Many readers here, also read Jack Townsend’s Federal Tax Crimes blog. His blog specifically says this:
This blog on Federal Tax Crimes is for tax professionals and tax students. It is not directed to lay readers — such as persons who are potentially subject to civil and criminal tax or related consequences.
However, over the course of the past 3 years he has provided a forum for minnows lay readers to express frustrations and get answers to some very specific questions about “what to do” as many became painfully aware of their non compliance. Frankly I have been amazed at his willingness to provide the time and effort with his responses, knowing how expensive his legal advice and guidance is should you decide to employ him. This is PRO BONO work that borders on “Sainthood” if you believe in that sort of thing! LOL
Recently in response to minnow rants, he has taken a slightly tougher tone to reign in hyperbole and eliminate inappropriate comments. The goal was to keep comments focused to the mission at hand of providing good information to help taxpayers learn from each other, and give guidance where he can. Fair enough!
In response to a lot of discussion related to Shulmans “good riddance” departure, there have been suggestions about writing letters to Congress and the IRS to increase awareness of how misguided the OVDI is in application.
To this end, he has created a specific blog thread to allow those readers who wish to provide comments to Congress and the IRS. This thread is created here.
I do think that Jack has a wide readership inside the IRS as well as amoungst tax practitioners. This might be a good place to make constructive criticism of the IRS program. Every forum should be used, if available, so I encourage those of you to feel capable or willing to post a reasoned argument there. I have not yet posted myself, due to some personal time constraints, but will so in the next couple days. It is not like I have been reticent in the past to express my opinions, as you know.
I would consider Jack’s words of admonition the type of entries one should make. You might disagree, but you get the idea . He discourages rants as it turns off the reader you are trying to reach. He says in response to one ranter…
I am not trying to defend the IRS. I think the program has been poorly conceived (that is a hindsight judgment) and administered (that too is hindsight). All I am trying to say is that minnows should stress not that the program is abusive, but that they should be treated lightly.
Bottom line, I think you can have some effect, but not by calling U.S. democracy a sham or by denying that the conduct — leaving income out of the U.S. return — was not wrong. Individually, you should argue, you have no knowledge or reasonable cause, but the Congress has given the IRS tools to deal with the problem.
Please reformulate your complaints and try to articulate them in a way that the powers that be will be inclined to listen to them and respond.
Thanks, Just Me, for making us aware of this. Good advice and another opportunity for constructive complaint / issues and a way they might be better listened to.
…and that “sainthood” stretches to you in this too, you know. The generosity of you, Jack Townsend, Phil Hodgen, Petros, Roger, Schubert (I don’t want to start naming as I will miss so many) and many others on this have helped us all along our various common, but different, paths.
I am sure Jack and Phil are well paid for them to be able to do Pro Bono. I am sure a significant portion of those DIY OVDI filers turn to him for paid work when running into serious questions or obstacles.
Heck, I would just turn the whole package over to him (and his office) to do an opt-out argument…
I will do my best to come up with something though I probably do not know enough about the program to offer something “new.”
@nobledreamer…
No requirement to post anything. Especially if you are not going that route, have not been impacted, or don’t feel you know enough to offer something new. Those that have been in the programs and experienced its inefficiencies are probably better placed see the negative impacts on compliance and offer up constructive criticism.
Also, I recognize that there are many who don’t like the programs, but don’t want to draw attention to themselves by writing to complain about the administration of some program they are trying to avoid via a QD or just compliance going forward.
However others, who have already taken the OVDI plunge whether for the right or wrong reasons might be well placed to communicate the impacts in a personal way that someone of consequence might read.
Again, all of these efforts are long shots and seem somewhat fruitless endeavors considering the inertia of a bureaucracy that is reticent to change its policies even when they are plainly wrong. However, it is like a buying a lottery ticket, even you know the odds are long against you, you still have to be “in it to win it”. One thing is for certain, if you don’t buy a lottery ticket or if you are silent, there is no absolutely zero chance of winning the game.
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So pleased to see the quote above from Jack Townsend. My thoughts exactly (with the confession that I’m in the same business )
@Carol Sadler
Thanks for the voluntary disclosure! 🙂 It is good to know that other practitioners read here and can lend balance to the conversation. It is an interesting business you are in.
Phil What about securities held in piyahcsl form (such as shares that are not held at a brokerage) ? It seems clear that there is no FBAR reporting requirement. Assume the securities were purchased with post tax income, but have paid dividends. From the FAQ it seems clear that if even one penny was paid in dividends, the shares would be included in penalty calculations. But certainly this story is a good sign (assuming its not just a clueless agent and supervisor who let this get through).
The IRS will need to be at least somewhat roseanable, because they have no way to collect FBAR penalties unless the Department oF Justice thinks its worth their while to bring a lawsuit. So, if you have great facts and the IRS demands 50% FBAR penalties, at some point you need to strongly consider telling them to go fly a kite (unless you prefer more colorful language). Of course, one would want to think long and hard before making that decision.
The Internal Revenue Service is asking for public comment on information collection tools relating to the Offshore Voluntary Disclosure Program, according to a notice in the July 18 Federal Register
Notice Proposed Collection; Comment Request on Information Collection Tools Relating to the Offshore Voluntary Disclosure Program (OVDP)
Action
Notice And Request For Comments.
Summary
The Department of the Treasury, as part of its continuing effort to reduce paperwork and respondent burden, invites the general public and other Federal agencies to take this opportunity to comment on proposed and/or continuing information collections, as required by the Paperwork Reduction Act of 1995, Public Law 104-13 (44 U.S.C. 3506(c)(2)(A)). Currently, the IRS is soliciting comments concerning the Offshore Voluntary Disclosure Program (OVDP).
DATES:
Written comments should be received on or before September 16, 2013 to be assured of consideration.
ADDRESSES:
Direct all written comments to Yvette Lawrence, Internal Revenue Service, Room 6129, 1111 Constitution Avenue NW., Washington, DC 20224. Please send separate comments for each specific information collection listed below. You must reference the information collection’s title, form number, reporting or record-keeping requirement number, and OMB number (if any) in your comment.
FOR FURTHER INFORMATION CONTACT:
Requests for additional information or copies of the collection tools should be directed to LaNita Van Dyke, Internal Revenue Service, Room 6511, 1111 Constitution Avenue NW., Washington, DC 20224, or at (202)622-3215, or through the internet at Lanita.Vandyke@irs.gov.
SUPPLEMENTARY INFORMATION:
Currently, the IRS is seeking comments concerning the following information collection tools, reporting, and record-keeping requirements:
Title: Offshore Voluntary Disclosure Program (OVDP).
OMB Number: 1545-2241.
Form Number(s): 14029, 14438, 14452, 14453, 14454, 14457, and 14467.
Abstract: The IRS is offering people with undisclosed income from offshore accounts an opportunity to get current with their tax returns. Taxpayers with undisclosed foreign accounts or entities should make a voluntary disclosure because it enables them to become compliant, avoid substantial civil penalties and generally eliminate the risk of criminal prosecution. The objective is to bring taxpayers that have used undisclosed foreign accounts and undisclosed foreign entities to avoid or evade tax into compliance with United States tax laws.
Current Actions: There are no changes to the burden estimates previously approved by OMB.
Type of Review: Extension of currently approved collection.
Affected Public: Individuals or households.
Estimated Number of Responses: 456,000.
Estimated Time per Respondent: 1 hour 35 mins.
Estimated Total Annual Burden Hours: 726,500.
The following paragraph applies to all of the collections of information covered by this notice:
An agency may not conduct or sponsor, and a person is not required to respond to, a collection of information unless the collection of information displays a valid OMB control number. Books or records relating to a collection of information must be retained as long as their contents may become material in the administration of any internal revenue law. Generally, tax returns and tax return information are confidential, as required by 26 U.S.C. 6103.
Request for Comments: Comments submitted in response to this notice will be summarized and/or included in the request for OMB approval. All comments will become a matter of public record. Comments are invited on: (a) Whether the collection of information is necessary for the proper performance of the functions of the agency, including whether the information shall have practical utility; (b) the accuracy of the agency’s estimate of the burden of the collection of information; (c) ways to enhance the quality, utility, and clarity of the information to be collected; (d) ways to minimize the burden of the collectionof information on respondents, including through the use of automated collection techniques or other forms of information technology; and (e) estimates of capital or start-up costs and costs of operation, maintenance, and purchase of services to provide information.
Approved: July 10, 2013.
Allan Hopkins,
IRS Reports Clearance Officer.