Comments for Due Diligence

Comment on Show Down Time Between US IRS and Swiss Banks by offshore bank account

offshore bank account — Fri, 30 Dec 2011 07:43:53 +0000

There has been a constant stream of news these days on unreported offshore accounts and the current foreign tax amnesty program. Recently, however, the IRS published in draft Form 8938 due for release later this year. That form, called the Statement of Specified Foreign Financial Assets, requires disclosure of assets held overseas. If you think this just means resort villas or factory equipment, you are probably in for a rude surprise.

Comment on The Developing Quiet Storm - Post OVDI Amnesty Claims Against Accountants by admin

admin — Wed, 21 Dec 2011 23:58:14 +0000

Josh-

I don’t think your comments apply directly to this post but I have approved them just the same.

We frequently hear the same arguments you raise. They are made by people who truly believe them and then find themselves in handcuffs.

We will go way out on a limb here and agree that there is NO statute that directly says that you must pay income tax on “private wages.” BUT the courts are the finally arbiter of the laws and they agree with the IRS that the IRS regulations require it and those regulations have the force of law. You can choose to “applaud those who evade and rebel against such a heinous organization as the IRS” but tread carefully. Defiance will land you in a prison cell. If you don’t believe in the present statutory framework, get the electorate to rise up and change the system.

Good luck and thnak you for your views.

Brian Mahany

Comment on The Developing Quiet Storm - Post OVDI Amnesty Claims Against Accountants by Josh

Josh — Wed, 21 Dec 2011 04:07:02 +0000

It makes me incredibly sick to realize how far from freedom we have came. Where it’s “ok” to lock folks away in jails in an inhumane fashion, like criminals, just because they lacked the fund’s to keep up with the thievery of the IRS and it’s inherently wicked attitude against the people. I would like to remind everyone that there infact is no law requiring one to pay income tax on private “wages”. Yes, there is an amendment, and I’m sure a pamphlet full of reasons why you must pay and pay and pay some more. I would like to see the “federal law” and it’s coded I.d. or statute #, that states the why and wherefore, that we are “required” to pay income tax on “private wages”. I thought the IRS clearly stated that income tax is “voluntary compliance”?? Yet they harangue and terrorize innocent people. A business man laying money off shore is none of my concern. I say good luck to him. I agree some taxes need collected, but income tax doesn’t support a single function within the social aspect of the united states. Other taxes fill that gap. I say the IRS and those people inside government, who allow the irs to exist as anything more than a nonprofit fund raiser for charity, are the criminals! If it’s mandatory that I pay income tax, and file, then take my money to begin with and leave me alone. I hope the irs collapses internally and ceases to exist someday. They say, “be a good american. Pay taxes.” Now they say, “you pay or you’ll pay!” I disagree whole heartedly. If the irs says you owe them money, fine, but no one should EVER be imprisoned for owing money to the irs. I believe it is the GREAT AMERICAN, who shuns administrations like the irs, which is no more federal than the federal reserve! Which is not federal at all. It is only my hope to convey a message which describes the brutality of our society in the courts of the u.s.a.. It is they who should be profoundly ashamed of themselves for conjuring such a system into existence! Apportioned taxes are the taxes I can agree to. We are taxed more now than we were as a british colony before the revolutionary war. I applaud any who evade and rebel against such a heinous organization as the irs. Not those who merely work for the irs, but those who keep it feeding fear into the hearts of working American people, I do wish you the most unsuccessful future!

Comment on The Developing Quiet Storm - Post OVDI Amnesty Claims Against Accountants by admin

admin — Tue, 20 Dec 2011 01:40:58 +0000

Thanks for the comment - once again, the folks at Expat aren’t making these mistakes. It’s often the middle America accountants that come from areas with small immigrant populations.

If some of your new clients were hurt because of their prior accountant, give us a call. Perhaps we can get back their money.

Brian Mahany

Comment on The Developing Quiet Storm - Post OVDI Amnesty Claims Against Accountants by Expat Tax Returns

Expat Tax Returns — Mon, 19 Dec 2011 20:34:01 +0000

Great Article! and Liz thank you!

Comment on The Developing Quiet Storm - Post OVDI Amnesty Claims Against Accountants by admin

admin — Mon, 19 Dec 2011 17:44:00 +0000

Thanks for the reply Liz

It is a defense but ultimately it’s up to a jury to decide whether the accountant or EA violated the standard of care owed the client. We often see returns in which line 13 on Schedule B is checked “No” to the question do you have a foreign account. We also see returns where the preparer listed foreign interest income but never filed the FBAR. Unfortunately, a lot of otherwise highly qualified CPA’s dropped the ball.

Looking at your URL, you specialize in helping people with FBARs and understand the rules. No one will ever have a problem with your work. It’s the accountants who rely strictly on software and don’t eyeball the return that make these costly mistakes.

Thanks again for the comment!

Brian Mahany

Comment on The Developing Quiet Storm - Post OVDI Amnesty Claims Against Accountants by Liz Zitzow, EA

Liz Zitzow, EA — Mon, 19 Dec 2011 14:56:36 +0000

Speaking as a specialist in filing past-due FBARs, there is a defense being used by my competitor tax preparation firms having an official policy of not preparing FBARs. The defense is that it isn’t an IRS tax form (it’s not, it’s a Treasury Form), and as such, their remit to prepare income tax returns does not include non tax forms (i.e., an informational Treasury Form).

E&O defense cases are relying upon this argument. I don’t know how well it works (me not being a lawyer), but I do know that if the only claim being made against their preparer is the failure to file FBARs, that’s going to be a protracted battle without a guarentee win for the taxpayer. There has to be some further evidence of failure to act beyond just omitting the FBARs for the taxpayer to win a handsome settlement. This is most likely to be the failure to quiz persons who moved to the US from another country regarding income arising from foreign assets for reporting on Form 1040.

Comment on New Foreign Asset Reporting Begins January 1st by Expat Tax Returns

Expat Tax Returns — Fri, 16 Dec 2011 17:55:06 +0000

Very important information to know! Thanks for sharing!

Comment on Report Shows IRS Made Mistakes in OVDI Program by Diane - Expat Tax

Diane - Expat Tax — Tue, 22 Nov 2011 01:28:23 +0000

Wonderful post!

Comment on BREAKING NEWS - Mahany & Ertl at Forefront of Mortgage Fraud Battle by Sequence Inc. Fraud Files Blog

Sequence Inc. Fraud Files Blog — Sat, 05 Nov 2011 11:01:42 +0000

[...] Home Mortgage Corporation, and its CEO Jim Hodge and Executive Vice President Jeanne Stell are the targets of a civil mortgage fraud lawsuit and a whistleblower lawsuit under the False Claims Act (FC… in the Southern District of New York. US Attorney Preet Bharara adopted the lawsuit, first brought [...]