The US Foreign Account Tax Compliance Act (FATCA) has brought substantial risk and criminal tax exposure to LA taxpayers with foreign bank accounts, investments or assets. Most account holders have received letters from their offshore banks asking for detailed tax identification, and in some cases recommending participation in the IRS Offshore Voluntary Disclosure Program (OVDP) or even the streamlined program option.
There are two clear messages for US taxpayers with foreign accounts, investments and assets:
- You should not take tax or legal advice from an offshore bank, and
- The threat of FBAR related penalties, interest and criminal tax evasion charges is genuine and powerful
The US Department of Justice (DOJ) and the IRS have established the perfect cross-reporting strategy pitting US taxpayers against the very offshore institutions that have helped to shelter their money and income for the past several years. US taxpayers in Los Angeles are required to complete the Foreign Bank Account Report or FBAR (FinCEN Report 114) by June 30, presenting the IRS with detailed information on their accounts abroad. The DOJ can use this information against the offshore financial institution to force them to agree to resolution under the Department’s Swiss Bank Program or FATCA initiatives.
Foreign banks, financial institutions and sovereign tax authorities in almost 100 nations have agreed to provide the IRS with detailed information on specific individual US taxpayers, detailing their accounts, balances, activities and other information that the IRS can use to pursue those taxpayers for FBAR violations and in many cases criminal tax evasion.
If you live in the Los Angeles metropolitan area we invite you to contact our office or call (800) 681-1295 to discuss your unique circumstances with an experienced, seasoned LA FBAR and Tax attorney. Learn about the actions you are required to take, the genuine risks you face, and the strategies that will protect your interests from this point forward. Ask about the protections of the “attorney-client privilege” and how this legal defense can help to further protect your information from the IRS.
