Tax Attorney: Krantz Attorneys is an International Tax & Law Firm. We represent clients nationwide & worldwide in a broad range of IRS Offshore & Voluntary Disclosure matters. From California to Houston, Washington D.C., Michigan, Miami, New York & worldwide in over 70-countries -- we are the go-to firm for IRS Offshore & Voluntary Disclosure. Each case is led by a Board Certified Tax Law Specialist and Enrolled Agent. Our International Tax Attorney Team specializes in IRS Tax Amnesty for undisclosed income, assets, accounts & investments including tax preparation & legal representation.
IRS Voluntary Disclosure (Offshore): The Traditional IRS Voluntary Disclosure was recently updated. The New Updated IRS Voluntary Disclosure Program Procedures are very complex. Our Tax Attorney team has represented clients in more than 1000 offshore disclosure submissions. Our International Tax Attorney team develops Foreign Bank Account Reporting strategies to reduce, minimize & eliminate FBAR Penalties using different Offshore Account Amnesty procedures. We are the “go-to” firm for other Attorneys, EAs, CPAs, and professionals across the globe for U.S. & Foreign Voluntary Disclosure.
Streamlined Domestic Offshore Procedures (SDOP): The Streamlined Domestic Offshore Procedures or SDOP are an offshoot of the original Offshore Voluntary Disclosure Program. It is one of the two programs available under the IRS Streamlined Filing Compliance Procedures. It is for U.S. Resident Taxpayers who filed original tax returns, but were non-willful in not reporting foreign assets, accounts, investments or income can use Streamlined Form 14654 to get compliant. With this version of IRS Tax Amnesty, the offshore penalty is reduced to a single, 5% Penalty.
Streamlined Foreign Offshore Procedures (SFOP): The Streamlined Foreign Offshore Procedures or SFOP are an offshoot of the original Offshore Voluntary Disclosure Program. It is one of the two programs available under the IRS Streamlined Filing Compliance Procedures. To qualify, a person must qualify as a "Foreign Resident" under the SFOP test. Applicants need not have filed original tax returns, but they must be non-willful. Taxpayers use Streamlined Form 14653 to get compliant. The Title 26 miscellaneous offshore penalty is completely waived and there is no penalty on any taxes due.
A Guide to Reportable Assets
IRS Reasonable Cause: You may be able to avoid Voluntary Disclosure and formal IRS Tax Amnesty by making an IRS Reasonable Cause submission, or Delinquent International Informational Return Submission Procedures application. The goal of Reasonable Cause is to avoid an IRS penalty for unreported foreign and offshore accounts, assets, investment or income before it happens. Reasonable Cause is a fact specific submission, which is based on each applicant's facts & circumstances. It is not the same as a Quiet Disclosure of Tax Returns, or FBAR Quiet Disclosure – which are illegal.
Offshore Accounts & Foreign Assets: Our International Tax Attorney Team have worked with thousands of clients across the globe; so no, you are not alone. We have worked with clients worldwide in reporting Offshore Accounts & Foreign Assets, including issues involving: PFIC (Passive Foreign Investment Companies); Foreign Trusts; (Controlled Foreign Corporations (CFC); Reporting Foreign Corporations and/or Partnerships; Foreign Real Estate Rental Income; Foreign Cryptocurrency, and many other foreign, offshore and international tax matters. We can help you too!
IRS Voluntary Offshore Disclosure Tax Attorney Blog
IRS Voluntary Disclosure (Testimonials)
“The whole process of correcting unresolved tax issues went smoothly as Ezra provided me with a courteous, timely and professional service” – Foreign Account Compliance Client
“The reason went with Krantz Attorneys was that we wanted to work with someone that had both knowledge and expertise as well as actual in-depth experience of working through international tax situations.” – Offshore Compliance Client
“Ezra has provided us with an outstanding service throughout the streamlined procedure. Ezra is straightforward, knowledgeable, reliable and extremely responsive. His empathic approach and ability to explain complicated matters in a simple way are very comforting in such a stressful situation.” – IRS Voluntary Disclosure Client
3 years of amended tax returns and 6 years of delinquent FBARs, plus a thoroughly researched reasonable cause statement citing the tax laws of both countries and the treaties between them. All from a jumble of papers faxed from my files. Ezra had the issue resolved in less time than it took me to find out what the problem was in the first place” – Offshore Disclosure Client
“The Only Lawyer I don’t have to Babysit – His Confidence, Expertise, and Experience are Truly Reassuring…Lastly, Ezra cares for his clients. I can not stress how rare it is to find an attorney who genuinely cares.” – Reasonable Cause Client
“Mr. Krantz was prompt, professional, reassuring (and explained everything patiently and thoroughly) and very attentive. I was not aware about a filing requirement for several years, and he handled the process for me. He was always a pleasure to deal with, and he is as kind as he is skilled.” – FATCA & FBAR Disclosure Client.
“Ezra closely examined my situation and he educated me of various options available for me. He was very patient and answered all my questions on timely manner. After consulting him I felt relaxed. Ezra and his firm were very supportive in the entire process to safely report my offshore accounts to the treasury. Overall I am very satisfied with the outcome.” – Streamlined Disclosure Client
“During the entire process, we were extremely impressed with their in-depth knowledge of not only OVDP but also with various other IRS Tax Amnesty Programs, as well as with their professionalism and diligence. It is both an honor and a privilege for us to give them our highest possible recommendation.” – OVDP Client
“Mr. Ezra Krantz’s empathetic expertise and timely decision-making involved me in positive actions and actual solutions. My results were: no penalties, no legal issues. My own mind now rests easy, at peace.” – OVDP & International Estate Tax Client
Common International Tax Law Issues in IRS Offshore Voluntary Disclosure
FBAR Penalties The FBAR is the FinCEN Form 114. Our FBAR Lawyers represent Taxpayers worldwide in reducing and avoiding FBAR Penalties. We have successfully helped clients get compliant in over 70 different countries. If you missed filing the FBAR, you may be subject to FBAR Penalties. Our International Tax Specialist Team mitigates foreign account FBAR Violations for clients across the globe.
Form 8938: FATCA is different than the FBAR. The IRS can issue Form 8938 Penalties against U.S. Person who is required to, but does not file an annual Form 8938. FATCA is the "Foreign Account Tax Compliance Act." It Is required to be filed each year -- and is required to file a tax return in that year. FATCA penalties are tough, but our International Tax Specialist Team can help.
Form 8621 Penalties: U.S. Taxpayers with a PFIC may have to file an annual PFIC return to avoid Form 8621 Penalties. A PFIC is a Passive Foreign Investment Company. If you have an interest in a PFIC, the IRS requires that you perform a very complex tax analysis regarding your income and file Form 8621. We have provided 5 PFIC examples to help you evaluate your situation.
Form 5471 Penalties: The IRS requires U.S. owners and investors of certain foreign corporations to submit a Form 5471 to avoid Form 5471 Penalties. This is a difficult form, mainly because it requires a relatively comprehensive breakdown of the corporation's assets, liabilities and equity. Form 5471 Penalties are tough. Our International Tax and Form 5471 Lawyers can help.
Form 8865: The IRS also requires owners and investors of foreign partnerships who qualify as U.S.persons to file an annual form 8865 to avoid Form 8865 Penalties. Foreign partnership analyses are extremely complicated and complex. The form has several categories of filers & is complex. Form 8865 penalties are tough. Our International Tax Lawyers can help.
Form 3520-A Penalties: The filing requirements for reporting a foreign trust are detailed and comprehensive. The failure to file the form may result in Form 3520-A Penalties. The IRS frowns upon foreign trusts, mainly because these trusts are often mis-used to circumvent U.S. tax laws and reporting requirements. Foreign Trust penalties are tough, but we can help you safely get back into IRS compliance.
While a foreign person without U.S. status (or situs) is generally not required to file a gift for estate tax return, the U.S. person recipient of a gift, inheritance or trust distribution from a foreign person, business, or trust must file a Form 3520 in any year in which the distribution meets the threshold requirements for reporting. Requirements vary depending on the type of distribution received.
Reporting Foreign Gifts & Inheritances
In many countries such as India and Singapore, it is very common to have a foreign life insurance policy. Unlike a U.S. life insurance policy, the U.S. tax and reporting repercussions of having foreign life insurance can be overwhelming. Generally, the policies have to be reported on the FBAR and FATCA, the accrued gains are taxable (subject to PFIC rules), and excise tax is paid on the premiums.
With the IRS winning a subpoena against Coinbase, along with the the U.S. joining in on the International task force J5 (which focuses on preventing offshore "crypto-crime,") the IRS has stepped up the enforcement of federal cryptocurrency compliance. These rules are still being developed, but is always better to play it safe and preemptively file certain reporting forms.
The IRS tax rules involving foreign pensions and retirement is also a complex area of international tax law. Some countries have entered into tax treaties with the U.S., which provide guidance on the Pension taxation rules (UK), some countries have entered into treaties, but important issues are silent (Australian Superannuation) -- and some countries are not so lucky (Singapore CPF).
Understanding how to properly read and interpret international tax treaties is a complex undertaking. Even the most proven and experienced tax attorneys take years to fully embrace the real-world aspects of international tax laws, and how various different tax laws are applied using comity -- along with other legal tenets to different countries with disparate tax systems. We can help you get offshore compliant.
IRS Offshore Disclosure is a specialized and complicated area of tax law. It requires a thorough understanding and background in tax preparation, tax laws, litigation & trial work. It is important to properly vet out your attorney to ensure they have all the requirements, experience, and certifications necessary to effectively represent you. Watch out for less experienced counsel.
Tips on Hiring an Experienced Counsel
Ezra holds a Master's in Tax Law from one of the top Tax LL.M. programs in the country at the University of Denver. He has also earned the prestigious IRS Enrolled Agent credential. Mr. Krantz's articles have been referenced in such publications as the Washington Post, Forbes, Nolo, and various Law Journals nationwide.
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