Late filing FBARs

Technical topics regarding tax preparation.
#1
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I saw this link provided by TaxMonday in another thread.

https://www.natlawreview.com/article/wh ... -financial

Thank you to TaxMonkey. I have never read an article that has discussed 'quiet disclosure' in such details.

I think the author's opinion is that 'quiet disclosure' should be considered if and only if all income has been reported and all taxes have been paid in the original filed tax return.

Now I have a prospective new client who has owned an foreign account for many years but has never reported it before. Now she wants to go with the 'quiet disclosure', amends the last 6 years of tax return and files the last 6 years of FBAR. But she also has unreported rental income (from an oversea rental property) that has to be included in the amended returns though. Because of that, I think 'quiet disclosure' should not be used.

What about if she insists on doing the 'quiet disclosure'. As the tax returns preparer, are we exposed to any liabilities by going with her wish to use 'quiet disclosure' because of her own insistence even after we have explained to her that it is not an advisable option in her case?
Last edited by TaxItRight on 20-Sep-2018 9:10pm, edited 1 time in total.
 

#2
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Professional opinion - don't cross that line.

Let the client seek a legal opinion on this with someone who deals with this subject. Don't prepare any individual tax returns until you have a hard copy of that legal opinion in you hands.

Otherwise, let the "new" client walk.

Also suggest that the attorney prepare all of the FBAR returns and take whatever liability associated with that off your desk - not worth the billings.
 

#3
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Thank you Michael.

Your opinion is actually exactly what I have done. I have referred her to go to see an attorney when she met me. I called her today and wanted to explain to her why 'quiet disclosure' is not an advisable option in her situation and that she should use 'voluntary disclosure'. She did not pick up the phone though. I can just hope she will start the voluntary disclosure process immediately since it is being closed in a few days.
 

#4
skassel  
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The article you cited is 3 1/2 years old and isn't really relevant today.
Steve Kassel, EA
 


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