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Showing posts from September, 2012

IRS's Expanded Fresh Start Program May Already Be Leading to Changes in OICs

In May 2012, the IRS announced new procedures for handling Offers in Compromise (OIC) as part of an extension of the Fresh Start Program.These guidelines were much more taxpayer-friendly than the previous rules.At least one August 2012 report has found that since the new procedures were put in place, the IRS went from accepting only 15% of OICs to accepting 40% of OICs submitted.This is an opportunity for anyone who owes back taxes to get caught up.
The IRS press release announcing the new program can be found here:http://www.irs.gov/uac/IRS-Announces-More-Flexible-Offer-in-Compromise-Terms-to-Help-a-Greater-Number-of-Struggling-Taxpayers-Make-a-Fresh-Start

The Progression of the IRS Offshore Voluntary Disclosure Program

The tax code is complex and always changing.One part of the code that many taxpayers are not aware of is the requirement to disclose foreign accounts and assets.The form number is TD 90-22.1, also known as the "FBAR," and it requires taxpayers with an aggregate amount that exceeds $10,000 in offshore assets to disclose those assets.The FBAR form does not assess a tax on foreign assets, but a failure to disclose could lead to civil penalties or possibly criminal sanctions.
The IRS introduced a program in 2009 that allowed taxpayers who failed to disclose their offshore accounts to receive a certain level of amnesty in exchange for a penalty equal to 20% of the total value of their foreign assets.A similar program was available in 2011, with the penalty increased to 25%.Now, the IRS has announced it will continue the program indefinitely at a penalty rate of 27.5%.More information on the 2012 program can be found at the IRS website:http://www.irs.gov/uac/2012-Offshore-Voluntary…

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Welcome to The Dove Firm's blog!  We run into various tax and business issues in our profession and encounter clients with questions about various topics.  The answers to those questions change with time and vary case by case.  However, we will try to post information here that can give readers a starting point to know where they can find the right answer to their legal questions.  We hope you find this information helpful.  Thank you for stopping by!

Carolyn Dove
www.thedovefirm.com