The IRS continues to increase the pressure on US taxpayers to come into full compliance with FBAR reporting, and to pay the price when they do not. The IRS recently added several new banks to the list of foreign institutions that the IRS has determined to have helped US taxpayers to evade paying taxes.
Some of the entities added in August Include:
- Bank EKI Genossenschaft
- Privatbank Reichmuth & Co.
- Banque Cantonale du Jura SA
- Banca Intermobiliare di Investimenti e Gestioni (Suisse) SA
- Bank Zweiplus ag
- Banca dello Stato del Cantone Ticino
- Hypothekarbank Lenzburg AG
If you had an account with any of these banks, or the other banking and investment institutions on the IRS’ list, you will be required to pay a 50% penalty under the Offshore Voluntary Disclosure Program or OVDP. Those taxpayers who submitted their OVDP application prior to their bank appearing on the list are evidently clear of the 50% penalty, and will only face the 27.5% based on OVDP rules. The real question is this:
What happens to a taxpayer who filed an application under the Streamlined Domestic Offshore Procedures, who has a bank on the IRS list of tax evasion culprits?
The stakes are growing ever higher, and it is more important than ever to come into full compliance with the IRS regarding any offshore accounts, assets or investments. We invite you to contact us for a free “offshore” consultation at 8966-631-3470.
