The End of the Offshore Voluntary Disclosure Program (OVDP)
Since its inception in 2009, the Internal Revenue Service (IRS) Offshore Voluntary Disclosure Program (OVDP) has been available to provide taxpayers with undisclosed foreign financial assets and income in “offshore accounts,” and all required file foreign information returns, an opportunity to square those accounts with IRS before facing serious consequences. Despite the success of the OVDP, the IRS announced that it would be shutting down the program on Sept. 28, 2018.
Supreme Court Clears Way for States to Impose Sales Tax on Online Purchases
In a 5-4 decision, in the case of South Dakota v. Wayfair, the Supreme Court has ruled to overturn a previous decision that had barred states from forcing online retailers from collecting state sales tax, unless the retailer had an actual physical presence in the state. In light of the Court’s decision it is likely that all states will now enact some kind of legislation to impose sales taxes on online retailers.
Join MBAF for a one-of-a-kind live seminar featuring CRA expert, Kenneth H. Thomas, Ph.D. As consumer behavior, technology advances, and community needs have evolved, CRA reform is in motion. Our seminar will provide key takeaways on what banks need to know about the modernization and revamping of CRA and what it means for the banking industry.
Clients and friends of MBAF will receive a special code for complimentary registration.
Supreme Court Rejects Review of Recent FBAR Ruling
Failure to file a complete and correct FBAR can result in severe fines, and even criminal charges. According to the IRS, “those who fail to properly file a complete and correct FBAR may be subject to a civil penalty not to exceed $10,000 per violation for non-willful violations that are not due to reasonable cause. For willful violations, the penalty may be the greater of $100,000 or 50 percent of the balance in the account at the time of the violation.”
Banking Agencies Issue Final Rules on Commercial Real Estate Appraisal Threshold
The three major banking regulatory agencies — The Board of Governors of the Federal Reserve System, the Federal Deposit Insurance Corporation, and the Office of the Comptroller of the Currency — announced the issuance of a final rule that will increase the threshold for commercial real estate transactions requiring an appraisal from $250,000 to $500,000. Why the need for a new threshold amount?
Consumers who are planning on ordering a sofa from Overstock, or a new patio set from Wayfair, may end up paying sales tax on these purchases. In a 5-4 decision, in the case of South Dakota v. Wayfair, the Supreme Court has ruled to overturn a previo ...
Some taxpayers may not be aware that the IRS has raised its interest rates for the calendar quarter which began April 1, 2018. According to the agency, current interest rates are: 5% percent for overpayments [4% in the case of a corporation] 2.5% for ...
One of the perhaps lesser known provisions of the Tax Cuts and Jobs Act of 2017, which could be very beneficial to real estate investors and high net worth individuals, was the establishment of Qualified Opportunity Zones. Under the new law, investme ...