The IRS OVDP ends in 18 days as the IRS ramps up to pursue tax evaders. For all US taxpayers with unreported offshore bank accounts, deposits, investment accounts, real estate and other assets this important deadline is fast approaching. The consequences for failure to comply with US tax laws will be severe.
If you have $10,000 in any singular account, or in the accumulated balances of several offshore bank or investment accounts and/or assets you are required to file the FBAR report with the IRS. The IRS FBAR requires US taxpayers to report lists all offshore assets including:
- Deposit, Checking, Savings or Trust Accounts
- Business Financial Accounts
- Investment Accounts
- Real Estate
- All Other Tangible Assets
The IRS OVDP ends in 18 days and the failure to understand your responsibilities as a US taxpayer under the law is no excuse to the IRS. The agency considers this to be “willful blindness.” The IRS has repeatedly stated over the years “If you are sophisticated enough to have at least signatory influence over any foreign account you have the capacity and responsibility to understand and apply US tax code.”
The penalties are extremely harsh. Failure to report accounts results in penalties of up to 50% of the highest balance in each account for each year, as well as exposure to criminal charges for tax evasion which carry a $500,000 fine and up to 10 years in prison. The Offshore Voluntary Disclosure Program or OVDP provides the safest and most protective route to FBAR compliance.
Many taxpayers believe “I’m too small of a fish – the IRS will never find out about me.” It is important to understand that the vast majority of banks, financial institutions and even sovereign tax agencies around the globe provide direct information to the IRS in electronic format under the terms of FATCA. The IRS is probably receiving data directly from your own bank or financial institution which lists all of your accounts, as well as balance and transaction information.
It’s simply a matter of time before the IRS compares this data with your tax return and contacts you for what will be one of the most expensive and frightening experiences of your life – an IRS audit and the threat of criminal charges and prison.
The IRS OVDP ends in 18 days as the IRS ramps up to pursue tax evaders. We invite you to contact us or call 866-631-3470 for a free consultation. Learn how our experienced domestic and international tax attorneys and accounting professionals can protect your interests and bring you into IRS FBAR compliance.