The offshore focus of the US Treasury Department and the IRS is well documented, and many questions remain for those who have either yet to take action to come into compliance with IRS FBAR and offshore reporting or for foreign nationals who may not have realized the requirements. Our office has worked with many local professionals and business owners who are residents of the US, but who still retain offshore accounts or assets. Many were not familiar with FBAR requirements and most are asking about the Streamlined Domestic Offshore Procedures, and the Streamlined Foreign Offshore Procedures under the OVDP that allow compliance with greatly reduced financial exposure.
The good news for many of these US taxpayers is its not too late to come into compliance through either streamlined option. For expats and US taxpayers who live offshore the Streamlined Foreign Offshore Procedures may provide a path to compliance with little or no penalty. The 5% penalties under the Streamlined Domestic Offshore Procedures are still far less than the 27.5% penalties under the standard OVDP, or the 50%+ penalties and criminal tax exposure faced by those who willfully used offshore strategies to avoid paying US taxes.
The key is to take action. We invite you to call the experienced domestic and international tax attorneys at Allen Barron for a free consultation at 866-631-3470. We will help you to understand reporting requirements for the IRS and the State of California. We will work with you to document your interests, and to answer the comprehensive questions posed by the forms associated with the Streamlined Domestic Offshore Procedures and its foreign counterpart. The information a US taxpayer must disclose to the IRS under these programs is quite extensive. Your answers must be carefully structured with an eye toward future litigation, IRS investigation and your own personal best interests. Together, we will bring you into compliance with IRS FBAR reporting requirements and FATCA guideline disclosures.