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Houston FBAR Lawyer | FATCA Tax Attorney

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The main thesis of this essay is that the designation of a Houston FBAR Lawyer should be applied based on the geography of services of an FBAR lawyer rather the physical location of a lawyer.

Houston FBAR Lawyer Definition: Legal FBAR Services Provided in Houston, Texas

The old designation where a Houston FBAR Lawyer designation was limited only to lawyers who reside in Houston was incorrect from the very beginning for two reasons.

First, it was based basically on the premise that an out-of-state lawyer cannot effectively provide any legal services to a client who resides in Houston, Texas. Perhaps, to a certain degree, this premise could have been applicable to the time when there were no telephones, emails or other forms of modern communication. However, since the appearance of telephone and Internet-based communications, a modern lawyer can provide services efficiently and effectively at almost any point around the globe as long as he is licensed to do so. Even the face-to-face meetings can now be replaced with video conferences over the Internet (for example, video Skype conferences).

Second, some credence should be given to this old designation in situation where the subject matter is based on local Texas law or required appearance in a Texas court. In these situations, a local attorney indeed appears to have an advantage over an out-of-state attorney (although, even this advantage may be nullified if this is a one-time court appearance or the out-of-state attorney is actually licensed to practice in the State of Texas).

However, a Houston FBAR lawyer deals strictly with just federal subject-matter, because FBAR is a federal law and any US international tax lawyer can practice it irrespective of his physical location as long as this attorney is licensed to practice law in any of the 50 states or District of Columbia. This means that, as long as an international tax lawyer offers his legal FBAR services in Houston, he should be considered a Houston FBAR lawyer even if he resides in Minneapolis.

Houston FBAR Lawyer’s Knowledge of US International Tax Law is the Key Factor

While the physical location of a lawyer is not important in determining whether he is a Houston FBAR lawyer, it is necessary that this lawyer be an international tax lawyer experienced in FBAR issues.

This emphasis on competence in US international tax law is based on the fact that FBAR is just a part of a much bigger area of US international tax law. In fact, the FBAR and international tax law are so completely interrelated this interaction between FBAR and other international tax issues is crucial to determining a taxpayer’s legal position. This is why your Houston FBAR lawyer should have a profound understanding of both FBARs and all other relevant US international tax compliance requirements.

Sherayzen Law Office Should Be Your Houston FBAR Lawyer

Sherayzen Law Office is a highly experienced international tax law firm with profound knowledge of FBARs and all other relevant US international tax compliance requirements. Our team consists of highly-experienced international tax professionals headed by the founder of the firm, attorney Eugene Sherayzen. We have helped hundreds of US taxpayers worldwide with their FBAR issues and we can help you!

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

IRS FBAR Audits Caused by Tax Returns | FBAR Audit Lawyer

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IRS FBAR Audits can lead to catastrophic consequences for noncompliant US taxpayers. While there may be a numbers of factors that influence the IRS decision to commence such an audit, one of the leading sources of the IRS FBAR Audits are the US tax returns. In this article, I would like to explore the main types of documents that the IRS is searching for during a tax return examination in order to uncover the information that may lead to the commencement of IRS FBAR Audits (I will not discuss here the right of the IRS to disclose US tax return information for Title 31 FBAR Audit; this topic is reserved for a subsequent article).

IRS FBAR Audits and IRS Title 26 Examinations

From the outset, it should be made clear that filing of US tax returns does not automatically lead to IRS FBAR Audits. Rather, a great percentage of the IRS FBAR Audits arise from the IRS Title 26 Examinations of these returns– i.e. IRS examinations and audits of US tax returns pursuant to the various provisions of the Internal Revenue Code. During these examinations, the IRS analyzes the audited tax returns and may uncover information related to FBAR non-compliance which usually serves as a cause of the subsequent FBAR audit.

Tax Return Information that May Trigger IRS FBAR Audits

So, what kind of evidence is the IRS looking for that may trigger IRS FBAR audits? First and most logical is Schedule B, particularly looking at whether box in Part III (which has questions related to foreign accounts and foreign trusts) is checked. If there is a discrepancy between the information provided to the IRS and Schedule B, this may lead to IRS FBAR Audits.

Second, foreign income documents from the tax examination administrative case file (which includes the Revenue Agent Reports). Here, the IRS is looking for income related to foreign bank and financial accounts that was not reported. A combination of unreported foreign income and undisclosed foreign accounts is precisely the toxic mix that lays the foundation for IRS FBAR Audits.

Third (and this is a very interesting strategy), copies of tax returns for at least three years before the opening of the offshore account and for all years after the account was opened, to show if a significant drop in reportable income occurred after the account was opened. The analysis of the returns for three years before the opening of the account would give the examiner a better idea of what the taxpayer might have typically reported as income before the foreign account was opened. This strategy shows just how analytical and creative the IRS can be in looking for cases that should be subject to IRS FBAR Audits.

Fourth, copies of any prior Revenue Agent Reports that may show a history of noncompliance. This strategy confirms once again the notion that a large history of noncompliance may lead to more frequent IRS examinations, including IRS FBAR Audits.

Fifth, IRS is also looking into “cash accounting’ – two sets of cash T accounts (a reconciliation of the taxpayer’s sources and uses of funds) with one set showing any unreported income in foreign accounts that was identified during the examination and the second set excluding the unreported income in foreign accounts.

Finally, the IRS makes a connection between tax fraud and FBAR noncompliance – the IRS is looking at any documents that would support fraud in commencing IRS FBAR Audits. Such documents include: false explanations regarding understated or omitted income, large discrepancies between actual and reported deductions of income, concealment of income sources, numerous errors which are all in the taxpayer’s favor, fictitious records or other deceptions, large omissions of certain types of income (personal service income, specific items of income, gambling winnings, or illegal income), false deductions, false exemptions, false credits, failure to keep or furnish records, incomplete information given to the return preparer regarding a fraudulent scheme, large and frequent cash dealings that may or may not be common to the taxpayer’s business, and verbal misrepresentations of the facts and circumstances.

Of course, the IRS is not limited to these six types of tax return documents; however, this is the most common evidence that the IRS uncovers during a tax return examination that may lead to subsequent IRS FBAR Audits.

Contact Sherayzen Law Office for Legal Help with IRS FBAR Audits

If you are subject to an IRS FBAR Audit or a tax return examination that involves foreign assets and foreign income, or you have undisclosed foreign assets and you are looking for a way to bring your legal situation into compliance with US tax laws, then contact the international tax law firm of Sherayzen Law Office, Ltd. Sherayzen Law Office is one of the best law firms in the world dedicated to helping US taxpayers with foreign assets and foreign income. Our highly experienced team of tax professionals, headed by an international tax attorney Eugene Sherayzen, provides effective, knowledgeable and reliable legal and tax help to its clients throughout the world, and we can help you deal with any IRS problem.

Contact Us Today to Schedule Your Confidential Consultation!

Boulder FBAR Lawyer | Offshore Accounts Tax Attorney

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The definition of a Boulder FBAR Lawyer is much broader than many people believe. In this brief essay, I would like to explain who is considered to be a Boulder FBAR Lawyer and why you should retain the services of Sherayzen Law Office, Ltd. for professional help with your FBAR issues.

Boulder FBAR Lawyer Definition: Legal FBAR Services Provided in Boulder, Colorado

Obviously, the definition of a Boulder FBAR lawyer includes all FBAR lawyers who are physically located in Boulder, Colorado, and offer services there. However, this definition also includes every international tax lawyer who offers FBAR services in Boulder, Colorado,

This is the case because FBAR is a creation of federal law, not state law. This means that, irrespective of his physical location, an international tax lawyer can provide his FBAR services in Boulder as long as he is licensed to practice law in any of the 50 states or District of Columbia. What is really important is the competence and experience of an international tax lawyer, not his residence in Boulder.

Boulder FBAR Lawyer’s Knowledge of US International Tax Law is the Key Factor

Indeed, the competence of a lawyer should be the key factor in retaining the services of a Boulder FBAR lawyer. The level of competence of an FBAR lawyer depends on his knowledge of and the experience in US international tax law in general and FBARs specifically.

Why this emphasis not just on FBARs, but competence in US international tax law? First, FBAR forms just a part of a much bigger area of US international tax law. Second, in almost all cases, the FBAR issues are related to and often depend on other international tax compliance requirements (e.g. foreign income determination). In fact, the interaction between FBAR and other international tax issues is a major factor that determines a taxpayer’s legal position. This is why your Boulder FBAR lawyer should have a profound understanding of both FBARs and US international tax law in general.

Boulder FBAR Lawyer: Out-of-State Ability to Communicate is Not a Problem

Some readers may wonder why I emphasize the competence as a key factor in retainer of a Boulder FBAR lawyer and ignore the ease-of-communication considerations. It seems that some persons still cling to an obsolete belief that it would be more convenient to communicate with a local Boulder FBAR lawyer rather than an out-of-state one.

This is a flawed belief that I have been battling for a long time now. There are two reasons for why the communications factor no longer depends on the actual residence of your Boulder FBAR lawyer. First of all, the development of modern means of communications completely resolved the communications issues of the earlier centuries. Email, Video Skype Conferences, telephone and text messages make your out-of-state Boulder FBAR lawyer as equally accessible as your local Boulder FBAR lawyer.

Second, in reality, almost the entire course of communication between you and your local lawyer is going to be exactly the same as it would be between you and your out-of-state lawyer – i.e. email, telephone and even regular mail. Your local Boulder FBAR lawyer simply would not have the time to meet with you every time he needs to communicate something to you. Moreover, given the large amount of issues that often arise with respect to FBARs, personal meetings on every issue would simply make the case too expensive and inconvenient.

There is one additional point that is worth making here. While the geography of your Boulder FBAR lawyer does not matter, it is important that the lawyer is accessible to you and you can communicate with him on the progress of the case. However, this is a retainer factor that is highly personal to each lawyer.

In my case, my clients have no problems communicating with me; most of the time I will be able to respond before the end of the day and, often, immediately.

Sherayzen Law Office is Your Preferred Choice for Your Boulder FBAR Lawyer

Sherayzen Law Office is a highly experienced international tax law firm with profound knowledge of FBARs. We have been helping our clients worldwide with their FBAR issues for a very long time; in fact, we are one of the few firms which advised clients with respect to all major IRS voluntary disclosure programs, including 2009 OVDP, 2011 OVDI, 2012 OVDP, 2014 OVDP and Streamlined Procedures (Domestic and Foreign). We can help you!

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

Miami FBAR Lawyer | Foreign Accounts Tax Attorney

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Are you looking for a competent Miami FBAR Lawyer to help you with the filing current or delinquent FBARs? Then, you need to understand who is considered to be a Miami FBAR Lawyer and why you should retain the services of Sherayzen Law Office, Ltd. – an international tax law firm that provides FBAR services to Miami residents.

Miami FBAR Lawyer Definition: Legal FBAR Services Provided in Miami, Florida

The definition of a Miami FBAR lawyer is determined based on the geographical spread of a lawyer’s legal services (i.e. where a lawyer offer his legal services) rather than his physical presence. This means that as long as a lawyer offers his FBAR services in Miami, Florida, he will be regarded as a Miami FBAR lawyer.

The reasoning for this definition is rather straightforward – FBAR is a creation of federal law, not state law. This means a lawyer can provide his services in Miami in the area of US international tax law and specifically FBARs irrespective of his actual location (but as long as he is licensed to practice law in any of the 50 states or District of Columbia).   Mr. Eugene Sherayzen of Sherayzen Law Office, Ltd. is an excellent example of such a lawyer -he is physically located in Minneapolis, but successfully provides FBAR services to its clients who reside in Miami.

What are these FBAR services? Mr. Sherayzen helps his clients with current (on-going) FBAR compliance as well as FBAR voluntary disclosures in cases where his clients did not timely comply with their required FBAR filings.

Miami FBAR Lawyer Must Be an International Tax Lawyer

Unlike location, the competence of a lawyer should be the key factor in retaining the services of a Miami FBAR lawyer. The knowledge of FBARs and US international tax law should be the key consideration in this matter.

Why is competence in US international tax law so important? Two Reasons. First, FBAR forms part of a much bigger area of US international tax law. Second, in almost all cases, the FBAR issues are highly related to other international tax compliance requirements. In fact, the interaction between FBAR and other international tax issues is one of the main considerations that determines a taxpayer’s legal position. This is why your Miami FBAR lawyer should be an expert not just FBARs, but US international tax law in general.

Miami FBAR Lawyer: the Local Ease-of-Communication Myth

There is a substantial minority of persons who prefer, in spite of all of the factors in favor of a, for example, Minneapolis-based Miami FBAR lawyer (better knowledge of the FBARs and international tax law, higher experience and sometimes even better fee structure), to retain a local Miami FBAR lawyer mainly due to their belief that it would easier to communicate and control a local lawyer.

This belief is nothing more than an illusion and can be highly harmful to a person’s case. First of all, the development of modern means of communication completely erase any purported advantages of ease of communication with a lawyer in your town. Email, Video Skype Conferences, telephone and text messages make your out-of-state Miami FBAR lawyer at least as equally accessible as your local Miami FBAR lawyer.

Second, it is simply naive to believe that your local lawyer will be meeting with you every day while the case lasts. In addition to the unnecessary expense of such a situation, the lawyer simply will not have the time or the necessity to do it. In reality, almost the entire course of communication between you and your local lawyer is going to be exactly the same as it would be between you and your out-of-state lawyer – i.e. email, telephone and even regular mail. The only exception may be your initial consultation and your final meeting; both of these meetings can be easily replaced by Skype.

Sherayzen Law Office is a Preferred Choice for Your Miami FBAR Lawyer

Sherayzen Law Office is one of the leading US international tax firms with respect to FBARs and US international tax law. Our strength lies in extensive knowledge of the subject matter and large experience concerning all major relevant areas of international tax law including offshore voluntary disclosures (in fact, we are one of the few firms which advised clients regarding all major IRS voluntary disclosure programs, including 2009 OVDP, 2011 OVDI, 2012 OVDP and 2014 OVDP, as well as Streamlined Procedures (Domestic and Foreign)).

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

Sarshar Guilty Plea & Undisclosed Israeli Bank Accounts | FBAR Lawyer

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On August 1, 2016, the IRS scored another victory in a case involving Israeli Bank Accounts; the IRS and the DOJ announced that Mr. Masud Sarshar, a California businessman, was charged with one count of conspiracy to defraud the United States and one count of corruptly endeavoring to impair and impede the due administration of the internal revenue laws. Mr. Sarshar already signed a plea agreement agreeing to plead guilty and pay more than $8.3 million in restitution to the IRS. If the court accepts the parties’ agreement, Mr. Sarshar will be sentenced to 24 months in prison. Additionally, Mr. Sarshar agreed to pay a civil FBAR penalty in the amount of 50 percent of the high balance of his undeclared accounts for failure to disclose his Israeli bank accounts.

Facts of the Sarshar Case

Mr. Sarshar owned and operated Apparel Limited Inc., a clothing design business. Under his plea, he admitted that, between 2006 and 2009, he used unreported bank accounts at Bank Leumi and two other Israeli banks to hide $21 million of business revenue from the IRS. The accounts were owned by him personally and in the name of entities that he created with assistance of at least two relationship managers at the Israeli banks.

Between 2007 and 2012, Mr. Sarshar also earned more than $2.5 million in interest income from these accounts; none of this income was reported on his individual and corporate tax returns. No FBARs were ever filed.

In order to use the funds on his accounts, Mr. Sarshar utilized a creative stratagem where Bank Leumi would loan funds to Mr. Sarshar through its U.S. branch while the funds in Israel were used as a collateral. Mr. Sarshar was able to bring back to the United States approximately $19 million of his offshore assets without creating a paper trail or otherwise disclosing the existence of the offshore accounts to U.S. authorities.

What is particularly surprising about this case is the creativity of the Israeli bankers in getting the information to Mr. Sarshar. At Mr. Sarshar’s request, none of the banks sent him account statements by mail; rather, they provided them to him in person in Los Angeles. In order to conceal the statements, a Bank Leumi banker would upload the account statements on a USB drive which she concealed in necklace worn during her U.S. trips. Sometimes, the meetings with bankers occurred in Mr. Sarshar’s car. Moreover, the Israeli bankers also advised Mr. Sarshar to obtain Israeli and Iranian passports to prevent him from being flagged as a U.S. citizen by the compliance departments at both banks.

Lessons of the Sarshar Case

Several lessons and conclusions can be drawn from this case. The first conclusion is that the IRS continues to focus on Israeli banks in its tax enforcement efforts. The focus on Israel is something that Sherayzen Law Office has repeatedly stated in the past. Again, we want to repeat our prediction that we will see more cases involving Israel and other countries outside of Switzerland. This means that, if you have undeclared bank accounts in Israel, you are at an increased risk of detection and prosecution by the IRS. This lesson can be expanded into a general statement that you run a high risk of getting caught by the IRS if you have undisclosed foreign accounts in any country that has implemented FATCA.

The second lesson that can be drawn from the Sarshar case is that he should have entered into a voluntary disclosure program while he had a chance to do it. It is very important to understand that, in a willful situation, using the IRS offshore voluntary disclosure program is indispensable to prevent the imposition of higher penalties and a criminal prosecution.

The third lesson is that Sarshar case reaffirms the most common fact pattern that leads to IRS criminal prosecution – willful divergence of U.S. earnings to overseas accounts to avoid taxation, the usage of entities to hide the ownership of foreign accounts and persistence in violation of U.S. laws. Even one of these factors might have been sufficient for the IRS to commence a criminal investigation; in this case, all three were present.

Contact Sherayzen Law Office if You Have Undisclosed Foreign Accounts in Israel or Any Other Country

If you have undisclosed foreign accounts in Israel or any other country, contact Sherayzen Law Office for legal help. Our experienced team of international tax professionals, headed by our founder and international tax attorney Eugene Sherayzen, can help you resolve all of your tax problems in the United States.

Contact Us Today to Schedule Your Confidential Consultation!