Information 2012 IRS Tax Forum

Ten Things You Need to Know About the 2012 IRS Nationwide Tax Forums

The 2012 IRS Nationwide Tax Forums are three-day events presented by IRS experts and partner organizations that offer up-to-date information on federal and state tax issues. Tax professionals that take advantage of early registration will receive a significant discount on the registration fee. Keep in mind that the early registration period closes two weeks prior to each forum.

Here are 10 things Enrolled Agents, Certified Public Accountants, Certified Financial Planners, Registered Tax Return Preparers and other tax professionals need to know about the 2012 IRS Nationwide Tax Forums.

1. Forums are held June through August in Orlando, Atlanta, San Diego, Las Vegas, Chicago and New York.

2. Those who sign up early can qualify for discounted registration fee. Pre-registration ends two weeks prior to the start of each forum.

Location	Forum	Pre-Registration Deadline
Orlando	June 19-20	June 6
Atlanta	July 10–12	June 26
San Diego	July 17-19	July 3
Las Vegas	July 31- August 2	July 17
Chicago	August 21-23	August 2
New York	August 28 - August 30	August 14

3. Forums offer an opportunity to receive up to 18 continuing education credits through a variety of training seminars and workshops.

4. Forums will offer 43 separate seminars and workshops on valuable and relevant tax topics.

5. Forums will also feature a two-day expo with representatives from the IRS as well as other tax, financial, and business communities offering their products, services, and expertise.

6. Visit with IRS Oversight Board representatives and offer your comments on various IRS initiatives and programs.

7. Tax professionals attending a forum can bring their toughest unresolved cases to meet with IRS personnel who may be able to help.

8. Registering for a tax forum is easy! Register by internet, fax or mail.

9. For more information or to register visit www.irstaxforum.com.

10. Follow us on Twitter @IRStaxpros to get the latest IRS news and guidance for tax professionals. Or “like” us at www.Facebook.com/IRSTaxForums.

The New IRS Form 8938 - Foreign Assets - What it Could Mean

I have deliberately NOT added my words to the following information.  This is a “hot” top even for an experienced tax professional.  Just know, that history repeats itself and after each and every downturn in the economy, there has always been a new set of wealthy people, who arise.  The U.S. Government is clearly on top of this potential group of wealthy people.

The following report explains one of the major reasons more and more Americans are moving offshore and applying for and obtaining citizenships in foreign countries.  I am not sure if giving up my citizenship is something I want to do however, it is more than clear to me, that moving offshore is not only a wise move, but a profitable one.  You read and let us know what you think.  You can visit the website: “Forgot to Savefor Retirement”  and click on “44 Things You Should Know Before Moving or Investing Offshore” (left hand side)  also get additional free reports to help you decide your next move.


Special Report ------------------------Taxes – Form 8938 ----- Off Shore Assets

Tax season is over, but many U.S. taxpayers remain confused about the new IRS Form 8938...including many tax professionals, it seems, given the number of e-mails I'm getting from readers asking questions to make sure their tax preparers completed their forms correctly.

This new form is a catch-all intended to capture information about offshore financial assets that aren't required to be reported on any other IRS form. If you own some offshore entity that requires you to complete a related form (5471 for an offshore corporation or 3520 or 3520-A for an offshore trust, for example), you're already reporting the existence of the asset and don't have to file a Form 8938 for it...if that's the only offshore asset you hold. If you meet the requirements for the form and have additional assets that aren't already being reported elsewhere...then, yes, you need the new 8938.

Start by determining whether you meet the requirements for Form 8938 overall. This means understanding the rules and making some calculations. 

First is the fixed number threshold. For those residing in the United States, that number is US$50,000 of Foreign Financial Assets (FFA) on the last day of the tax year or US$75,000 of Foreign Financial Assets at any point during the tax year. Those figures are for people filing single, including married people filing separately. The figures double for people filing jointly.

If you don't reside in the United States, then the numbers jump to US$200,000 of FFA on the last day of the tax year or US$300,000 at any point during the year. Again, the figures double for people filing jointly.

While the minimum threshold for filing is higher than that for the FBAR form for reporting foreign bank accounts, foreign bank accounts are included in the definition of an FFA. Therefore, even if you don't qualify for the FBAR because you have, say, one bank account overseas with only US$8,000 in it (the threshold for reporting, remember, is an account with US$10,000 or more), you would be required to report that bank account on Form 8938 if you meet the requirements for the new form overall.

FFAs also include stock certificates that you hold directly for foreign corporations even if the corporation doesn't qualify as a U.S.-controlled foreign corporation (USCFC). This could be stocks of a Canadian junior mining stock you purchased directly from the company that now sit in a drawer in your home office. This example is critical as it's not uncommon to have invested in stocks in this manner and forgotten about the certificates sitting in a file drawer somewhere. A friend whose mother died recently found old certificates for a foreign stock that his mom had bought years before and hidden in her bedroom. No one else knew they existed.

The catchall part of the definition for an FFA is "Any financial instrument or contract that has an issuer or counterparty that is not a U.S. person." This definition would include, for example, an offshore life insurance policy that has a cash value. It would not include physical assets held in your own name...such as real estate and metals if you hold the physical metal rather than a certificate.

Debate continues about whether physical metal held by a third party qualifies as an FFA. If you have a contract with a third party to store the metal, it could be considered to fall under the catchall definition. However, physical gold is clearly not a financial instrument, so most experts agree that physical metals need not be reported on Form 8938.

Real estate is much more black and white. It is not reportable...as long as you hold the property in your individual name. If you hold it in an entity, then the shares of the entity qualify as an FFA and do need to be reported. The real estate then would be disclosed on the forms for the entity.

While the above explanations are as clear as I can make them, they probably only bring up more questions. With so much uncertainty as to what should be included on Form 8938 and so much worry (thanks to IRS fear-mongering tactics) over the consequences of not reporting something that is deemed reportable, some taxpayers are opting simply to report any and all assets they hold outside the United States. That may seem like overkill...and repulsive if you retain any expectations of privacy in the United States.

I'd agree...except that I've already given up on any delusion that anything resembling personal privacy remains possible in the current climate in the States. Further, I believe it will be only a short time before that will be the requirement anyway--to report any and all offshore assets, in anticipation of the imposition of a wealth tax.

With the U.S. government drowning in debt, many believe a wealth tax similar to the ones in France, Colombia, and elsewhere (including, at one time, in the state of Florida) is just around the corner. I count myself among them.

Meanwhile, remember: Failure to include even one required disclosure on Form 8938 can result in a fine of as much as US$10,000 to US$50,000.

Lief Simon

--------------------------------Special Report end ----------------

You can view Form 8938 here: http://www.irs.gov/pub/irs-pdf/f8938.pdf   for those who are actively involved in the RV of the Dinar, this hits right at your front door.  The penalty for getting this wrong, are steep. 

For help with un-filed taxes click here. 

Click here to get more information on Moving Offshore

Another Tax Loophole Exposed, And This One Is Major

Below is an article that was published online, May 17, 2012.

This article is a prime example of the very rich having the finances to hire, employ and implement tactics which can save them millions in taxes.  However, the moment this information becomes public, there is always somebody in Congress who needs some media attention. 

When you put these factors together, you get a good, and some times bad, tax loophole exposed and "voted" on in Congress.  Actually they vote on over 100 new tax laws a year, but with these votes, they know exactly, what they are voting on.

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Sparked by Facebook co-founder Eudardo Saverin's renouncement of his citizenship, two U.S. Senators are planning to unveil a new plan focused on preventing the super rich from dodging taxes.
Saverin has been taking quite a bit of heat over dropping his citizenship, which was announced coincidentally just weeks before Facebook goes public. Many viewed the action as a way for him to save an estimated $100 million on taxes, a sentiment Saverine dines, as VentureBeat reported yesterday.

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OK, why did he need to tell "anyone" except his immediate family and tax advisers?
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Sens. Charles Schumer, (D-NY) and Bob Casey (D-Pa.) plan, unofficially called the “Ex-Patriot Act,” seeks to bar people like Saverin from reentering the U.S. once they’ve renounced their citizenship to avoid heavy taxation. While I understand how it could be upsetting that some people don’t value their citizenship despite everything the U.S. offers, but deciding to block them from ever visiting the country is just asinine. The goal is to compel the super rich to continue paying taxes, not excommunicate them.

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Maybe he renounced his citizenship because he was frighten of becoming very, very, very, wealthy in America!  Having lived in Europe for a year, I can tell you, people, all people are treated differently in Europe.  Of course, I couldn't wait to get back to the US, but you must realize, I was poor when I left and I was poor when I returned.
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In grand dramatic political fashion, Schumer’s office labels Saverin’s renouncement as a “scheme,” and tries to bring a sense of urgency to the matter due to the recent news. What’s funny about this move is that its anything but urgent. Saverin filed the paperwork to give up his citizenship in January 2011, but was only approved the following September.

Also, people giving up their citizenship to avoid paying taxes is not a new concept. As my fellow staffer Jolie O’Dell previously pointed out, filing taxes as a U.S. citizen while living abroad can be an expensive and complicated nightmare. That said, nearly 1,800 people renounced their citizenship in 2011 to avoid having to deal with those taxes.

Generally speaking, Schumer does some really good things with his power, such as trying to speed up the process of adoption process for sweet German Shepherd dogs that served in the military. But when it comes to the “Ex-Patriot Act,” it seems like little more than banging pots and pans in a silent room filled with people for the sole purpose of grabbing attention.

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There are definite tax loopholes out there.  You just have to know who to hire and employ to protect you.  For sure you don't want to hire the tax professionals who worked on Wesley Snipes taxes.  However, there are some sharp, tax attorneys out there.  How can you identify them?  Well if he shows up at a private airport with a small jet in he background and doesn't feel the need to hid the jet, because no one is trying to repo the jet, then you know for sure, he's your man, or woman.