IRS Clarifies Home Sales Want to Come Clean About Taxes Overseas? The IRS Is Willing to Help

IRS Clarifies Home Sales Want to Come Clean About Taxes Overseas? The IRS Is Willing to Help

By Alan Olsen, CPA, MBA (tax)
Managing Partner
Greenstein Rogoff Olsen & Co. LLP

You know that awful feeling you get when you have done something wrong and you just can’t wait to get it off your chest? It’s called guilt. Almost everyone has that guilty feeling at some time or another. When it comes to offshore accounts, it’s hard to feel guilty about keeping more for yourself and giving less to the IRS. However, for those who have been holding back for a while, or who have been hiding large sums of money, that feeling of guilt might have reached its peak.

Guilt vs. Anxiety

If that’s the case, then maybe you have decided that it’s finally time to come clean and reveal your discretions. Of course, that can bring about another uncomfortable human emotion known as anxiety. That anxiety most likely stems from the fear of the IRS and the retribution you might face for your non-compliant lifestyle. Because no one really wants to live with either guilt or anxiety, in the end coming clean to the IRS is probably the best decision.

How to Come Clean

Of course, for the IRS that decision is a no-brainer and to that end they want to do everything they can to help you clear things up regarding your offshore accounts. To help make this process easier for you, the IRS has even come up with several different forms for the many different possible scenarios that could apply to your situation. These forms include:

Form 14452 – Foreign Account or Asset Statement
Form 14453 – Penalty Computation Worksheet
Form 14454 – Attachment to Offshore Voluntary Disclosure Letter
Form 14457 – Offshore Voluntary Disclosure Letter
Form 14653 – Foreign Streamlined Certification
Form 14654 – Domestic Streamlined Certification

Which One Is Right for Me?

So now that you have decided to come clean and you are aware of these different options from the IRS, the question is: “Which form(s) is right for me? The first thing you need to do is to determine whether or not you are willful or non-willful. According to the IRS the distinction is defined this way: “Non-willful conduct is conduct that is due to negligence, inadvertence, or mistake or conduct that is the result of a good faith misunderstanding of the requirements of the law.” So there you have it. If you know you have been hiding or withholding money, then you are willful. If it’s an honest mistake, you are non-willful.

Be Aware of Changes

The IRS recently made some changes to its disclosure programs, including making the process for both foreign and domestic disclosure more streamlined. The biggest change to the IRS’s Streamlined Guidance Update is a clarification to taxpayer eligibility. While you cannot use both the Streamlined program and the OVDP program at the same time, being pre-cleared for the OVDP program does not stop you from using the Streamlined program. However, when you formally apply to use the OVDP program then you are no longer eligible for the Streamlined program.

GROCO Understands Disclosure

If you have decided to come clean on offshore accounts, then no doubt you have some questions and concerns. Don’t worry, GROCO can help you with the feelings of anxiety. We know which forms you need and how to fill them out properly. Plus, after you come clean you can push aside those feelings of guilt, as well. It’s a win-win. So click here to contact us or call us at 1-877-CPA-2006.

 

We hope you found this article about “IRS Clarifies Home Sales Want to Come Clean About Taxes Overseas? The IRS Is Willing to Help” helpful.  If you have questions or need expert tax or family office advice that’s refreshingly objective (we never sell investments), please contact us or visit our Family office page  or our website at www.GROCO.com.  Unfortunately, we no longer give advice to other tax professionals gratis.

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Alan Olsen, is the Host of the American Dreams Show and the Managing Partner of GROCO.com.  GROCO is a premier family office and tax advisory firm located in the San Francisco Bay area serving clients all over the world.

 

Alan L. Olsen, CPA, Wikipedia Bio

 

 

GROCO.com is a proud sponsor of The American Dreams Show.

 

The American Dreams show was the brainchild of Alan Olsen, CPA, MBA. It was originally created to fill a specific need; often inexperienced entrepreneurs lacked basic information about raising capital and how to successfully start a business.

Alan sincerely wanted to respond to the many requests from aspiring entrepreneurs asking for the information and introductions they needed. But he had to find a way to help in which his venture capital clients and friends would not mind.

The American Dreams show became the solution, first as a radio show and now with YouTube videos as well. Always respectful of interview guest’s time, he’s able to give access to individuals information and inspiration previously inaccessible to the first-time entrepreneurs who need it most.

They can listen to venture capitalists and successful business people explain first-hand, how they got to where they are, how to start a company, how to overcome challenges, how they see the future evolving, opportunities, work-life balance and so much more..

MyPaths.com (Also sponsored by GROCO) provides free access to content and world-class entrepreneurs, influencers and thought leaders’ personal success stories. To help you find your path in life to true, sustainable success & happiness.  It’s mission statement:

In an increasingly complex and difficult world, we hope to help you find your personal path in life and build a strong foundation by learning how others found success and happiness. True and sustainable success and happiness are different for each one of us but possible, often despite significant challenges.

Our mission at MyPaths.com is to provide resources and firsthand accounts of how others found their paths in life, so you can do the same.