After the FBAR Overhaul: Foreign Account Reporting Enforcement - - PowerPoint PPT Presentation

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After the FBAR Overhaul: Foreign Account Reporting Enforcement - - PowerPoint PPT Presentation

Apr 09, 2023 163 likes •1.53k views

Presenting a live 110-minute teleconference with interactive Q&A After the FBAR Overhaul: Foreign Account Reporting Enforcement Preparing for IRS Exams, Potential Penalties, Administrative Appeals or Litigation

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SLIDE 1

After the FBAR Overhaul: Foreign Account Reporting Enforcement

Preparing for IRS Exams, Potential Penalties, Administrative Appeals or Litigation

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Presenting a live 110-minute teleconference with interactive Q&A

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SLIDE 2

Conference Materials

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SLIDE 3

Continuing Education Credits

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SLIDE 4

Tips for Optimal Quality

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SLIDE 5

After the FBAR Overhaul: Foreign Account Reporting Enforcement Seminar

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SLIDE 6

Today’s Program

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SLIDE 7

John Colvin, Chicoine & Hallet

CIVIL PENALTIES WITH FBAR, OTHER FOREIGN REPORTING

John Colvin, Chicoine & Hallet

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SLIDE 8

FBAR Background

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SLIDE 9

The Regulators

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SLIDE 10

IRS Role In FBAR Civil Enforcement

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SLIDE 11

IRS Role In FBAR Criminal Enforcement

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SLIDE 12

New FBAR Regulations

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SLIDE 13

Title 31 Regulation Renumbering

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SLIDE 14

Revised FBAR Form

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SLIDE 15

FBAR Filing Basics

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SLIDE 16

FBAR Filing: “U.S. Persons”

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SLIDE 17

FBAR Filing: “U.S. Residents”

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SLIDE 18

FBAR Filing: “Financial Interest”

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SLIDE 19

FBAR Filing: “Signature Authority”

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SLIDE 20

FBAR Filing: “Foreign”

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SLIDE 21

FBAR Filing: “Financial”

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SLIDE 22

FBAR Filing: “Account”

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SLIDE 23

FBAR Filing: “Aggregation”

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SLIDE 24

Reportable Accounts

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SLIDE 25

Mutual Fund Definition

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SLIDE 26

Reportable Account Exceptions

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SLIDE 27

Valuing Accounts For FBAR

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SLIDE 28

Signature Authority Exceptions

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SLIDE 29

Trust Beneficiary Exceptions

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SLIDE 30

Special Filing Rules – Many Accounts

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SLIDE 31

Special Filing Rules: Consolidated Filing (Part V)

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SLIDE 32

Special Filing Rules - Spouses

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SLIDE 33

FBAR Recordkeeping Requirements

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SLIDE 34

Civil Penalties (Post-2004)

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SLIDE 35

Criminal Penalties

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SLIDE 36

Mitigation Guidelines – Civil Penalties

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SLIDE 37

Mitigation Guidelines: Reduced Penalty - Non-Willful Penalties

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SLIDE 38

Mitigation Guidelines: Reduced Penalty - Willful Penalties

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SLIDE 39

Negligence Penalties

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SLIDE 40

FATCA

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SLIDE 41

New §6038D – “FBAR Plus”

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SLIDE 42

New Form 8938

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SLIDE 43

New Component Of Accuracy Penalty: “Undisclosed Foreign Financial Asset Understatement” (§ 6662(b)(7) And (j))

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SLIDE 44

Penalty – Failure To Disclose Foreign Financial Accounts - § 6038D(d)

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SLIDE 45

Penalties For Failure To Properly Report Offshore Activities

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SLIDE 46

Penalties For Failure To Properly Report Offshore Activities (Cont.)

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SLIDE 47

Penalties For Failure To Properly Report Offshore Activities (Cont.)

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SLIDE 48

Penalties For Failure To Properly Report Offshore Activities (Cont.)

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SLIDE 49

Penalties For Failure To Properly Report Offshore Activities (Cont.)

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SLIDE 50

Penalties For Failure To Properly Report Offshore Activities (Cont.)

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SLIDE 51

Other Potential Penalties In Offshore Cases

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SLIDE 52

Other Potential Penalties In Offshore Cases (Cont.)

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SLIDE 53

Example Of Penalty Calculation

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SLIDE 54

Example Of Penalty Calculation (Cont.)

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SLIDE 55

Steven Toscher, Hochman Salkin Rettig Toscher & Perez

STANDARDS FOR IMPOSING PENALTIES, AND POTENTIAL DEFENSES

Steven Toscher, Hochman Salkin Rettig Toscher & Perez

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SLIDE 56

“Willfulness” Defined

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SLIDE 57

Internal Revenue Manual Examples Of Willfulness

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SLIDE 58

IRM Example (Cont.)

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SLIDE 59

IRM Example (Cont.)

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SLIDE 60

Williams: A Civil FBAR Case

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SLIDE 61

Williams’ Testimony Was Credible

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SLIDE 62

Browning Case

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SLIDE 63

Browning Case (Cont.)

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SLIDE 64

Browning Case (Cont.)

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SLIDE 65

Browning Case (Cont.)

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SLIDE 66

Relevant Cases Dealing With Reasonable Cause: Defense To Negligence Penalties

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SLIDE 67

Relevant Cases Dealing With Reasonable Cause: Defense To Negligence Penalties (Cont.)

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SLIDE 68

Relevant Cases Dealing With Reasonable Cause: Defense To Negligence Penalties (Cont.)

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SLIDE 69

Relevant Cases Dealing With Reasonable Cause: Defense To Negligence Penalties (Cont.)

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SLIDE 70

Relevant Cases Dealing With Reasonable Cause: Defense To Negligence Penalties (Cont.)

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SLIDE 71

Relevant Cases Dealing With Reasonable Cause: Defense To Negligence Penalties (Cont.)

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SLIDE 72

Relevant Cases Dealing With Reasonable Cause: Defense To Negligence Penalties (Cont.)

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SLIDE 73

Relevant Cases Dealing With Reasonable Cause: Defense To Negligence Penalties (Cont.)

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SLIDE 74

Relevant Cases Dealing With Reasonable Cause: Defense To Negligence Penalties (Cont.)

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SLIDE 75

The Doctrine Of Excessiveness And Its Applicability To Offshore Reporting Penalties

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SLIDE 76

The Doctrine Of Excessiveness And Its Applicability To Offshore Reporting Penalties (Cont.)

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SLIDE 77

ANTICIPATED IRS DIRECTION,

Steven Toscher, Hochman Salkin Rettig Toscher & Perez

ANTICIPATED IRS DIRECTION, TIMELINE GOING FORWARD

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SLIDE 78

IRS Direction

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SLIDE 79

IRS Direction (Cont.)

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SLIDE 80

IRS Direction (Cont.)

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SLIDE 81

PREPARING FOR AN AUDIT

Caroline Ciraolo, Rosenberg | Martin | Greenberg , LLP

PREPARING FOR AN AUDIT WITH PENALTIES IN MIND

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SLIDE 82

Audit Issues: Burden Of Proof

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SLIDE 83

Audit Issues: Proving Willfulness

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SLIDE 84

International Information Returns: Reasonable Cause Defenses

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SLIDE 85

International Information Returns: Reasonable Cause Defenses (Cont.)

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SLIDE 86

International Information Returns: Reasonable Cause Defenses (Cont.)

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SLIDE 87

International Information Returns: Forms 3520 And 3520A – Reasonable Cause

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SLIDE 88

Audit Issues: Statute Of Limitations

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SLIDE 89

Audit Issues: The Process

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SLIDE 90

Audit Issues: The Process (Cont.)

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SLIDE 91

Audit Issues: IRS Resources

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SLIDE 92

International Information Returns: Summons Enforcement

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SLIDE 93

Audit Issues: Decision To Propose FBAR Penalty

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SLIDE 94

Audit Issues: Practice Tip - FOIA

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SLIDE 95

Audit Issues: Practice Tip - FOIA

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SLIDE 96

Audit Issues: When The FBAR Penalty Is Assessed

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SLIDE 97

John Colvin, Chicoine & Hallet

PREPARING FOR AN ADMINISTRATIVE APPEAL OR LITIGATION

John Colvin, Chicoine & Hallet

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SLIDE 98

Administrative Appeals: FBAR Penalties

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SLIDE 99

Administrative Appeals: FBAR Penalties (Cont.)

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SLIDE 100

Administrative Appeals: FBAR Penalties (Cont.)

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SLIDE 101

Administrative Appeals: FBAR Penalties (Cont.)

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SLIDE 102

Administrative Appeals: FBAR Closed Office File

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SLIDE 103

International Information Returns: Post-Assessment Review And Reconsideration

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SLIDE 104

Judicial Review: No USTC Review Of FBAR Penalties

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SLIDE 105

International Information Returns: Judicial Review (Wheaton)

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SLIDE 106

International Information Returns: Judicial Review (Wheaton), Cont.)

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SLIDE 107

International Information Returns: Judicial Review (Wheaton), Cont.)

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SLIDE 108

International Information Returns: Judicial Review (Heydemann)

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SLIDE 109

Judicial Review: Collection Due Process Appeals Information Return Penalties

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SLIDE 110

International Information Returns: Form 3520 – Judicial Review

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SLIDE 111

COLLECTION ISSUES

Caroline Ciraolo, Rosenberg | Martin | Greenberg, LLP

COLLECTION ISSUES

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SLIDE 112

Collections: FBAR Penalties – Authority To Collect

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112

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SLIDE 113

Collections: Statutes Of Limitations

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SLIDE 114

Collections: Federal Debt Collection - Statutes And Regs

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slide-115
SLIDE 115

Collections: Federal Debt Collection - Statutes And Regs (Cont.)

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SLIDE 116

Collections: Administrative Offset

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116

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SLIDE 117

Collections: Federal Debt Collection Options

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slide-118
SLIDE 118

Collections: Administrative Offset - Exemptions

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slide-119
SLIDE 119

Collections: Administrative Offset – Exemptions (Cont.)

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SLIDE 120

Collections: Administrative Offset (Cont.)

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SLIDE 121

Collections: Tax Refund Offsets

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121

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SLIDE 122

Collections: Federal Salary Offsets

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122

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SLIDE 123

Collections: Federal Salary Offsets (Cont.)

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SLIDE 124

Collections: Wage Garnishments

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SLIDE 125

Collections: Private Collection Agencies And Credit Reporting

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SLIDE 126

Collections: Lawsuits To Collect The FBAR Penalty

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SLIDE 127

Collections: Lawsuits To Collect The FBAR Penalty A Way To Challenge ….

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SLIDE 128

Dischargeability: Simonelli

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SLIDE 129

Dischargeability: Simonelli (Cont.)

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SLIDE 130

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SLIDE 131

IRS Bankruptcy Procedures For FBAR Penalties: I.R.M. 5.9.4.19 (03-01-2007), Cont.

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SLIDE 132

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SLIDE 133

IRS Bankruptcy Procedures For FBAR Penalties: I.R.M. 5.9.4.19 (03-01-2007), Cont.

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SLIDE 134

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SLIDE 135

IRS Bankruptcy Procedures For FBAR Penalties: I.R.M. 5.9.4.19 (03-01-2007), Cont.

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