The recent developments for US taxpayers with foreign accounts and assets and the implications of FBAR compliance significantly increases the importance of seeking the insight and protections provided by an experienced tax attorney. Our office is seeing many returns filed under the advice of well meaning professionals who evidently do not fully understand the ramifications of recent developments as they relate to FATCA and FBAR compliance. The risks you may be taking as a result are much higher than you might imagine.
It sounds like good (read: welcome) advice: “just file under the streamlined program and claim it was non-willful. You’ll save a huge amount in penalties and interest.” That advice is based on one major assumption: that the IRS will accept the taxpayer’s declaration of “non-willful” conduct as it relates to prior disclosure and compliance with foreign accounts and assets and the associated FBARs. The IRS is not providing amnesty. They are looking for tax revenue. They are furious over their perception that US taxpayers have actively sought to hide income and assets offshore, and they are looking for any potential reason to not only collect back taxes, but to asses huge penalties and interest. They are also looking to make a criminal example of those who flaunted the system. Ask the Florida man whom they recently jailed even though he is in his 70’s and in questionable health.
The other issue is protection from the IRS. If you speak with a CPA or tax preparer, the IRS can supoena any and all documentation and information you provide to or discuss with that professional. They will use this information against you. As an experienced tax attorney, I am able to extend the “attorney-client privilege” to clients of Allen Barron, as it relates to the sensitive nature and content of these communications and information. We are able to have a complete, substantive and candid discussion based upon what really happened, and then develop the strategy that best balances your appetite for risk, and your potential exposure to not only penalties and interest, but criminal exposure as well.
I invite you to contact us today for a free consultation at 866-631-3470. Learn what the IRS laws and guidelines really say about offshore holdings and tax compliance. Make sure that you have a full understanding of the risks you are choosing to take, while enjoying the maximium protections and security of your own information and interests. Call us at 866-631-3470 today, and we will review your strategies of the past, and the best path forward.
