Taxpayers who have failed to file FBARs and other international information returns can face serious criminal and civil penalties. Inevitably, legal issues will surface when a taxpayer attempts to become compliant. Professional advisors may ask, “Should we have a Kovel letter?” or “Did the taxpayer have reasonable cause?” If a reasonable cause statement is appropriate, who should write it?
There are several procedural options for delinquent taxpayers with foreign accounts to become compliant, including the Offshore Voluntary Disclosure Program, the Streamlined Filing Procedure, and more recently, the Delinquent International Information Return Submission Procedures and the Delinquent FBAR Submission Procedures. Each option has different requirements and penalties.
This course will review each procedure currently available to taxpayers, focusing on identifying which procedure is appropriate for a particular client, spotting legal questions and issues as they arise, and considering whether and when to involve an attorney.
Benefits and limitations of Kovel letters, and how to use them.
Learn the legal standards used in reporting procedures.
Identify legal issues and when to involve an attorney.
Ruth helps clients implement comprehensive plans that meet their personal, family, and professional goals. As part of her estate planning practice, Ruth focuses on international planning, including planning for overseas assets, forming offshore asset protection trusts, planning for a spouse who is not a U.S. citizen, and helping U.S. beneficiaries plan to receive gifts and inheritances from abroad. For clients with unreported foreign assets, Ruth coordinates with accountants to help bring the clients into compliance with their FBAR and other reporting requirements. Additionally, Ruth advises trustees and Personal Representatives with the administration of trusts and estates, including local and multinational trusts and estates.