If you have offshore accounts, investments or assets and have not come into compliance with the IRS, you should contact the San Diego FBAR attorneys at Allen Barron, who will provide guidance and insight into your options and help to ensure the best outcome in your case. Which voluntary disclosure program should you select to come into FBAR compliance? The IRS has taken an aggressive stance against taxpayers who have attempted to file the streamlined domestic offshore procedures application, claiming “non-willful” conduct as it relates to the reporting and disclosure of offshore income and assets. Recently, the IRS sent back thousands of streamlined applications with a list of “questions” for taxpayers. This came on the heels of a completely overhauled form associated with the streamlined application requiring a much more extensive disclosure of personal information and history, including all education, financial history, travel, tax advice, and investment reasoning.
The safest route for those with significant assets and unreported accounts is the Offshore Voluntary Disclosure Program or OVDP. The OVDP provides a heavier penalty than the streamlined option, but has a much greater chance for IRS acceptance. The failure to disclose offshore assets, accounts and income will lead to a “willful” determination by the IRS exposing the taxpayer to penalties up to half of the account balance at its highest level each year (regardless of its present value), or $100,000 per incidence whichever is greater. The IRS has also turned willful violators over to its Criminal Investigations division for criminal prosecution of tax evasion resulting in jail time.
The international and domestic tax attorneys at Allen Barron have extensive experience in these matters. If you are searching for San Diego FBAR attorneys with the expertise and legal experience to advise you while providing the protections of the attorney-client privilege we invite you to contact us for a free consultation at 866-631-3470.