Hi, this is Anthony Parents of Parent & Parent LLP, the IRS Medic. Welcome to part four of our 2014 guide to IRS offshore voluntary disclosure. In this video, we are going to be speaking about the five percent penalty that is included in OV DP FAQ 52. Just a little bit about us, we are Parent & Parent LLP, where Tax Resolution attorneys. It is rumored we have the biggest offshore caseload. I am not entirely sure if that's true. Here's a picture of myself and my father. We are based in Connecticut, but yes, we do have clients all around the world. Now, let's talk about this 5% standard offshore penalty. Most people are aware that the typical penalty is 27.5% on the highest account value. Then, you'll see that there is a 12.5% penalty if the account is under $75,000. People see this 5% and say, "Oh well, that's the amount I want. It's much lower." Well, here's the thing, you can't argue for this. Either you qualify for it or you don't. There's no negotiating down inside the offshore disclosure without opting out to get 5% and actually, if you do opt out, you might do better than 5%. So, we're going to run through this and show you why we think 5% is actually too high for those who acted innocently. Let's go over some of the reasons why. First, you have to look at who qualifies. This is a generalized test, a little bit different, with a little bit of complexity. But, generally, this is the test: 1. If you are one of the people who didn't open the bank account, hasn't touched a bank account, or withdrawn more than a thousand dollars, unless you were closing the account and it was all funded with US money and all...
Award-winning PDF software
Video instructions and help with filling out and completing Which Form 843 Brackets
