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February 25, 2011 - Phil Hodgen

Real life Voluntary Disclosure Program result from a nonclient

This is from a gentleman who has intermittently emailed me.  He is not a client of the firm.  All individual details from his email have been anonymized but otherwise here’s the story:

Hi Phil.

FYI, we just got hit for $107,150.80, on top of the back taxes and interest and other penalties already paid.

We owed less than 20k in back taxes, already settled, spread over 4 years, and they take 20% of the value of our UK home, that we owned for many years before coming to US, that we sold when we got our Green Card (which at the time we got it, seemed like such a great day….) which is also when we ticked the box to clean up the UK tax side and get the FBARs filed etc…. never, ever did we expect this treatment. It borders on insanity. They would probably have taken my firstborn too, except I don’t have kids ( nor could I now afford them).

We’re devastated. After 7 years in the US we have accumulated about $45,000 of savings. I have no idea where the other $62k will come from. Insane. I also explained (truth) that GBP 20,000 of this money was MY FATHERS that he gave me to look after on behalf of my sister, niece and step sister, to be divided when he died. No interest in that either. What did i expect.

Is anyone listening or no? Is there an FBAR bailout plan like for the banks that ripped off the world? I’m sure not.

Not a BEAN of this is US income. All our US income was taxed in the US. None sent abroad. Not a cent.

Sorry. Rambling.

By the way my spellchecker (put this on your BLOG) comes up with, for FBARs – fears, flares and farce….

So true.

Voluntary Disclosure