IRS FBAR audits are heating up as offshore banking and taxpayer information pours into the IRS from offshore banks, financial institutions, investment houses and foreign sovereign tax agencies. The IRS formed agreements with most of the nations around the world as well as hundreds of thousands of banks, investment houses and financial institutions to provide detailed information directly to the IRS regarding their account holders. This information is to include the specific passport or national identification number of the account holders with a “beneficial interest” in any foreign bank or investment account. The US threatened to exclude these institutions from access to US markets and citizens. The information has been pouring in to the IRS ever since.
It’s simply a matter of time for the IRS data systems to analyze the information, identify the returns of those whose FBAR reporting does not match information provided by the offshore financials and just like that – an IRS audit is automatically triggered. At that point you will have no option but to face heavy penalties exceeding 50% of the account balance at its highest point for each year in the 6 to 8 year look-back period (unless the IRS asserts fraud, in which case there is no limitation for look-back). You will also face criminal tax evasion charges carrying additional financial consequences and jail time.
The most recent case revealed a plastic surgeon with less than $3 million in off-shore accounts. The IRS is narrowing in upon all those with unreported offshore accounts – regardless of the size. Allen Barron provides integrated tax, legal and accounting services to bring you into FBAR compliance before the IRS knocks on your door. This will reduce the financial impact to you in many substantial ways.
If you have foreign bank accounts, offshore investments or are a foreign national living or working in the US we invite you to contact us for a free consultation at 866-631-3470. Learn about the protections of the attorney-client privilege and how we help to reduce your exposure while ensuring your risks are lowered while IRS FBAR audits are heating up due to the massive flow of information from offshore financial and tax institutions.