You Can Reduce Your FBAR and OVDI Penalty From 25% to 5% or Less Lawfully
OVDI deadline extended till September 9th 2011
DALLAS, Aug. 29, 2011 /PRNewswire-iReach/ -- You can reduce your FBAR or OVDI penalty from 25% to 5% or less lawfully.
Perfect Tax, well known tax and business service firm with multiple CPAs and attorneys, serving more than 2000 clients in USA gives excellent tips to reduce your FBAR penalties in USA.
If your aggregate bank balance exceeds $75000 during any of years 2003 to 2009, then your FBAR penalties are 25%. Here they show you can bring this down to 5% or less.
- When tax advisor offered written advice about non requirement to file FBAR or report foreign income, FBAR and offshore voluntary disclosure penalty could be zero.
If IRS determines that the violation was due to reasonable cause (for example, the taxpayer reasonably acted on the written advice of an independent legal advisor after having disclosed the account to the advisor), the taxpayer would be subject to ZERO penalty for FBAR.
- Opt Out Strategy:
The taxpayer, a U.S. citizen who worked and resided in Country A, had bank balance of $2 million and income of $150 K each of 6 years. The taxpayer did not report this income on his U.S. return assuming that he needed to report this only in Country
Normal Offshore Penalty under 2011 OVDI is $500 K (i.e., 25% of $2 million)
If the taxpayer elects to opt out and can show that FBAR violation was not willful, then he will have to pay only $10,000 per year ($60,000 total for six years) instead of $500K, which is only 3% of bank balance.
Thus FBAR violation penalty comes down to 3% here with opt out strategy.
- Inherited accounts with limited account contact and draw- need to pay only 5% :
Penalty is reduced to 5% when balance in account is inherited and taxpayer has draw of less than $1000 per year and taxpayer has sent money out of income on which, US taxes, if applicable are paid.
- US Persons residing abroad, having paid tax in foreign countries need to pay only 5%
In this case taxpayer must have filed tax returns in country of residency and US source income should be less than $10,000.E. G. The taxpayer is a U.S. citizen who has lived in Country X. He has aggregate bank balance of $1.2 million in 2009 but he has paid all required taxes in Country X in every year, but has filed no U.S. income tax returns since moving out of the United States. His FBAR penalty will be reduced to 5 % i.e. $60,000.
Perfect Tax can offer several other strategies to help you in lowering FBAR penalties and also your regular taxes. They gives unique guarantees in USA for all services. They offer 200% money back for error of law point, if any, in tax planning. They offer 125% money back, if other CPA can lawfully reduce even $1 in tax worked out by their firm. They are also coming out with nationwide franchise in 2012.
You can log on to www.perfecttax.com or email to firstname.lastname@example.org or call on 469-828-0829 for more details. Contact them before deadline of 31stAugust 2011 for FBAR amnesty and before end of 2011 for tax planning.
Media Contact: Sam Thakkar , Perfect Tax, 469-828-0829, email@example.com
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SOURCE Perfect Tax
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