Offshore Voluntary Disclosure Cases: OVDP, Streamlined Compliance Procedures and other Disclosures
This voluntary disclosure under the Streamlined Domestic Offshore Procedures arose out of an inheritance from an Indian relative which was complicated by disorganized nature of the assets and family disputes. The voluntary disclosure involved Indian rental properties, European farming activities, PFIC calculations (Section 1291), and other common issues involving FBARs and Forms 8938.
2012 OVDP voluntary disclosure required extensive default-method 1291 fund PFIC method calculations and preparation of Forms 5471. We used OVDP Transition Rules to Streamlined Domestic Offshore Procedures in order to reduce OVDP Penalties.
Modified voluntary disclosure involved complex foreign income classification issues, preparation of multiple Forms 5471 and 8865 for the ownership of foreign corporations and partnerships, Form 8938 and FBARs. We saved the client hundreds of thousands in potential tax liabilities through aggressive, yet reasonable and ethical, tax positions which were accepted by the IRS. We saved the client millions of dollars in potential FBAR and other penalties through creative use of OVDP and FBAR rules as well as certain tax positions (also accepted by the IRS).
Calculated multiple investments in Israeli and Southeast Asian PFICs, reduced the penalty base by almost 10% before the reduction of FBAR Penalties under the Streamlined Domestic Offshore Procedures. The case also involved issues with defaulted social investment loans.
A dual citizen of South Korea and the United States received a gift of real property from his family. The case involved dealing with South Korean capital gains, foreign tax credit issues, Forms 8938 and FBARs.
with ownership and control (through “related parties” indirect ownership rules) of U.S. and Canadian corporations. 2011 OVDI voluntary disclosure was required for various items, including FBARs, Forms 8891 (RRSPs) and Forms 5471 (Ownership of a Foreign Corporation). The case involved various corporate tax issues, including extensive US-Canada GAAP compliance.
inherited partial ownership of a factory in Eastern Europe as well as a large parcel of land. We guided our client through a voluntary disclosure process, amended tax returns going back six years with Forms 8891, and filed delinquent FBARs.
The client had extensive PFIC (Form 8621) issues, requiring preparation of amended tax returns using the OVDI Mark-to-Market PFIC method. Post-OVDI tax planning.
needed to go though a modified voluntary disclosure process as well as filing of delinquent FBARs on multiple foreign bank accounts of different nature, including PFICs.
(both spouses are permanent residents of Australia), needed to go through a traditional voluntary disclosure process (completed after 2009 OVDP closed but before 2011 OVDI commenced) and file delinquent FBARs, disclosing rental income from Australia as well as Australian retirement accounts.
with respect to unfiled employment and income tax returns as well as unpaid employment and income taxes. At the outset, the business and its owner were not represented; the IRS expanded its review to five years, subjecting the business to extreme deadlines with the ultimate intention to dissolve the corporation and criminally charge its owner and officers. Sherayzen Law Office successfully represented the business and its owner, met all of the IRS deadlines, and prepared and filed all Forms 940/941 and 1120. During the final negotiation process, the corporation was preserved, the filing of criminal charges was avoided, the penalties were reduced and the IRS agreed to an installment payment plan.
on the classification of employees. Initially the client was not properly represented during the initial inquiry process and MUI assessed high taxes and penalties. Sherayzen Law Office requested and successfully conducted the audit, established the classification of more than ninety percent of employees as independent contractors and reduced client’s liability by over 90%.