Report of Foreign Bank and Financial Accounts FINCEN Form 114

Seattle FBAR Lawyer | IRS FATCA International Tax Attorney

/0 Comments/in , /by

I recently received a phone call from a person who was looking for a Seattle FBAR lawyer online and found my website. He asked me whether I can help him even though Sherayzen Law Office is based in Minneapolis, Minnesota. I responded to him: “yes, I can help you”.

This conversation brought to light an important topic of who should be considered a Seattle FBAR Lawyer and why an international tax lawyer based in Minneapolis can help a client in Seattle with FBAR issues.

Seattle FBAR Lawyer Definition: Legal FBAR Services Provided in Seattle, Washington

There are two categories of lawyers that fit the term Seattle FBAR Lawyer. The first category consists of US international tax lawyers who reside in Seattle and offer FBAR services to the residents of Seattle. The second category is comprised of US international tax lawyers who reside outside of Seattle but offer FBAR services to the residents of Seattle.

The first category is clear – if a lawyer resides in Seattle and offers FBAR services, he is considered to be a Seattle FBAR Lawyer. The question is: why is a lawyer who resides outside of Seattle still considered a Seattle FBAR lawyer? The answer lies in the legal nature of FBARs. FBAR is a federal information return, not a local requirement of Seattle or the State of Washington. This means that any licensed US international tax lawyer can offer FBAR services in any of the 50 states and the District of Columbia irrespective of his physical location. This is why a lawyer who resides in Minneapolis can offer FBAR legal services in Seattle with the same ease as a lawyer who resides in Seattle.

Seattle FBAR Lawyer Must Be US International Tax Lawyer

It should be emphasized that, while the residence of a Seattle FBAR Lawyer is not relevant, his area of practice is highly important. A Seattle FBAR lawyer must be an international tax lawyer – i.e. a lawyer who not only knows how to complete FBARS, but who has profound knowledge of US international tax law and the place the FBARs occupy in this law.

This emphasis is based on the fact that FBAR is only a small part of a much larger area of US international tax law. Indeed, there is a deep and complex relationship between the FBAR and international tax law that determines the legal position of a client and the potential voluntary disclosure strategies associated with delinquent FBARs.

This is why your Seattle FBAR lawyer should have deep knowledge of and extensive experience in both FBARs and all related US international tax laws and regulations.

Sherayzen Law Office Can Be Your Seattle FBAR Lawyer

Sherayzen Law Office is an international tax law firm that specializes in FBARs and international tax law. Our legal and accounting team has both: a profound knowledge of this area of law and extensive experience in helping clients with international tax law issues, including offshore voluntary compliance with respect to delinquent FBARs. We have helped hundreds of US taxpayers worldwide with their FBAR issues and we can help You!

Contact Sherayzen Law Office today to schedule Your Confidential Consultation!

What to do if the IRS Audits Your Quiet Disclosure | FBAR Lawyer Madison

/0 Comments/in , /by

This essay is concerned with a situation where the IRS audits your quiet disclosure of foreign assets and foreign income. The IRS audit can be an absolute nightmare in this case. Not only will the audit examine the accuracy of the disclosure, but the IRS may actually raise the issue of willful and non-willful FBAR penalties as well as the potential income tax fraud penalty.

So, is everything lost if the IRS audits your quiet disclosure? The answer is “no”. While the situation may undoubtedly be dire, it is not hopeless if the case is handled properly. While it is not possible to discuss in this article the whole spectrum of strategies available to taxpayers in such a situation, this article attempts to line out the three most important steps that you should do if the IRS audits your quiet disclosure.

1. If the IRS Audits Your Quiet Disclosure, You Should Not Panic

An IRS audit is always a stressful event. The stress increases exponentially if the audit involves a quiet disclosure of foreign assets and foreign income.

While your situation may be difficult, you should try to resist the panic. Panic is an emotional condition where a person starts acting irrationally and may follow a course of action that may worsen the already difficult situation.

2. If the IRS Audits Your Quiet Disclosure, Do Not Try to Handle the Audit by Yourself

Do NOT attempt to solve the IRS audit of your quiet disclosure by yourself, even if you believe that you were non-willful in your original noncompliance. This is extremely dangerous and may result in imposition of non-willful or even willful penalties. US international tax law is so complex that you may easily get yourself in trouble even if you believe that you are doing well.

There is a myth that the IRS is somehow gracious when a taxpayer represents himself and will be willing to reduce the penalties – this is completely false, especially in a situation involving a quiet disclosure. The IRS agents follow procedures and they will follow them ruthlessly until they run into a legal defense built by a lawyer. Without such a defense, there is nothing to stop the IRS from imposing penalties to the extent an agent believes is justified by the facts of the case.

3. If the IRS Audits Your Quiet Disclosure, You Should Immediately Find and Retain an International Tax Lawyer

Get yourself an international tax lawyer to help you with an IRS audit of your quiet disclosure. This can be a highly complex situation and you should have a professional by your side to guide you throughout the process. This is the best way to assure that your case will be handled properly.

In this case, a professional must be an international tax lawyer, not an accountant. I am always suspicious of cases where accountants start to go beyond their professional capacity and take on the legal defense of their clients’ cases. While it may be tolerable in simple domestic cases (though still not recommended), it may result in a horrific outcome where the IRS audits a quiet disclosure.

Sherayzen Law Office Can Be Your International Tax Lawyer if the IRS Audits Your Quiet Disclosure

If the IRS audits your quiet disclosure, consider retaining Sherayzen Law Office, Ltd. as your international tax lawyer to represent you during the IRS audit. Sherayzen Law Office is an international tax firm which focuses on helping its clients with their voluntary disclosures and the audits of these voluntary disclosures. The firm is not only a leader in the field, but it has also extensive experience in combating and reducing the IRS penalties associated with prior tax noncompliance.

Milwaukee FBAR Lawyer | IRS FATCA Tax Attorney

/0 Comments/in , /by

Who is considered to be a Milwaukee FBAR Lawyer? This is a question that is important to all residents of Milwaukee, Wisconsin. Let me try to answer this question.

Milwaukee FBAR Lawyer Definition: Legal FBAR Services Provided in Milwaukee, Wisconsin

The term Milwaukee FBAR Lawyer includes two broad categories of international tax lawyers. The first category consists of lawyers who reside in Milwaukee and offer FBAR services to the residents of Milwaukee. The second category is comprised of lawyers who reside outside of Milwaukee but offer FBAR services to the residents of Milwaukee.

The first category is self-explanatory, but the second category requires a bit more explanation of one issue: why is an FBAR lawyer who resides outside of Milwaukee still considered a Milwaukee FBAR lawyer? The answer is relatively simple – FBAR is a federal compliance requirement and any licensed US international tax lawyer can practice it in any of the 50 states and the District of Columbia irrespective of his physical location. Local Milwaukee law and even Wisconsin law have nothing to do with FBARs.

A Milwaukee FBAR Lawyer Must be an International Tax Lawyer

I mentioned above that both categories of the definition of a Milwaukee FBAR Lawyer must consist of only international tax lawyers. I wish to emphasize this point – not any lawyer should advise with respect to FBARs, only US international tax lawyers.

This emphasis on knowledge of the US international tax law is not incidental; it is based on the fact that FBAR is merely a part of a much bigger US international tax law. These concepts are so deeply interrelated that it would be nonsensical to advise a client on his legal position just on the FBARs without the related US international tax law issues or the US international tax law without the FBARs.

This is why your Milwaukee FBAR lawyer should have a profound knowledge of and experience in both FBARs and all related US international tax laws and regulations.

Sherayzen Law Office is a Premier International Firm Well-Positioned to be Your Milwaukee FBAR Lawyer

Sherayzen Law Office is the perfect candidate to be Your Milwaukee FBAR Lawyer. Not only does its team has a profound knowledge of FBARs and US international tax law, but its professional legal team is also highly experienced in dealing with these issues, including all Offshore Voluntary Compliance programs related to delinquent FBARs. We have helped hundreds of US taxpayers worldwide with their FBAR issues and we can help You!

Contact Sherayzen Law Office today to schedule Your Confidential Consultation!

Omaha FBAR Attorney | OVDP IRS International Tax Lawyer

/0 Comments/in , /by

As the headquarters of Berkshire Hathaway, Omaha (Nebraska) draws a large number of foreign-born professionals. A high percentage of these professionals still have foreign accounts overseas and they are in great needs of assistance from an Omaha FBAR attorney. Oftentimes, they cannot find an attorney they like in Omaha (especially, since this is not a very large city with a lot of international tax attorneys) and they not sure they can use the help of out-of-state FBAR attorneys who offer their services in Omaha. This essay is meant to help these persons by defining the term Omaha FBAR Attorney.

Omaha FBAR Attorney: What is FBAR

The Report of Foreign Bank and Financial Accounts (“FBAR”) is probably the most important information return with respect to disclosure of foreign accounts by US tax residents. Its importance stems from the low filing threshold and very high civil and criminal penalties.

As of the calendar year 2016, under the Bank Secrecy Act (“BSA”) §5314 and in accordance with the FinCEN regulations, the FBAR must be filed by a US person who has a financial interest in or signatory authority over one or more foreign financial accounts with an aggregate value greater than $10,000 at any time during the calendar year. See 31 U.S.C. §5314; 31 C.F.R. §1010.350; 31 C.F.R. §1010.306(c).

Thus, there are five requirements that must be satisfied in order for the FBAR filing requirement to arise. First, the filer must be a US person. Second, this US person had a bank or financial account (or accounts) during the calendar year in question. Third, this foreign bank or financial account must be foreign – i.e. in the foreign country. Fourth, during the calendar year, the US person had a financial interest in the account or signature or other authority over the financial account. Finally, the fifth requirement is that the aggregate value of the account or accounts (converted to US dollars) exceeded $10,000 at any point during the calendar year.

All five of these requirements contain important terms (such as “US person”, “financial account” and “financial interest”) which have very specific definitions; so, one must be very careful before making any assumptions about the applicability of FBARs to his situation (in fact, this is really the job for FBAR attorney). The definition of “financial account” is especially fraught with danger and may include anything from a normal investment account to a gold bar stored under the custody of a foreign bank. Please, see other relevant articles on sherayzenlaw.com for more details.

Omaha FBAR Attorney: Definition

Armed with this understanding of FBARs, we can now turn to the main subject of this article – who is considered to be an Omaha FBAR Attorney. There are two aspects to this concept: geographical and substantive.

From the outset, it should be stated that the geographical location of an attorney does not matter. An attorney can reside in Omaha, Nebraska or Minneapolis, Minnesota and still be considered an Omaha FBAR Attorney if this attorney offers his services in this city.

The reason for this geographical indifference lies in the fact that FBAR is a purely federal compliance requirement; it has no particular ties to Omaha or any other specific city or state (or a foreign country, for that matter). As long as a person is a US tax resident and he has foreign accounts, he is potentially subject to FBAR requirement even if he physically resides outside of the United States. Since FBAR is a uniform requirement that does not respect borders and jurisdictions, the same is almost true of the FBAR attorneys, except that an attorney must be licensed to practice in any of the fifty states or Washington D.C. and FBAR must be within the realm of his main area of practice.

The substantive requirement that forms part of the definition of an Omaha FBAR attorney is related to what I just mentioned – FBAR must be within the realm of the main area of an attorney’s legal practice in order for this attorney to be considered an Omaha FBAR attorney.

What is this main area of practice? US international tax law – an Omaha FBAR attorney must be an international tax attorney, because FBAR compliance is part of the much broader US international tax law.

Retain Sherayzen Law Office as Your Omaha FBAR Attorney

If have undisclosed foreign accounts or if you need assistance with your annual FBAR compliance, you should contact Sherayzen Law Office for professional help. Sherayzen Law Office is a leading international tax law firm in the area of FBAR compliance. Our highly-experienced international tax team, headed by its founder Attorney Eugene Sherayzen, has helped hundreds of US taxpayers around the globe with their FBAR compliance and other international tax issues (including offshore voluntary disclosures under the OVDP, Streamlined Domestic Offshore Procedures, Streamlined Foreign Offshore Procedures, Delinquent FBAR Submission Procedures, Delinquent International Information Return Submission Procedures and Reasonable Cause Disclosures (also known as “noisy disclosures”)).

This is why, if you are looking for a Omaha FBAR Attorney, please contact Sherayzen Law Office, Ltd. today to schedule Your Confidential Consultation!

IRS FBAR Audit and IRC Section 6103 | FBAR Tax Attorney Minneapolis

/0 Comments/in , /by

This article explores a certain relationship between tax returns and an IRS FBAR Audit. In particular, the critical question that I seek to answer in this writing is when the IRS is able to use US tax returns as evidence to support and/or commence an IRS FBAR Audit.

IRS FBAR Audit and the IRS Examination of US tax Returns

In discussing the relationship between the US tax returns and IRS FBAR Audit, the focus is on the information uncovered by the IRS during the examination of US tax returns that may be used to commence or advance an IRS FBAR Audit. It is possible, however, for the IRS to use a taxpayer’s tax returns in other contexts, not just examinations, to further an IRS FBAR Audit.

In a previous article, I already discussed the enormous amount of useful information that US tax returns contain and that can be used by the IRS to commence an IRS FBAR Audit. In addition to the obvious Schedule B, the tax returns contain foreign income documents, tax fraud evidence, patterns of noncompliance and other useful evidence that can be used in an IRS FBAR Audit.

This means that, in a lot of cases, there is a direct relationship between tax returns and the subsequent IRS FBAR Audits.

Tax Return Confidentiality Under IRC §6103(a) Prevents Automatic Disclosure for the IRS FBAR Audit Purposes

Despite their utility, there is one problem with the ability of the IRS to use tax return information in an IRS FBAR audit – US tax return information is confidential and protected from disclosure under IRC (Internal Revenue Code) §6103(a). This protection extends to the disclosure of tax returns and tax return information within the IRS, especially for use in investigating a Bank Secrecy Act (“BSA”) violation. Why are we discussing the BSA? The reason is simple – BSA is the legislation that created FBAR.

In other words, the tax return information (which is collected under U.S.C. (United States Code) Title 26 cannot be automatically shared within the IRS for the purposes of Title 31 FBAR violation. Rather, the IRS has to find a legal justification for the disclosure of this information. The usual proper statutory basis for this justification can be found in IRC §6103(h).

IRC §6103(h) and Authorization to Share Tax Return Information for the IRS FBAR Audit Purposes

The exploration of §6103(a) exceptions under §6103(h) leads us into a complicated world of tax analysis. I will try to simplify this analysis while reducing as much as possible the risk of leaving out important details.

In general, under IRC §6103(h), disclosure of returns and return information is authorized without written request to officers and employees of the Treasury Department as long as these officers’ and employees’ official duties require such disclosure for tax administration purposes. “Tax administration” is a term of art in this context – it is a fairly broad term that covers the administration, management and supervision of the Internal Revenue Code and “related statutes”, including assessment, collection and enforcement under the IRC and these “related statutes.” See §6103(b)(4).

The key question then is whether BSA is a “related statute”. If it is, then the IRS employees can use tax return and return information to commence an IRS FBAR Audit.

IRS FBAR Audit: Is BSA a “Related Statute”?

From the outset, it is important to emphasize that the IRS does not treat BSA as a “per se” related statute, because BSA reports are required a variety of purposes, not just tax compliance. For example, FBARs can be used for such government purposes as counter-terrorism, money-laundering investigations and law enforcement in general.

Therefore, the IRS will deem the BSA as a related statute only if there is a good-faith determination that a BSA violation was committed in furtherance of a Title 26 violation or if such violation was part of a patter of conduct that violated Title 26. See IRM 4.26.14.2.3 (07-24-2012). In lay terms, the FBAR violation has to be related to a tax violation in order for the IRS to be able to utilize the taxpayer’s tax returns and tax return information in an IRS FBAR Audit.

Unfortunately, there is no clear-cut straightforward answer to when the FBAR is related to a tax violation. Rather, this determination should be made based on the facts and circumstance of each case.

IRS FBAR Audit vs. DOJ Criminal Investigation: IRC §6103(i)

It is important to emphasize that the “related-statute” limitation applies only to IRS examiners in a civil IRS FBAR Audit. If, however, a taxpayer is the subject of a criminal Department of Justice (“DOJ”) grand jury investigation, then the DOJ prosecutors are not subject to §6103(h). Instead they can use §6103(i) to access the taxpayer’s tax returns and tax return information.

Contact Sherayzen Law Office for Professional Help with an IRS FBAR Audit

If you are subject to an IRS FBAR Audit, contact Sherayzen Law Office as soon as possible for professional help. Without proper representation, an IRS FBAR Audit can lead to disastrous consequences to the taxpayer’s financial life due to imposition of the draconian FBAR Penalties.

Our experienced and highly-knowledgeable legal team, headed by Mr. Eugene Sherayzen, can help you! Contact Us Today to Schedule Your Confidential Consultation!