As the content above establishes, there is no longer any offshore banking secrecy available and detection of US taxpayers with previously undisclosed foreign accounts is just a matter of time. The IRS is dead serious about going after tax cheats using foreign accounts. Thousands of taxpayers that failed to take advantage of last year’s FBAR Voluntary Disclosure program that offered a temporary reduction of penalties in exchange for the disclosure are currently scrambling to seek advice on how to avoid sanctions which include criminal prosecution, seizure of all or a portion of their foreign accounts and other civil penalties.
This is a complicated matter and you need expert tax representation from professionals with specific expertise and experience with offshore tax evasion defense. Taxpayers with previously non-declared and non-compliant foreign accounts have no practical choice but to come forward and make a Voluntary Disclosure to avoid criminal prosecution. In each reincarnation of the Offshore Voluntary Disclosure Program the offshore penalty has increased starting at 20% and climbing to its current level of 27.5%. The IRS reserves the right at any time to suspend its current program and increase the penalty rate. There is no guarantee the rate will go down, and if the trend proves consistent, it will increase. Therefore, the is no advantage to playing the “wait and see game.” The only way to be sure of the consequences is come forward sooner rather than later.
If you have funds overseas, and have not yet disclosed them to the IRS your only prudent move is to approach the IRS with the issue before they approach you. I recommend that a Voluntary Disclosure only be made by legal tax counsel, experienced in offshore compliance with proven I.R.S. negotiation skills. The Tax Law Offices of David W. Klasing will approach the I.R.S. on your behalf, negotiate with the IRS Criminal Investigations Division to avoid criminal prosecution for your previous non-compliance and attempt to reduce fines and penalties where appropriate.
We will work with your current CPA or tax preparer to get you into current compliance and to properly amend your previous tax returns and file your delinquent FBAR’s. While fines and penalties are bound to be significant, I.R.S. criminal prosecution can definitely be avoided. We have a very successful track record in making voluntary disclosures with the I.R.S. in all versions of the Offshore Disclosure Program and have clients that have successfully seen this issue through from Voluntary Disclosure through closing agreement without being criminally charged even where they were criminally culpable prior to making the Voluntary Disclosure because of their pattern of noncompliance surrounding a foreign account.