Thursday, December 20, 2012

The new IRS Form 433-A (OIC) has a Built in Calculator!

The new IRS Form 433-A (OIC) has a built in calculator.

After completing the Collection Information Statement, and plugging in the numbers; it caculates the Offer amount.

Who needs a 3rd party caculator?

Need an Offer in Compromise?

Contact the Tax Lawyers at Marini & Associates, P.A. for a FREE Tax Consultation at or or Toll Free at 888-8TaxAid (888 882-9243).

Wednesday, December 19, 2012

Marini & Associates, P.A.

Wishes you
a Very Merry Christmas,
Greetings of the Season and
a Happy & Prosperous 
New Year !

International & Tax Litigation
¡Feliz Navidad y Prospero Año Nuevo!


IRS Proposes Regulations and Guidance for Whistleblowers!

The IRS issued proposed regulations on Decmeber 14, 2012 for whistleblower awards under Secs. 7623(a) and (b), as well as rules governing the disclosure of return information under Sec. 6103(h) to pursue these claims (REG-141066-09). The proposed regulations provide general rules for submitting information to the IRS, definitions of key terms, rules for administrative proceedings, and criteria for determining the size of an award.

Sec. 7623(a) permits the IRS to pay awards to whistleblowers at its discretion. Any amount payable under Sec. 7623(a) is paid from the proceeds of amounts collected by reason of the information provided, and any amount collected is available for these discretionary payments.

Sec. 7623(b) provides that qualifying individuals will receive an award of at least 15%, but not more than 30%, of the collected proceeds resulting from the action that the IRS proceeded on based on the information the whistleblower provided to the IRS.

Prop. Regs. Sec. 301.7623-1 provides the general rules for submitting information on underpayments of tax or violations of tax laws and filing claims for awards. This section lists the information required to be submitted to file the claim and the people who are ineligible to claim an award. The list of ineligible claimants includes Treasury Department employees, government officials, and individuals who are required by law to disclose the information.

Prop. Regs. Sec. 301.7623-2 defines key terms of the whistle blower program.

Prop. Regs. Sec. 301.7623-4 contains the criteria the IRS will apply in determining the size of the award under Sec. 7623, which is based in part on how substantial the claimant’s contribution was in obtaining the collected proceeds and whether the claimant was involved in the act that gave rise to the proceeds.

Prop Regs. Sec. 301.6103(h)(4)-1 authorizes Whistleblower Office employees to disclose return information to the extent necessary to conduct whistleblower administrative proceedings. The regulations provide that the Whistleblower Office should use confidentiality agreements to protect from unauthorized disclosures of information disclosed to claimants.

The regulations are proposed to apply to information submitted on or after the date the final regulations are published or to claims that are open on that date. However, Prop. Regs. Sec. 301.7623-4 is not proposed to apply to claims under Sec. 7623(a) that are open on the date the final regulations are published, so that the IRS can continue to apply consistent rules to open claims under Sec. 7623(a). The IRS also requested comments on these proposed effective dates.

Need Experianced Advice and Representation on Making a Sucessful Whistleblow Claim?

Contact the Tax Lawyers at Marini & Associates, P.A. for a FREE Tax Consultation at or or Toll Free at 888-8TaxAid (888 882-9243).




Tuesday, December 18, 2012

Switzerland to Stop Individuals from Depositing UNTAXED Funds in Swiss Accounts.

Swiss government has prepared draft regulations intended to stop individuals depositing untaxed funds in Swiss bank accounts or other financial instruments. 

The federal finance ministry announced plans for new ‘enhanced due diligence’ requirements in a consultation document published in February this year. The draft code has now been written to take into account criticism from the banking sector and others, and will be published in full in the new year.

The Federal Council wants to prevent banks and other financial intermediaries from accepting untaxed assets with enhanced due diligence requirements.
In its meeting on December 14, 2012, the Federal Council instructed the Federal Department of Finance (FDF) to submit a corresponding consultation draft at the start of 2013. The content of the consultation draft and its schedule should be in line with the implementation of the revised FATF Recommendations. At the same time, the Federal Council took note of the FDF's appointment of a group of experts which is to draw up the basis for the longer-term orientation of the financial market strategy.
The Federal Council is stepping up its efforts to combat abuses in the area of money laundering and taxation. With the planned implementation of the revised recommendations of the Financial Action Task Force (FATF), serious tax offences will be qualified as predicate offences for money laundering in future. In the event that they suspect money laundering, financial intermediaries should also report these cases to the Money Laundering Reporting Office Switzerland.

Within the scope of the due diligence requirements to prevent the acceptance of untaxed assets, it is envisaged that the financial intermediary will be able to request a self-declaration from clients on the fulfilment of their tax obligations. The self-declaration will serve as an indicator of the tax-compliant conduct of the client. However, there is no self-declaration obligation.

However, the proposals will not require banks to obtain undertakings from all clients that their assets are properly taxed. Instead, each bank will apply due diligence procedures it considers appropriate to the money laundering risk posed by each individual client. Banks can devise their own codes of practice for this purpose, though they will have to comply with overall regulations set by the supervisory authority FINMA.

Financial institutions will beauthorised to request a self-declaration from clients on their tax compliance, but there will be no obligation on clients.
Undeclared Income from a Swiss Bank Account?
Contact the Tax Lawyers at Marini & Associates, P.A. for a FREE Tax Consultation at or or Toll Free at 888-8TaxAid (888 882-9243).



Friday, December 14, 2012

An Interview with Jon McBride and the Hidden Facts behind his FBAR Judgment!

Anthony Parent's post FBAR Defendant Jon McBride warns others to come clean regarding his interview with Jon McBride about the facts surrounding his FBAR penalty judgment is worth reading.

What he did could have happened to anybody. Victimized in a ponzi-scheme, he claims the IRS taxed him on income he never received. And then because he represented himself at audit, that process did not go so well.

Even though McBride had no control to distribute money from foreign accounts, the court held that his "tacit control" was tantamount to "actual control," thus the FBAR penalties were appropriate.

Jon"s advice to anyone who hasn't come clean: OVDI is a "no-brainer," he says.

If you have Un Reported Income from Foreign Bank Accounts, contact the Tax Lawyers at Marini& Associates, P.A. for a FREETax Consultation at or or Toll Free at 888-8TaxAid (888 882-9243).

Monday, December 10, 2012

IRS SFR Unit Not Accepting International Case Closures

In SBSE-05-1112-086, Scott Reisher, Director, Collection Policy, instructed the ASFR unit not to currently accept international standalone case closures. This memorandum indicates that all cases meeting Automatic Substitute For Return criteria (ASFR), will be referred to IRS's campus in Memphis, Tenn.

The ASFR Unit is currently not accepting international standalone del ret closures under IRM All Cases meeting ASFR criteria under IRM will be referred to the Memphis Campus.

In the interim, international revenue officers should follow the closing instructions under IRM and select the "Exam Referral" option listed below:

1. Select "Exam Referral" on ICS to close the ICS Del Ret module(s)

2. Document the total IRP amount(s) for each tax year in the ICS history

3. Document the reason for not using ASFR referral in the ICS history

"ASFR International block"

4. Prepare a secure email "e-referral" to the Memphis campus using the email address


5. Use "HINF-SFR" as the subject of your email

6. Include the following in your email message

Subject: HINF-SFR

Taxpayer’s TIN: NNNNNNNNN (no dashes)

Have and International Collection Problem?

Contact the Tax Lawyers at Marini & Associates, P.A. for a FREE Tax Consultation at or or Toll Free at 888-8TaxAid (888 882-9243).


Amazon's Billion Dollar Tax Dodge.

LUXEMBOURG, Dec 6 (Reuters) - In 2005, Amazon rented a historic five-story building in Luxembourg's Grund quarter, right at the bottom of a steep rock-walled valley below the old town. By setting up in Luxembourg, and channeling sales through its units there, the world's biggest online retailer could minimize corporate taxes.

Amazon's Luxembourg arrangements have deprived European governments of hundreds of millions of dollars in tax, as reported in European newspapers. But a Reuters examination of accounts filed by 25 Amazon units in six countries shows how they also allowed the company to avoid paying more tax in the United States, where the company is based.

Amazon revealed last year that the U.S. Internal Revenue Service (IRS) wants $1.5 billion in back taxes. The claim, which Amazon said it would "vigorously contest", is linked to its foreign subsidiaries and payments made between them.

In effect, Amazon used inter-company payments to form a tax shield for the group, behind which it has accumulated $2 billion to help finance its expansion. This special report tells the story of how Amazon set up the shield, and how it works.

The case highlights the way multinationals reduce their taxes by parking intellectual property in tax havens and charging affiliates big fees for using it. Politicians in rich countries are beginning to target such practices, which have been used by other multinationals including Google and Microsoft.

For Amazon's tax-free money-making machine to work, it had to show it had more than a nameplate in Luxembourg.

To benefit from favorable taxation, the Grand Duchy says firms "must ensure that they give adequate substance to their presence in the country in terms of both logistics and staff." At the end of 2005, Amazon had just a dozen staff there. If tax departments around the continent were to recognize the arrangement, Amazon needed a meaningful corporate presence.

In February 2006, it transferred ownership of its UK, German and French businesses to Amazon EU S.a.r.l., and ownership of its UK and French web domains to Amazon Europe Holding Technologies. It also moved some U.S. executives to Luxembourg, hired more locals and began to call Amazon EU its European headquarters.

Filings show that in December 2006, the group relocated its Luxembourg operating units into the rented building on Plaetis Steet, a stone's throw from the English and Irish bars that prompt the city-state's tourist office to describe the Grund and neighboring Clausen as the "Headquarters of Luxembourg's night life."
At home in the United States, though, the Internal Revenue Service seems unconvinced.

Amazon disclosed in April 2011 that the IRS wanted $1.5 billion in unpaid taxes and fines. It has declined to say exactly what transactions the charge relates to but said it was linked to "transfer pricing with our foreign subsidiaries" over a seven-year period from 2005.

"We disagree with the proposed adjustments and intend to vigorously contest them," Amazon said at the time. "If we are not able to resolve these proposed adjustments ... we plan to pursue all available administrative and, if necessary, judicial remedies."
Want To Know If Your Tax Plan Is Actually A Tax Dodge?
Contact the Tax Lawyers at Marini & Associates, P.A. for a FREE Tax Consultation at or or Toll Free at 888-8TaxAid (888 882-9243).

Tuesday, December 4, 2012

Switzerland Agrees to US FATCA Implementation!

Switzerland has agreed to comply with U.S. disclosure rules on offshore accounts controlled by Americans set for 2014, Swiss president Eveline Widmer-Schlumpf said on Tuesday.

"We have initialled the agreement," Widmer-Schlumpf said in parliament in response to questions from lawmakers, without providing further details.

The agreement, which will come up for final government approval in January, would reconcile Swiss secrecy rules with U.S. disclosure demands under the Foreign Account Tax Compliance Act (FATCA) enacted in 2010.

The act requires foreign financial institutions to tell the U.S. Internal Revenue Service about Americans' offshore accounts worth more than $50,000.

Widmer-Schlumpf denied a link between initial agreement on FATCA and separate, ongoing discussions aimed at ending U.S. probes into 11 banks suspected of helping clients dodge U.S. taxes with offshore bank accounts.

Are you a US Person with UNREPORTED INCOME from a Foreign Bank Account???  

Have FATCA Problems???

Contact the Tax Lawyers at Marini & Associates, P.A. for a FREE Tax Consultation at: or or Toll Free at 888-8TaxAid (888 882-9243).



IRS - New Program Targets Underreporting by Form 1099-K Taxpayers

The IRS launched a New Compliance Program targeting the underreporting of income by Merchant taxpayers who receive Form 1099-K information returns from credit card companies and third-party transaction networks.     

If you receive a letter or notice from the IRS, it will explain the reasons for the correspondence (Audit) and provide instructions. The notice you receive covers a very specific issue about your account or tax return.
Generally, the IRS will send a notice if it believes you owe additional tax or if there is a question about your tax return.
If you received one or more of these letters and notices because you may have underreported your gross receipts. This is based on your tax return and Form(s) 1099-K, Payment/Merchant Cards and Third Party Network Transactions that show an unusually high portion of receipts from card payments and other Form 1099-K reportable transactions.
It is very important that you respond to the IRS!
Here are some tips to help you in addressing the inquiry.
  • Read the notice thoroughly and complete any worksheets.
  • Gather your tax records including the 1099-Ks that you have received and determine if you agree with the notice about the underreporting of gross receipts.
  • Consult your Tax Professional for Assistance.
  • Consult your Tax Professional for Assistance. 
  • Consult your Tax Professional for Assistance.
The IRS uses the information reported from third parties to ensure individuals and businesses meet their tax obligations. The IRS is integrating the new information supplied on the Form 1099-K into a variety of areas, including its compliance efforts, to ensure fairness and address non-compliance.
All 1099-K activities respect taxpayer rights and provide opportunities for taxpayers and Tax Practitioners to offer explanations or corrections, if they receive a notice or audit related to this effort.
The program involves letters and notices going out to taxpayers who may have underreported their gross receipts.
The IRS posted four different letters on its website

  1.   IRS Letter 5035: Notification of Possible Income Reporting

The letters then require different responses. One letter requests that the information be reviewed and IRS be notified if there are inaccuracies and/or a request to complete a Form 14420, Verification of Income.         

Another letter asks the taxpayers to make sure they are fully reporting receipts from all sources, including card, cash, checks, and other sources. This letter also warns that failing to fully account for all income may result in further enforcement action, which may carry additional penalties.

If you have received one of these IRS Letters, contact the Tax Lawyers at Marini & Associates, P.A. for a FREE Tax Consultation at or or Toll Free at 888-8TaxAid (888 882-9243).