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Offshore Voluntary Disclosure Program (OVDP) - How to Avoid FATCA Tax Compliance Penalties (PART 2) - YouTube
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Did you know if you're a US tax payer
living abroad
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and have not filed your US taxes willfully you may not be compliant with your US tax
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obligations
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and you may be putting yourself at
substantial risk.
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Hi, I鈥檓 Patrick Evans, founder of US TAX PRACTICE.
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I鈥檓 a US Certified Public Accountant based in Switzerland
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servicing clients here and in the rest of Europe. I'm in the business
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of helping fellow US Tax payers with their tax compliance and tax planning.
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Did you know that U.S. persons (citizens and green card holders)
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who are not compliant with their US
individual income taxes
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can now take advantage of two favorable
programs through the IRS.
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In my first video I took you through the
Streamlined Compliance Procedure Program which is
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intended for individuals who
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non willfully were not compliant with their
income tax filings.
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In my current video we will walk you
through
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the Offshore Voluntary Disclosure Program which is for people who
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willfully
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evaded taxes.
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This program is intended for US citizens
in green card holders
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who neglected to file their tax returns,
report all income,
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pay their taxes and file informational
returns such as (FBAR鈥檚 and FATCA)
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due to willful conduct. This puts them
at
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substantial risk for criminal
liability and substantial civil
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penalties.
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But the good news is The Offshore Voluntary Disclosure Program
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also known as OVDP provides protection
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from criminal liability and fixed terms
for several tax obligations
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and penalties. But in order to get the
protection
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there are some key requirements the
first thing is cooperate in the
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voluntary disclosure process.
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and secondly need to pay 20 percent
penalty
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related to offshore income which was not
reported previously
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this includes interest, capital gains,
dividend
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an earned-income from foreign sources.
and thirdly
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need to pay the normal IRS penalty which
are for failing to file your tax return
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and failing to pay any taxes owed. four
you need to pay a penalty
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27.5 percent for fifty percent in some
cases
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of the combined balance any offshore
accounts
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such as bank accounts, brokerage accounts
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foreign mutual funds or any account which
is deemed to be a
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foreign financial account. Five need
to pay all your penalties
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or enter a payment arrangement with the
IRS and finally
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need to make an agreement with the IRS
and agreed to cooperate with the
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Department of Justice
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related any offshore enforcement efforts.
and once you sorted out the key
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requirements.
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You also need to provide the following
document. Firstly
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payment of all tax, interest and all
penalties. If you're not
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able to make the payment in full you need to submit your payment arrangement
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documentation. Two
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need to submit all original an amended
individual income tax returns
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these include all 1040's and 1040 X's
for the relevant
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years in offshore disclosure period. Three
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You needed submit and complete a signed offshore
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voluntary disclosure letter. Four Provide all statements related to the
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foreign financial account this includes
bank statements, brokerage statements
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any statement related to the account. Five
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the taxpayer account summary with the
penalty calculation attached.
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and six you need to provide a signed
agreement
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which extends the time to assess tax and
penalties.
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and next summit all foreign Bank Account Reports also known as FBAR'S
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and copies of all statements related to
all financial accounts
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for the years pertaining to the offshore
period. and finally
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you need a submit statement which list
all your foreign financial assets
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weather held directly or indirectly.
Directly held assets would be bank
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accounts,
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investments in stocks et cetera indirect
assets
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would be mutual funds and pension fund
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et cetera and remember OVDP is intended for
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individual and they're own tax liabilities
it is not for
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people who helped other people evade their taxes. If you have a specific question
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feel free to give us a call at country
code 41 52 533 45 81
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I鈥檓 Patrick Evans with US Tax Practice. Thanks for watching
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and see you in my next video.
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