARs. The FBAR filing requirement has been in place since 1970, but because of massive confusion and the Treasury even admitting that it it not have the resource to process them. It was a requirement that was routinely ignored…by everyone.
4. Do not expect justice/commonsense/fairness if you do not make an OVDI disclosure. It will not happen. If you do not like the IRS, you must get political. (or wait until a member of congress get caught in an FBAR scandal. Then maybe we can expect some reasonableness to trickle down). If you want to be treated somewhat fairly, you must disclose) by filing an OVDI an aggressively seek a lower penalty amount.
Here’s the thing. Not everyone who failed to file and FBAR or did not report income earned overseas should be treated like a criminal. And in fact, the opposite the vast majority of noncompliance is from either ex-pats, dual citizens or VISA holders who were under the mistaken assumption that because they paid taxes on income earned in their home/host country, the did not need additionally be taxes by the IRS. As this is totally a reasonable position. Look at the 16th Amendment. Where does it say worldwide income? It doesn’t. It actually took a US Supreme Court case, US v Tait, to rule that yes, the IRS could tax you globally.

IRS FBAR Voluntary Disclosure Program Updates

By Lance Wallach, CLU, CHFC Abusive Tax Shelter, Listed Transaction, Reportable Transaction Expert Witness

Call Lance Wallach at (516) 938-5007

Lance Wallach

On June 26, 2012 the IRS released IR-2012-64/65 and updated Frequently Asked Questions (FAQs) providing updated guidance regarding the currently pending offshore voluntary disclosure program (the initial terms of the 2012 OVDP were set forth in IR-2012-5 released on January 9, 2012). The OVDP follows on the success of the 2009 Offshore Voluntary Disclosure Program (the 2009 OVDP) and the 2011 Offshore Voluntary Disclosure Initiative (the 2011 OVDI), which were announced many years after the 2003 Offshore Voluntary Compliance Initiative (OVCI) and the 2003 Offshore Credit Card Program (OCCP). Such initiatives typically offer reduced penalties in exchange for taxpayers voluntarily coming into compliance before the IRS is aware of their prior tax indiscretions. In part, the success of such initiatives often depends on the perception that they will be followed by strong government tax enforcement efforts.
Under the Bank Secrecy Act, U.S. residents or a person in and doing business in the United States must file a report with the government if they have a financial account in a foreign country with a value exceeding $10,000 at any time during the calendar year. Taxpayers comply with this law by noting the account on their income tax return and by filing Form 90-22.1, the FBAR. Willfully failing to file an FBAR can be subject to both criminal sanctions (i.e., imprisonment) and civil penalties equivalent to the greater of $100,000 or 50% of the balance in an unreported foreign account— for each year since 2004 for which an FBAR wasn’t filed.
Generally, taxpayers who have undisclosed offshore accounts or assets and meet the requirements of IRM 9.5.11.9 are eligible to apply for IRS Criminal Investigation’s Voluntary Disclosure Practice and the 2012 OVDP penalty regime. The OVDP is available to taxpayers who have both offshore and domestic issues to disclose. The Voluntary Disclosure Practice requires an accurate, and complete voluntary disclosure. Consequently, if there are undisclosed income tax liabilities from domestic sources in addition to those related to offshore accounts and assets, they must also be disclosed in the OVDP. The 2012 OVDP is patterned after the 2011 OVDI but increases the maximum “FBAR-related” penalty from 25% to 27.5% of the highest account value at any time during the most recent eight tax years. The terms of the OVDP, are subject to change at any time.
For calendar year taxpayers the voluntary disclosure period is the most recent eight tax years for which the due date has already passed. The eight-year period does not include current years for which there has not yet been non-compliance. Thus, for taxpayers who submit a voluntary disclosure prior to April 15, 2012 (or other 2011 due date under extension), the disclosure must include each of the years 2003 through 2010 in which they have undisclosed foreign accounts and/or undisclosed foreign entities. Fiscal year taxpayers must include fiscal years ending in calendar years 2003 through 2010. For taxpayers who disclose after the due date (or extended due date) for 2011, the disclosure must include 2004 through 2011. For disclosures made in successive years, any additional years for which the due date has passed must be included, but a corresponding number of years at the beginning of the period will be excluded, so that each disclosure includes an eight-year period.
For taxpayers who establish that they began filing timely, original, compliant returns that fully reported previously undisclosed offshore accounts or assets before making the voluntary disclosure, the voluntary disclosure period will begin with the eighth year preceding the most recent year for which the return filing due date has not yet passed, but will not include the compliant years.
Taxpayers under IRS criminal investigation are not eligible to participate in the OVDP. Also, if the IRS has initiated a civil examination, regardless of whether it relates to undisclosed foreign accounts or undisclosed foreign entities, the taxpayer will not be eligible to participate in the 2012 OVDP.
In 2003, following significant publicity regarding the use of foreign accounts and credit card arrangements by U.S taxpayers, the IRS offered significant penalty relief for taxpayers participating in the OVCI which coincided with strong tax enforcement efforts under the OCCP. Eligible OVCI taxpayers were required to file amended or delinquent returns for three tax years (1999-2001) but could choose to bring tax years 1996-1998 into the OVCI (and would not be examined for any earlier years). Approximately 1,321 taxpayers from 48 countries participated in the OVCI identifying approximately 400 offshore promoters. The IRS agreed to not assert any 75% civil fraud penalties and the Financial Crimes Enforcement Network (FinCEN) agreed to not assert any civil penalties for the failure to timely file a Report of Foreign Bank and Financial Accounts (FBAR).
The 2009 OVDP brought in at least 14,700 U.S. taxpayers (disclosing accounts in more than 60 countries) through the front door of IRS Criminal Investigation and untold thousands through a process of quietly amending returns and filing delinquent FBARs with the government. For eligible taxpayers who ventured through the front door, the OVDP provided the certainty of no criminal prosecution and civil penalty relief – they were required to pay back-taxes from 2003 to 2008, interest and a 20-25% penalty on the delinquent taxes. The IRS also imposed a 20% “FBAR-related” penalty equal to the highest aggregate value of the financial account between 2003 and 2008. In limited situations, the FBAR-related penalty could be reduced to 5% of the account value or $10,000 per tax year.
The 2011 OVDI, brought in an additional 12,000 eligible taxpayers who filed original and amended tax returns and agreed to make payments (or good faith arrangements to pay) for taxes, interest and accuracy-related penalties. The 2011 OVDI FBAR-related penalty framework required a 25% “FBAR-related” penalty equal to the highest value of the financial account between 2003 and 2010. Only one 25 percent offshore penalty is to be applied with respect to voluntary disclosures relating to the same financial account. The penalty may be allocated among the taxpayers with beneficial ownership making the voluntary disclosures in any way they choose. Potentially applicable penalties are identified in a series of Frequently Asked Questions available at irs.gov. Participants in the 2011 OVDI also had to pay back-taxes and interest for up to eight years as well as paying accuracy-related and/or delinquency penalties. Subject to certain limitations, financial transactions occurring before 2003 were generally irrelevant for those participating in the OVDI.
Under the 2012 OVDP, taxpayers who are foreign residents and who were unaware they were U.S. citizens may qualify for a reduced 5% FBAR-related penalty (FAQ 52). Others qualified for the 5% penalty if they: (a) did not open or cause the account to be opened (unless the bank required that a new account be opened, rather than allowing a change in ownership of an existing account, upon the death of the owner of the account); (b) have exercised minimal, infrequent contact with the account, for example, to request the account balance, or update account-holder information such as a change in address, contact person, or email address; (c) have, except for a withdrawal closing the account and transferring the funds to an account in the United States not withdrawn more than $1,000 from the account in any year covered by the voluntary disclosure; and (d) can establish that all applicable U.S. taxes have been paid on funds deposited to the account (only account earnings have escaped U.S. taxation). For funds deposited before January 1, 1991, if no information is available to establish whether such funds were appropriately taxed, it is presumed that they were.
Taxpayers whose highest aggregate account balance (including the fair market value of assets in undisclosed offshore entities and the fair market value of any foreign assets that were either acquired with improperly untaxed funds or produced improperly untaxed income) in each of the years covered by the 2012 OVDP is less than $75,000 qualified for a 12.5% FBAR-related penalty (FAQ 53). IRS examiners have no authority to negotiate a different FBAR-related penalty.

We have received hundreds of phone calls about these situations. My suggestion is that the way to obtain the best results would be to use a former IRS international manager. He should also be a CPA. In many circumstances we have significantly reduced the taxes by applying for amnesty and then opting out. If this procedure is followed properly you end up dealing with the appeals division of the IRS. In my experience and I think most other tax experts would agree, you can bargain with the appeals officer and if you know what you are doing you usually can substantially reduce your taxes. The down side to this is most tax practioners have little or no experience with this, and will probably not obtain a good result for their client.
As I suggested using a former IRS International tax manager is usually the best way to deal with this situation. If you want even better results make sure he is also a CPA. The ideal situation would be to user a former IRS tax manager with many years experience working for the IRS.
While he was at the IRS, if he worked in the appeals division that would be a plus he should also be a CPA and understand the ramification of all the FBAR, OVDI, and amnesty problems.
If you are caught in this situation you had better get expert help as quickly as possible. This situation can even result in criminal prosecution. If handled properly the fines and penalties can be tremendously reduced.

ABOUT THE AUTHOR: Lance Wallach
Lance Wallach, National Society of Accountants Speaker of the Year and member of the AICPA faculty of teaching professionals, is a frequent speaker on retirement plans, financial and estate planning, and abusive tax shelters. He speaks at more than ten conventions annually, writes for over fifty publications, is quoted regularly in the press and has been featured on television and radio financial talk shows including NBC, National Pulbic Radio's All Things Considered, and others. Lance has written numerous books including Protecting Clients from Fraud, Incompetence and Scams published by John Wiley and Sons, Bisk Education's CPA's Guide to Life Insurance and Federal Estate and Gift Taxation, as well as AICPA best-selling books, including Avoiding Circular 230 Malpractice Traps and Common Abusive Small Business Hot Spots. He does expert witness testimony and has never lost a case. Contact him at 516.938.5007, wallachinc@gmail.com or visit www.taxaudit419.com

The information provided herein is not intended as legal, accounting, financial or any other type of advice for any specific individual or other entity. You should contact an appropriate professional for any such advice.

Nontrust Forms of Ownership

Since trusts are not permitted in some countries, it was not possible to create a QDOT in those countries. TRA ’97 provides the Treasury Department with regulatory authority to treat as trusts legal arrangements that have substantially the same effect as a trust. [IRC §2056A(c)]

.2 Authority to Waive Requirement of U.S. Trustee

In some countries, trusts cannot have any U.S. trustees. Consequently, trusts established in those countries cannot qualify as a QDOT. In order to permit the establishment of a QDOT in those situations where a country prohibits a trust from having a U.S. trustee, TRA ’97 provides the Treasury Department with regulatory authority to waive the requirement that a QDOT have a U.S. trustee. [IRC §2056(a)(1)(A)]

.3 Effective Date

These provisions apply to the estates of decedents dying after August 5, 1997.

It is expected that the Treasury Regulations will require that sufficient trust assets be subject to U.S. jurisdiction to ensure collection of estate tax with respect to the trust. For example, the Regulations may require that a portion of trust property be located in the U.S. or that the trustee be an institution with substantial U.S. assets.

5.7.4 Tax Treatment

.1 Imposition of Estate Tax

(A) Estate tax is imposed on the following:

(1) The value of corpus distributions from the trust made prior to the date of death of the surviving spouse

(2) The value of property, which remains in a qualified domestic trust on the date of death of the surviving spouse

(3) The trust that ceases to meet the requirements listed in 5.7.2

[IRC §2056A(b)]

(B) Estate tax does not apply to the following:

(1) After the surviving spouse becomes a U.S. citizen if: (a) the spouse was a U.S. resident at the time of the death of the decedent and at all times thereafter; (b) no tax was imposed on a qualified domestic trust distribution before the spouse became a U.S. citizen; or (c) the spouse elects to treat any distribution upon which tax had been imposed as a taxable gift by the spouse to determine the future estate and gift tax liability of the spouse [IRC §2056A(b)(12)]

(2) A distribution of corpus from a qualified domestic trust to a surviving spouse if the distribution is made on account of hardship [IRC §2056A(b)(3)]

(3) Any distribution to the surviving spouse to the extent that the distribution is to reimburse the spouse for any income tax on trust income to which the spouse is not entitled under the terms of the trust [IRC §2056A(b)(15)]

.2 Amount of Estate Tax

(A) The amount of the estate tax imposed by IRC §2056A is the additional estate tax which would have been imposed under IRC §2001 on the decedent’s estate if the decedent’s taxable estate had been increased by the sum of:

(1) The amount involved in the taxable event; plus

(2) The aggregate amount involved in previous taxable events with respect to qualified domestic trusts of the decedent; reduced by

(3) The tax that would have been imposed on the estate of the decedent if the taxable estate of the decedent had been increased by the aggregate amount involved in previous taxable events with respect to qualified domestic trusts of the decedent. [IRC §2056A(b)(2)]

(B) If the estate tax for the estate of the decedent spouse has not been finally determined, a tentative tax is imposed by use of the highest estate tax rate in effect as of the date of the death of the decedent. When the estate tax liability of the decedent spouse is finally determined, the excess tentative tax over the additional estate tax which would have been imposed had the property been included in the estate tax of the decedent is refundable. [IRC §2056A(b)(2)(B)]

(C) Multiple Qualified Domestic Trusts

For more than one qualified domestic trust with respect to a decedent, the amount of estate tax imposed is calculated by use of the highest tax rate in effect at the date of the death of the decedent, unless the executor selects an individual U.S. citizen or domestic corporation to be responsible to file all returns and pay all tax for all trusts and meet the other requirements of the Regulations. [IRC §2056A(b)(2)(C)]

5.7.5 Compliance

.1 The estate tax imposed due to a distribution is due on the 15th day of the fourth month which follows the calendar year in which the distribution occurs. The estate tax imposed on a distribution during the year in which the surviving spouse dies and the tax imposed on the death of the spouse is due and payable nine months after the date of the death of the spouse. [IRC §2056A(b)(5)]

.2 Form 706-QDT was issued in 1991 to report the estate tax required by IRC §2056A and the hardship distributions to the spouse. The reporting date was September 16, 1991, for taxable events and hardship distributions that took place between November 10, 1988, and January 1, 1991. After December 31, 1990, the due date is April 15th of the year following the year of the taxable event or hardship distribution. [Ann. 91-58, 1991-15 IRB 39]

.3 The trustee is personally liable for the estate tax. Payment from the trust in satisfaction of tax liability is treated as an additional distribution which is subject to tax. [IRC §§2056A(b)(6) and (11)]

____________________[j1]

Fbar-REPORT OF FOREIGN BANK AND FINANCIAL ACCOUNTS

REPORT OF FOREIGN BANK
AND FINANCIAL ACCOUNTS

Form
http://www.irs.gov/pub/irs-pdf/f90221.pdf

International Investigations - Criminal Investigation (CI)

Why is IRS-CI Involved in International Investigations?

International tax compliance is a top priority of the IRS. “The IRS will vigorously pursue tax cheats around the world, no matter how remote or secret the location. And we will work with other governments where possible to obtain the information we need,” asserts IRS Commissioner, Douglas H. Shulman. IRS is serious about our international effort, we’re serious about piercing the veil of bank secrecy, and we’re serious about carrying forward the momentum to address offshore tax evasion and money laundering. Criminal Investigation, the law enforcement arm of the IRS, has an important role in the IRS’ service-wide international tax compliance efforts, and the CI international strategy to combat offshore tax evasion casts a wide net of enforcement efforts around the world
Complex international tax avoidance schemes and cross-border transactions have heightened the IRS’ concern about tax compliance. The IRS Criminal Investigation Division (CI) is seeing certain trends involving offshore accounts and noncompliance with the U.S. tax laws. Often, individuals attempt to use foreign accounts, credit/debit cards, trusts, corporations, partnerships, and other entities to commit criminal violations of U.S. tax laws as well as narcotics, money laundering and Bank Secrecy Act (BSA) violations. Using offshore methods to evade taxes is an issue of fundamental fairness; it is a crime that harms every honest taxpayer.
IRS Criminal Investigation coordinates its efforts with other countries to counteract tax schemes, money laundering, and the flow of narcotics and terrorist funding. These crimes all have a common link in that they are financial crimes. IRS Criminal Investigation special agents are forensic accountants trained to follow the money from the crime to the criminal to establish their culpability and find their hidden wealth. Worldwide, many countries have agreed to adopt international tax standards on exchanging information and, as a result, the age of bank secrecy is coming to an end. IRS Criminal Investigation is at the forefront of this effort.

IRS Criminal Investigation is working to develop new ways to share information and foster cooperation among other U.S. government agencies and our foreign government counterparts. We also work with other governments and law enforcement agencies to share knowledge and support the development of expertise in financial investigation techniques and forensic accounting procedures. We do this through our CI-developed and accredited training course, financial investigative training (FIT).

To enhance its international efforts Criminal Investigation has expanded its overseas presence by assigning attachés to key foreign embassies and consulates. Attachés establish strong ties with our foreign government and law enforcement partners working with them to gather and share information about possible financial crimes. Criminal Investigation also actively participates in a number of international financial task force groups to investigate significant areas of noncompliance and criminal activity. Criminal Investigation participates in INTERPOL, the Terrorist Finance Working Group (TFWG), the Financial Action Task Force (FATF), and the Organisation for Economic Co-operation and Development (OECD).

Criminals will no longer find favorable havens for overseas tax evasion. With tough legislation, global partnering and CI’s financial investigative skills, the days of overseas tax evasion and financial crimes are numbered.
If you have a tax question or need general assistance about a civil international tax matter, please check Help With Tax Questions - International Taxpayers.
Examples of International Investigations
Examples are written from public record documents on file in the court records in the judicial district in which the cases were prosecuted. IRS Special Agents participated in the financial investigative aspect of these cases.

FBAR Penalty

Did you know that the the FBAR penalty is calculated not on your account earnings, but rather, on your account value? For instance, if you have an account that is worth $1,000,000, the IRS, for one year, can asses a $500,000 FBAR penalty. And for two years, the FBAR penalty could be equal to the amount of the account. You see, the IRS is not limited to just two years, the IRS could potentially assess the FBAR for 6 or more years.
So you can see the FBAR penalty can be particularly devastating. So you need great advice on how to best deal with your unique situation.
But did you know there is a way out of this jam?

This is how to beat FBAR penalties:

You need to show the IRS one or more of the following:
• you relied on the advice of a professional tax adviser who was informed of the existence of the foreign financial account.
• you had a legitimate purpose for establishing the unreported account. For instance, you opened the account because you are a dual citizen, or use the money to fund operational expenses overseas, like a rental property.
• you lacked of any intentional effort to conceal income or assets related to an unreported foreign account. So despite the non-filing of the FBAR, you took no action to hide the existence of the account.
• you don’t have an outstanding tax bill. Or whatever unreported income you have, you already amended and paid the outstanding taxes before applying for FBAR penalty abatement.
What is the process for abating and avoiding penalties? You may need to submit a 2012 Offshore Voluntary Disclosure Initiative, and subsequently opt-out to obtain lower penalties. In some cases however, especially where there is no unreported income, a, OVDI is not necessary. In either case, is best to speak to a qualified offshore tax attorney in order to find the right path for you.
Now when will the IRS look to asses FBAR penalties. When the following factors are present:
• you failed to disclose a foreign financial account to his or her tax return preparer. That is, you never mention the unreported earnings on your tax return.
• your background and education indicate that you should have known of the FBAR reporting requirements. For instance, if you are employed as an international banker, it will be difficult (but not impossible) to claim you did not know about the FBAR filing requirement. The truth is that many Americans do not understand that all earning earned globally are subject to US taxes. This is known as universal tax jurisdiction. You can learn about the history of Universal Tax Jurisdiction here.
• a tax deficiency related to the unreported foreign account. If you have an unreported income, be sure to pay the taxes if you are going to dispute the assessment of the FBAR penalty.
In cases where you do not think you have reasonable cause, then it is likely best to utilize the 2012 Offshore Voluntary Disclosure Initiative. Instead of opt-outing of the standardized penalty structure like someone with reasonable cause, someone without reasonable cause would agree to accepted the pre-determined penalty rate. In this case, the FBAR penalty is 27.5% of the highest account value in the last 8 years. The good news is that it is limited to a one-time application.
No doubt it is a difficult decision to make. Debating between making a full disclosure or continue to hide or something in between. And making it more difficult is that in these economic conditions, and low rates of returns, most taxpayers realize it will take several years to rebound from these penalties.

Should you File, and then Opt Out?

Announced February 8, 2011, the IRS 2011 Offshore Voluntary Disclosure Initiative (OVDI) program is a welcome but conditional amnesty allowing taxpayers with foreign accounts to come clean and get into compliance with the IRS. The program runs through Sept. 9, 2011.

There’s been discussion of “opting out” of the program to take your chances in audit, but it’s a topic fraught with danger. Now, however, there is guidance about opting out of the program that makes much of it transparent. Because of this late date it is recommended that you properly file FBARs and the 90-day request for amnesty extension. This is the first important step. If the forms are not done properly, you will have extensive problems and will not have to think about opting out. If your forms are properly done and filed, then your situation should be discussed with someone who is experienced in these matters.

Under the OVDI, taxpayers are subject to a penalty of 25 percent of the highest aggregate account balance on their undisclosed account(s) between 2003 and 2010. If the value was less than $75,000 at all times during those years, the penalty is only 12.5 percent.

These account balance penalties are in lieu of all other penalties that may apply, including FBAR and offshore-related information return penalties. Plus, participants are required to pay taxes and interest on any monies (such as interest income on foreign accounts) they previously failed to report. Finally, they must pay an accuracy-related penalty equal to 20 percent of the underpayment of tax, plus interest.

Opting out of the program can make sense for some, though it involves taking your chances with an IRS examination. Someone should represent you with extensive experience in this. We always suggest they should at least be a CPA with years of experience in international tax. It’s even better if you use one that was with the international tax division of the IRS for a number of years. The IRS has published a separate guide detailing the rules and procedures for opting out.

Here are some of the rules:

1. IRS Summary. The IRS employee who has been handling your case summarizes it, agreeing or disagreeing with your view of penalties, and listing how extensive an audit he or she recommends.

2. Program Status Report. Before you can opt out, the IRS sends a letter reporting on the status of your disclosure and what you still must submit. If you’ve given enough data, the IRS will calculate what you would owe under the OVDI. You should provide any missing items within 30 days.

3. Taxpayer Submission. Within 20 days, the taxpayer opts out in writing and makes a written case what penalties should apply and why.

4. Central Committee. A Committee of IRS Managers reviews the summary and decides how extensive an audit to conduct. The IRS says “the taxpayer is not to be punished (or rewarded) for opting out.” The Committee also decides whether to assign your case for a normal civil audit or to assign it for a criminal exam.

5. Written Warning. The IRS sends another letter explaining that opting out must be in writing and is irrevocable. You have 20 days thereafter to opt out in writing.

6. Interview? Some audits will include taxpayer interviews.

Bottom Line? The “opt out” procedure is helpful but still a bit daunting. If you are considering it, make sure you get some solid advice from an experienced person who, in my opinion, should have worked for the IRS and is a CPA about the nature of your case. This is just one of the many options that should be discussed with your advisor. There are many other strategies that you may want to utilize. Your advisor should be aware of all your options, and should explain them. If not, consider engaging someone else. Remember, the penalties can be very large, especially if your advisor is not skilled at this. There is even the potential for criminal prosecution. See taxadvisorexpert.com for the latest information in this area or to contact one of our professionals today.

Lance Wallach, National Society of Accountants Speaker of the Year and member of the AICPA faculty of teaching professionals, is a frequent speaker on retirement plans, abusive tax shelters, international tax, and other subjects. He writes about FBAR, OVDI, international taxation, captive insurance plans and other topics. He speaks at more than ten conventions annually, writes for more than 50 publications, is quoted regularly in the press and has been featured on television and radio financial talk shows including NBC, National Public Radio’s “All Things Considered” and others. Lance has written numerous books including “Protecting Clients from Fraud, Incompetence and Scams,” published by John Wiley and Sons, Bisk Education’s “CPA’s Guide to Life Insurance and Federal Estate and Gift Taxation,” as well as the AICPA best-selling books, including “Avoiding Circular 230 Malpractice Traps” and “Common Abusive Small Business Hot Spots.” He does expert witness testimony and has never lost a case. Contact him at 516.938.5007, lawallach@aol.com,lanwalla@aol.com or visit www.taxadvisorexpert.com.

IRS Offshore Voluntary Disclosure Program Reopens

Offshore International Today Jan 2012

By Lance Wallach, CLU, CHFC

Abusive Tax Shelter, Listed Transaction, Reportable Transaction Expert Witness

Jan. 9, 2012

Today, the Internal Revenue Service reopened the offshore voluntary disclosure program to help people hiding offshore accounts get current with their taxes. Additionally, the IRS revealed the collection of more than $4.4 billion so far from the two previous international programs.

The Offshore Voluntary Disclosure Program (OVDP) was reopened following continued strong interest from taxpayers and tax practitioners after the closure of the 2011 and 2009 programs. The third offshore program comes as the IRS continues working on a wide range of international tax issues and follows ongoing efforts with the Justice Department to pursue criminal prosecution of international tax evasion. This program will remain open indefinitely until otherwise announced.

Lance Wallach and his associates have received thousands of phone calls from concerned clients with questions about the prior programs. Some of Lance’s associates are still very busy helping people with the last program. Not a single person has been audited and most are pleased with the results and are now able to sleep easily without worrying about the IRS. According to Lance, it requires years of experience to obtain a good result from the program.

He suggests using a CPA-certified, ex-IRS agent with lots of international tax experience. While this is not a requirement to file under the program, Lance has heard many horror stories from people who have tried to file by themselves or who have used inexperienced accountants.

“Our focus on offshore tax evasion continues to produce strong, substantial results for the nation’s taxpayers,” said IRS Commissioner Doug Shulman. “We have billions of dollars in hand from our previous efforts, and we have more people wanting to come in and get right with the government. This new program makes good sense for taxpayers still hiding assets overseas and for the nation’s tax system.”

The new program is similar to the 2011 program in many ways, but it has a few key differences. Unlike last year, there is no set deadline for people to apply. However, the terms of the program could change at any time going forward. For example, the IRS may increase penalties in the program for all or some taxpayers or defined classes of taxpayers – or decide to end the program entirely at any point.

“As we've said all along, people need to come in and get right with us before we find you,” Shulman said. “We are following more leads and the risk for people who do not come in continues to increase.”

The third offshore effort accompanies another announcement that Shulman made today, that the IRS has collected $3.4 billion so far from people who participated in the 2009 offshore program. That figure reflects closures of about 95 percent of the cases from the 2009 program. On top of that, the IRS has collected an additional $1 billion from up front payments required under the 2011 program. That number will grow as the IRS processes the 2011 cases.

In all, the IRS has seen 33,000 voluntary disclosures from the 2009 and 2011 offshore initiatives. Since the 2011 program closed last September, hundreds of taxpayers have come forward to make voluntary disclosures. Those who come in after the closing of the 2011 program will be able to be treated under the provisions of the new OVDP program.

The overall penalty structure for the new program is the same for 2011, except for taxpayers in the highest penalty category.

The new program’s penalty framework requires individuals to pay a penalty of 27.5 percent of the highest aggregate balance in foreign bank accounts/entities or the value of foreign assets during the eight full tax years prior to the disclosure. That is up from 25 percent in the 2011 program. Some taxpayers will be eligible for 5 or 12.5 percent penalties; these remain the same in the new program as in 2011.

Participants must file all original and amended tax returns and include payment for back-taxes and interest for up to eight years as well as paying accuracy-related and/or delinquency penalties.

Participants face a 27.5 percent penalty, but taxpayers in limited situations can qualify for a 5 percent penalty. Smaller offshore accounts will face a 12.5 percent penalty. People whose offshore accounts or assets did not surpass $75,000 in any calendar year covered by the new OVDP will qualify for this lower rate. As under the prior programs, taxpayers who feel that the penalty is disproportionate may opt instead to be examined.

The IRS recognizes that its success in offshore enforcement and in the disclosure programs has raised awareness related to tax filing obligations. This includes awareness by dual citizens and others who may be delinquent in filing, but owe no U.S. tax.

Lance Wallach, National Society of Accountants Speaker of the Year and member of the AICPA faculty of teaching professionals, is a frequent speaker on retirement plans, abusive tax shelters, financial, international tax, and estate planning. He writes about 412(i), 419, Section79, FBAR, and captive insurance plans. He speaks at more than ten conventions annually, writes for over fifty publications, is quoted regularly in the press and has been featured on television and radio financial talk shows including NBC, National Pubic Radio’s All Things Considered, and others. Lance has written numerous books including Protecting Clients from Fraud, Incompetence and Scams published by John Wiley and Sons, Bisk Education’s CPA’s Guide to Life Insurance and Federal Estate and Gift Taxation, as well as the AICPA best-selling books, including Avoiding Circular 230 Malpractice Traps and Common Abusive Small Business Hot Spots. He does expert witness testimony and has never lost a case. Contact him at 516.938.5007, wallachinc@gmail.com or visit www.taxadvisorexpert.com.

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