Taking the “F” Out of FBAR
November 3-8, 2011
A Presentation by:
Offshore Investing
• Benefits of Offshore Investing
• Higher Return on Investment (ROI)
• Mitigate Risk
• Convenience
• Tax Shelters
Offshore Investing
• Failure to comply could:
• Negate profits & result in loss of investment
• Deem your activities illegal
• Result in large monetary fines (possibly more than your
investments, everything that you have or will have)
• Result in loss of green card
• Destroy your legacy
Your Duties
• FBAR (Foreign Bank Account Reports Form TD F 9022.1)
• Penalty
• Reporting Foreign Income Generated from Offshore
Financial Institution
• Who is Taxed?
• Taxes Covered
• Interest Income Generated From Foreign Account
• Special Rules for Foreign Mutual Funds
Passive Foreign Investment
Company (PFIC)
• What is a PFIC?
• Significance of PFIC Tax
• Avoiding PFIC Rules
• QEF Election
• Market to Market Election
Liabilities
• Tax Liability Associated With Foreign Account
• Criminal Penalties Associated with Not Disclosing
Income
• Attempt to Evade the Payment of Tax
• Filing of a False and Fraudulent Tax Return
• Civil Penalties
United States (U.S.)
Enforcement
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Why and How?
• Bank Summons
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Basler Kantonalbank
Credit Suisse Group AG & Privite Advisors
HSBC
Israeli Bank
Neue Zaercher Bank
UBS AG & Swiss Financial Advisers AG
Bank Hapoalim
Cantonal Banks
• Joint Country Criminal Investigation
United States (U.S.)
Enforcement (cont.)
• Government Data/Revenue Collection Programs
• OVDI & OVDI II
• Criminal Prosecutions
• Charges
• Convictions & Pleas
• Civil Enforcement
• Audits
• 3rd Party Information
• Criminal Consequences
United States (U.S.)
Enforcement (cont.)
• Immigration Problem
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Deportation
Federal or State Tax Crime
Incarceration
Fines
Unfiled Tax Returns
• Statute of limitations:
• Criminal
• Civil
• Lost records
• Basis [adjusted cost] of assets sold
What if you can’t pay?
• Additional time to pay
• Installment payment plans
• Offer In Compromise (OIC)
• Bankruptcy
• Liquidation [Chapter 7]
• Reorganization [Chapters 11 & 13]
What You Can Do!
• IRS Voluntary Disclosure
• Amnesty Programs
• State Considerations
• Dual Citizenship Consideration
How We Can Help
• Over 30 years protecting your rights in Tax Law
• Review your accounts
• Help you comply with the law
• Determine best approach to deal with U.S.
Government
Contact Information
180 Montgomery Street
Suite 1950
San Francisco, CA 94104
888.829.3325
415.394.7200
www.stevemoskowitz.com