The Luthmann Law Firm, PLLC is a boutique solo law firm possessing the skills, talents and experience to provide advice and representation to individuals, families, fiduciaries and entrepreneurs in the fields of estate planning, tax and business planning, asset protection and a multitude of ancillary legal areas that satisfy specific client needs. We share the overriding goal of providing the finest personal service to our clients. The Luthmann Law Firm, PLLC is committed to providing quality services to our clients without the prices associated with the "white-shoe firms." We help our clients structure, preserve and grow their holdings while advancing other important goals including privacy, asset protection, charitable giving and legacy building. The goal of the Luthmann Law Firm, PLLC is to enable our clients to preserve their financial security for themselves and firmly establish their legacy for future generations.
Richard A. Luthmann, Esq., the principal attorney of The Luthmann Law Firm, PLLC, has expertise in all areas of tax, asset protection and estate planning, and specifically in international and offshore planning, tax compliance and the IRS Offshore Voluntary Disclosure Initiative. See his recent quote in REUTERS.
NEWS ALERT: JANUARY 9, 2012
IRS RE-OPENS OFFSHORE VOLUNTARY DISCLOSURE PROGRAM
The Internal Revenue Service today reopened the offshore voluntary disclosure program to help people hiding offshore accounts get current with their taxes and announced the collection of more than $4.4 billion so far from the two previous international programs.
The IRS reopened the Offshore Voluntary Disclosure Program (OVDP) following continued strong interest from taxpayers and tax practitioners after the closure of the 2011 and 2009 programs. The third offshore program comes as the IRS continues working on a wide range of international tax issues and follows ongoing efforts with the Justice Department to pursue criminal prosecution of international tax evasion. This program will be open for an indefinite period until otherwise announced.
“Our focus on offshore tax evasion continues to produce strong, substantial results for the nation’s taxpayers,” said IRS Commissioner Doug Shulman. “We have billions of dollars in hand from our previous efforts, and we have more people wanting to come in and get right with the government. This new program makes good sense for taxpayers still hiding assets overseas and for the nation’s tax system.”
The program is similar to the 2011 program in many ways, but with a few key differences. Unlike last year, there is no set deadline for people to apply. However, the terms of the program could change at any time going forward. For example, the IRS may increase penalties in the program for all or some taxpayers or defined classes of taxpayers – or decide to end the program entirely at any point.
The overall penalty structure for the new program is the same for 2011, except for taxpayers in the highest penalty category. For the new program, the penalty framework requires individuals to pay a penalty of 27.5 percent of the highest aggregate balance in foreign bank accounts/entities or value of foreign assets during the eight full tax years prior to the disclosure. That is up from 25 percent in the 2011 program. Some taxpayers will be eligible for 5 or 12.5 percent penalties; these remain the same in the new program as in 2011.
Participants must file all original and amended tax returns and include payment for back-taxes and interest for up to eight years as well as paying accuracy-related and/or delinquency penalties.
Participants face a 27.5 percent penalty, but taxpayers in limited situations can qualify for a 5 percent penalty. Smaller offshore accounts will face a 12.5 percent penalty. People whose offshore accounts or assets did not surpass $75,000 in any calendar year covered by the new OVDP will qualify for this lower rate. As under the prior programs, taxpayers who feel that the penalty is disproportionate may opt instead to be examined.
If you missed 2009 or 2011 OVDI deadlines, feel free to contact us to learn your options.
"I don't want a lawyer to tell me what I cannot do. I hire him to tell me how to do what I want to do."
- J.P. Morgan
The Luthmann Law Firm, PLLC
A Solo Law Practice
Servicing New York
(Servicing New Jersey through Luthmann & Jones, LLC)
Manhattan Office
39 Broadway, 12th Floor
New York, NY 10006
OFFICE: +1-347-270-8502
FAX: +1-347-252-0254
Info@LuthmannFirm.com
Staten Island Office
NY Mailing Address
The Morgan Properties Building
2040 Victory Boulevard
Staten Island, NY 10306
OFFICE: +1-718-667-9090
(Extension 127)
New Jersey
(Through Luthmann & Jones, LLC)
33 Wood Avenue South
Suite 600
Iselin, NJ 08830
OFFICE: +1-732-479-1097
FAX: +1-732-444-5925
