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Maintaining a medical practice is becoming increasingly challenging from a financial standpoint. There are so many details to keep track of, and they are constantly evolving. Urbach and Avraham is proud to offer a free comprehensive physician’s financial checklist to help with this task. Our checklist, which is geared to the sole-practitioner as well as to larger medical practices, will help you:
To view our physician’s checklist, click here: Physician’s Financial Checklist
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Congratulations to Claire Snow on her well-deserved designation as a Certified Public Accountant (CPA). Claire passed all four sections of the CPA exam on the first sitting. As an integral member of the Urbach & Avraham team for the past 7 years, Claire has continually refined her tax and accounting skills. Clients from a wide range of industries have benefited from her expertise, including medical and health care practices and staffing agencies.
Claire, who is also a Certified Fraud Examiner, has applied her forensic accounting abilities in the reconstruction of books and records, and has frequently prepared court accountings for executors, trustees and guardians. Her unique expertise and experience is reflected in the outstanding success of the U&A tax and forensic teams.
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Two recent verdicts involving unreported foreign asset reporting highlight the same moral: do the right thing (or go to jail).
In one case, Michael Canale, a physician, pleaded guilty in New York federal court last December to willful failure to notify the IRS about Swiss bank accounts that in 2010 held nearly $1.5 million. While acknowledging that Canale “made a serious mistake,” attorney Robert Fink wrote that his client inherited the account from his father, who gave orders to keep it a secret. The defense lawyer characterized Canale as “a genuine American hero, who served his country selflessly as a combat military doctor”. The Manhattan U.S. Attorney’s office argued, however, that he evaded at least $216,000 in federal taxes on income form the Swiss accounts and “he could have, at any time, ceased his criminal conduct by disclosing the account or even simply closing the account.” Canale was sentenced to six months in federal prison, fined $100,000, ordered to pay more than $216,000 in restitution and perform 400 hours of community service. [Read more…] about Reporting Foreign Assets: It Pays to do the Right Thing
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The FBAR: Who Should File?
Do you have income overseas you forgot to report? Did Grandpa leave you his foreign bank account when he passed away? If you have foreign bank accounts holding more than $10,000 in the aggregate anytime during the year, you are required to file an FBAR (Report of Foreign Bank Accounts) by June 30th of the following year. It doesn’t matter whether the foreign accounts generate income or not; just owning them, or having signature authority, requires you to file.
What’s the Big Deal?
Failure to file can result in serious consequences. The sanctions for not completing the FBAR include numerous severe civil penalties and potential prosecution followed by a term in federal prison.
New in 2011: Form 8938
Beginning in 2011, the IRS has added Form 8938 to the individual 1040 tax return, further tightening the noose on taxpayers failing to report ownership of overseas accounts.
If you fail to file Form 8938 or fail to report a specified foreign financial asset that you are required to report, the statute of limitations for the tax year may remain open for your income tax return (Form 1040) until three years after the date you file a complete and accurate Form 8938.
What Can I do Now?
In order to encourage taxpayers to correct previously filed returns that were false, or to remedy past failures-to-file tax returns, the IRS created in the early 1950s the “Voluntary Disclosure Policy” – a policy under which no criminal prosecution will be initiated if the taxpayer comes forward before the IRS is onto
him. In 2009, as the IRS became aware of increased offshore tax abuse, it initiated the formal Voluntary Disclosure Program for offshore accounts. While making a voluntary disclosure doesn’t guarantee immunity from prosecution, taxpayers making truly valid disclosures are rarely, if ever, prosecuted.
Time is Running out
It’s important to realize that the Voluntary Disclosure Program essentially sets up a race between you and the IRS. In order to avoid criminal prosecution you must come forth before the IRS comes knocking, so time is of the essence. Many experts are expecting dozens of banks worldwide to turn over the names of U.S. taxpayers within the next year, including Credit Suisse Group, Julius Baer Group, HSBC Holdings, and the three Israeli banks, Bank Hapoalim, Bank Leumi, and Mizrahi-Tefahot.
Better Safe than Sorry
While the current voluntary disclosure program is currently running indefinitely, the rules can change at any time. The FBAR penalty has been raised in 2012 to 27.5% of the largest balance during the period covered by the voluntary disclosure. Sounds like a steep price to pay? The penalties are far greater if you don’t “get with the program” and then get caught. In addition, disclosing now allows you to transfer the money to your American accounts as well as to implement gifting and other estate planning strategies. Finally, for a “Get Out of Jail Free Card” it’s a pretty good deal. Now you will be able to sleep at night!
by Admin
Jeffrey Urbach has been chosen by the NJ Councl of Collaborative Law Practice Groups to testify at a hearing on the Uniform Collaborative Law Act. The hearing, being held by the NJ Law Revision Commission, will take place on Thursday, February 21. He will testify regarding the role of the Financial Neutral, as well as discuss how financial Discovery is handled in a Collaborative Divorce setting. Jeff is permanent seat holder on the Council, and co-founder and Treasurer of the Mid-Jersey Collaborative Law Alliance.
Jeff has over 100 hours of formal mediation training and is on the NJ Roster of qualified economic mediators. His areas of specialty include business valuation, gifting/retirement planning, and healthcare practices (financial management, benchmarking, and valuation of practice).