WHAT IS THE MAXIMUM I AM LIKELY TO PAY IF I MAKE A VOLUNTARY DISCLOSURE RELATED TO MY FOREIGN ACCOUNT IN ORDER TO LIMIT MY EXPOSURE TO CRIMINAL PROSECUTION?
Tax advisors in general simply do not know how aggressive the IRS will be in imposing the FBAR penalties delineated above against taxpayers making a voluntary disclosure after October 15, 2009 at this point. However in cases where taxpayers have been indicted for failure to disclosure foreign bank accounts and failure to report related income, the highest FBAR penalty imposed to date has been 50% of the highest value of the offshore account in the last 6 years, along with fraud penalties on the unreported income (75% of the additional income tax due on the amended returns).
The Tax Law Offices of David W. Klasing cannot guarantee that the IRS will stay in this range, but it is seems logical that a taxpayer coming in under a voluntary disclosure should not incur a higher penalty than someone who was found and prosecuted by the IRS before any voluntary disclosure was made. Our office also does not expect that the IRS will offer the previously available 20% penalty, since this was offered under the program that expired on October 15 2009, and the service is not likely to treat those that make delinquent voluntary disclosures the same as those that made them timely.
Contact my office to schedule a reduced rate initial consultation to discuss your FBAR and voluntary disclosure concerns and how I can be of assistance. When you call, you will speak directly to me, not a paralegal or assistant, to get the experienced answers you need.