If you have undisclosed foreign bank accounts, you face possible criminal charges and punishing penalties. Only an attorney can represent you!
The IRS began it’s Offshore Voluntary Disclosure Initiative in 2009 to force taxpayers and offshore banks to disclose all accounts exceeding ten thousand dollars or face criminal charges and massive civil penalties. Due to it’s success, they have leaned on it heavily in recent years as one of the most powerful ways to collect the billions of dollars hiding in overseas accounts.
Rules for coming forward with an unreported offshore bank account are very clear: only an attorney can represent you! As this program is relatively new, and incredibly complex, it requires a deep understanding of the process to yield strong results and protect the taxpayer. With a strong defense, those with unreported foreign bank accounts can:
- Avoid prosecution
- Lower penalty rates
- Limit exposure to civil penalties
- Become compliant
- Avoid disclosing your offshore financial institution
- Resolve your case and avoid further examination
- Apply at anytime
Those wishing to comply may do so at anytime–there is no deadline. However, the IRS could decide to end the three-year-old program entirely at any point, so it is important to act now and bring closure to the process. Applying also requires that you have elected an Attorney to represent you. Hiring a Tax Attorney helps avoid further probing, penalties and prosecution by the IRS. Our partners have helped bring clients in the OVDP back to compliance in order to meet all provisions and settle their tax liability.
FATCA – Foreign Account Tax Compliance Act
The objective of FATCA is the reporting of foreign financial assets; withholding is the cost of not reporting. U.S. individual taxpayers must report information about certain foreign financial accounts and offshore assets on Form 8938 and attach it to their income tax return, if the total asset value exceeds the appropriate reporting threshold. To avoid being withheld upon, a foreign financial institution may register with the IRS, obtain a Global Intermediary Identification Number (GIIN) and report certain information on U.S. accounts to the IRS.
Our tax partners and attorneys begin the declaration of offshore banking by collecting previous federal income tax returns covered by the OVDP disclosure. They will then amend these returns and report additional income, including the absent or amended FBAR. This immediately suspends liabilities and Title 26 penalties until the process is complete. This time allows your team to reach a settlement with the IRS. Good faith arrangements are then made with the IRS to pay in full any remaining tax, interest, and penalties before reaching a closing agreement.
As with the 2009 OVDP and 2011 OVDI, the 2012 OVDP brings taxpayers with undisclosed foreign accounts who have evaded tax liabilities in the past to come in compliance with United States tax laws. This program was offered as an incentive for those hoping to reduce their limited civil and financial penalties. It has also proved to be a great way to raise revenue for the IRS. According to the IRS, “the 2012 OVDP has a higher penalty rate than the previous program but offers clear benefits to encourage taxpayers to disclose foreign accounts now rather than risk detection by the IRS and possible criminal prosecution.”
A penalty for failing to disclosing financial offshore transfers, gifts, trusts, interests, returns file the FBAR can be as high as the greater of $100,000 or 50 percent of the total balance of the foreign account per violation.
Get Defended By An Attorney
Offshore and foreign banking issues are becoming more and more complex as the IRS ramps up their efforts to collect this unreported income. By hiring a seasoned tax attorney with experience in these matters you better leverage your rights for a fair and just outcome, while avoiding criminal charges and sky-high penalties.
If you’re in need of fast and effective help with your offshore banking issue, call 888-857-4999 now for a free consultation or fill out the form to your right.