With the 2014 tax year FBAR reporting deadline of June 30 quickly approaching, it is important to contemplate the rapid developments of recent months relating to US taxpayers with offshore bank accounts and investments. Swiss banks have disclosed volumes of detailed records about “secret” numbered accounts of US and Los Angeles taxpayers to the IRS. Offshore banks and sovereign tax authorities in almost 100 foreign nations including Russia, China and the Swiss have agreed to comply with the US Foreign Account Tax Compliance Act (FATCA). What does this mean for LA area residents who have offshore bank accounts, investments and assets?
The harshest news is simply this: There are a lot fewer secrets in the world, and the IRS knows more about you financially than you ever thought possible.
You have probably received a letter from your offshore bank requesting US taxpayer identification and information, which will be provided directly to the IRS along with all of your account information and investment activities. Errors, omissions and attempts to secret offshore money and income from IRS tax reporting and associated Foreign Bank Account Reports (FBARs) can now be challenged directly by the IRS, and they will not need help from you in order to prove the pattern of behavior. The risks for LA FBAR taxpayers associated with hiding offshore money and assets include draconian fines and penalties as well as criminal tax evasion prosecution resulting in a jail term.
What Should an LA Resident with Offshore Bank Accounts or Assets Do?
Contact our office to schedule an appointment, or call (800) 681-1295 to begin a conversation about your risks, exposure, as well as your present and future strategies. My name is David Klasing, and as a seasoned tax attorney and Certified Public Accountant with over 20 years of professional tax, auditing, accounting and business consulting experience, I am uniquely experienced and positioned to provide accurate insight into your circumstances. My office provides a single source where you can obtain legal protection, expert tax advice, and the accounting services necessary to come into FBAR compliance. Reduce your financial and legal exposure. We provide direct and substantive answers to the questions that keep you awake at night.
