Tag: Services


Business Tax Services By Sanjiv Gupta CPA

Sanjiv Gupta CPA - 4 months ago
I provide a wide range of services to individuals and businesses in a variety of industries. I strive to meet each client’s specific needs in planning for the future and achieving their goals in an ever-changing financial and regulatory environment. My professional services includes:Tax Planning ServicesOur firm guide clients through a full range of tax planning and preparation decisions with strategies that minimize your tax liabilities. Our expertise, experience, analysis and thorough research allow us to optimize financial opportunities to be found in existing as well as recently altered tax laws.Accounting ServicesFrom start-ups to established enterprises, businesses rely on accurate and insightful financial information in order to maintain profitability and capitalize on new opportunities. My accounting services steer you closer to these goals with accurate record-keeping and reporting as well as support on financial issues such as initial accounting system setup, cost-containment, tax planning, investments, employee benefit and profit-sharing plans.These services include but are not limited to:General ledger and financial statement preparationBookkeeping (Monthly, Quarterly, or AnnualAccounting system setup and SupportPayroll processingCash flow budgeting and ForecastingPersonal financial statementsEmployee benefit and Profit-sharing plansCorporate tax planning and Return preparationEstate and Trust Tax Planning and Tax PreparationEffective estate and trust planning can ensure financial security for loved ones. For businesses, it can maintain a smooth succession of ownership. My role is to help you navigate the complex and shifting tax laws to facilitate the transfer of assets and minimize the tax liability of your beneficiaries which is done through our network.Financial and Retirement PlanningMy goal is to help you reach your financial goals and maintain financial independence through a comfortable retirement by evaluating current investments and making sure that your portfolio does take into account tax implications for an advantageous after-tax return.IRS RepresentationProfessional representation can be vital during an audit, and our experience with tax authorities enables us to guide clients in their dealings with federal and state agencies.Bookkeeping/Write-upAccurate record-keeping is essential to a successful business yet can also be complicated and time consuming. We can help you with the organization and day-to-day tasks of bookkeeping so that you can focus on your core business.Entity Selection and RestructuringYour business entity has a large impact on your taxes and other liabilities. From your company’s inception through its growth and development, I can advise you on choosing an entity type and later restructuring if advantageous.Accounting Software Selection, Implementation, and SupportChoosing and implementing a new accounting software system can be a challenging undertaking. Our experience with various packages currently on the market as well as awareness of new products allow us to aid you in choosing and implementing a system that will suit your company’s needs. Training and support will ensure minimal disruption of your everyday business processes.Payroll ServicesOur payroll services can help you reduce the time spent on administration through developing and implementing a computerized payroll system that will facilitate processing, timely payment and preparation of tax returns.Employee Benefits, Pension, and Profit-Sharing PlansChoosing and administering benefit plans for your employees is often a complex process. We can help you to decide which plan will help in maximizing tax advantages.Cash Flow and Budgeting AnalysisGood cash management can improve a company’s liquidity, reduce costs, and increase profitability. We can help you maintain optimal cash flow levels by tracking sources and uses, forecasting, and budgeting accordingly.Financial Projections and ForecastsNo one can predict the future perfectly, but we can all benefit from planning for it. Our firm combines expertise and experience with a gained understanding of your business to produce financial projections that can help you manage your business plan and spending. Depending on your needs, our work can range from top-level reports to detailed financial models.Mergers, Acquisitions, and SalesBusiness transactions and transitions are complicated affairs and whether you’re buying, selling, or considering a potential merger, we can provide professional know-how to help you successfully structure and negotiate the deal. We employ careful analysis and due diligence to determine a fair asking price, pinpoint the most favorable tax structures, evaluate financial and cash flow impact, and assess compatible business functions and tactics.Debt and Finance AdvisingWhether your needs are corporate or personal, our professionals can assist you in sorting out the different options available for debt management and financing that will result in optimal tax implications.International TaxationWhether you’re a corporation with overseas operations or a business or individual needing to work out taxation of U.S. residents working abroad or foreign citizens working in the U.S., we can help you plot a course through cross-border taxation issues

Tax Planning Services By Sanjiv Gupta CPA Firm

Sanjiv Gupta CPA - 4 months ago
Sanjiv Gupta CPA Firm is a full service provider of tax services and offers solutions to clients in the Corporate, Estate and Trust, Individual, Limited Liability Company, Not for Profit, Tax Exempt, Partnership, and S Corporation income tax areas.The primary objective of our tax services group is to minimize a client’s overall tax burden whenever and wherever possible. In order to achieve this, our tax services are directed primarily toward constructive tax planning beginning early in the year and maintaining close contact with our clients throughout the year.The tax services we offer include not only the preparation and review of income tax returns, but also advance planning to minimize future taxes, advice on tax effects of proposed transactions, corporate reorganizations, assistance in such tax-oriented areas as executive compensation, pension plans, international tax reporting and planning, and other similar continuing services. We also have experience in providing assistance and advice in negotiations with taxing authorities. In addition, we provide the following services:Strategic Tax PlanningCorporate, Partnership & Trust Tax PreparationInternational Tax ServicesNon-Profit Organization ReturnsShareholder Tax IssuesStock Option PlanningPayroll and Sales Tax ConsultingESOP Structure AlternativesThrough our commitment to equality and client service, we have developed a large base of tax clients whose size and complexity rival that of firms many times our size. We believe our success is due in large part to an added emphasis on strategic tax planning.

Indian CPA Services

Sanjiv Gupta CPA - 4 months ago
Non Resident Indian (NRI) Tax ServicesSanjiv Gupta CPA is of an Indian Origin and provides CPA services to Indian and the US clients.   Our offices are located in San Francisco Bay Area. However, we work with clients from around the globe.  You may be looking for an Indian CPA because you feel comfortable working with someone speaking your language.  Our office is staff with persons of Indian Origins who speak various Indian Languages.  While others like working with Indian CPA mainly due to trust.  Some of our clients work with us while moving to India or moving from India.  Some of our clients looking for Indian CPA are Indian Business Owners.Some of the common services customers looking from an Indian CPA are:FBAR Filing (Foreign Bank Account Reporting)Indian Bank Account/Income ConsultationConsultation For Moving Assets, Money or Income From India.Consultation for setting up a company in the United States.Tax Filing and Tax Audit Representation.Office of Sanjiv Gupta CPA is located in Fremont CA.  We also do phone consultation and video-conferences for our international clients.  Our office can handle both Business and Individual Tax and Accounting Needs.   We can file your state and federal tax returns,  process payroll, and provide tax audit services.   You can find lots of current tax and accounting information on our website but you can also send us your message or call us for phone or in-person appointment.Need help setting up business in the United States ?Our office can help you set up the business in the United States.  You don’t have to be a US Citizen or Resident to start a business in the United States.  We can set up a Corporate Structure, Filing proper paperwork and taxes and process your payroll.Sanjiv Gupta CPA is also a Certified Accountant (CA) from India.  Our Indian CPA services include the setting up of business, moving funds and filing the taxes.  Sanjiv is available for the consultant via phone and email. You can contact him online.

Understanding Notices From IRS

Sanjiv Gupta CPA - 8 years ago
Here you can learn more about the tax notices from Internal Revenue Services (IRS).  On the left side, you can see the notice number and you can find the description of the notice on right.   You can also contact our office to learn more about the notice you may receive.  We recommend you make an appointment and bring your notice along with any other records that you may have. Notice NumberDescriptionTopicCP02HYou owe a balance due as a result of amending your tax return to show receipt of a grant received as a result of Hurricane Katrina, Rita or Wilma.Balance DueCP03AYou received a tax credit (called the First-Time Homebuyer Credit) for a home you purchased. This notice informs you of how to repay it.CP03BYou received a tax credit (called the First-Time Homebuyer Credit) for a home you purchased. This notice informs you that you don’t have to repay the credit as long as the home remains your main home for at least three years after you purchase it. It also explains situations where a home stops being the main home.CP08You may qualify for the Additional Child Tax Credit and be entitled to some additional money.Additional Child Tax CreditCP10We made a change(s) to your return because we believe there’s a miscalculation. This change(s) affected the estimated tax payment you wanted to be applied to your taxes for next year.Change To Your Estimated Tax Credit AmountCP10AWe made a change(s) to your return because we believe there’s a miscalculation involving your Earned Income Credit. This change(s) affected the estimated tax payment you wanted to be applied to your taxes for next year.Change To Your Estimated Tax Credit AmountCP11We made changes to your return because we believe there’s a miscalculation. You owe money on your taxes as a result of these changes.Balance DueCP11AWe made changes to your return because we believe there’s a miscalculation involving your Earned Income Credit. You owe money on your taxes as a result of these changes.Balance DueCP11MWe made changes to your return involving the Making Work Pay and Government Retiree Credit. You owe money on your taxes as a result of these changes.Balance DueCP21AWe made the change(s) you requested for your tax return for the tax year specified on the notice. You owe money on your taxes as a result of the change(s).Balance DueCP21BWe made the change(s) you requested for your tax return for the tax year specified on the notice. You should receive your refund within 2-3 weeks of your notice.RefundCP21CWe made the change(s) you requested for your tax return for the tax year specified on the notice. You’re not due a refund nor do you owe any additional amount. Your account balance for this tax form and tax year is zero.Even BalanceCP21EAs a result of your recent audit, we made changes to your tax return for the tax year specified on the notice. You owe money on your taxes as a result of these changes.Balance DueCP21IWe made changes to your tax return for the tax year specified on the notice for Individual Retirement Arrangement (IRA) taxes. You owe money on your taxes as a result of these changes.Balance DueCP22AWe made the change(s) you requested for your tax return for the tax year specified on the notice. You owe money on your taxes as a result of the change(s).Balance DueCP22EAs a result of your recent audit, we made changes to your tax return for the tax year specified on the notice. You owe money on your taxes as a result of these changes.Balance DueCP22IWe made changes to your tax return for the tax year specified on the notice for Individual Retirement Arrangement (IRA) taxes. You owe money on your taxes as a result of these changes.Balance DueCP31Your refund check was returned to us, so you need to update your address.RefundCP45We were unable to apply your overpayment to your estimated tax as you requested.OverpaymentCP53We can’t provide your refund through direct deposit, so we’re sending you a refund check by mail.Direct DepositsCP120You need to send us documentation of your tax-exempt status.Tax ExemptionsCP130Your tax return filing requirements may have changed: You may no longer need to pay the Alternative Minimum Tax.Filing RequirementsCP139Your tax return filing requirements may have changed: You may no longer need to file Form 941 and Form 940.Filing RequirementsCP152We have received your return.Confirmation of Return ReceiptCP153We can’t provide you with your refund through a direct deposit, so we’re sending you a refund check/credit payment by mail.RefundCP166We were unable to process your monthly payment because there were insufficient funds in your bank account.Payment ProcessCP178Your tax return filing requirements may have changed: You may no longer owe excise tax.Filing RequirementsCP231Your refund or credit payment was returned to us and we need you to update your current address.Address Update NeededCP276AWe didn’t receive a correctly completed tax liability schedule. We normally charge a Federal Tax Deposit (FTD) penalty when this happens. We decided not to do so this time.FTD PenaltyCP276BWe didn’t receive the correct amount of tax deposits. We normally charge a Federal Tax Deposit penalty when this happens. We decided not to do so this time.FTD PenaltyOther Notices and LettersNotice or Letter NumberTitleCP 12Changes to Tax Return, OverpaymentCP 14Balance DueCP 23Estimated Tax Discrepancy, Balance DueCP 49Overpaid Tax Applied to Other Taxes You OweCP 57Notice of Insufficient FundsCP 88Delinquent Return Refund HoldCP 90/CP 297Final Notice – Notice of Intent to Levy and Notice of Your Right to a HearingCP 297ANotice of Levy and Notice of Your Right to a HearingCP 91/CP 298Final Notice Before Levy on Social Security BenefitsCP 161Request for Payment or Notice of Unpaid Balance, Balance DueCP 501Reminder Notice – Balance DueCP 503Second Request Notice – Balance DueCP 504Final Notice – Balance DueCP 521Installment Agreement Reminder NoticeCP 523Notice of Default on Installment AgreementCP 2000Notice of Proposed Adjustment for Underpayment/OverpaymentLetter 0484CCollection Information Statement Requested (Form 433F/433D); Inability to Pay/TransferLetter 0549CBalance Due on Account is PaidLetter 668D(LP 68)We released the taxpayer’s levy.Letter 0681CProposal to Pay AcceptedLetter 0757CInstallment Privilege TerminatedLetter 1058 (LT 11)Final Notice prior to levy; your right to a hearingLetter 1615 (LT 18)Mail us your overdue tax returns.Letter 1731 (LP 64)Please help us locate a taxpayer.Letter 1737 (LT 27)Please complete and site Form 433F, Collection Information Statement.Letter 1961CInstallment Agreement for Direct Debit 433-GLetter 1962CInstallment Agreement Reply to TaxpayerLetter 2050 (LT 16)Please call us about your overdue taxes or tax return.Letter 2257CBalance Due Total to TaxpayerLetter 2271CInstallment Agreement for Direct Debit RevisionsLetter 2272CInstallment Agreement Cannot Be ConsideredLetter 2273CInstallment Agreement Accepted: Terms ExplainedLetter 2318CInstallment Agreement: Payroll Deduction (F2159) IncompleteLetter 2357CAbatement of Penalties and InterestLetter 2603CInstallment Agreement Accepted – Notice of Federal Tax Lien Will be FiledLetter 2604CPre-assessed Installment AgreementLetter 2761CRequest for Combat Zone Service DatesLetter 2789CTaxpayer Response to Reminder of Balance DueLetter 2840CCC IAPND Installment Agreement ConfirmationLetter 3030CBalance Due Explained: Tax/Interest Not PaidLetter 3127CRevision to Installment AgreementLetter 3217CInstallment Agreement Accepted: Terms ExplainedLetter 3228 (LT 39)Reminder notice.Letter 4903 (LT 26)We have no record of receiving your tax returns.Letter LP 47Address Information RequestLetter LP 59Please contact us about the taxpayer levy.

Can’t Pay Your Taxes? Get Help From IRS

Sanjiv Gupta CPA - 8 years ago
Those that fall under the ax of taxation will tell you how difficult it is to cope with inflation on one hand and to abide by taxation policies on the other. Nonetheless, there is no exception to paying taxes. But then there is good news – Those that have genuine monetary problems can appeal to the IRS to reduce taxes. Provided the tax filer provides original documents and proofs to support his claim, the IRS can also provide potential tax relief programs.Most of you, I assume, know that evading or missing the payment of taxes is considered a crime. Paying taxes is mandatory for everyone as it the source of government revenue. The government, therefore, has given the responsibility to the internal revenue system or IRS to make sure that everybody files their tax return. While it is a criminal offense not to submit your taxes, the IRS shows a certain amount of leniency for those who are financially distressed and cannot file their taxes.Distressed taxpayer? IRS can helpThe internal revenue service identifies those people who have missed their tax payment owing to severe financial distress as distressed taxpayers. The IRS has devised certain relief measures for these distressed taxpayers. Here is how the IRS can help distressed taxpayers:Flexibility: If a person is unable to pay his taxes on time due to certain financial difficulties then the IRS provides him with a more flexible payment plan. If the IRS identifies you as a distressed taxpayer then they can either provide you with a flexible installment plan for your taxes, reduce the amount you have to pay and in some situations allow the complete nonpayment of the installment.The offer in compromise: The IRS in many situations comes to an agreement with the distressed taxpayer if the taxpayer can show that his expenditure is more or equal to his income. But in some cases, there can be a problem, especially if the taxpayer has equity in real estate. The IRS finds that the real estate measurements to identify if a person is in a state to pay his taxes can at times be unreliable which in turn causes certain problems for the offer in compromiser to be accepted by the IRS. But to solve this problem the IRS is trying to introduce another review of information gathered about the financial condition of the taxpayer so that the IRS can correctly asses if the offer in compromise can be applicable for that individual.Preventing defaults in offer in compromise: In many situations, the IRS face defaults even in the amount agreed to be paid in the offer in compromise terms. In such conditions, the IRS has a special team that will help the individual to find out ways to pay the agreed amount of taxes and not be a defaulter.Delaying collection: If an individual has recently faced a serious financial crisis, the IRS in some cases delays the date for tax payment. They do not need any kind of documentation for implementing such actions and can be taken by the employees to ease out the financial burden on the taxpayer.Speeding up levy realizes: In many cases if the distressed taxpayer requests an emergency quick levy release, the IRS relaxes the requirements from the taxpayer and allows an expedited delivery of the levy release. However, the taxpayer must provide the IRS with a fax number of the bank or the employee handling the levy when asking for an expedited levy release delivery.Here are a few ways the internal revenue service can help distressed taxpayers. While paying taxes is compulsory these measures relieve a lot of the burden from those facing serious financial hardships. Moreover, the additional review of the offer in compromise and the delaying of the collection action give more time to the taxpayer to get help from the IRS and to pay their taxes. IRS’s laudatory efforts to help the distressed taxpayers will surely help them to a great extent.

Benefits of Sanjiv CPA’s Payroll Services

Sanjiv Gupta CPA - 6 years ago
When you use Sanjiv Gupta CPA Payroll Services, you can avoid the complexity of calculating your payroll and tax withholdings. This will let you spend time focusing on your business’ success.If you are like most businesses, you are constantly struggling to keep up with complex employee-related issues and ever-changing tax legislation. It is time to consider outsourcing your payroll to Sanjiv Gupta. This will help you mitigate your risk and remain focused on your business.You can rely on Sanjiv Gupta CPA Payroll Service’s tax expertise and comprehensive payroll services to manage your business’s payroll. At Sanjiv CPA, you can choose a standalone payroll tax solution or you can bundle the payroll tax services with a complete payroll solution.Benefits Of Sanjiv CPA’s Payroll ServicesConvenience: Submit payroll easily by phone, fax or online.Eliminate Time Consuming Manual Processes: Our payroll service provides automated tax services with payroll integration.Reduce Potential IRS Penalties: Approximately 40% of small businesses get hit with IRS penalties on their payroll tax filings because they filed inaccurate or late returns or they were found in non-compliance. When you outsource your payroll to Sanjiv CPA, you can eliminate the risk of IRS penalties.Peace of Mind: Outsourcing your payroll to Sanjiv CPA provides peace of mind. Your payroll taxes will be filled accurately and on-time by certified public accountants you can trust.Customize Your Business’ Tax Strategy: Sanjiv Certified Public Accountants can help you customize your business’ tax strategy with a wide variety of related tax services and add-ons.Personal Service: Sanjiv Gupta CPA Payroll Services are always only a phone call away. If you have any questions about your payroll account, you can talk to a live payroll advisor and receive immediate attention.Health Care Reform Compliance: We will ensure that you are in compliance with the Health Care Reform so you can prevent issues and penalties.Expertise: When you outsource your payroll to Sanjiv Gupta CPA, you can rest assured that you are putting one of the most important accounting processes in the hands of experts. We have expertise in payroll tax filing, employment-related tax, and all other business-related tax issues.Reduced Payroll Administration Costs: When we handle your payroll tax filings and payroll services, you will find a huge reduction in administration costs. Your staff can spend their time and efforts on business functions that will increase your overall revenue.Sanjiv Gupta CPA provides innovative payroll features and reliable expertise that you can trust. Your staff will be able to stay focused on your core business. We will handle your payroll, tax filings, 1099s, workers comp, and withholdings.We guarantee our cost-effective and timely payroll tax filing services. You can rest easy because you will no longer be stressed over filing deadlines and tax calculations. You will not have any more IRS penalties or interest charges because you accidentally filed late. Sanjiv Gupta CPA Payroll Service advisors are experts in government regulations. We can help you reduce hidden payroll costs, reduce potential risk and start focusing on your bottom line.

Foreign Income & Asset Reporting By Sanjiv Gupta CPA Firm

Sanjiv Gupta CPA - 5 months ago
Under the American tax law, if you are a U.S. citizen who has either signature authority over or financial interest in any foreign financial account, you are required to report your account annually to the Department of Treasury via electronic filing.May your foreign financial account be a bank account, trust, or mutual fund, you have the obligation to file both the Financial Crimes Enforcement Network (FInCEN) 114 and Report of Foreign Bank and Financial Accounts (FBAR).Unfortunately, many U.S. citizens are not very familiar with the FBAR so before they know it, the U.S. government is already there to go after them and their penalties have already piled up.Cases of U.S. citizens residing outside the U.S. being up the creek for not filing their FBARs are rampant these days, thanks to these people’s ignorance of the law. But since ignorance of the law excuses no one, you can’t just say no one told you about this FBAR thing and expect to be absolved at the end of the day.Case in PointRecently, a U.S.-Canadian citizen was in trouble for failure to file his Report of Foreign Bank and Financial Accounts (FBAR).Jeffrey Pomerantz, a dual citizen who currently resides in Vancouver, Canada, is now being sued by the U.S. Justice Department for failing to file to the U.S. government his FBAR. The department filed the case in the U.S. District Court in Seattle and is now seeking civil and late payment penalties amounting to $860,300.While Pomerantz filed his income tax returns to both the Canada Revenue Agency (CRA) and Internal Revenue Service (IRS) in 2007, 2008 and 2009 he failed to file the other form known as the FBAR.According to Toronto-based lawyer Hari Nesathurai, the past couple of years have seen an increase in cases of Canadian residents being chased by the U.S. government for failure to file their FBAR reports. The lawyer said FBAR is a problem for many Canadian residents who are subject to U.S. tax laws, because they do not realize that even a Registered Retirement Savings Plan (RRSP) calls for a disclosure.“Many people don’t realize that and it’s troubling because it’s a penalty which applies on a non-disclosure even though there may be no tax payable,” he said, adding that the FBAR is particularly a major concern among Americans and U.S. citizens or green card holders who do not fully understand their reporting obligations.Going back to Pomerantz’s case, the lawsuit against him filed in May 2016 indicates that the events that led to the U.S. government chasing him for his failure to file his FBAR seem to have begun in 2010 with an audit, which is now before a different court.The lawsuit reveals that even before the income tax examination commenced, Pomerantz had already failed to file a Treasury Form TD F 90-22.1 (FBAR) for the three years in question to offer disclosure of his existing foreign accounts. However, the U.S. Justice Department said Pomerantz opened at least two personal checking accounts at the Canadian Imperial Bank of Commerce prior to Jan. 1, 2001, and both accounts were active from 2007 to 2009.The Justice Department also said in 2003, Pomerantz established a corporation in the Turks and Caicos Islands named Chafford Ltd., which held his personal investments. That same year, he also opened three bank accounts in Sal Oppenheim JR & Cie in Switzerland, and in 2007, he opened two more accounts in the same country and the same bank.The lawsuit also reveals that during each of the three years, he incurred balances not only in the CIBC bank accounts but also in different Swiss accounts over $10,000.Although the complaint of the U.S. Justice Department says that Pomerantz resided in the United States from 2007 to 2009, the documents presented by his camp claim that he and his wife, also a dual citizen of Canada and Norway, had only resided in California for part of 2008 and 2009 before they moved back to Canada.The documents prepared by the department read, “The petitioners were residents of Canada during the tax years in question and cannot be liable to double taxation and are entitled to relief under the U.S.” Contrary to that, those prepared by Pomerantz’s side pointed out that the Justice Department’s documents contained several mistakes, both on the IRS’s information and the calculations made in relation to his bank accounts.In the midst of the controversy, Pomerantz’s camp maintains that whatever mistake or omission was found in his IRS filings was purely unintentional and would not count as fraud, since he filed everything he knew he had to file to the best of his abilities.On March 3, the U.S. Justice Department issued the last entry in the court file in Pomerantz’s FBAR case by seeking an order to serve the complaint on Pomerantz and his lawyer.Meanwhile, a controversial agreement has reportedly caused the CRA to transfer to the IRS information about Canadian bank accounts. This transfer has been an issue for many Canada-based U.S. citizens under the American tax law, as this could result in the U.S. government pursuing more Canadian residents for failure to file their FBAR reports. Should You File an FBAR? Pomerantz’s FBAR woes stemmed from his failure to know that considering his status, he was actually required to file an FBAR.Like Pomerantz, there are many others out there who do not know what an FBAR is, what it is for and who should file it. If you are not sure whether to file it or not, here’s the rule. As per the American tax law, you are required to file an FBAR if you are any of the following:You are a U.S. person who had signature authority over or financial interest in at least one financial account outside the U.S.At any time during the calendar year, you had foreign financial accounts whose aggregate value exceeded $10,000.But how do you know if you are a “U.S. person?” U.S. Person According to the law, you are considered a U.S. person if you are a U.S. citizen, U.S. resident, an entity such as a corporation, partnership, or limited companies created and organized in the U.S. or under U.S. laws, and trusts or estates created under U.S. laws.The IRS rule also specifies certain exceptions to the FBAR reporting requirements, such as the following:Certain foreign financial accounts jointly owned by spousesS. persons included in a consolidated FBARCorrespondent/Nostro accountsGovernment-owned foreign financial accountsInternational financial institution-owned foreign financial accountsS. IRAs owners and beneficiariesTax-qualified retirement plans beneficiaries and participantsCertain individuals with no financial interest in but have signature authority over a foreign financial accountTrust beneficiaries who are U.S. persons reporting the financial account on an FBAR filed on behalf of the trustForeign financial accounts maintained in a U.S. military banking facilityIn Pomerantz’s case, he is a U.S.-Canadian citizen who owns a foreign financial account so he is required to file an FBAR. How to Report and File Your FBARReporting and filing your FBAR is required regardless of the taxability of your income. The law states that if you hold a foreign financial account, you are obliged to report even when your account produces no taxable income. You meet your reporting obligation by answering questions about tax returns in foreign accounts and by filing an FBAR.Since the FBAR is considered a calendar year report, you need to do the filing on or before April 15 of the year following the year in question. You need to file electronically through the e-filing system of FinCEN.Filing FBAR with a Federal Tax ReturnIn any case, you should not file the FBAR with a federal tax return. Even when the IRS extends the filing period for the income tax return, that does not mean that the period for filing an FBAR is extended as well. The good news though is that the Surface Transportation and Veterans Health Care Choice Improvement Act of 2015 has already been passed, granting taxpayers a maximum six-month extension to file their FBARs. So, should you fail to meet the April 15 deadline for FBAR filing, you have until Oct. 15 of each year to file. Why You Need to File a Complete and Accurate FBARIf you want to save yourself from possible civil monetary penalties, make sure that you file your FBAR properly by ensuring its correctness and completeness. FBAR-related penalties depend on whether the violations are willful or non-willful.For the penalties assessed by the IRS after Aug. 1, 2016 for violations committed after Nov. 2, 2015, the IRS assesses an inflation-adjusted penalty so that it won’t exceed $12,459 per violation for non-willful violations. On the other hand, the inflation-adjusted penalty for willful violations may go above $124,588 per violation.For violations that occurred on or before Nov. 2, 2015, civil penalties usually do not exceed $10,000 per violation for non-willful violations and greater than $100,000 for willful violations. When You Are a U.S. Taxpayer Who Holds Foreign Financial AssetsIf you are a taxpayer who has foreign financial assets exceeding certain thresholds, you need to file another form in addition to the FBAR—the Statement of Specified Foreign Financial Assets (Form 8938). You file this form with an income tax return. When You Have Offshore Financial AccountsToday, the Offshore Voluntary Disclosure Program of the IRS allows those who have unreported taxable income from their foreign assets or other offshore financial accounts the chance to fulfill their reporting obligations, and that includes the FBAR. While this program does not have a particular closing date, you need to do your reporting obligations the soonest time possible as the IRS has all the mandate to close this program anytime.When You are a Non-Resident U.S. Taxpayer Who Failed To File Required U.S. Income Tax ReturnsFor U.S. taxpayers who don’t reside in the U.S. and have failed to file the required U.S. income tax returns, the IRS implements certain streamlined filing compliance procedures. These procedures are exclusive to non-resident U.S. taxpayers, whose submissions are reviewed on varying degrees, depending on the response of the taxpayer to a risk questionnaire and on the amount of tax due.In 2014, the IRS expanded these streamlined procedures to certain taxpayers residing in the U.S. The new procedure stipulates that penalties of eligible U.S. taxpayers who are non-residents should be waived, while penalties of eligible U.S. taxpayers who are U.S. residents will include a miscellaneous offshore penalty. This penalty is equivalent to five percent of the foreign financial assets of the taxpayer in question that caused the tax compliance issue. When You Failed to File FBAR and Are not Under a Civil/Criminal Investigation by the IRSIf there are streamlined filing compliance procedures in FBAR filing for U.S. taxpayers who are non-residents, there are also procedures that are exclusive to taxpayers who did not file the required FBAR and are not under any criminal investigation by the IRS. If the IRS has not contacted you about a delinquent FBAR, then you need to file any delinquent FBAR through FinCEN’s BSA E-Filing System.When you enter the system, you need to choose a valid reason for your late filing and enter an explanation using the “Other” option. If your income from your foreign financial accounts are properly reported and you paid your taxes on your U.S. tax return, rest assured that the IRS will not impose any penalty for your failure to file the delinquent FBAR.For the last handful of years, U.S. taxpayers, residents and non-residents alike, have been grappling with various changes on the IRS’ reporting requirements. Despite these changes, the need for U.S. taxpayers to disclose their foreign assets remains. Criminal and civil penalties as a result of not filing an FBAR have been alarmingly high in the last years and the U.S. government is now more stringent than ever in going after those who fail in this part of the IRS law. So if you don’t want to be in dire straits with the IRS, report when and what you should.
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