The Offshore voluntary disclosure program or OVDP is by far the safest way to come into compliance with offshore bank account, investment and asset disclosure with the IRS FBAR reporting. The 27.5% penalties under OVDP pale in comparison to the growing list of international banks and financial institutions that have been labeled by the IRS as assisting with US tax evasion. Once a bank is on this list, all US account holders are reported to the IRS, and unless they have already filed an OVDP application, the penalty will be 50% (not 27.5%) based upon the highest balance aggregated at any time over a look-back period of 8 years.
The implementation of FATCA has changed international monetary systems, banking, investment and taxation strategies. US taxpayers must come into compliance with FATCA through IRS FBAR reporting and full, honest and transparent disclosure of all offshore investment and bank accounts, assets, real property and ownership interests in foreign corporation. The FBAR must be updated for a period of 8 years to ensure full compliance and to prevent criminal tax evasion prosecution.
Allen Barron is uniquely positioned to provide expert counsel and to help US taxpayers to come into full compliance with IRS FBAR reporting requirements. Our tax attorneys extend the valuable protections of the attorney-client privilege which keeps our client’s information safe from the IRS while we evaluate potential options and submit our reporting to the IRS. We invite you to contact us for a free and substantive consultation at 866-631-3470. It’s not too late to come into compliance and avoid draconian penalties and criminal prosecution.