Taking the “F” Out of FBARNovember 3-8, 2011

A Presentation by:

Offshore Investing

• Benefits of Offshore Investing

• Higher Return on Investment (ROI)

• Mitigate Risk

• Convenience

• Tax Shelters

Offshore Investing

• Failure to comply could:

• Negate profits & result in loss of investment• Deem your activities illegal• Result in large monetary fines (possibly more

than your investments, everything that you have or will have)

• Result in loss of green card• Destroy your legacy

Your Duties

• FBAR (Foreign Bank Account Reports Form TD F 90-22.1)• Penalty

• Reporting Foreign Income Generated from Offshore Financial Institution• Who is Taxed?

• Taxes Covered • Interest Income Generated From Foreign Account• Special Rules for Foreign Mutual Funds

Passive Foreign Investment Company (PFIC)

• What is a PFIC?

• Significance of PFIC Tax

• Avoiding PFIC Rules• QEF Election• Market to Market Election

Liabilities

• Tax Liability Associated With Foreign Account

• Criminal Penalties Associated with Not Disclosing Income• Attempt to Evade the Payment of Tax• Filing of a False and Fraudulent Tax Return

• Civil Penalties

United States (U.S.) Enforcement

• Why and How?

• Bank Summons

• Basler Kantonalbank• Credit Suisse Group AG & Privite Advisors• HSBC• Israeli Bank• Neue Zaercher Bank• UBS AG & Swiss Financial Advisers AG• Bank Hapoalim• Cantonal Banks

• Joint Country Criminal Investigation

United States (U.S.) Enforcement (cont.)

• Government Data/Revenue Collection Programs• OVDI & OVDI II

• Criminal Prosecutions• Charges• Convictions & Pleas

• Civil Enforcement• Audits• 3rd Party Information• Criminal Consequences

United States (U.S.) Enforcement (cont.)

• Immigration Problem

• Deportation• Federal or State Tax Crime• Incarceration • Fines

Unfiled Tax Returns

• Statute of limitations:• Criminal• Civil

• Lost records

• Basis [adjusted cost] of assets sold

What if you can’t pay?

• Additional time to pay

• Installment payment plans

• Offer In Compromise (OIC)

• Bankruptcy• Liquidation [Chapter 7]• Reorganization [Chapters 11 & 13]

What You Can Do!

• IRS Voluntary Disclosure• Amnesty Programs

• State Considerations

• Dual Citizenship Consideration

How We Can Help

• Over 30 years protecting your rights in Tax Law

• Review your accounts

• Help you comply with the law

• Determine best approach to deal with U.S. Government

Contact Information

180 Montgomery Street

Suite 1950

San Francisco, CA 94104

888.829.3325

415.394.7200

www.stevemoskowitz.com