Skip to Main Content
 

Niles Elber Comments on "Super Penalty' for Offshore Accountholders With Banks on IRS's Bad Bank List

October 14, 2015, Tax Notes

Niles A. Elber spoke to Bloomberg BNA's Daily Tax Report concerning participants in the Internal Revenue Service's (IRS) Offshore Voluntary Disclosure Program (OVDP) potentially paying a 50% "super penalty" on accounts listed on the agency's bad bank list.  Taxpayers in the OVDP who initially paid a 27.5% miscellaneous penalty will now be required to pay a 50% penalty if they have accounts on the IRS's list of foreign financial institutions or facilitators.  Banks on this list have been publicly identified as being under investigation or as cooperating with a government investigation. Mr. Elber's comments follow a submission made to the IRS by the American Bar Association's (ABA) Tax Section on the IRS's OVDP and Streamlined Programs.  Mr. Elber assisted in the preparation of the submission along with other members of the  ABA Tax Section's Committee on Civil and Criminal Tax Penalties.   For the full story, please visit Bloomberg BNA's Daily Tax Report's website

Excerpt taken from the article.

"If your bank is on the Foreign Financial Facilitators List your miscellaneous penalty is automatically going up to 50 percent all the way across the board," Niles Elber, Caplin & Drysdale member, told Bloomberg BNA Oct. 14.

. . .

"We believe at the end of the day this is unduly harsh," Elber said. "There are different reasons why people come in or don't come in."

. . .

"We believe the IRS should reconsider its position here and allow theoretically barred refunds to offset liabilities in any of the eight years that a taxpayer is required to submit an amended tax return under the OVDP," Elber said.

There should be a balance, Elber said. The IRS isn't adhering hard and fast to the statute of limitations when it comes to accepting late taxes; therefore it shouldn't disallow losses because of a closed statute, he said.

________________________________________________

About Caplin & Drysdale
Having celebrated our 50th Anniversary in 2014, Caplin & Drysdale continues to be a leading provider of tax, tax controversy, and litigation legal services to corporations, individuals, and nonprofits throughout the United States and around the world. We are also privileged to serve as legal advisors to accounting firms, financial institutions, law firms, and other professional services organizations.

The firm's reputation over the years has earned us the trust and respect of clients, industry peers, and government agencies. Moreover, clients rely on our broad knowledge of the law and our keen insights into their business concerns and personal interests. Our lawyers' strong tactical and problem-solving skills - combined with substantial experience handling a variety of complex, high stakes, matters in a boutique environment - make us one the nation's most distinctive law firms.

With offices in New York City and Washington, D.C., Caplin & Drysdale's core practice areas include:

-Bankruptcy
-Business, Investment & Transactional Tax
-Complex Litigation
-Corporate Law
-Employee Benefits
-Exempt Organizations
-International Tax
-Political Law
-Private Client
-Tax Controversies
-Tax Litigation
-White Collar Defense

For more information, please visit us at www.caplindrysdale.com.

Washington, DC Office:
One Thomas Circle, NW
Suite 1100
Washington, DC 20005
202.862.5000
        New York, NY Office:
600 Lexington Avenue
21st Floor 
New York, NY 10022
212.379.6000

___________________________

Disclaimer
This communication does not provide legal advice, nor does it create an attorney-client relationship with you or any other reader. If you require legal guidance in any specific situation, you should engage a qualified lawyer for that purpose. Prior results do not guarantee a similar outcome.

Attorney Advertising
It is possible that under the laws, rules, or regulations of certain jurisdictions, this may be construed as an advertisement or solicitation.

© 2017 Caplin & Drysdale, Chartered
All Rights Reserved.

Related Professionals

Related Practices